President Prabowo Subianto is under intense scrutiny over Indonesia’s faltering economy, rising government spending, and a weakening rupiah that hit a record low near 18,190 per US dollar in 2026, making it Asia’s worst-performing currency [1, 2, 3]. Foreign investors have fled, causing a $3.2 billion net stock outflow by the end of May 2026 and driving the Jakarta Composite Index down sharply [1, 2, 3]. Tan Altundag, an investment manager at Pictet Asset Management, said Indonesia faces "a genuine confidence crisis, with serious governance red flags that overshadow any valuation argument," warning the rupiah’s slide risks pushing inflation higher and slowing growth [3].
Political rivals have seized the opportunity to criticize Prabowo’s administration. Former presidential candidate Anies Baswedan has re-emerged to denounce economic policies and government performance, seeking to attract voters [1, 2]. Senior Minister Agus Harimurti Yudhoyono has also tacitly criticised the government over environmental damage and “sectoral ego,” suggesting political ambitions [1, 2]. Meanwhile, former President Joko Widodo is preparing a nationwide tour to bolster support for his elder son Gibran Rakabuming Raka and boost the Indonesian Solidarity Party chaired by his younger son Kaesang Pangarep [1, 2].
Prabowo’s flagship free nutritious meal programme (MBG), launched in January 2025, aims to feed millions of schoolchildren but has drawn public and investor concern over overspending and fiscal deficits [1, 2, 4]. The programme has been linked to health issues, with at least 33,000 children affected by food poisoning as of April 2026 [4]. Corruption investigations have led to the arrest of Dadan Hindayana, the former head of the National Nutrition Agency, and two deputy heads over graft involving kitchen management and inflated procurement tied to the meals programme [4].
On June 8, 2026, Prabowo appointed Nanik Sudaryati Deyang as the new head of the National Nutrition Agency, replacing Dadan Hindayana [4]. Nanik pledged to improve budget efficiency and avoid burdening the state budget, stating, "Our concern is regarding budget efficiency so we will not burden the state budget, while at the same time maintaining the targets we have set" [4]. He also called a moratorium on new kitchens and plans to refocus the programme on new recipients [4]. Prabowo appointed two new deputy heads: Agustina Arumsari and Major General Trenggono [4].
Additionally, Prabowo named Said Iqbal, leader of the Labour Party, as his new special advisor for manpower and labour welfare affairs [4]. Indonesia’s central bank raised interest rates by 50 basis points in May 2026 in a bid to defend the rupiah amid the volatility [3].
