(MENAFN) When Prabowo Subianto campaigned for Indonesia’s presidency, he promised sweeping economic reforms, dynamic growth, and transformative social policies. Yet, after a full year in office, his ambitious platform has met harsh realities, exposing structural challenges in Southeast Asia’s largest economy and testing public confidence.

Public discontent erupted in August when young Indonesians protested soaring living costs, entrenched corruption, and widening inequality. The demonstrations, which left 10 dead, forced the government to roll back controversial perks for politicians that had triggered widespread anger. Earlier protests also targeted cuts in healthcare and education budgets, highlighting the fragile balance between ambitious government programmes and public expectations.

Compounding social tensions, Prabowo’s flagship free school meals programme—costing $28 billion annually—has faced serious setbacks. Intended to combat child malnutrition, improve educational outcomes, and stimulate domestic demand, the scheme instead saw mass food poisoning incidents affecting more than 9,000 children since its rollout in January. Images of weak, dehydrated children, some hooked up to intravenous drips, have sparked criticism over oversight and safety. Critics argue the programme strains public resources while raising concerns over its actual efficacy.

Indonesia’s $1.4 trillion economy faces multiple pressures. Slowing global demand, rising living costs, and competition from neighboring countries like Vietnam and Malaysia—both of which are attracting significant foreign investment—pose structural challenges. Although the economy has sustained roughly 5% annual growth in recent years, analysts warn that ambitious policies, if poorly implemented, could undermine fiscal stability.

Prabowo and his ministers continue to defend their policies, highlighting their long-term vision. The president has set an ambitious target of 8% growth by 2029. Coordinating Minister for Economic Affairs Airlangga Hartarto told a media outlet, “We have an experience of growing beyond 7%. So... Indonesia knows that higher growth is achievable. But of course, we have to see the global economics and the global trade.”

Realizing these targets requires careful management of public finances and effective foreign investment. A new sovereign wealth fund, Danantara, is focusing on high-impact projects in renewable energy, advanced manufacturing, and strategic infrastructure. Adam Samdin from Oxford Economics noted that such initiatives could help accelerate growth, provided they are implemented efficiently.

However, the free school meals programme highlights Indonesia’s logistical and operational challenges. With over 6,000 inhabited islands, ensuring safe and timely delivery of meals is inherently difficult. Limited refrigeration transport, tropical heat, and reliance on third-party contractors make oversight and food safety enforcement challenging. Health-focused NGOs have urged the government to halt the programme until safety can be guaranteed, while officials defend the scheme, noting that 30 million children have benefited in just 11 months—a faster rollout than Brazil, which took 11 years to reach 47 million beneficiaries.

The controversy around the programme underscores broader issues in public spending, administrative capacity, and infrastructure gaps. Analysts warn that missteps in these flagship initiatives risk public trust and could constrain Indonesia’s long-term economic ambitions.

Despite these challenges, Prabowo’s administration insists that its policies are investments in the country’s future, designed to create jobs, stimulate demand, and build human capital.

The first year of Prabowo’s presidency thus paints a mixed picture: ambitious goals confronted by operational realities, public protests, and emerging health crises. With the eyes of a population of over 280 million people on him, the president’s ability to balance fiscal discipline, social programmes, and economic growth will be critical in shaping Indonesia’s trajectory over the next decade.

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