Prabowo Outlines Economic Goals and Expands State Export Monitoring

Indonesian President Prabowo Subianto delivered an Independence Day address and State of the Nation speech to parliament on August 14, 2026, where he outlined his administration's economic targets and presented the 2027 budget proposal. Prabowo claimed his government implemented 121 transformative policies over 663 days and expressed confidence that the economy could reach 6% growth by year-end, following a first-half growth rate of 5.45%.

A central part of the address focused on Danantara Sumberdaya Indonesia (DSI), a state-run entity designed to monitor strategic commodity exports to prevent under-invoicing. Prabowo announced that DSI will expand its scope to 50 ports and additional commodities, noting that the firm has already overseen $14 billion in exports and identified $5 billion in potential lost proceeds. He clarified that while DSI will centralize sales starting in September, it will not take total control of exports.

Despite highlighting achievements in energy self-sufficiency—including the cessation of diesel imports on July 1—Prabowo acknowledged that not all campaign promises have been fulfilled. His administration faces a depreciating rupiah, a struggling stock market, and a drop in approval ratings to 51%. While the president defended the Free Nutritious Meals program, the initiative has faced budget cuts and reports of food poisoning affecting 269 students in North Sumatra. Investors remain cautious as the national fiscal deficit approaches the 3% constitutional ceiling.