Indonesia chooses peace over chaos - Prabowo Subianto at Davos 2026
Indonesian President Prabowo Subianto has positioned Indonesia as a reliable partner for global leaders and investors in peace, stability, and good governance. Speaking at the 2026 annual meeting of the World Economic Forum in Davos, Prabowo stressed that stability is non-negotiable.
“History teaches us that peace and stability are the most valuable assets a nation can have, and without them there will be no growth, no prosperity and no long-term progress,” he told delegates.
He argued that Indonesia’s steady growth, which is above 5% annually over the past decade, inflation at around 2%, and a deficit below 3% of GDP, reflects deliberate choices.
“Peace and stability in my country did not happen by chance or by luck; it happened because we chose unity over fragmentation and collaboration over confrontation,” he said.
$1 trillion sovereign wealth bet
A major highlight of his speech was the launch of Danantara Indonesia, a sovereign wealth fund with $1 trillion in assets under management. “Danantara means the energy to power the future of Indonesia, and it is designed to finance and co-finance the industries of the future that will transform our economy,” Prabowo explained.
He pledged to overhaul the country’s vast network of state-owned enterprises to meet the highest international standards, adding that foreign professionals would be allowed to lead firms where necessary to attract “the best brains and the best minds in the world.”
Framing Indonesia as a co-investment partner rather than a passive recipient of capital, he declared: “With Danantara, Indonesia can now stand before you as an equal partner, ready to grow with you and create shared prosperity.”
Social policy as economic strategy
Prabowo described Indonesia’s large-scale social programmes as economic investments rather than political gestures. On the nationwide free nutritious meals programme serving nearly 60 million people daily, he said: “This is not a populist programme. It is a rational productivity programme that strengthens our children, supports our small enterprises and improves the long-term health of our nation.”
The initiative has incorporated more than 61,000 micro, small and medium enterprises into its supply chain. “By strengthening human capital and empowering our small businesses, we are laying the foundation for growth that is inclusive and sustainable,” he said.
On education, he underscored efforts to break generational poverty through new boarding schools and digital upgrades. “I am determined to cut the chain of poverty so that the son of a poor farmer or street vendor will not be condemned to the same fate, but will have equal opportunity to rise,” Prabowo stated.
Rule of law and anti-corruption drive
He also argued that legal certainty is central to investor confidence. “There is no investment climate without the certainty of equitable rule of law, because no serious investor will commit capital in a country where laws are ignored or selectively applied,” he said.
In his first year, the government confiscated millions of hectares of illegal plantations and mines and shut down around 1,000 illegal mining operations. Describing entrenched corruption as “greedonomics,” he said: “We cannot allow the economics of greed and rapacious practices to undermine our democracy, our environment and the future of our children.”
He added a direct warning to corrupt actors: “I challenge anyone who believes that Indonesian officials can be bought to test that assumption under my administration, because they will find that we are serious about clean government.”
Trade, integration and the Global South
Prabowo rejected protectionism and reaffirmed Indonesia’s commitment to fair trade integration. “We do not pursue trade agreements because they are fashionable, but because we believe fair integration into the global economy is a tool for prosperity and not a threat to sovereignty,” he said.
On Indonesia’s foreign policy posture, he said: “Indonesia chooses peace over chaos, friendship over enmity, and we believe that one thousand friends are too few while one enemy is one too many.”
Indonesia is preparing to host an Ocean Impact Summit in Bali, and Prabowo was confident that Indonesia aims to play a more assertive role from within the Global South.
Watch the full speech here:
This story is written and edited by the Global South World team, you can contact us here.
