Prabowo, in a speech on Tuesday at the Mandiri Investment Forum, sought faster economic growth of 8% in the next five years, underpinned by higher tax collection and fiscal discipline — the cornerstone of Indonesia’s economic policy.
He said he will push for a tax revenue target of about 14%-16% of gross domestic product by expanding the taxpayer base and not necessarily through increased levies.
“Our trade balance, has been positive for the last five years. Our reserves very healthy but must be better in coming years,” Prabowo told the audience, comprising ambassadors and the business community. “We are determined to maintain this trajectory. We are proven prudent.”
Prabowo is most likely to become Indonesia’s next president after securing close to 60% of the votes based on quick counts, though official declaration will be made by the election commission by March 20.
He made the comments in his first speech in a public event since declaring victory after the Feb 14 election. His remarks can be seen as an attempt to allay investor concern over his policy plans while giving a glimpse of what’s to come under his administration.
‘Messy’ democracy
Concerns have been swirling that Prabowo’s vast spending plans could burden the country’s budget. His spending spree could amount to 460 trillion rupiah (US$29 billion), more than the entire 2023 budget deficit.
He signalled his focus on improving health and education outcomes with a plan to give out free school lunches and milk to more than 80 million children, which he also expects to create employment for women and small businesses.
On top of that, democracy activists worry that Prabowo’s ascension as leader could mark the return of authoritarianism, since the former military general who was discharged from service has been accused of human rights abuses under the dictatorship of former leader Suharto.
In an attempt to dispel such concern, Prabowo lauded the importance of democracy at the speech on Tuesday. Indonesia’s democracy, he said, is functioning and shouldn’t be seen as inferior to that in other countries.
“Let me testify that democracy is very, very tiring. Democracy is very, very messy. Democracy is very, very costly and we are still not satisfied with our democracy. There is a lot of room for improvement,” he said, without elaborating how.
Current President Joko Widodo who is serving his second and final term will step down in October. Prabowo has pledged a smooth transition, continue existing policies, and collaborate with the financial industry.
He also said Indonesia needs to manage inflation “creatively” and do more to tackle poverty and seek food self-sufficiency.