What next for Indonesia’s foreign economic relations?

Prabowo Subianto, the retired military general who currently serves as Indonesia’s defence minister, is poised to be Indonesia’s next president, replacing President Joko Widodo. Prabowo has promised not to change the direction of Indonesia’s economic diplomacy, but investors remain wary of how populist politics could complicate a Prabowo presidency. How will Indonesia’s leadership transition shape the future of its investment policies and foreign economic relations, including with Singapore?

Key questions explored:

• Prabowo has said he is targeting 8% growth in the next five years while focusing on expanding the tax base and maintaining fiscal discipline. What might this entail for businesses?
• Indonesia’s introduction of local content requirement rules has been controversial. What changes might Prabowo adopt?
• Singapore remains the top investor in the archipelago and an offshore financial centre for international investors looking to enter Indonesia. Will this remain the status quo under Prabowo’s new administration?