Indonesia's Prabowo: Courting Trump, Wooing US Execs

Indonesian President Prabowo Subianto's recent visit to the United States has been marked by a strategic effort to engage with influential figures and top executives, aiming to boost investment and strengthen bilateral ties. Prabowo's outreach to former President Donald Trump and his meetings with prominent US business leaders have sparked interest in the potential economic implications for Indonesia.

Prabowo's decision to congratulate Trump on his election victory, despite the latter's controversial political stance, aligns with his non-aligned foreign policy. By maintaining relationships with both major US political camps, Prabowo demonstrates a pragmatic approach to international relations, seeking to maximize opportunities for cooperation. This strategy allows Indonesia to maintain flexibility in its foreign policy, adapting to shifting global dynamics.

During his US visit, Prabowo met with top executives from companies such as Freeport and Chevron, signaling a commitment to fostering investment in Indonesia. By emphasizing zero tolerance for corruption and encouraging US investment, Prabowo aims to boost FDI inflows, which stood at $2.8 billion in the first nine months of 2024. This aligns with Michael Pettis's views on addressing trade imbalances, as Indonesia seeks to reduce its dependence on exports and investment.

Prabowo's proactive stance on corruption could significantly enhance Indonesia's appeal to foreign direct investment (FDI). With a Corruption Perception Index score of 34 out of 100 in 2023, tackling corruption is crucial for Indonesia to improve its ranking and attract more FDI, fostering a more balanced and sustainable economic growth.



Prabowo's meeting with Trump and US executives also highlights his diplomatic efforts to strengthen US-Indonesia ties, potentially leading to more balanced economic relations. By courting Trump and engaging with American businesses, Prabowo signals Indonesia's openness to foreign investment and collaboration. This could lead to increased FDI from the US, benefiting Indonesia's economy.

However, Prabowo's engagement with Trump and US executives also poses potential risks. Trump's protectionist policies could lead to trade tensions, impacting Indonesian exports. Additionally, US companies might demand favorable terms, potentially straining Indonesia's fiscal balance. To mitigate these risks, Indonesia should diversify its trade partners, strengthen domestic manufacturing, and maintain a balanced fiscal policy.



In conclusion, Prabowo's outreach to Trump and US executives reflects a strategic approach to boosting investment and strengthening US-Indonesia ties. While this strategy holds potential benefits for Indonesia's economy, it also presents risks that must be carefully managed. By maintaining a balanced approach to global trade and addressing domestic challenges, Indonesia can maximize the opportunities presented by Prabowo's diplomatic efforts.