March 29, 2025 (EIRNS)—Indonesia is one of several countries facing instability and attacks on its currency from the international financial oligarchy. One of their responses is the creation of a new sovereign fund, called Danantara, to take over and expand the crucial state sector industries in the country. With over 280 million people, Indonesia is the world’s fourth most- populous country and the most populous Muslim-majority country, with the largest Southeast Asian economy.
Nikkei reports that the newly inaugurated President Prabowo Subianto has called for major cuts in order to fund a free food program for the schools, as well as the new sovereign fund Danantara. They report that a wave of mass demonstrations has erupted in several cities across Indonesia over the past week, driven largely by concerns over the cuts in services, as well as the legalized involvement of military personnel in civilian roles. Activists and civilian groups have called the policy a setback for democratic progress.
Several major Indonesian companies are facing financial crisis, in part due to massive infrastructure projects under the former President Joko Widodo, some of which led to the inability of the construction companies to meet debt payments. Nikkei reported on March 20: “The recent suspension of trading in the shares of a state-owned construction company is reviving concerns over the financial woes of big Indonesian state builders, with more of their debts potentially going unpaid as the government plans to drastically cut infrastructure spending.”
