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Prabowo touts Indonesia’s economic growth and investment gains in State of the Nation address

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Prabowo touts Indonesia’s economic growth and investment gains in State of the Nation address
News

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Prabowo touts Indonesia’s economic growth and investment gains in State of the Nation address

2026-08-14 15:52 Last Updated At:16:00

JAKARTA, Indonesia (AP) — President Prabowo Subianto on Friday touted Indonesia’s strongest first-half economic growth in more than a decade, saying the country could achieve 6% growth by the end of this year despite global uncertainty, while stressing that economic expansion must translate into jobs and higher living standards.

In his annual State of the Nation address before members of the Parliament in the capital Jakarta, Prabowo said Southeast Asia’s largest economy grew 5.61% in the first quarter this year and 5.45% in the first half of the year.

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Indonesian President Prabowo Subianto, right, gestures after delivering his State of the Nation Address as, from left, the Chairman of the People's Consultative Assembly Ahmad Muzani, House Speaker Puan Maharani, and the Chairman of Regional Representative Council Sultan Bachtiar Najamudin applaud at the parliament building Jakarta, Indonesia, Friday, Aug. 14, 2026. (AP Photo/Dita Alangkara)

Indonesian President Prabowo Subianto, right, gestures after delivering his State of the Nation Address as, from left, the Chairman of the People's Consultative Assembly Ahmad Muzani, House Speaker Puan Maharani, and the Chairman of Regional Representative Council Sultan Bachtiar Najamudin applaud at the parliament building Jakarta, Indonesia, Friday, Aug. 14, 2026. (AP Photo/Dita Alangkara)

Indonesian President Prabowo Subianto, left, shakes hands with former president Joko Widodo after delivering his State of the Nation address ahead of the country's Independence Day at the parliament building in Jakarta, Indonesia, Friday, Aug. 14, 2026. (AP Photo/Dita Alangkara)

Indonesian President Prabowo Subianto, left, shakes hands with former president Joko Widodo after delivering his State of the Nation address ahead of the country's Independence Day at the parliament building in Jakarta, Indonesia, Friday, Aug. 14, 2026. (AP Photo/Dita Alangkara)

Indonesian President Prabowo Subianto raises his fist while delivering his annual State of the Nation Address ahead of the country's Independence Day at the parliament building in Jakarta, Indonesia, Friday, Aug. 14, 2026. (AP Photo/Dita Alangkara)

Indonesian President Prabowo Subianto raises his fist while delivering his annual State of the Nation Address ahead of the country's Independence Day at the parliament building in Jakarta, Indonesia, Friday, Aug. 14, 2026. (AP Photo/Dita Alangkara)

Indonesian President Prabowo Subianto, center, delivers his annual State of the Nation Address ahead of the country's Independence Day, at the parliament building in Jakarta, Indonesia, Friday, Aug. 14, 2026. (AP Photo/Dita Alangkara)

Indonesian President Prabowo Subianto, center, delivers his annual State of the Nation Address ahead of the country's Independence Day, at the parliament building in Jakarta, Indonesia, Friday, Aug. 14, 2026. (AP Photo/Dita Alangkara)

Indonesian President Prabowo Subianto, left, delivers his annual State of the Nation Address as Indonesian Vice President Gibran Rakabuming Raka listens ahead of the country's Independence Day at the parliament building in Jakarta, Indonesia, Friday, Aug. 14, 2026. (AP Photo/Dita Alangkara)

Indonesian President Prabowo Subianto, left, delivers his annual State of the Nation Address as Indonesian Vice President Gibran Rakabuming Raka listens ahead of the country's Independence Day at the parliament building in Jakarta, Indonesia, Friday, Aug. 14, 2026. (AP Photo/Dita Alangkara)

“This is the highest first-quarter and first-semester growth in the last 13 years,” Prabowo said in the fiery, televised speech. “With the right policies, rational policies and policies based on common sense, I am confident our economic growth can reach 6% by the end of this year.”

But Prabowo said economic growth and rising investment were not goals in themselves, arguing their success should be measured by whether they improved the lives of ordinary Indonesians.

“For me, growth and investment are not the final goal. Our goal is the welfare of our people,” Prabowo said. “High growth that cannot be enjoyed by most of our people is of no benefit to us.”

Ahead of Indonesia’s 81st Independence Day celebrations on Monday, he said every rupiah of investment should create jobs and improve living standards, particularly for lower-income Indonesians, by generating employment opportunities and expanding access to basic services and government assistance.

