(Bloomberg) — Former general Prabowo Subianto was sworn in as Indonesia’s eighth president on Sunday, capping a 26-year rise that followed his dismissal from the military over alleged human rights abuses tied to protests that ousted his late former father-in-law and dictator, Suharto.
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Prabowo took the oath of office together with Vice President Gibran Rakabuming Raka, the son of outgoing leader Joko Widodo The ceremony marks a remarkable comeback for a man who once faced Western-imposed sanctions and had two failed election bids against Widodo, the man he is replacing.
“We have to become a nation that is brave and not afraid of challenges, obstacles, threats,” Prabowo said in his hour-long speech in parliament to the cheers of lawmakers. “Our history is a history full of heroism, sacrifice, courage. A brave nation is one that one that make the impossible possible.”
The 73-year-old will unveil his cabinet later in the day with Sri Mulyani Indrawati set to retain her finance portfolio, suggesting policy continuity. Prabowo, a former defense minister, wants to boost growth in Southeast Asia’s largest economy to 8% annually and draw in more investments.
Prabowo’s inauguration at the parliament in Jakarta was witnessed by foreign dignitaries including billionaire Brunei King Hassanal Bolkiah and Singapore Prime Minister Lawrence Wong. Indonesia’s key trade partners US and China also sent representatives.
A makeover on social media ahead of the February vote helped Prabowo reshape his image into a doting grandfather vowing to provide billions of dollars in free meals to students. He also pledged to maintain the business-friendly policies of the former president, popularly known as Jokowi.
But Prabowo’s most ambitious goals entail transforming the sprawling Southeast Asian nation into the world’s fastest-growing economy, setting an 8% target to hit in the next two to three years. Critics will also be watching to see if Indonesia faces democratic backsliding after Jokowi spent years strengthening the nation’s political elite.
“A Prabowo presidency promises a mix of nationalist fervor and pragmatic governance,” said Dedi Dinarto, an associate with advisory firm Global Counsel. “His leadership style is expected to be more authoritative than that of the outgoing President Jokowi, which may bring greater political stability.”
Prabowo takes office inheriting a $1 trillion economy that has grown at a steady clip of about 5% the past decade but has struggled to expand beyond that.
Boosting that figure will require addressing a dwindling manufacturing sector, declining jobs and a growing informal economy. The government will also have to ensure that its efforts at downstreaming — increasing the domestic processing of key natural resources like nickel — can extend to other commodities and attract more foreign direct investment.
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To reach the presidency, Prabowo formed an alliance with Jokowi that included naming the outgoing president’s 37-year-old son as his running mate. Prabowo earlier vowed to continue building Jokowi’s landmark new national capital on the island of Borneo, a roughly $30 billion project that could prove an expensive distraction. There was no mention of it in his speech on Sunday.
In exchange for his loyalty, Prabowo secured key backers in the powerful ruling class. He appears to have consolidated majority support in parliament as part of a big-tent coalition championed by his predecessor.
To help pay for his $29 billion school lunch program and other new initiatives, Prabowo has promised to increase tax revenue to 14%-16% of GDP and cut back on wasteful spending.
Prabowo devoted a key part of his speech on corruption. Indonesia’s track record for governance weakened during Jokowi’s time and the nation is ranked 115th out of 180 countries in Transparency International’s corruption perceptions index, worse than when the former leader took power in 2014.
“Corruption among political officials, government at all levels and all naughty businessmen – don’t be afraid,” Prabowo said. “Let’s not be afraid to see this reality. Too many of our brethren are living on the poverty line.”
After having served more than two decades in the military, some observers are concerned about what a president once banned from travel to the US for human rights violations will mean for a nation that only returned to open elections in 1999.
Prabowo — who has long rejected accusations that he committed human rights abuses — assured Indonesians that his military background will have no bearing on his oversight of Southeast Asia’s biggest economy.
His administration is also likely to face scrutiny from democracy activists over the dominance of political dynasties in the country. Prabowo represents that thread of history not only through his running mate, but also as Suharto’s former son-in-law.
“If there is no opposition, then democracy becomes just a name,” said D. Nicky Fahrizal, a researcher at the Jakarta-based Center for Strategic and International Studies. “The quality of democracy will decline, because everything will be controlled by the executive.”
–With assistance from Grace Sihombing, Soraya Permatasari, Claire Jiao, Norman Harsono and Niluksi Koswanage.
(Updates with Prabowo’s speech from paragraph three.)
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