Jakarta. The smooth transition of power was evident at Indonesia’s largest investment forum: the 2024 BNI Investor Daily Summit.

The two-day forum took place on Oct. 8-9 -- a timing that could not be more perfect. It was less than two weeks away before President Joko “Jokowi” Widodo passed the baton to his successor Prabowo Subianto. Jokowi opened the 2024 BNI Investor Daily Summit with a speech on how one needs to be optimistic about Indonesia’s economic potential. Prabowo became the last act in the event by delivering a vision statement that gave the audience some insights to his future economic policies. 

The annual BNI Investor Daily Summit tackled the theme of “Accelerating Resilient Growth”. The incumbent Jokowi has high hopes for Indonesia’s economy. Jokowi told the forum that he was upbeat about Indonesia becoming one of the new economic superpowers alongside India and China as the world’s growth shifts from the West to Asia.

“Optimism is key. We must not be trapped in pessimism because of the global uncertainties and the ongoing geopolitical tensions,” Jokowi said in his opening remarks.

To Jokowi, digital transformation is key to making Indonesia more competitive. He underlined the importance of building the country’s digital infrastructure, including data centers, digital payment systems, and digital analyses to support these transformations. And of course, Jokowi reminded the audience that Indonesia would not budge on its resource nationalism. This is a policy in which the resource-rich Indonesia banned exports of unprocessed nickel to produce goods of higher value at home and foster domestic industries. The resource nationalism so far has been centered on the mining industry, but Jokowi said that plans were underway to expand this domestic processing into non-mining commodities including coffee and seaweed.

"We must dare to take our own path. Don't just follow global trends that sometimes bring us into tough competition, because we have our own strengths and core competencies that we must take advantage of," he said.

The economy has been growing at around 5 percent. Prabowo -- who has promised continuity of Jokowi’s existing policies -- is upbeat about unlocking an 8 percent growth within his first three years of presidency. As Indonesia inches closer to the inauguration on Oct. 20, curiosity on whether Prabowo can achieve the ambitious target grows. Some even say that an 8-percent growth is too ambitious for the current defense minister. Prabowo took the opportunity to respond to the criticisms in front of senior government officials and business representatives, even quoting Indonesia’s founding father Soekarno. 

“They often mocked me for wanting 8 percent growth, but that’s okay. … Remember what Soekarno said: ‘Dream as high as the sky. So if you fall, you will fall among the stars. I dream of 8 percent growth, if I fail, then it can drop to 7.5 or even 7 percent. If we are satisfied, then we can aim for 6 percent. If we end up with a 5.3 percent growth rate, that's alright,” Prabowo told the BNI Investor Daily Summit.

He added: “Perhaps if not 8 percent, our economy will expand by 9 percent. Don’t believe it? Just wait and see.”

Prabowo even set another ambitious goal of having Indonesia be self-sufficient in food within his four years of presidency. Prabowo said that an independent country would not rely on imported food. The same goes for energy. Indonesia is eyeing to increase the palm oil blend of its biodiesel fuel to cut diesel oil imports. Last but not least is the continuity of Jokowi’s domestic processing policy. 

Prabowo also said that Indonesia should not rely on the so-called “trickle-down economics”, namely policies that favor the rich and corporations in hopes that the benefits will eventually trickle down to everyone else, particularly the less fortunate. An example is granting large corporation tax cuts in hopes that the companies use the money for business expansions which will eventually lead to job generation. To Prabowo, Indonesia should push for an economic approach that benefits everyone in the country that boasts a population of 280 million people.

“We have to be brave to fix our system. We have to ask ourselves what we can do to make sure that Indonesia’s wealth is fairly distributed to all, not just a small number of people. We cannot rely on trickle-down economics. It is too slow,” Prabowo said.

The Fruits of Jokowi’s 10-Year Presidency

Prabowo’s upcoming inauguration will mark the end of Jokowi’s presidency. The businessman-turned-politician has led the country for the past 10 years since 2014. Jokowi’s leadership is synonymous with infrastructure development. 

According to Finance Minister Sri Mulyani, the amount of public money that the government set aside for infrastructure had been growing significantly over the years. The government allocated around Rp 423.4 trillion ($27.2 billion) for infrastructure development this year, marking a threefold jump compared to the Rp 157 trillion budget in 2014. Sri Mulyani -- who reportedly would return as a finance minister under Prabowo’s government -- also told the 2024 BNI Investor Daily Summit that human capital was also key for resilient growth. Human capital development through education and social protection is also key to getting Indonesia out of the middle income trap.

“If we take a look at the past 10 years, there have been incredible challenges such as the pandemic, the geopolitical prices, commodity prices, global inflation, the worst rate hike in 40 years. But even so, Indonesia has been able to maintain its growth and state budget health. This is an incredible achievement,” Sri Mulyani said at the 2024 BNI Investor Daily Summit.