As evidence, Prabowo said investment remained strong despite global economic uncertainty. Realized investment reached 1,931 trillion rupiah ($108 billion) last year, creating more than 2.7 million jobs, while investment totaled 1,010 trillion rupiah ($56.7 billion) in the first half of this year and generated more than 1.4 million additional jobs.

Prabowo also pointed to several of his administration’s flagship programs that he said were delivering direct benefits to Indonesians, including the Free Nutritious Meals program, social assistance schemes and policies aimed at increasing domestic processing of the country’s natural resources.

“Our promise of nutritious meals, social assistance and down-streaming (processing) is no longer merely a plan on paper,” he said. “It is already underway, and the people are feeling the benefits.”

The Free Nutritious Meals program, launched last year to combat malnutrition, aims to provide meals to nearly 90 million schoolchildren and pregnant women and has become one of Prabowo’s signature policies. The government says the program is intended to improve nutrition while creating demand for local agricultural products and supporting jobs across the food supply chain.

However, the program has faced growing scrutiny after food-poisoning incidents affecting thousands of students across the country.

On Thursday, about 269 students from three high schools in North Sumatra’s Karo regency reportedly suffered suspected food poisoning after consuming meals provided under the program.

Some economists questioned whether the government’s growth figures reflected conditions facing many Indonesians.

Nailul Huda, a researcher at the Center of Economic and Law Studies, or Celios, said slowing household consumption, rising layoffs and difficulties finding work suggested the benefits of growth were not being broadly shared.

Weakening consumer confidence and concerns about the labor market indicated a disconnect between headline economic growth and the realities faced by many households, particularly poorer Indonesians, he said.

“The government always claims the economy is growing strongly, but lower-income communities do not feel it,” Huda said.

Indonesian President Prabowo Subianto, right, gestures after delivering his State of the Nation Address as, from left, the Chairman of the People's Consultative Assembly Ahmad Muzani, House Speaker Puan Maharani, and the Chairman of Regional Representative Council Sultan Bachtiar Najamudin applaud at the parliament building Jakarta, Indonesia, Friday, Aug. 14, 2026. (AP Photo/Dita Alangkara)

Indonesian President Prabowo Subianto, right, gestures after delivering his State of the Nation Address as, from left, the Chairman of the People's Consultative Assembly Ahmad Muzani, House Speaker Puan Maharani, and the Chairman of Regional Representative Council Sultan Bachtiar Najamudin applaud at the parliament building Jakarta, Indonesia, Friday, Aug. 14, 2026. (AP Photo/Dita Alangkara)

Indonesian President Prabowo Subianto, left, shakes hands with former president Joko Widodo after delivering his State of the Nation address ahead of the country's Independence Day at the parliament building in Jakarta, Indonesia, Friday, Aug. 14, 2026. (AP Photo/Dita Alangkara)

Indonesian President Prabowo Subianto, left, shakes hands with former president Joko Widodo after delivering his State of the Nation address ahead of the country's Independence Day at the parliament building in Jakarta, Indonesia, Friday, Aug. 14, 2026. (AP Photo/Dita Alangkara)

Indonesian President Prabowo Subianto raises his fist while delivering his annual State of the Nation Address ahead of the country's Independence Day at the parliament building in Jakarta, Indonesia, Friday, Aug. 14, 2026. (AP Photo/Dita Alangkara)

Indonesian President Prabowo Subianto raises his fist while delivering his annual State of the Nation Address ahead of the country's Independence Day at the parliament building in Jakarta, Indonesia, Friday, Aug. 14, 2026. (AP Photo/Dita Alangkara)

Indonesian President Prabowo Subianto, center, delivers his annual State of the Nation Address ahead of the country's Independence Day, at the parliament building in Jakarta, Indonesia, Friday, Aug. 14, 2026. (AP Photo/Dita Alangkara)

Indonesian President Prabowo Subianto, center, delivers his annual State of the Nation Address ahead of the country's Independence Day, at the parliament building in Jakarta, Indonesia, Friday, Aug. 14, 2026. (AP Photo/Dita Alangkara)

Indonesian President Prabowo Subianto, left, delivers his annual State of the Nation Address as Indonesian Vice President Gibran Rakabuming Raka listens ahead of the country's Independence Day at the parliament building in Jakarta, Indonesia, Friday, Aug. 14, 2026. (AP Photo/Dita Alangkara)

Indonesian President Prabowo Subianto, left, delivers his annual State of the Nation Address as Indonesian Vice President Gibran Rakabuming Raka listens ahead of the country's Independence Day at the parliament building in Jakarta, Indonesia, Friday, Aug. 14, 2026. (AP Photo/Dita Alangkara)

The heads of six Arab soccer federations expressed their “full support” and “confidence” in Gianni Infantino on Thursday as the embattled FIFA president fights to keep his job after his failed World Cup private investment plan.

