Jakarta. President Prabowo Subianto has appointed members of the National Economic Council (DEN) for the 2024-2029 term, Indonesia's leading economic advisory body. The inauguration ceremony took place Tuesday at the State Palace in Jakarta, with former Trade Minister and World Bank Managing Director Mari Elka Pangestu named as the council’s deputy chair under DEN Chair Luhut Binsar Pandjaitan.

DEN, tasked with advising the government on economic policy, will provide recommendations based on national and global economic trends and help shape strategic decisions in fiscal, monetary, and real-sector policies. The council’s first priority will be to provide recommendations on boosting Indonesia’s growth rate, which slowed to 4.95 percent year-on-year in the third quarter.

Joining the council are six prominent figures, including former Finance Minister Chatib Basri, AKR Corporindo President Director Haryanto Adikoesoemo, Padjadjaran University Economics Professor Arief Anshory Yusuf, Verdhana Sekuritas Indonesia Managing Partner Heriyanto Irawan, former Maritime Affairs Deputy at the Maritime and Investment Coordinating Ministry Muhammad Firman Hidayat, and Septian Hario Seto, former Deputy for Investment and Mining Affairs at the same ministry.

After the ceremony, President Prabowo and DEN members discussed strategies to boost economic growth in the fourth quarter. Deputy Chair Mari Elka Pangestu emphasized the need for actionable steps to sustain growth, particularly amid weakening middle-class purchasing power, which contributed to a drop in GDP growth to 4.9 percent, its lowest rate in 13 years.

“To ensure growth in the fourth quarter, we recommend strengthening middle-class purchasing power, which has declined and affected consumption levels,” Mari Elka said.

She also advised optimizing government spending as a short-term economic stimulant and advocated initiatives to improve the investment climate to sustain higher growth in the longer term.

Mari Elka, who also serves as the President’s Special Envoy for International Trade and Multilateral Cooperation, outlined potential measures, including direct cash assistance (BLT) to ease inflation concerns as global oil prices rise. While lower-income groups currently receive social assistance, she noted the need for programs specifically targeting the middle class.

Additionally, she discussed the possibility of reallocating subsidies into direct cash aid to ensure support reaches those most in need. “The primary goal is to ensure that subsidies effectively benefit low-income households, whether through direct aid, reduced prices, or a combination. These options are still under review,” she said.

The Indonesian economy grew at a slower pace of 4.95 percent year-on-year (yoy) in the third quarter of 2024, according to the National Statistics Agency (BPS). The economy grew by 5.11 percent yoy in Q1-2024 but then slowed to 5.05 percent yoy the following quarter.