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Former general Prabowo takes helm in Indonesia

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Former general Prabowo takes helm in Indonesia

Former military general Prabowo Subianto has been sworn in as Indonesia’s president with ambitious plans to boost growth while claiming a bigger international role for south-east Asia’s largest economy.

Prabowo, 73, takes over from Joko Widodo eight months after a landslide victory in February’s presidential election. Gibran Rakabuming Raka, his predecessor’s eldest son, was sworn in as his deputy.

“We will do our roles as the nation’s leaders truthfully, prioritising the interest of all Indonesians, including those who did not vote for us,” Prabowo said in a speech after taking his oath of office in Jakarta on Sunday.

The inauguration caps a remarkable turnaround for Prabowo, a former commander of the country’s feared special forces who was dismissed from the military and once banned by the US for the alleged kidnapping of democracy activists. Prabowo has always denied the accusations.

The former general won over millions of Indonesians with the backing of the highly popular Widodo, and by promising policy continuity as well as free school lunches, a massive programme expected to cost $28bn. He has also vowed to boost economic growth to 8 per cent a year, up from the 5 per cent rate that Indonesia has maintained for more than a decade.

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But Prabowo has already indicated a departure from his predecessor in everything from government spending to foreign policy. He is open to taking on more debt to fund social assistance programmes and plans to expand the cabinet by a third to accommodate political allies.

He also wants Indonesia to play a more active role internationally. Widodo shunned international events. In his 10 years in power, he never attended the annual UN General Assembly in New York in person. Prabowo, on the other hand, has made more than a dozen international trips between the election and inauguration day.

“The most significant break of Prabowo’s policies from his predecessor would be on the focus of its foreign policies,” said Kennedy Muslim, a political analyst at Indikator Politik Indonesia. “While Jokowi single-mindedly focused his pragmatic foreign diplomacy on attracting business investments from abroad, Prabowo’s are more strategic in nature since he’s by nature much more interested in geopolitics than his predecessor.”

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Prabowo is expected to maintain Indonesia’s historically neutral foreign policy stance but will seek to play a bigger role and increase engagement in global issues. As defence minister in Widodo’s government, Prabowo last year proposed a demilitarised zone and a UN referendum to end the conflict between Ukraine and Russia, a plan that was rejected by Ukraine. This year, Prabowo said Indonesia was willing to send peacekeeping forces to Gaza.

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His first overseas trip since winning the election was to China, where he met Xi Jinping. Beijing is Indonesia’s largest trading partner and the second-biggest source of foreign direct investment, putting money into economically significant industries such as metals, mining and infrastructure. Prabowo has also met Russian President Vladimir Putin and leaders of Japan, France and south-east Asian neighbours.

In his inauguration speech, Prabowo said Indonesia would be “free and active . . . and non-aligned”. His swearing-in ceremony was attended by leaders and senior officials from more than 30 countries, including Singapore’s Prime Minister Lawrence Wong, Philippine President Ferdinand Marcos Jr and Chinese vice-president Han Zheng.

At home, social assistance programs are a priority. While Widodo focused on building roads, ports and other infrastructure, Prabowo wants to ensure food and energy security, eradicate poverty and provide free meals and health check-ups.

“One of his immediate priorities is to tackle the social aspect of his agenda,” said Brian Lee, an analyst with Maybank. “Jokowi was about hard infrastructure. Prabowo is looking at initiatives that don’t just target the national economy as a whole but also target the households.”

However, Prabowo will also have to attract investment to meet his growth targets. “Eight per cent is going to be very difficult,” said Lee. “He needs to basically attract a lot more investment, both domestic and foreign direct investment.”

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Prabowo takes over an economy that has transformed during Widodo’s 10 years in power into a central player in the global energy transition effort, thanks to Indonesia’s vast nickel reserves. In his speech, Prabowo said the country should implement “downstreaming” across all of its natural resources, referring to the process of value-adding to commodities.

Widodo banned the export of nickel ore as part of his downstreaming policy, in a bid to attract foreign investors to set up smelters in the country. The move boosted Indonesia’s economy and exports, but GDP growth failed to meet Widodo’s initial target of 7 per cent.

