President Prabowo Subianto stated that Indonesia's economy is considered inefficient based on the high Incremental Capital Output Ratio (ICOR) figure, which is around 6.5. This figure shows that to increase wealth by one rupiah, an expenditure of six and a half rupiah is needed. Prabowo compared Indonesia's ICOR with more efficient neighboring countries, with ICOR scores in the range of 3-4. He blamed bureaucratic inefficiency and price gouging practices as the main causes of state fund leakage. Since taking office, the government has carried out large-scale budget efficiency measures to allocate funds to more impactful programs such as free nutritious meals and bridge construction.
