Prabowo’s Power Play in Indonesia: A Battle for Economic Supremacy

Prabowo Subianto, the President of Indonesia, has been warning about wealth leaking overseas from the country. His efforts to centralize key exports suggest a more sinister motive: bringing Indonesia’s old business elite under firmer state control.

The “9 Dragons,” as they are known, are powerful conglomerates that have dominated Indonesia’s economy for decades with their interests in banking, tobacco, property, palm oil, mining, and consumer goods. These families include Djarum, Salim Group, Lippo Group, Golden Agri-Resources, Barito Pacific, and Agung Sedayu.

Analysts say Prabowo’s strategy is part of a two-pronged approach to state capitalism, one that seeks to balance economic growth with increased government control. Made Supriatma, a visiting fellow at the ISEAS – Yusof Ishak Institute, notes that while Prabowo may not explicitly name the 9 Dragons as targets, his actions speak louder than words: “Prabowo may not mention names, but there’s no mistake he’s taking potshots at the dragons.”

The delicate balance of power in Indonesia is on full display. The president still relies on private capital to fund his flagship programs, and Prabowo’s efforts to bring the 9 Dragons under state control could have significant consequences for foreign investors who rely on Indonesia’s stable business environment.

The current situation bears some resemblance to the tumultuous years of Suharto’s rule, when the 30 Families faced pressure to consolidate their interests. Prabowo’s actions may be seen as an attempt to replicate this model, but with a crucial twist: he is seeking to bring these tycoons under his direct control.

As tensions between Prabowo and the 9 Dragons continue to escalate, it becomes clear that the fate of Indonesia’s economic elite hangs precariously in the balance. Will Prabowo succeed in bringing them under state control, or will this power play backfire and lead to a destabilization of the Indonesian economy? The outcome remains uncertain.

The stakes are high, and the future of Indonesia’s business landscape hangs in the balance. A shift in the balance of power between state and business could have significant consequences for foreign investors and the country’s economic development. Will Prabowo’s efforts create new opportunities for growth or lead to a more restrictive investment climate?

Ultimately, it is not just about which side emerges victorious but what this means for the people of Indonesia – a nation that has long struggled to find a balance between economic growth and social justice.