In early 2024, Indonesia witnessed a historic moment with its general elections following the conclusion of President Joko Widodo’s two-term presidency. Unable to seek a third term due to constitutional restrictions, Jokowi’s departure marked the end of an era in Indonesian politics. The election saw former defense minister Prabowo Subianton emerge victorious, confirmed by the General Election Commissions (KPU) on March 20, 2024, after securing over 96 million votes. Prabowo, along with his vice-presidential running mate Gibran Rakabuming Raka, son of President Jokowi, is set to take office on October 20, 2024. Lets have a look at the various aspects of this handover, which are important as an investor.

As Indonesia prepares for this transition, Prabowo has outlined a series of key policies and initiatives aimed at continuing and expanding upon the legacy of his predecessor.

Key Policies

During his campaign for presidency, Prabowo outlined several policies that he would be taking on as a part of his term.

Economic Development and Infrastructure

He has committed to accelerating the economic growth strategies - by improving infrastructure, he aims to facilitate economic activities, reduce logistics costs, and attract foreign investment, ultimately boosting Indonesia's economic growth and development.

Education and Human Capital Development

He plans to focus on improving the quality of education in Indonesia, aiming  to develop a skilled workforce that can meet the demands of a modern economy, thus improving Indonesia's competitiveness on the global stage.

Healthcare

He has also highlighted the need to strengthen Indonesia's healthcare system. This involves expanding access to healthcare services, improving healthcare facilities, and ensuring that all Indonesians receive adequate medical care. 

Foreign Policy and Diplomacy

On the international front, Prabowo has expressed his commitment to maintaining Indonesia's non-aligned foreign policy stance. He aims to balance relations with major powers like the United States and China, ensuring that Indonesia benefits from its strategic position without becoming entangled in geopolitical conflicts.

A System of Checks and Balances

Despite losing the presidential election, the Indonesian Democratic Party of Struggle (PDI-P) performed well in the legislative elections, securing a significant share of seats in the national legislature. This strong legislative presence provides a solid foundation for effective governance and a balanced political environment​.

Democratic Concerns

There are concerns about Prabowo's commitment to democratic principles given his past affiliations and the support from figures with authoritarian tendencies. Observers worry about the potential erosion of democracy under his leadership, emphasizing the need for a vigilant and effective opposition to safeguard democratic practices​.

Additionally, allegations of electoral fraud and manipulation have surfaced, with some claims that efforts were made to influence the election results in favor of Prabowo and his running mate.

With a change in presidency, venturing into Indonesia has become even more complicated for foreign investors. At Viettonkin Consulting, we excel in guiding companies through Indonesia’s intricate business, regulatory and political environment. 

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Final Thoughts

These elections in Indonesia resulted in a significant shift in the political landscape. Prabowo Subianto, the leader of the Great Indonesia Movement Party (Gerindra), was confirmed as the new President of Indonesia. He secured a decisive victory over his rivals, marking a pivotal change in leadership after Joko Widodo's two terms​. Prabowo's win represents a strong mandate from the electorate, with his campaign focusing on economic growth, national security, and infrastructure development.