2 min read –
When will the sleeping giant awaken? –
What keeps the beauty asleep? –
Politics? Governance?
Indonesia, 280 million people, 87% Muslim, is the world’s largest Muslim-majority nation.
Yet Islam is not a state religion. The country remains a secular, pluralistic democracy grounded in Pancasila, a confessionally neutral ideology.
Under President Joko Widodo (2014–2024) and now Prabowo Subianto, Indonesia has pursued economic and diplomatic ascent.
But rising religious conservatism fuels a key question: Can this “Indonesian model” endure?
Short answer: Yes, but not because of Islamism.
Decentralized Corruption, Not Theocracy, Is the Real Barrier
Since the fall of Suharto in 1998, decentralization has empowered local elites, bureaucrats, oligarchs, and political fixers, to capture power through patronage, rigged tenders, and “money politics.”
Political Islam: Loud, but Limited
Groups like the Islamic Defenders Front (FPI) grab headlines, but lack electoral muscle.
Most Indonesians reject political Islamism, favoring Pancasila and pragmatic governance.
Economic Promise vs. Structural Traps
Indonesia woos foreign capital (China, UAE, Saudi funds) and bets big on nickel processing and EV batteries.
But weak institutions, low-value exports, and oligarchic gatekeeping limit gains.
Rising inequality and youth unemployment quietly erode cohesion.
The Bottom Line
Indonesia’s future depends less on religion than on governance, meritocracy, and inclusive growth.
The “moderate Islam + democracy” model is resilient if corruption is dismantled at its roots.
The above is a summary of the original article and the view of its author (see source below).
Here is our CINTASIA Takeaway
We agree: interfaith harmony is real, we see it daily. Religious conservatism exists, but it won’t block economic growth.
The article’s conclusion, “fix corruption and all will be fine,” is correct but shallow.
Here’s what we think Indonesia must do to join the global top 5 economies:
1. Radically upgrade education
→ Hire world-class advisors (Singapore, South Korea)
→ Shift from rote learning to skills, critical thinking, and English proficiency
2. Build merit-based systems
→ Reward excellence over koneksi (connections)
3. Adopt sound money principles
→ Curb chronic rupiah depreciation via disciplined monetary policy
→ Explore gold-backed digital assets or carefully selected crypto as hedges (not fiat overprinting)
4. Sustain fiscal discipline
→ No populist spending sprees, protect the currency, protect the people
We are CINTASIA, your partner for sales & operations success in Indonesia, specializing in tech and industrial equipment.
Picture: Sleeping Beauty, Walt Disney, 1959.
Source and full credit: article published in French magazine « Le Monde Diplomatique » in Sept 2025, based on the work and books of Vedi Hadiz, an Indonesian Professor at the Asia Institute, University of Melbourne.
P.S.: Send us a DM if you’d like a copy of the full article in French.
