Indonesia: President Subianto and a New Chapter for the Nation

Prabowo Subianto, a former military general, has been elected as President of Indonesia. He has announced the formation of the most extensive administration in the country since the 1960s, comprising 109 members, as part of his commitment to establishing a robust government. Subianto, aged 73 and long associated with allegations of human rights violations, was inaugurated as the eighth president of Indonesia in February 2024. This event marks the end of the decade-long leadership of Joko Widodo, widely known as Jokowi, who presided over substantial infrastructure development and economic growth.

After two unsuccessful presidential campaigns, Subianto secured victory in the February elections with over 58% of the vote, defeating two opponents. On 20 October, he revealed the composition of his Cabinet, naming it the "Red and White Cabinet," a nod to the colours of the Indonesian flag. The announcement was attended by leaders from 33 nations, including Singaporean Prime Minister Lawrence Wong, Malaysian Prime Minister Anwar Ibrahim, Timor-Leste’s Prime Minister Xanana Gusmao, Sultan Hassanal Bolkiah of Brunei Darussalam, and vice-presidential representatives from Vietnam, Laos, and China. Subianto’s administration is notably larger than that of his predecessor, whose Cabinet comprised 34 ministers and government leaders. This scale of administration has not been seen since 1966, when President Sukarno, amidst political upheaval following a failed coup in 1965, assembled a Cabinet of 132 members.

Subianto has been characterised as a right-wing nationalist and is the first president without a first spouse, as well as the one with the fewest number of children. His political journey includes the formation of the Gerindra Party (The Great Indonesian Movement) in February 2008. The party was co-founded by Subianto’s close allies, including Fadli Zon, Muchdi Purwopranjono, and his brother, Hashim Djojohadikusumo. Indonesia’s 2008 Law on Political Parties permits parties to adopt unique ideological characteristics as long as they align with Pancasila—the philosophical foundation of the nation—and the 1945 Constitution. According to Articles 5 and 7 of its constitution and bylaws, Gerindra embodies nationalism, populism, religious values, and social justice. In 2019, central board member Andre Rosiade described the party as “nationalist-religious.” Subianto served as Chairman of the Board of Trustees of the party's Central Leadership Council (DPP) before assuming the role of general chairman following the death of Suhardi in 2014.

Gerindra’s political stance includes reforming Indonesia’s political system and opposing liberal democracy, which it perceives as ineffective. The party promotes leadership rooted in cultural identity and a version of democracy that aligns more closely with Indonesian values. Economically, the party’s platform champions populism and state intervention. It critiques the liberal economic model adopted after the tenure of Suharto, Indonesia’s second president, advocating for a shift away from foreign debt dependence and privatisation of state-owned enterprises. Gerindra’s policies favour a nationalist approach that prioritises the interests of the lower middle class.

Subianto’s administration has expressed a commitment to reasserting state control over sectors of strategic national importance. Industries such as energy, infrastructure, and transportation are expected to receive substantial state investment. This approach offers opportunities for foreign businesses that engage in public-private partnerships, provided they adapt to a regulatory framework that prioritises local value and job creation for Indonesian citizens. Foreign firms that demonstrate a commitment to the sustainable development of local communities are particularly well-placed to benefit.

Businesses focusing on affordable goods, agricultural technology, and services tailored to rural areas may find unique advantages in this political landscape. Subianto’s emphasis on bolstering the agricultural sector aligns with prospects for companies specialising in agritech, sustainable fisheries, and low-cost healthcare. Such enterprises will be integral to advancing Indonesia’s rural economy and supporting its broader development objectives.

The administration of Prabowo Subianto presents a mixed landscape of opportunities and challenges for international businesses. Companies that align with Subianto’s nationalist and populist vision—emphasising local value, job creation, and contributions to socio-economic uplift—stand to gain. However, those that benefit from liberal economic frameworks and minimal government intervention may face significant adaptation challenges. The environment invites multinational corporations with a focus on sustainability, social impact, and partnerships that support Indonesia’s ambitions for economic independence and growth.