What's happened
Indonesia's economy is under strain amid protests and political reshuffling. Despite policy changes, the rupiah remains weak, and government efforts to stabilize the economy are challenged by unrest and power consolidation moves by President Prabowo Subianto.
What's behind the headline?
The political landscape in Indonesia is shifting towards authoritarian consolidation, with President Prabowo Subianto strengthening his grip through military appointments and security measures. This move signals a departure from democratic norms, risking further instability. The economic policies, including increased budget deficits approved by parliament, suggest a government prioritizing control over fiscal discipline. The protests reveal deep public dissatisfaction, which the government appears to be suppressing rather than addressing substantively. The deployment of military forces to handle protests and manage social initiatives indicates a potential slide into militarized governance, which could have long-term implications for Indonesia's political stability and economic recovery. The timing of these moves, amid economic distress, suggests a strategy to divert attention from economic failures and maintain power at all costs.
What the papers say
According to Bloomberg, despite policy changes earlier this year that spooked investors, President Prabowo is betting that tightening his grip on power and increasing welfare spending will restore calm. Bloomberg reports that the government approved a higher budget gap, indicating fiscal strain. Meanwhile, Al Jazeera details the recent political shake-up, including the appointment of retired generals and the deployment of the military following violent protests that resulted in deaths and the removal of several ministers. The article highlights the historical context of military involvement in Indonesian politics, referencing past abuses and the current consolidation efforts by Prabowo, a former general with a controversial past. The contrasting perspectives show Bloomberg's focus on economic measures and political stability, while Al Jazeera emphasizes the security and human rights implications of the current government actions.
How we got here
Indonesia's recent economic and political instability stems from policy shifts earlier this year that unsettled investors, causing the rupiah to fall to levels not seen since the 1997-98 Asian financial crisis. Nationwide protests in August over layoffs and high living costs led to violence and government reshuffles, including the removal of key ministers. President Prabowo Subianto is now consolidating power by appointing retired generals and deploying the military to manage protests and implement social programs, amid ongoing economic challenges.
Go deeper
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Prabowo Subianto Djojohadikusumo is an Indonesian politician, businessman and former Army lieutenant General who is the currently-appointed Minister of Defence of the Republic of Indonesia.
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Indonesia, officially the Republic of Indonesia, is a country in Southeast Asia and Oceania, between the Indian and Pacific oceans. It consists of more than seventeen thousand islands, including Sumatra, Java, Borneo, Sulawesi, and New Guinea. Indonesia i