Prabowo’s New Brand of Resource Nationalism

A sign for Indonesia's sovereign wealth fund Danantara is seen in front of its headquarters in Jakarta, Indonesia, February 28, 2025 | REUTERS/Willy Kurniawan

In this article published by East Asia Forum, Eve Warburton writes about how the Indonesian government's proposal to channel major commodity exports through a new state-owned entity, Danantara Sumberdaya Indonesia, reflects President Prabowo Subianto’s new style of resource nationalism. Dr. Warburton asserts that such initiatives are purported to address long-standing problems in the resource industry, but in practice are highly discretionary.

The Indonesian government’s proposal to channel major commodity exports through a new state-owned entity, Danantara Sumberdaya Indonesia, reflects President Prabowo Subianto’s new style of resource nationalism. Whereas resource nationalist policies under the Susilo Bambang Yudhoyono and Joko Widodo administrations generally balanced state goals with the interests of domestic businesses, Prabowo’s approach prioritises state control and increasingly challenges the private-sector, including powerful Indonesian oligarchs. Initiatives like Danantara Sumberdaya Indonesia purport to address long-standing problems in the resource industry, but in practice are highly discretionary. Indonesia’s resource sector requires reform, but Prabowo’s statist and coercive brand of resource nationalism is no solution.

Eve Warburton is Senior Lecturer at the Department of Political and Social Change in the Coral Bell School of Asia Pacific Affairs, The Australian National University.