Prabowo presents largest cabinet in decades  

 

Prabowo’s Cabinet is the largest since 1966 when the nation’s first President Sukarno formed an administration of 132 ministers in an extremely tense political situation after a failed 1965 coup. The so-called “Dwikora Cabinet 2” was dismissed a month later. 

 

President Prabowo Subianto has officially sworn in a new cabinet of more than 100 members, which includes his loyalists and the allies of former president Joko “Jokowi” Widodo, the father of Vice President Gibran Rakabuming Raka, making it the country’s largest cabinet in decades.  

 

The former defense minister and retired Army general took office on Sunday as the nation’s eighth president, taking the leadership baton from Jokowi, his long-time rival-turned-ally who had tacitly supported his presidential bid in February’s election.   

 

The new head of state first announced his cabinet lineup on Sunday evening, some 11 hours after the oath-taking ceremony, naming it the Red-and-White cabinet, referring to the colors of the Indonesian flag.  

 

In two back-to-back ceremonies at the Presidential Palace on Monday, Prabowo officially swore in 48 ministers, 56 deputy ministers and five other heads of ministerial-level agencies in the cabinet.  

 

The 109 appointees feature a mix of Prabowo’s loyalists and reappointees from the administration of his predecessor Jokowi, comprising a diverse group of politicians, technocrats, businessmen and former military generals. 

 

Prabowo reappointed nearly half of Jokowi’s Indonesia Maju (Indonesia Onward) cabinet members, most of whom are economic-related ministers who will continue their role in the new administration, such as Coordinating Economic Minister Airlangga Hartarto, Industry Minister Agus Gumiwang Kartasasmita, Energy and Mineral Resources Minister Bahlil Lahadalia and State-Owned Enterprises Minister Erick Thohir.  

 

Sri Mulyani, Jokowi’s finance minister during his decade of presidency, will also continue her duty under Prabowo’s leadership, making her the first person to hold the position under three different presidents.   

 

Before serving as the managing director of the World Bank from 2010 to 2016, Sri Mulyani held a similar ministerial post during the leadership of President Susilo Bambang Yudhoyono. She was the executive director of the International Monetary Fund (IMF) between 2002 and 2004. 

 

Luhut Pandjaitan, widely known to be a close ally of Jokowi, and who served as the coordinating maritime affairs and investment minister in the previous cabinet, was appointed to lead the National Economic Council, which is tasked in providing advice regarding economic issues to the President. 

 

Several other Jokowi loyalists were appointed to new roles in Prabowo’s cabinet, including Coordinating Human Development and Culture Minister Pratikno, who served as state secretary in the previous cabinet, and Cooperatives Minister Budi Arie Setiadi, who previously served as communications and information minister.  

 

Prabowo also introduced figures from his inner trusted circle into the Red-and-White cabinet, such as Gerindra Party member Sugiono, who was assigned as the new foreign affairs minister, and former Army lieutenant general Sjafrie Sjamsoeddin, who will fill the defense minister post.  

 

The cabinet roster also includes politicians from parties backing Prabowo’s presidential bid in the February election, such as Coordinating Food Minister Zulkifli Hasan, who is also the chairman of National Mandate Party (PAN), and Coordinating Infrastructure and Regional Development Minister Agus Harimurti Yudhoyono, the leader of the Democratic Party.  


 

Prabowo has also restructured and renamed several ministries from his predecessor’s cabinet, such as splitting the Law and Human Rights Ministry under Jokowi’s presidency into three ministries, namely the Law Ministry, the Human Rights Ministry and the Immigration and Correctional Services Ministry. 

 

Another “restructuring” includes separating the Coordinating Political, Legal and Security Affairs Ministry into the Coordinating Political and Security Ministry as well as the Coordinating Law, Human Rights and Immigration Ministry.

 

Potential inefficiencies  

 

Some of the ministers have up to three deputy ministers, such as Deputy Finance Ministers Thomas Djiwandono, Suahasil Nazara, and Anggito Abimanyu as well as Deputy Foreign Ministers Anis Matta, Arrmanatha Nasir, and Arif Havas Oegroseno.  

 

Prabowo’s cabinet is the largest since 1966 when the nation’s first President Sukarno formed an administration of 132 ministers in an extremely tense political situation after a failed 1965 coup. The so-called “Dwikora Cabinet 2” was dismissed a month later.  

 

Some analysts have warned that a bloated cabinet could lead to bureaucratic inefficiencies, which could hinder Prabowo’s campaign programs, such as the free meals program, which would involve significant costs. 

 

But Presidential Communications Office head Hasan Nasbi played down such a concern, arguing that the new cabinet would work more efficiently, having a slimmer structure in each ministry.  