Widodo has also eased rules to attract foreign investors, with metals and mining in particular drawing in record funds. While Prabowo has said he would be investor-friendly, he is yet to lay out detailed plans.

One of Prabowo’s economic advisers told the Financial Times that focus on minerals processing alone would not be enough to reach the GDP target. “We need new engines of growth,” he said, pointing to the digital sector, the energy transition and higher-quality manufacturing as possible growth areas.

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Fiscally, Prabowo is planning to be a lot more liberal than Widodo, primarily to fund his social assistance programs. His brother and close adviser, Hashim Djojohadikusumo, has said Prabowo plans to increase the country’s debt-to-GDP ratio to 50 per cent from the current 39 per cent. To support higher debt, Prabowo hopes to increase tax revenue and sell state assets.

While Indonesia’s debt levels are lower than regional peers’, economists warn a sharp rise in borrowings over the short term could affect the currency, risk Indonesia’s credit rating and have a ripple effect on the economy.

Prabowo’s team has reassured investors of their fiscal caution in recent months, but concerns remain. “Potential fiscal strains could grow over time as [Prabowo’s] new programmes burgeon,” Citi’s chief Indonesia economist Helmi Arman said in a recent research note. He also expressed concerns that Prabowo’s key programmes appeared to be domestic market-oriented and not on exports.

Prabowo will also have to deftly handle his political allies, most importantly his former rival Widodo. Analysts said the former president had for months been trying to retain influence to protect his legacy.

“Prabowo knows that people still love Jokowi . . . however, Prabowo wants to control power in his own hands without any interference from Jokowi,” said Arya Fernandes, a political analyst at the Jakarta-based Centre for Strategic and International Studies, adding that Widodo could be given an advisory role.

Several of Widodo’s ministers are expected to get positions in Prabowo’s government. One indication of the outgoing president’s influence could be how big a role his son Gibran gets as vice-president, traditionally not a prominent position.

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Prabowo also plans to install a bigger government, expanding the cabinet from 34 to up to 46, adding to worries over fiscal spending. His advisers have said the bigger government is primarily to appease partners in the ruling coalition.

Trade-offs are inevitable, said Indikator Politik’s Muslim, not least “between political stability and internal cohesion, as well as ruling effectiveness within his big-tent coalition”.

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Brass bands in Beijing make way for sticker shock at home as Trump returns to escalating inflation

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Brass bands in Beijing make way for sticker shock at home as Trump returns to escalating inflation

WASHINGTON (AP) — President Donald Trump returned from the spectacle of a Chinese state visit to a less than welcoming U.S. economy — with the military band and garden tour in Beijing giving way to pressure over how to fix America’s escalating inflation rate.

Consumer inflation in the United States increased to 3.8% annually in April, higher than what he inherited as the Iran war and the Republican president’s own tariffs have pushed up prices. Inflation is now outpacing wage gains and effectively making workers poorer. The Cleveland Federal Reserve estimates that annual inflation could reach 4.2% in May as the war has kept oil and gasoline prices high.

Trump’s time with Chinese leader Xi Jinping appears unlikely to help the U.S. economy much, despite Trump’s claims of coming trade deals. The trip occurred as many people are voting in primaries leading into the November general election while having to absorb the rising costs of gasoline, groceries, utility bills, jewelry, women’s clothing, airplane tickets and delivery services. Democrats see the moment as a political opportunity.

“He’s returning to a dumpster fire,” said Lindsay Owens, executive director of Groundwork Collaborative, a liberal think tank focused on economic issues. “The president will not have the faith and confidence of the American people — the economy is their top issue and the president is saying, ‘You’re on your own.’”

The president’s trip to Beijing and his recent comments that indicated a tone-deafness to voters’ concerns about rising prices have suggested his focus is not on the American public and have undermined Republicans who had intended to campaign on last year’s tax cuts as helping families.

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Trump described the trip as a victory, saying on social media that Xi “congratulated me on so many tremendous successes,” as the U.S. president has praised their relationship.

Trump told reporters that Boeing would be selling 200 aircraft — and maybe even 750 “if they do a good job” — to the Chinese. He said American farmers would be “very happy” because China would be “buying billions of dollars of soybeans.”

