Economic policy continuity in Indonesia seen after 2024 presidential polls: report

The unofficial count showed Defence Minister Prabowo Subianto has secured more than 50% of the vote.

A broad economic policy continuity is expected in the administration of the presumed Indonesian president, Defence Minister Prabowo Subianto, Fitch Ratings reported. 

Unofficial counts after the general election on 14 February 2024 showed that Prabowo secured more than 50% of the vote in Indonesia. The new administration’s term will begin in October. 

“We anticipate Prabowo would maintain a focus on infrastructure development, including in the new capital city being built, and sustain the current government’s efforts to support commodity down-streaming and expand battery and electric-vehicle manufacturing,” the report read in part. 

Fitch also projected that Indonesia’s real GDP growth will stay around or just above 5% this year and next, which would be in line with pre-pandemic outturns.

Fitch also expected that monetary and fiscal policy settings in the incoming administration to remain supportive of macroeconomic stability, at least during the remainder of 2024. 

“Nevertheless, we believe medium-term fiscal risks have risen, given some of Prabowo’s campaign pledges, including a free school lunch and milk programme,” Fitch noted.