One year into President Proboa Sabianto’s term, Indonesia’s ambitious populist agenda—promising free school meals for nearly 90 million children, energy subsidies, and 8% growth—has met mounting economic challenges. Rising costs for essentials like rice, cooking oil, and school fees, combined with austerity measures and government spending cuts, have squeezed households and businesses alike. Local authorities have increased taxes, and layoffs are pushing many into the informal workforce, while youth and students face fierce competition for jobs. Civil unrest erupted in response, highlighted by violent protests after the death of a young delivery driver, forcing the president to cancel foreign trips and cut some parliamentary perks. The government has introduced a near-billion-dollar stimulus package, but questions remain whether it can restore confidence and sustain economic growth amid these pressures.
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