Business · Economy · 2 hrs ago
Households feel squeezed as Indonesia marks two years under Prabowo
President Prabowo Subianto and Vice President Gibran Rakabuming Raka took office in Indonesia in October 2024, and their administration reaches its two-year mark on October 20, 2026.
A small-business owner in Semarang says she compares prices for ingredients each day and absorbs higher costs by accepting lower profits.
The account says inflation and open unemployment figures look favorable, but many people still feel financially worse off.
A survey cited in the story found that 53 percent of citizens felt their household finances had deteriorated, amid weak purchasing power and effects linked to the free nutritious meal program.
Manufacturing layoffs have also affected workers, while some people counted as employed have moved into low-paid informal work.
Rising global oil prices add pressure because Indonesia imports more fuel than it exports, increasing the budget cost as prices climb.
Researchers warn that the budget deficit could exceed the 3 percent of GDP limit without tighter measures, while raising subsidized fuel prices or cutting programs carries political risks.
The story does not say what policy steps the government will take next.
President Prabowo Subianto and Vice President Gibran Rakabuming Raka are approaching two years in office, with the anniversary on October 20, 2026.
Tempo reports that households and small businesses are feeling pressure from rising costs and weak purchasing power.
Research cited by Tempo found that 53 percent of citizens feel their household economies have deteriorated.
Workers and an economist described manufacturing layoffs and a shift into low-wage informal work.
Higher oil prices could strain Indonesia’s budget, which is subject to a 3 percent-of-GDP deficit limit.
- Who
- Indonesian households, workers and small businesses are affected. President Prabowo Subianto and Vice President Gibran Rakabuming Raka are approaching two years in office.
- What
- The story examines economic pressures, including rising costs, weak purchasing power, layoffs and risks to the state budget.
- When
- The second anniversary falls on October 20, 2026. The article was published on October 11, 2026.
- Where
- Indonesia, including Tembalang, Semarang, Central Java.
- Why
- The article links household pressure to rising input costs, sluggish purchasing power and the side effects of the free nutritious meal program. It also reports concerns about layoffs and higher oil prices.
This story does not have two clearly opposing sides.
No direct quotes in the coverage so far.
Prabowo Subianto and Gibran Rakabuming Raka took office, according to the article’s two-year anniversary date.
Tempo published its report on economic conditions during the administration’s first two years.
The administration is due to reach its 24-month anniversary.
- Anniversary
- October 20, 2026
- Households reporting deterioration
- 53 percent
- Budget deficit limit
- 3 percent of GDP
- Oil-price impact
- Approximately Rp6 trillion in deficit for each US$1-per-barrel increase
- Small-business owner
- Ratih Widihabsari, Tembalang, Semarang
Sources
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