Who Leads Indonesia?

Leadership

Prabowo Subianto

President of Indonesia

Political Party

Gerindra

Inaugurated

Oct 20, 2024

Term Ends

2029

Next Election

2029

Born

Oct 17, 1951 in Jakarta, Indonesia

Country Population

279M

Continent

Asia

Prabowo Subianto became president in October 2024 after winning on his third attempt. A former special forces commander and son-in-law of former dictator Suharto, he has reinvented himself as a democratic leader. He has launched an ambitious free school meals program, increased defense spending, and pursued active diplomacy. His partnership with vice president Gibran (Jokowi's son) represents a political dynasty evolution.

Government

Capital

Jakarta (moving to Nusantara)

Official Language(s)

Indonesian

Currency

Rupiah (IDR)

Government Type

Presidential Republic

Area

1,904,569 km²

Indonesia is the world's largest archipelago with over 17,000 islands and the fourth most populous country. It has the world's largest Muslim population and extraordinary biodiversity, including Komodo dragons and orangutans. Indonesia is a G20 member and Southeast Asia's largest economy. The country is building a new capital, Nusantara, on Borneo to replace sinking Jakarta.

Indonesia is a presidential republic with a directly elected President serving as both head of state and head of government. The President serves five-year terms with a maximum of two. Prabowo Subianto won the February 2024 presidential election in the first round with approximately 58% of the vote, choosing Joko Widodo's (Jokowi's) son Gibran Rakabuming Raka as his running mate. This choice linked Prabowo's victory to Jokowi's significant popularity. Indonesia's legislature, the People's Representative Council (DPR), has 575 seats. Indonesia is the world's largest Muslim-majority democracy.

Economic Snapshot

GDP

$1.4T

GDP Per Capita

$5,000

Income Group

Upper-middle income

Trade Balance

Surplus (commodity-driven)

Inflation

3.7% (BPS, 2023)

Indonesia is often described as a sleeping giant on the verge of awakening. The fourth most populous country in the world, spanning an archipelago of over 17,000 islands across three time zones, Indonesia has the natural resources, the demographic youth, and the geographic position to become one of the world's largest economies within a generation. Its nickel reserves alone place it at the center of the global transition to electric vehicles; its palm oil dominance is embedded in the supply chains of food companies worldwide; its coal exports power the industrial economies of East and South Asia. The challenge is converting this resource wealth into broad-based human development. Indonesia's GDP per capita remains relatively low, its infrastructure outside Java is limited, its educational quality varies enormously across islands, and its regulatory environment, while improving, still creates friction for investment. The Jokowi decade brought significant infrastructure development, including new roads, ports, airports, and the relocation of the capital from the overcrowded Jakarta to the new city of Nusantara in Borneo. Prabowo has largely continued this trajectory. The nickel strategy is Indonesia's most consequential economic policy decision of the decade. By banning exports of raw nickel ore in 2020, Indonesia forced global manufacturers including Chinese battery companies, South Korean steelmakers, and ultimately Western EV manufacturers to build refining and processing capacity in Indonesia. This has attracted tens of billions in investment and begun to build the domestic processing industry that raw commodity exporting never creates. The EU challenged this ban at the WTO, arguing it distorts trade. Indonesia has held firm, viewing it as a legitimate industrial policy tool. The outcome may define the playbook for resource-rich developing nations seeking to move up the value chain in the energy transition era.

Major Industries

• Mining (nickel, coal, tin, bauxite, copper, gold)
• Palm Oil Production & Processing
• Textiles & Footwear
• Automotive Assembly
• Food & Beverage Processing
• Oil & Gas (Pertamina)
• Tourism
• Digital Economy (Gojek, Tokopedia, Traveloka)

Indonesia is known for: Indonesia is the world's largest producer of palm oil and nickel. Its nickel reserves, estimated at approximately 22% of global reserves, have made it a critical player in the EV battery supply chain as the world transitions away from fossil fuels. Indonesia is also the world's largest archipelago and one of the most biodiverse countries on Earth.

