Indonesia's incoming president, Prabowo Subianto, has asked Sri Mulyani Indrawati to remain as finance minister in his upcoming administration, a move that has garnered positive reactions from both local and foreign business communities.  

 

In a closed-door meeting at Prabowo’s private residence on Monday, Sri Mulyani confirmed the request, stating that their discussions focused on strengthening state finances, particularly regarding revenues and spending. 

 

Sri Mulyani, who has served as finance minister under two previous presidents, has been widely recognized for her role in reforming Indonesia's taxation system and steering Southeast Asia’s largest economy through various crises.  

 

Her potential reappointment has been welcomed by many in the business community. “Her competence can maintain the trust of the domestic and international market in their undertaking of business and investment in Indonesia,” said Shinta Kamdani, chair of the Indonesian Employers Association (Apindo), as quoted by The Jakarta Post. 

 

During his campaign, Prabowo proposed ambitious policies, including a US$28 billion program to provide free meals to 83 million children and pregnant women. These costly promises raised concerns among investors and ratings agencies about fiscal risks. However, economists believe that Sri Mulyani’s presence could provide balance.  

 

“I hope Sri Mulyani’s presence could serve as a brake if the new government comes up with unfeasible or unrealistic policies,” said Jahen Rezki, an economist at the University of Indonesia. 

 

Foreign business groups have also expressed their support. François de Maricourt, chairman of EuroCham, noted that her reappointment would help maintain the “momentum and consistency of Indonesia’s fiscal policy.” Lee Kang Hyun, chairman of the Korean Chamber of Commerce in Indonesia, added that Sri Mulyani’s experience would ensure stability in areas requiring careful deliberation, such as Prabowo’s free meal program. 

 

With Prabowo’s cabinet lineup set to be announced on October 20, investors are optimistic about Sri Mulyani’s return. The benchmark IDX Composite index rose 0.89% on Tuesday, reflecting positive market sentiment towards Prabowo's ministerial selections.