The backing came from 2030 World Cup co-host Morocco, Qatar, Egypt, Mauritania, Lebanon and Sudan, with four of the signatories being FIFA council members.

“We, the undersigned leaders of our respective football associations, express our full support for Mr. Gianni Infantino, President of FIFA, and reaffirm our confidence in his leadership and continued commitment to the development of football worldwide,” the statement read.

“We deeply appreciate Mr. Infantino’s sustained efforts to advance football globally, expand opportunities across all regions and strengthen the game’s role in bringing people and communities together.”

The statement said the signatories “look forward to continuing our close cooperation with him towards a stronger and more prosperous future for world football, expanding opportunities and further enhancing Arab football’s contribution to the global game.”

Infantino is facing a revolt after his plan to sell stakes in the World Cup to private equity investors. He withdrew the $20 billion proposal after a furious backlash by global soccer officials, including European body UEFA, which has warned of a boycott of all FIFA games and events.

UEFA teamed up with CONCACAF — the confederation for North, Central America and the Caribbean — and the Asian Football Confederation — and issued an open letter Monday saying Infantino’s plan was a “fundamental breach of trust” and described it as “deception.”

And on Thursday, the Football Association of Ireland said in a statement it has withdrawn its support for Infantino to be re-elected as FIFA president in March, saying “recent events have raised significant concerns regarding governance, transparency and the lack of meaningful consultation.”

The soccer federations in England and Wales did the same last week, while Northern Ireland said it was backing UEFA's stance.

New Zealand Football issued a statement Friday local time saying it had withdrawn its support for the candidature of Infantino and was seeking an independent review of steps taken to develop the FIFA Forward Enterprise scheme.

New Zealand Football broke ranks with its Oceania confederation, saying it “formed the view that decisions and actions within FIFA have contributed to a breakdown in trust and increased division within international football, and that an independent review is required to restore confidence and trust.”

Without commenting on Infantino's position, the OFC said it welcomed FIFA’s decision to withdraw the FFE proposal and its commitment to review the issues surrounding the project.

“OFC recognizes the progress achieved over the last decade in advancing football development in Oceania under FIFA’s leadership and encourages FIFA to use the review as an opportunity to identify and implement any changes that may be necessary," the statement said.

By expressing support for Infantino, Qatar and Lebanon aligned against the Asian Football Confederation. Infantino’s official Instagram account previously has posted letters of support from several member federations, including Morocco, Qatar and the United Arab Emirates.

The four FIFA council members among the signatories were Qatar Football Association president Sheikh Hamad bin Khalifa Al Thani, Egyptian Football Association president Hany Abo Rida, Moroccan Football Federation president Fouzi Lekjaa and Mauritanian Football Federation president Ahmed Yahya.

The other two were Lebanese Football Association president Hashem Haidar and Moatasem Gafar, president of the Sudan Football Association.

Infantino has been FIFA president since 2016 and seemed sure to be re-elected unopposed next year in Morocco.

FIFA has set a Nov. 18 deadline for challengers to come forward.

See AP’s full soccer coverage here

FIFA President Gianni Infantino arrives for the inauguration of Colombia's new president Abelardo de la Espriella in Cali, Colombia, Friday, Aug. 7, 2026. (AP Photo/Santiago Saldarriaga)

FIFA President Gianni Infantino arrives for the inauguration of Colombia's new president Abelardo de la Espriella in Cali, Colombia, Friday, Aug. 7, 2026. (AP Photo/Santiago Saldarriaga)

FILE - FIFA President Gianni Infantino makes comments during the opening ceremony of the International Broadcast Center, June 1, 2026, in Dallas. (AP Photo/Tony Gutierrez, File)

FILE - FIFA President Gianni Infantino makes comments during the opening ceremony of the International Broadcast Center, June 1, 2026, in Dallas. (AP Photo/Tony Gutierrez, File)

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