Policies proposed by Prabowo generate mixed feelings of optimism and apprehension among Indonesians

Indonesia, the world's third-largest democracy by population, has been making headlines for various reasons. The democratic transition in the country has set a regional example with peaceful power transfers. However, recent economic developments have raised concerns among its citizens and observers.

A study by Kompas Litbang found that 69.5 percent of respondents are worried about the growing presence of military personnel in civilian sectors. This sentiment is understandable, given the current economic climate. The economic growth rate in the first quarter of the year is 4.87 percent, the slowest since the peak of the Covid-19 pandemic.

Healthcare spending has been slashed by 18.5 percent, while infrastructure investment has seen an even steeper cut of 73 percent. These cuts have led to concerns about the possibility of a gradual reversal of democratic progress in Indonesia.

One of the initiatives launched to boost economic growth is President Prabowo's Danantara, a sovereign wealth fund. However, critics have pointed to the lack of independent supervision and transparency associated with Danantara. An investment agreement was signed between Danantara and China Investment Corporation, raising questions about the fund's transparency.

Indonesia's economy is heavily reliant on China, with China being its largest trading partner and a key source of foreign direct investment. The financing of the China-Indonesian high-speed rail project, part of Beijing's Belt and Road Initiative, is primarily backed by Chinese state-owned banks.

The U.S.-China rivalry in the region is affecting Indonesia's foreign relations. Jakarta's close ties with China may hinder its ability to navigate this rivalry, which in turn affects ASEAN. The U.S. had proposed a 32 percent "reciprocal" tariff on Indonesia's exports, but then paused the decision for 90 days.

Despite these economic challenges, Indonesia maintains its independent foreign policy and has openly expressed interest in joining the Organisation for Economic Co-operation and Development. This move, if successful, could bring much-needed investment and expertise to the Indonesian economy.

It's important to note that despite economic concerns, the Asian Barometer Survey indicates that Indonesians often link democracy to effective governance and positive socioeconomic outcomes. This suggests that the democratic values upheld by Indonesia continue to hold significant importance for its citizens.

The currency fell to an all-time low of 16,868 Indonesian rupiah against the U.S. dollar in April, a stark reminder of the economic challenges faced by the country. However, the resilience of Indonesian democracy and its commitment to maintaining independent foreign policy offer hope for a brighter future.

Policies proposed by Prabowo generate mixed feelings of optimism and apprehension among Indonesians