President Prabowo Subianto looks on as he arrives on Aug. 14 at the Senayan legislative complex in Central Jakarata for the People’s Consultative Assembly (MPR) plenary meeting, in which he delivered the State of the Nation address and the 2027 state budget proposal. (Reuters/Stringer)
LIVE: Indonesia President Prabowo Subianto Delivers State of the Nation Address | SONA 2026 | N18G
.
Some remarks made by President Prabowo Subianto in his State of the Nation address, including statistics on job creation and school renovation, have been met with criticism for alleged inconsistency with realities on the ground.
LIVE: Indonesia President Prabowo Subianto Delivers State of the Nation Address | SONA 2026 | CNBC TV18 Indonesia’s State of the Nation Address is an annual presidential address delivered before a joint session of the People’s Consultative Assembly (MPR), the House of Representatives (DPR), and the Regional Representatives Council (DPD) in Jakarta. WHEN Prabowo Subianto takes the stage to address the world’s fourth-most populous nation this week, outwardly he will look more powerful than ever. The reality is more complicated. The former general, who took office in October 2024, has spent the past year consolidating power in Indonesia. He replaced a technocratic finance minister with one more inclined to his populist thinking, while a long-serving central bank governor left amid tensions over the institution’s independence. Prabowo’s sprawling coalition remains intact, giving him continued control of parliament, and his key initiatives are moving forward. Advertisement Yet the mood has soured. One survey put the president’s approval rating at about 51% – down from more than 80% last year – with half of respondents viewing the economy negatively. Another poll suggested two of his biggest initiatives – a multi-billion-dollar free meals programme and a sweeping drive to create tens of thousands of cooperatives – are seen as among the country’s least pressing needs. StarPicks MR DIY opens a new chapter with its first loyalty programme Investors are also uneasy. The stock market is among the world’s worst-performing this year – though it has recently risen from its nadir – and the rupiah is near a record low. Two of the three major credit-rating agencies have negative outlooks on Indonesia. Prabowo, 74, is expected to use his State of the Nation address tomorrow morning and budget speech in the afternoon to defend his record, double down on his priorities and challenge his critics. “Prabowo will intensify his populist narrative,” said Nicky Fahrizal, a researcher specialising in law and security at the Jakarta-based Centre for Strategic and International Studies. “He will then become defensive, rejecting surveys and public findings by presenting the government’s own data.” Here’s what to watch for tomorrow. Fiscal prudence Traders await Prabowo’s forecasts on spending, with the president expected to continue to keep the budget deficit below the closely watched legal ceiling of 3% of gross domestic product. Markets want a commitment to prudence and will assess the credibility of his assumptions. Last year, Prabowo based his budget proposal on economic growth of 5.4%, a currency at 16,500 per dollar and higher state revenue. Revenue is set to exceed targets and first-half growth was broadly in line with his full-year goal. But the rupiah is hovering near 18,000, and the deficit is now projected at about 2.85% of gross domestic product – well above the 2.48% first mooted. S&P Global Ratings expects interest payments to remain above 15% of government revenue through 2027, a potential source of pressure on Indonesia’s sovereign rating. Economy Investors want Prabowo to outline how he will drive the economy and foster the private sector and support households. Consumer spending – the main driver of the economy – grew at a slower pace in the second quarter, and surveys show people feel times are tougher. “Markets already understand that growth this time has been driven more heavily by government spending,” said David Sumual, chief economist at PT Bank Central Asia. “Growth cannot rely solely on large government spending or higher taxes, especially when the effectiveness of spending and the risk of leakages remain open questions.” Prabowo can point to better-than- expected growth in the first half of 2026, though it’s nowhere near his goal of 8% by 2029. Poverty is falling and investment is ticking upward. He can underscore strong exports, relatively benign inflation and fuel that has remained cheap and plentiful despite the Iran war’s oil shock. “The exchange rate is the bill for poor policymaking, and this government still refuses to read it,” noted Achmad Sukarsono, an analyst with Control Risks. Bank Indonesia Any comments on Bank Indonesia (BI) will be scrutinised after Prabowo on Monday nominated acting governor Destry Damayanti to take the top role at the central bank following the surprise resignation of her predecessor. Investors await word of how long her term will be and how the president expects the bank to align with government policy
.
.
P resident Prabowo Subianto has been met with criticism for making claims about his administration’s achievements during his State of the Nation address that appeared inconsistent with data and realities on the ground.
.
During his two-hour speech at the People’s Consultative Assembly (MPR) plenary session on Aug. 14, the President highlighted some of his program’s achievements and introduced several beneficiaries to demonstrate their impact.
.
Among them was Susanah from Bogor, West Java, whom he introduced as an onion peeler earning Rp 700,000 (US$39.26) per kilogram of onion peeled.
.
But the statement quickly raised eyebrows, with members of the public calling such earnings unusually high for informal workers.
Data from Statistics Indonesia (BPS) in 2025 also showed that informal agricultural workers earned an average of Rp 1.5 million per month or, roughly, Rp 50,000 each day.
.
The claim came under further scrutiny after the Government Communications Agency (Bakom) posted a video one day after the address that identified Susanah as a garment worker paid only Rp 700 per kg of garments she sews…..
Presidential special advisor for communications Hasan Nasbi further defended the claim on Monday, urging the public to “focus on the broader substance and ideas in the President’s speech”.
…
Maretha Uli and Vidya Pinandhita
The Jakarta Post PREMIUM
Jakarta
Fri, August 21, 2026
Ads by:
Memento Maxima Digital Marketing
@[email protected]
SPACE RESERVE FOR ADVERTISEMENT
P resident Prabowo Subianto has been met with criticism for making claims about his administration’s achievements during his State of the Nation address that appeared inconsistent with data and realities on the ground.
Memento Maxima Digital Marketing
