Prabowo's economic policies diverge from father's vision, analysts say

Discussions surrounding Indonesian President Prabowo Subianto's economic policies suggest a notable departure from the philosophies of his father, the influential economist Sumitro Djojohadikusumo. While both father and son recognized the necessity of state intervention for economic stability, their approaches and perceived risks differ significantly.

Sumitro, a proponent of social democracy and Keynesianism, implemented programs like the Benteng Program to support native Indonesian entrepreneurs. However, he was reportedly aware of the potential downsides of excessive state involvement, warning against a "high-cost economy." In contrast, Prabowo, with his military background, appears to prioritize state control as essential for national sovereignty.

Analysts estimate that a substantial portion of Prabowo's policies deviate from his father's thinking. A key area of divergence lies in the management of state-owned enterprise assets. Sumitro envisioned a sovereign wealth fund holding a small percentage of these assets, whereas the current Danantara agency controls all such assets, valued at $1 trillion. This indicates a more assertive state role under Prabowo's administration.

Sumitro Djojohadikusumo, a figure in the New Order era's economic policy and former father-in-law to President Suharto, had a complex relationship with the government, even criticizing it before its fall. His economic ideas, detailed in interviews before his death, offer a point of comparison for understanding the current administration's direction. The differing "dosages of intervention" between father and son highlight evolving economic strategies in Indonesia.

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You could say the goal is the same, but the dosage of intervention is different.