Honestly, if you haven't been keeping a close eye on Southeast Asian politics lately, you might still have a mental image of Joko Widodo—the famous "Jokowi"—leading Indonesia. But that era is officially over. The current Indonesian president is Prabowo Subianto, a man who has been a fixture in the country’s power circles for decades and finally clinched the top job in late 2024.
He’s now well into his second year, and things are moving fast. Very fast.
It’s a bit of a wild story, really. Prabowo isn't your typical politician. He’s a former special forces general with a family tree that reads like a history book of Indonesian economics. His father was a legendary economist under two different regimes. After years of trying to win the presidency and coming up short, he finally hit the jackpot by teaming up with Gibran Rakabuming Raka—who happens to be Jokowi’s eldest son. Talk about a "if you can't beat 'em, join 'em" strategy.
The Man in Charge: Who is Prabowo Subianto?
So, who is the Indonesian president when he's not behind a podium? At 74, he’s actually the oldest first-term president the country has ever had. He's got this interesting mix of old-school military discipline and a surprisingly savvy digital presence. During the election, his team turned his image into a "gemoy" (cuddly) grandpa figure through TikTok and AI-generated cartoons. It sounds weird, but it worked.
But don't let the cartoons fool you. Prabowo is serious about turning Indonesia into a global powerhouse. He’s pushing for what he calls "Sumitronomics," named after his father, Sumitro Djojohadikusumo. Basically, it’s a plan to hit 8% economic growth by 2029. That is an incredibly ambitious target. Most economists think it’s a massive stretch, but he’s betting the house on it.
✨ Don't miss: Trump Declared War on Chicago: What Really Happened and Why It Matters
He’s also not shy about spending. Just this month, in January 2026, he bumped up the national research budget to about $690 million. He’s obsessed with science and technology because he thinks it’s the only way for Indonesia to escape the "middle-income trap."
The New Capital: Nusantara (IKN)
One of the biggest questions people had when Prabowo took over was: "Is he going to keep building that crazy new city in the jungle?"
Well, he just spent his first overnight stay at the new capital, Nusantara (IKN), a few days ago. While he’s definitely continuing the project, he’s being a bit more cautious with the cash than Jokowi was. He’s currently targeting 2028 for the legislative and judicial buildings to be finished. It’s a $32 billion project, and honestly, the fiscal pressure is starting to show. Indonesia's budget deficit is hovering right near the legal 3% limit.
What is the "Red and White Cabinet" Doing?
Prabowo named his administration the "Red and White Cabinet," and they have some pretty massive goals for 2026. If you're living in Indonesia or doing business there, these are the things that actually matter:
🔗 Read more: The Whip Inflation Now Button: Why This Odd 1974 Campaign Still Matters Today
- Free Nutritious Meals (MBG): This is his flagship. It’s a massive program to feed over 85 million children and pregnant women. It’s designed to stop stunting and make the next generation smarter. It’s also costing a fortune—around Rp335 trillion for 2026.
- Food Self-Sufficiency: He’s tired of Indonesia importing rice. He’s pushing for the country to grow everything it needs, focusing on massive "food estates" in places like Merauke, Papua.
- The "Garuda School" Program: He wants to build 500 top-tier schools over the next four years. He’s a big believer that if you give kids a semi-militaristic, high-quality education, they’ll become the leaders the country needs.
The Gibran Factor
You can't talk about who is the Indonesian president without mentioning his Vice President, Gibran Rakabuming Raka. At 38, he’s the youngest VP in the country's history.
Lately, there’s been a lot of chatter about Gibran’s role. Some critics say he’s mostly ceremonial, but he’s been carving out his own niche in technology. He’s the one pushing to put Artificial Intelligence (AI) into the elementary school curriculum. He’s also been the "boots on the ground" guy, recently visiting markets in Highland Papua and coordinating flood relief in Sumatra.
There is, of course, a bit of political tension. Gibran has his own volunteer network and even set up a direct complaint hotline at the Vice President's office. Some see this as him building his own brand for a future run in 2029, which adds a spicy layer to the current administration.
Why 2026 is the Real Test
2025 was basically a transition year. The budget was still largely inherited. But 2026? This is the first year the budget is 100% Prabowo’s.
💡 You might also like: The Station Nightclub Fire and Great White: Why It’s Still the Hardest Lesson in Rock History
It’s a "stress test," as some analysts at the Fulcrum research center put it. He has to balance these huge social programs—like the free meals—with the need to keep the global markets happy. If tax revenues don’t hit their targets, he might have to make some tough choices. Do you cut the fancy new capital city? Or do you scale back the free milk for kids? Neither is a great look politically.
Real-World Impacts for You
- For Investors: Keep an eye on "Danantara." It’s a new state wealth fund meant to manage over $900 billion in assets. If it works, it could change how Indonesia funds its infrastructure.
- For Travelers: The government has been tinkering with airfare prices and Hajj costs. They actually forced a 10% cut in domestic airfares recently to boost tourism.
- For Tech Heads: With the 6 GHz Wi-Fi spectrum being opened up, internet speeds in Indonesia are finally starting to catch up with the rest of the region.
Moving Forward
If you're trying to keep up with Indonesian politics, don't just look at the headlines about the palace. Watch the budget. Watch how they handle the "single source of truth" data system they’re building to track who gets social aid.
The best way to stay informed is to follow the official releases from the Sekretariat Kabinet (Setkab) or reputable local outlets like Antara News and The Jakarta Post. They provide the most direct look at how these policies are actually hitting the ground.
If you're planning on doing business or traveling in the region, keep a close eye on the "8% growth" progress. It's a high-bar target that will dictate almost every tax and investment policy coming out of Jakarta for the next three years. Setting up Google Alerts for "BPI Danantara" or "Indonesia MBG program" will give you the earliest signals of whether the economy is actually revving up or just idling under the weight of its own ambitions.