“We had an amazing time,” Trump said as he flew home on Air Force One, and told Fox News’ Bret Baier in an interview that gasoline prices were just some “short-term pain” and would “drop like a rock” once the war ends.

Inflationary pain is not a factor in how Trump handles Iran

Trump departed from the White House for China by saying the negotiations over the Iran war depended on stopping Tehran from developing nuclear weapons. “I don’t think about Americans’ financial situation. I don’t think about anybody. I think about one thing: We cannot let Iran have a nuclear weapon,” Trump said.

That remark prompted blowback because it suggested to some that Trump cared more about challenging Iran than fighting inflation at home. Trump defended his words, telling Fox News: “That’s a perfect statement. I’d make it again.”

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The White House has since stressed that Trump is focused on inflation.

Asked later about the president’s words, Vice President JD Vance said there had been a “misrepresentation” of the remarks. White House spokesman Kush Desai said the “administration remains laser-focused on delivering growth and affordability on the homefront” while indicating actions would be taken on grocery prices.

But as Trump appeared alongside Xi, new reports back home showed inflation rising for businesses and interest rates climbing on U.S. government debt.

His comments that Boeing would sell 200 jets to China caused the company’s stock price to fall because investors had expected a larger number. There was little concrete information offered about any trade agreements reached during the summit, including Chinese purchases of U.S. exports such as liquefied natural gas and beef.

“Foreign policy wins can matter politically, but only if voters feel stability and affordability in their daily lives,” said Brittany Martinez, a former Republican congressional aide who is the executive director of Principles First, a center-right advocacy group focused on democracy issues.

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“Midterms are almost always a referendum on cost of living and public frustration, and Republicans are not immune from the same inflation and affordability pressures that hurt Democrats in recent cycles,” she added.

Democrats see Trump as vulnerable

Democratic lawmakers are seizing on Trump’s comments before his trip as proof of his indifference to lowering costs. There is potential staying power of his remarks as Americans head into Memorial Day weekend facing rising prices for the hamburgers and hot dogs to be grilled.

“What Americans do not see is any sympathy, any support, or any plan from Trump and congressional Republicans to lower costs – in fact, they see the opposite,” Senate Democratic leader Chuck Schumer of New York said Thursday.

Vance faulted the Biden administration for the inflation problem even though the inflation rate is now higher than it was when Trump returned to the White House in January 2025 with a specific mandate to fix it.

“The inflation number last month was not great,” Vance said Wednesday, but he then stressed, “We’re not seeing anything like what we saw under the Biden administration.”

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Inflation peaked at 9.1% in June 2022 under Biden, a Democrat. By the time Trump took the oath of office, it was a far more modest 3%.

Trump’s inflation challenge could get harder

The data tells a different story as higher inflation is spreading into the cost of servicing the national debt.

Over the past week, the interest rate charged on 10-year U.S. government debt jumped from 4.36% to 4.6%, an increase that implies higher costs for auto loans and mortgages.

“My fear is that the layers of supply shocks that are affecting the U.S. economy will only further feed into inflationary pressures,” said Gregory Daco, chief economist at EY-Parthenon.

Daco noted that last year’s tariff increases were now translating into higher clothing prices. With the Supreme Court ruling against Trump’s ability to impose tariffs by declaring an economic emergency, his administration is preparing a new set of import taxes for this summer.

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Daco stressed that there have been a series of supply shocks. First, tariffs cut into the supply of imports. In addition, Trump’s immigration crackdown cut into the supply of foreign-born workers. Now, the effective closure of the Strait of Hormuz has cut off the vital waterway used to ship 20% of global oil supplies.

“We’re seeing an erosion of growth,” Daco said.

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Top Drug Regulator Is Fired From the F.D.A.

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Top Drug Regulator Is Fired From the F.D.A.

Dr. Tracy Beth Hoeg, the Food and Drug Administration’s top drug regulator, said she was fired from the agency Friday after she declined to resign.

She said she did not know who had ordered her firing or why, nor whether Health Secretary Robert F. Kennedy Jr. knew of her fate. The Department of Health and Human Services did not immediately respond to a request for comment.