According to Investment Minister Rosan Roeslani, Jokowi has done a great job in keeping the economy stable at around 5 percent over the past decade, thus making Indonesia a popular destination for foreign investors. 

“We have to maintain the peace and stability because those are the main reasons why investors decide to invest in Indonesia,” Rosan said. 

As of the first half, Indonesia has achieved 50.3 percent of its annual investment target. The country aims to attract Rp 1,650 trillion from foreign and domestic investors. Indonesia also has a series of strategic projects that it has been promoting to investors. That includes the new capital project of Nusantara, which has caught the attention of a number of international institutions. As a case in point, Russia’s Magnum Real Estate International already began the construction of a mix-use residential project worth up to Rp 500 billion. More foreign investors are set to come.

“We are in the process of selecting that every investment that comes here is of quality,” Rosan said.

No Time to Catch Breath

Jokowi does not want Prabowo to waste a single second after he takes office. Jokowi admitted that he had around one and a half years trying to put everything together when he first assumed his role in 2014. Jokowi even told the high-profile forum that Prabowo never missed any meeting ever since his election victory, thus proving that he was willing to spare no effort to prepare for his government. Finance Minister Sri Mulyani also revealed that her ministry continued to communicate with Prabowo regarding the 2025 state budget.

“We continue to be in talks with the president-elect so the state budget can accommodate his upcoming programs. This will cut the time needed for the transition, so we can keep up this momentum of growth,” Sri Mulyani said.

Meanwhile, president-elect Prabowo Subianto also admitted that the government transition process this time went very smoothly. According to him, the smoothness was thanks to the assistance of President Jokowi. Prabowo also said that he would invite members of the Advanced Indonesia Cabinet to the next government cabinet.

"In this transition, I feel very helped, very supported by Mr. Jokowi and his team. In fact, when I was compiling the cabinet, I saw that many ministers who will come are also in the current cabinet," he said.

"I think what is happening now, I feel and I think is felt by many parties, is a transition that can be said to be a very smooth transition, very easy," he added.

Smooth Transition

The presence of both the outgoing and incoming leaders in one forum shows that the government transition is going well.

“I don’t think there has been an investment forum or a forum hosted by the media that was opened by an outgoing president and closed with a vision statement from the incoming president,” B-Universe’s Executive Chairman Enggartiasto said.

The ex-trade minister added: “We can see that the government transition is going smoothly, and there is a continuity [of existing policies]. We can also feel the camaraderie. This becomes a positive signal for the domestic and international market.”

Likewise, BNI President Director Royke Tumilaar said that the forum could become a platform for government officials alike to reveal what Indonesia has in mind to promote its growth.

“The 2024 BNI Investor Daily Summit becomes an important moment for investors and businesses to see how Indonesia will perform in the future,” Royke said.

Surveys show that the public are optimistic about Prabowo’s upcoming administration. A survey by Indikator Politik Indonesia shows that Prabowo gained an 83.4 percent approval rating. Respondents believe that the former army general can make Indonesia even better. 

Sarman Simanjorang, a senior official at the Indonesian Employers Association (Apindo), said that this was the most conducive power transition in Indonesia’s history, thus giving businesses the certainty they need that the existing policies will remain. Prabowo’s current role as the defense minister is also another hint to the continuity.

“Businesses do not see any drastic changes [from Jokowi to Prabowo]. We believe that Prabowo will continue Jokowi’s policies. We have seen Prabowo often saying that he is part of the Jokowi government,” Sarman said.

Muhammad Anwar, a researcher from the think-tank Ideas, said that Jokowi’s massive infrastructure development and various social assistance programs had provided significant benefits for the poor. While Prabowo is likely to carry on these programs, the incoming leader should pay attention to how he handles policies related to subsidies.

Political analyst Ujang Komarudin said that Prabowo had been moving fast as he worked to establish his ministerial cabinet, be it from political leaders or experts. A government that runs like a well-oiled machine is necessary amidst the growing global uncertainties. Ujang said: “Prabowo wants to form a dream team that can support him.”

Prabowo -- alongside his vice president-elect Gibran Rakabuming Raka -- will take their oath of office on Oct. 20. On Monday, Prabowo called many of his ministerial candidates, some of whom are Jokowi’s existing ministers, to his Kertanegara residence. This includes Sri Mulyani as well as National Mandate Party (PAN) chair and Trade Minister Zulkifli Hasan. Rosan Roeslani also got summoned by Prabowo. The presence of Jokowi’s ministers in the future government ensures the continuity of Jokowi’s programs.

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B-Universe journalists Arnoldus Kristianus, Djibril Muhammad, Hendro Dahlan Situmorang, Imam Suhartadi, Indah Handayani, Jayanty Nada Shofa, Nida Sahara, and Tri Listiyarini also contributed to this story.