Nina Megayanti once thought her life was set—a comforting illusion shattered by 2023’s economic slowdown in Indonesia. Her lifestyle—weekend jaunts overseas and a steady income—fell apart with her job loss. A year later, she stands among the millions grappling with rising unemployment, a trend conveniently dismissed by Indonesia’s government. The International Monetary Fund hints at an alarming rise, projecting Indonesia’s unemployment rate to soar to the second-highest in Asia, trailing only China. Meanwhile, President Prabowo Subianto, basking in the glow of a 5% growth rate, insists the economy is robust, conveniently ignoring the grim job market.
The president’s solution? Free lunches and affordable housing—a noble aspiration, if one overlooks the inconvenient detail that such initiatives require money. Not to worry, though—Prabowo’s administration has cleverly redirected billions in government funds, slashed budgets across essential sectors like health and education, and demanded ministries embrace austerity. Meanwhile, thousands of government contractors face layoffs, apparently collateral damage in this grand scheme. Critics argue these priorities are misguided, but why listen to them when you can live in a fantasy where growth magically solves all problems?
Awalil Rizky, an economist from Jakarta’s Bright Institute, isn’t buying the government’s narrative. The employment figures starkly contradict the official optimism, yet the administration seems content with its growth fetishism. The IMF forecasts a paltry rise in unemployment to 5% from 4.9%, a minuscule shift if you ignore the human cost. As if on cue, the government downgrades its 2025 growth estimate to about 5%—a subtle admission that perhaps, just perhaps, the economic strategy isn’t as flawless as advertised.
In a world where numbers are worshipped like deities, Indonesia’s government clings to its growth rate as a divine emblem of success. Yet, beneath this shiny veneer, the reality is stark. The economy’s heavy reliance on state spending means that cutting back on public works, health, and education is akin to sawing off the branch you’re sitting on. As unemployment rises and optimism wanes, one wonders how long this charade can persist before the facade crumbles under the weight of its contradictions.