The departure reflected the upheaval at the F.D.A., days after the resignation of Dr. Marty Makary, the agency commissioner. Dr. Makary had become a lightning rod for critics of the agency’s decisions to reject applications for rare disease drugs and to delay a report meant to supply damaging evidence about the abortion drug mifepristone. He also spent months before his departure pushing back on the White House’s requests for him to approve more flavored vapes, the reason he ultimately cited for leaving.

Dr. Hoeg’s hiring had startled public health leaders who were familiar with her track record as a vaccine skeptic, and she played a leading role in some of the agency’s most divisive efforts during her tenure. She worked on a report that purportedly linked the deaths of children and young adults to Covid vaccines, a dossier the agency has not released publicly. She was also the co-author of a document describing Mr. Kennedy’s decision to pare the recommendations for 17 childhood vaccines down to 11.

But in an interview on Friday, Dr. Hoeg said she “stuck with the science.”

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“I am incredibly proud of the work we were doing,” Dr. Hoeg said, adding, “I’m glad that we didn’t give in to any pressures to approve drugs when it wasn’t appropriate.”

As the director of the agency’s Center for Drug Evaluation and Research, she was a political appointee in a role that had been previously occupied by career officials. An epidemiologist who was trained in the United States and Denmark, she worked on efforts to analyze drug safety and on a panel to discuss the use of serotonin reuptake inhibitors, the most widely prescribed class of antidepressants, during pregnancy. She also worked on efforts to reduce animal testing and was the agency’s liaison to an influential vaccine committee.

She made sure that her teams approved drugs only when the risk-benefit balance was favorable, she said.

The firing worsens the leadership vacuum at the F.D.A. and other agencies, with temporary leaders filling the role of commissioner, food chief and the head of the biologics center, which oversees vaccines and gene therapies. The roles of surgeon general and director of the Centers for Disease Control and Prevention are also unfilled.

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Supreme Court is death knell for Virginia’s Democratic-friendly congressional maps

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Supreme Court is death knell for Virginia’s Democratic-friendly congressional maps

The U.S. Supreme Court

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The U.S. Supreme Court refused Friday to allow Virginia to use a new congressional map that favored Democrats in all but one of the state’s U.S. House seats. The map was a key part of Democrats’ effort to counter the Republican redistricting wave set off by President Trump.

The new map was drawn by Democrats and approved by Virginia voters in an April referendum. But on May 8, the Supreme Court of Virginia in a 4-to-3 vote declared the referendum, and by extension the new map, null and void because lawmakers failed to follow the proper procedures to get the issue on the ballot, violating the state constitution.

Virginia Democrats and the state’s attorney general then appealed to the U.S. Supreme Court, seeking to put into effect the map approved by the voters, which yields four more likely Democratic congressional seats. In their emergency application, they argued the Virginia Supreme Court was “deeply mistaken” in its decision on “critical issues of federal law with profound practical importance to the Nation.” Further, they asserted the decision “overrode the will of the people” by ordering Virginia to “conduct its election with the congressional districts that the people rejected.”

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Republican legislators countered that it would be improper for the U.S. Supreme Court to wade into a purely state law controversy — especially since the Democrats had not raised any federal claims in the lower court.

Ultimately, the U.S. Supreme Court sided with Republicans without explanation leaving in place the state court ruling that voided the Democratic-friendly maps.

The court’s decision not to intervene was its latest in emergency requests for intervention on redistricting issues. In December, the high court OK’d Texas using a gerrymandered map that could help the GOP win five more seats in the U.S. House. In February, the court allowed California to use a voter-approved, Democratic-friendly map, adopted to offset Texas’s map. Then in March, the U.S. Supreme Court blocked the redrawing of a New York map expected to flip a Republican congressional district Democratic.

And perhaps most importantly, in April, the high court ruled that a Louisiana congressional map was a racial gerrymander and must be redrawn. That decision immediately set off a flurry of redistricting efforts, particularly in the South, where Republican legislators immediately began redrawing congressional maps to eliminate long established majority Black and Hispanic districts.

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