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Prabowo's team vows to invigorate private sector, halt deindustrialization
The incoming Prabowo administration is apparently setting its sights on boosting private sector activities, a strategy that many leading economists agree is among the keys to greater growth, alongside bureaucratic reforms to ensure certainty.
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Burhanuddin Abdullah, a former Bank Indonesia governor who heads an expert council under president-elect Prabowo Subianto, speaks on Sept. 25, 2024 at the UOB Indonesia Economic Outlook 2025 event at Hotel Indonesia Kempinski in Central Jakarta. (UOB/-)
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he incoming government of Prabowo Subianto aims to prioritize the private sector to spur business activity and halt deindustrialization, one of the president-elect’s leading policy architects has said.
Burhanuddin Abdullah, a renowned economist who heads Prabowo’s expert council, said the private sector contributed 80 percent to Indonesia’s GDP.
“This is why the next government will prioritize private [companies],” he said on Wednesday as a speaker at the UOB Indonesia Economic Outlook 2025 in Jakarta.
Burhanuddin also warned that the country was on the brink of early deindustrialization, noting that the industrial sector’s contribution to GDP in 1996 reached 29 percent. This was just 1 percent shy of the 30 percent threshold for Southeast Asia’s largest economy to be classified as an industrialized nation.
“Now, we're at 18 percent. This is preindustrial level. We saw this figure back in 1971, in the early [years] of Suharto’s government. This is deeply troubling for us,” he said.
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