Welcome to "Soemitronomics"

Written by: Tefilla Miryam

Prologue

Welcome to Prabowo Era, Indonesia 2025. Where geopolitics dictate fiscal policy, and bilateral meetings can replace the Minister of Finance.

A bit of Drama, a Lot of Meaning

Sri Mulyani stepped down not because she was caught in corruption or failed to maintain fiscal control, but because she was too disciplined in following IMF and US policies. Simultaneously, Prabowo returned from Beijing with a faint smile, signaling a major change. Indonesia was no longer on the fringes, but at the center of the global negotiating table.

A New Chapter in the Indonesian Economy

Until now, Indonesia had been like a VIP guest at an IMF events—respected but powerless. Sri Mulyani maintained Indonesia's image in the eyes of the West with a 3% deficit and a low tax ratio, but the world was changing. America and Europe were losing their prestige, while BRICS+ was growing in confidence. Prabowo saw this and chose to change the way Indonesia managed its economy, shifting to the Eastern bloc.

A Geopolitically Influenced Dismissal

Sri Mulyani's dismissal is not just a reshuffle, but a "fiscal reset" that requires strategic support from China and Russia. Prabowo may be signaling to Xi Jinping and Vladimir Putin to change Indonesia's economic policy, and they may respond, "Go ahead, we're ready to support."

Economic Coup Moment

This is not a personal matter, but a shift in economic ideology: from austerity to sovereign spending, from West to East. The 8% growth target is no longer a slogan, and cheap credit from China will flow abundantly.

Those Who Leave Are Not Enemies, Those Who Come Are Not Saviour

We are witnessing a changing era. Prabowo may want to complete Soemitro Djojohadikusumo's idea of ​​economic independence with concrete actions, starting with removing the symbols of the old fiscal regime.