Trade Profile

Indonesia runs a consistent trade surplus driven by commodity exports: palm oil, coal, and increasingly nickel. The nickel ore export ban of 2020 has forced international manufacturers to establish Indonesian processing facilities, increasing the value captured domestically. China is Indonesia's largest trade partner in both exports and imports, creating a dependency the Indonesian government monitors carefully.

Top Exports

• Palm oil & derivatives
• Coal
• Nickel & refined nickel products
• Crude oil & LNG
• Copper & copper products
• Rubber
• Textiles & clothing
• Footwear

Top Imports

• Machinery & mechanical equipment
• Refined petroleum
• Electronics & electrical equipment
• Steel & iron
• Chemicals
• Vehicles & parts

Export Destinations

• China
• United States
• Japan
• India
• Singapore

Import Partners

• China
• Singapore
• Japan
• United States
• South Korea

The world depends on Indonesia for: Nickel (critical for EV batteries; world's largest reserves), palm oil (global food production), coal (Asian power generation), LNG (Japanese and Korean energy security), rubber, and tin

Indonesia depends on the world for: Industrial machinery, refined petroleum, electronics, steel, chemicals, and vehicle components

Global Role

Indonesia controls the Strait of Malacca through which approximately 40% of global trade flows. Its nickel reserves are essential for the electric vehicle transition. Its position as the world's largest Muslim-majority democracy gives it unique diplomatic standing between the Western world and the Islamic world.

• World's largest archipelago: 17,000+ islands spanning a distance equivalent to crossing the continental United States
• World's largest Muslim-majority democracy with approximately 275 million people
• World's largest nickel reserves; approximately 22% of global supply
• World's largest palm oil producer and exporter
• Controls the Strait of Malacca: approximately 40% of world trade and 30% of global oil trade passes through it
• Member of ASEAN and G20; hosts ASEAN Secretariat in Jakarta
• Indonesia is on track to become the world's 4th or 5th largest economy by 2050

Frequently Asked Questions

Who is the current President of Indonesia?

Prabowo Subianto is Indonesia's 8th President. He took office on October 20, 2024, after winning the February 2024 presidential election in the first round with approximately 58% of the vote. A former Army Special Forces commander and former son-in-law of President Suharto, Prabowo ran for president three times before winning. He chose Joko Widodo's son as his running mate, linking his administration to his predecessor's popularity.

Why is Indonesia important for electric vehicles?

Indonesia holds approximately 22% of the world's nickel reserves, more than any other country. Nickel is a key component in the cathodes of many lithium-ion batteries used in electric vehicles. Indonesia banned exports of unprocessed nickel ore in 2020, forcing international manufacturers to build refining and battery production capacity in Indonesia. This has made Indonesia a central player in the global EV supply chain.

What does Indonesia export?

Indonesia's top exports are palm oil (world's largest producer and exporter), coal (world's largest coal exporter by volume), nickel and refined nickel products, crude oil and LNG, copper, rubber, textiles, and footwear. Nickel's importance has grown dramatically as EV demand increases.

What is the Strait of Malacca?

The Strait of Malacca is a narrow waterway between the Malay Peninsula and the Indonesian island of Sumatra, one of the world's most strategically important shipping lanes. Approximately 40% of global trade and 30% of global oil passes through it. Control over or disruption of the Strait would have enormous consequences for global supply chains, particularly for China, Japan, and South Korea, which rely on it for energy imports.

Is Indonesia a democracy?

Yes. Indonesia is the world's largest Muslim-majority democracy. It transitioned from Suharto's 32-year authoritarian rule to a democratic system in 1998 and has held competitive presidential and parliamentary elections since. Indonesia's democracy is imperfect, with concerns about corruption, press freedom, and occasional military influence, but it has been broadly durable and has enabled peaceful transfers of power.

Related Countries

• China: Dominant trade partner; largest buyer of nickel and coal
• Australia: Neighbor; significant trade and security relationship
• India: Growing trade partner and fellow large democracy
• Japan: Major trade partner; coal and LNG customer
• Malaysia: Neighbor and ASEAN partner; competitor in palm oil
• Singapore: Key financial and logistics hub for Indonesian trade