Indonesia's Drive to Turn Growth into Opportunity

Across ASEAN, as nations develop rapidly, economic growth is increasingly being judged not just by how fast economies expand, but by what that expansion delivers. Essentially, is this impressive growth translating into better jobs, rising incomes and greater mobility over time?

Nowhere is this more consequential than in Indonesia, which is on course to become one of the world's largest economies, and where, under the still relatively new President Prabowo Subianto, growth is being shaped around a broader idea of opportunity and who it ultimately serves.

Speaking at Davos this year, President Subianto captured this philosophy in simple terms: that the son of a peasant should not inherit poverty, but opportunity. In many ways, the grandfatherly image he cultivated during his campaign serves as an apt analogy for his approach–a focus not just on the present, but on ensuring that future generations inherit lives that are healthier, more prosperous, and more secure.

Indonesia's mission to reach 8% growth is often cited, but, as the President's leadership increasingly suggests, the more important consideration in Jakarta is what that growth delivers now and in the future.

Indonesia's industrial push offers a clear view of this shift in practice. Rp 600 trillion is being channeled into 18 downstream projects, moving the country beyond exporting raw materials and into processing and manufacturing at scale. In sectors such as nickel and electric vehicle supply chains, Indonesia is no longer positioned at the start of the value chain, but increasingly at its centre, capturing margins, building capability, and anchoring industries domestically that were once located elsewhere. Higher-skilled, better-paid jobs are the prize of this shift.

The same direction of travel is evident in the creation of Danantara. Indonesia's flagship sovereign wealth fund acts as a mechanism for directing capital with intent into what matters both for today and for the decades ahead–energy security, housing, and the green transition.

Subianto's approach is also evident in how the foundations of the economy are being reshaped. Rp 371 trillion is being directed towards agricultural processing, with the potential to generate up to 8 million jobs, while Rp 164.4 trillion has been allocated to food security and irrigation. Alongside this, energy policy balances near-term supply with long-term transition, scaling investment in geothermal and renewables–where Indonesia holds around 40% of global reserves.

Investment in human capital and the digital economy points to where the next phase of growth will come from. With Rp 757.8 trillion — 20% of the national budget — allocated to education, and a digital economy projected to exceed $130–150 billion, Indonesia is positioning itself not only as a resource economy, but as a competitive, skills- and innovation-driven market.

Set against Indonesia's long-term ambition of Emas 2045, marking a century of independence, the significance of the government's approach becomes clearer. By then, Indonesia is projected to rank among the world's largest economies. But, as Subianto's leadership consistently signals, the objective is not simply scale. It is to ensure that when Indonesia reaches that position, it does so with an economy that is stronger, more resilient, and more inclusive–one that expands and embraces opportunity across generations. Early signs are that President Subianto is making meaningful progress.

Of course, this challenge is not unique to Indonesia. The underlying issues remain unresolved across much of Western Europe, where mature economies still struggle with stagnant productivity, regional inequality and declining confidence that each generation will do better than the last. The Indonesian case matters because these questions are being addressed at a moment of rapid expansion, industrial change and demographic momentum. The test is whether that growth can be locked into stronger institutions, better jobs and wider opportunity before the same structural frictions become entrenched. There may be lessons for others to learn from Indonesia.

For the UK, there is also a more direct point of alignment. Indonesia's focus on growth as something that should be felt through better jobs, rising incomes and greater economic security sits comfortably with the British government's own emphasis on living standards and making growth visible in people's day-to-day lives. That shared focus makes the case for deeper cooperation less abstract, particularly in areas such as skills, education, clean energy and the digital economy, where both governments are trying to connect long-term investment with tangible gains for households.