 

“A ministry that initially had a large structure is separated so that it is now slimmer [...] This will be much more efficient, in my opinion, because [each ministry] will have a more focused task,” Hasan told reporters on Monday.  

 

Hasan added that Prabowo would ensure that each cabinet member had a shared vision working with the President in the next five years to avoid any “sectoral egos” among ministries.  

 

Prabowo is scheduled to take his cabinet members on a three-day retreat at a military academy nestled in a Javanese mountain range, where they will sleep in tents and are expected to form a bond with each other.  

 

Cooperatives Minister Budi Arie Setiadi said over the weekend that the retreat would be held between Friday and Sunday. 

 

Source: The Jakarta Post 

Indonesian President Prabowo plans new state investment firm 

 

Indonesian President Prabowo Subianto wants to establish a new investment agency that would become a holding company for state investments, similar to Singapore's Temasek, the official named to head the proposed firm said on Tuesday. 

 

Prabowo, 73, took office on Sunday and has since sworn in more than 100 people as ministers and deputies, heads of new institutions and advisers. 

 

The Daya Anagata Nusantara Investment Management Agency would be formed as soon as Prabowo gets parliamentary approval, Muliaman Hadad, a former chief of the Financial Services Authority who has been named head of the body, told reporters. 

 

The structure of the agency is being discussed with other authorities, but the goal is for it to operate like Singapore's Temasek as a state-owned investment firm, said Hadad, who has also served as Indonesia's ambassador to Switzerland. 

 

"The intention is so that investments that are scattered can be consolidated and can be leveraged," he said. 

 

Currently, government holdings in state enterprises are managed by the State-Owned Enterprises (SOEs) Ministry. State companies in sectors such as banking, telecommunication, construction and mining play a dominant role in the economy. 

 

Hadad said discussions about the new agency would involve the SOEs ministry as well as the country's sovereign wealth fund, the Indonesia Investment Authority. 

 

After winning February's election, Prabowo told an investment forum in March that he was open to privatizing non-strategic state firms to allow the private sector to take a bigger role in the economy, without providing more details. 

 

Prabowo on Tuesday also named former World Bank managing director Mari Elka Pangestu as his special envoy on trade, and former chief investment minister Luhut Pandjaitan as his adviser on digitalisation of government. 

 

Many of predecessor Joko Widodo's economic ministers were retained in Prabowo's "red and white cabinet”, including highly-regarded finance minister Sri Mulyani Indrawati and chief economic minister Airlangga Hartarto, a move some analysts said would ensure policy continuity. 

 

"Prabowo's experienced economic team provides a significant boost to investor confidence, setting a solid foundation for sound and prudent policymaking," said Brian Lee, an economist with Maybank Investment Banking Group. 

 

Lee noted investors are still watching for Prabowo's initiatives to improve the investment climate and cut red tape. 

 

Prabowo will have the biggest cabinet in the Southeast Asian country in decades. He will host his first cabinet meeting on Wednesday, and later this week will take cabinet members on a three-day retreat at a military academy in Central Java. 

 

Source: Reuters 

Prabowo Prepares Debt Write-Off for Millions of Farmers, Fisher men Impacted by 1998 Financial Crisis 

 

President Prabowo Subianto is preparing to issue a Presidential Regulation (Perpres) to forgive the debts of millions of farmers and fishermen to improve their access to credit. 

 

Hashim Djojohadikusumo, Chairman of the Advisory Board of the Indonesian Chamber of Commerce (Kadin) and younger brother of President Prabowo, revealed that approximately 6 million farmers and fishermen are burdened by old debts, many of which date back to the financial crises of 1998 and 2008. 

 

These debts, ranging from Rp 10 million ($640) to Rp 20 million, have hindered their ability to secure loans from banks. Applications through the Financial Information Service System (SLIK) of the OJK are consistently rejected due to outstanding debts, forcing them to seek riskier loans from alternative sources like loan sharks. 

 

“There are millions still trapped in these old debts," Hashim said during a discussion at the Kadin Indonesia Tower in Jakarta on Wednesday. 

 

Although some debts have been technically written off, banks retain the right to claim repayment, which blocks these individuals from obtaining new loans. Hashim mentioned that he discussed this issue with President Prabowo, who agreed to initiate changes. 

 

The Law Ministry is currently drafting the debt forgiveness regulation, expected to be signed by President Prabowo soon. This initiative aims to help farmers, fishermen, and MSMEs access bank loans, ultimately boosting their businesses and contributing to the economy. 

 

“Everything is ready and aligned with the law. I hope President Prabowo will sign the regulation next week,” Hashim added. 

 

Source: Jakarta Globe