Public sentiment towards Indonesian President Prabowo Subianto is souring, with his approval rating falling to 59.8%, a decline from previous surveys. The primary drivers of this dissatisfaction are economic concerns, particularly a 34.14% increase in the prices of basic necessities. Other factors include minimal job creation and high youth unemployment (15.76%). A significant portion of the public (53.5%) also reported that increased fuel prices have significantly impacted their finances, and 77.8% disagree with further fuel price hikes. The weakening rupiah is also playing a role, with 48.86% of respondents feeling its impact significantly or quite a bit on their household economy.
Economists and market analysts attribute this decline in confidence to a combination of factors. Yanuar Rizky, an economic observer, notes that while fuel price subsidies are in place, the government struggles to control other cost structures, and the weakening rupiah increases production costs, affecting goods prices and job creation. The government's economic policies are seen by 6.46% of respondents as prioritizing entrepreneurs over the public. Overall national economic conditions are viewed as poor by 35.69% of respondents, with only 16.1% considering them good.
Investor confidence has also been significantly shaken. Indonesia's benchmark stock index has fallen over 35% in 2026, making it the worst-performing major equity market. The rupiah has depreciated by approximately 14% since Prabowo took office, reaching a record low of 18,190 per US dollar. Foreign investors have divested about 86 trillion rupiah ($6.7 billion) from Indonesian sovereign bonds since August 2025. This downturn is linked to investor concerns over policy uncertainty, political intervention, populist policies, and execution risks, including the controversial $15 billion free meals program, which has faced corruption allegations and investigations. These issues have led to what analysts describe as a "doom-loop" for Indonesian markets, with potential downgrades to the country's credit ratings.
