Prabowo touts Indonesia’s economic growth and investment gains in State
of the Nation address
[August 14, 2026] By
NINIEK KARMINI
JAKARTA, Indonesia (AP) — President Prabowo Subianto on Friday touted
Indonesia’s strongest first-half economic growth in more than a decade,
saying the country could achieve 6% growth by the end of this year
despite global uncertainty, while stressing that economic expansion must
translate into jobs and higher living standards.
In his annual State of the Nation address before members of the
Parliament in the capital Jakarta, Prabowo said Southeast Asia’s largest
economy grew 5.61% in the first quarter this year and 5.45% in the first
half of the year.
“This is the highest first-quarter and first-semester growth in the last
13 years,” Prabowo said in the fiery, televised speech. “With the right
policies, rational policies and policies based on common sense, I am
confident our economic growth can reach 6% by the end of this year.”
But Prabowo said economic growth and rising investment were not goals in
themselves, arguing their success should be measured by whether they
improved the lives of ordinary Indonesians.
“For me, growth and investment are not the final goal. Our goal is the
welfare of our people,” Prabowo said. “High growth that cannot be
enjoyed by most of our people is of no benefit to us.”
Ahead of Indonesia’s 81st Independence Day celebrations on Monday, he
said every rupiah of investment should create jobs and improve living
standards, particularly for lower-income Indonesians, by generating
employment opportunities and expanding access to basic services and
government assistance.
As evidence, Prabowo said investment remained strong despite global
economic uncertainty. Realized investment reached 1,931 trillion rupiah
($108 billion) last year, creating more than 2.7 million jobs, while
investment totaled 1,010 trillion rupiah ($56.7 billion) in the first
half of this year and generated more than 1.4 million additional jobs.
Prabowo also pointed to several of his administration’s flagship
programs that he said were delivering direct benefits to Indonesians,
including the Free Nutritious Meals program, social assistance schemes
and policies aimed at increasing domestic processing of the country’s
natural resources.
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Indonesian President Prabowo Subianto, left, delivers his annual
State of the Nation Address as Indonesian Vice President Gibran
Rakabuming Raka listens ahead of the country's Independence Day at
the parliament building in Jakarta, Indonesia, Friday, Aug. 14,
2026. (AP Photo/Dita Alangkara)
 “Our promise of nutritious meals,
social assistance and down-streaming (processing) is no longer
merely a plan on paper,” he said. “It is already underway, and the
people are feeling the benefits.”
The Free Nutritious Meals program, launched last year to combat
malnutrition, aims to provide meals to nearly 90 million
schoolchildren and pregnant women and has become one of Prabowo’s
signature policies. The government says the program is intended to
improve nutrition while creating demand for local agricultural
products and supporting jobs across the food supply chain.
However, the program has faced growing scrutiny after food-poisoning
incidents affecting thousands of students across the country.
On Thursday, about 269 students from three high schools in North
Sumatra’s Karo regency reportedly suffered suspected food poisoning
after consuming meals provided under the program.
Some economists questioned whether the government’s growth figures
reflected conditions facing many Indonesians.
Nailul Huda, a researcher at the Center of Economic and Law Studies,
or Celios, said slowing household consumption, rising layoffs and
difficulties finding work suggested the benefits of growth were not
being broadly shared.
Weakening consumer confidence and concerns about the labor market
indicated a disconnect between headline economic growth and the
realities faced by many households, particularly poorer Indonesians,
he said.
“The government always claims the economy is growing strongly, but
lower-income communities do not feel it,” Huda said.
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