JAKARTA – Indonesian President-elect Prabowo Subianto is likely to appoint a finance minister who favours state interventionism to drive the growth of the economy and promote industries, according to economists.The economists said that under Mr Prabowo, Indonesia is likely to shift gears towards a state-led economic growth model, in a transition from a consumer-led one.
Mr David cited South Korea as a success story in which a country adopted a state-led growth model decades ago and has reaped the rewards by promoting and giving special attention to the steel, heavy industry, automotive, entertainment and electronics industries. Another economist, who was a government adviser for 15 years, said on condition of anonymity: “Prabowo’s style is to take action... and firmly decide these are the industries that must be protected, must be supported by the government to make the nation as a whole progress and prosper faster. That would also attract foreign investment.
The former government adviser highlighted the example of Chinese EV maker BYD Automobile, which was once on the brink of bankruptcy. After a bailout by the government, it has gone on to become the world’s largest EV maker.