Image Credit: Kementerian Keuangan Republik
Sri Mulyani Indrawati Retained as Finance Minister in Prabowo’s New Cabinet
Indonesia’s new President Prabowo Subianto announced his cabinet on Sunday, retaining Sri Mulyani Indrawati as finance minister, a key move ensuring continuity in economic policies.
Indrawati, who has served multiple administrations, will oversee Indonesia’s fiscal strategy amidst Prabowo’s ambitious spending plans, including a $30 billion free lunch program for schoolchildren.
The cabinet, Prabowo’s largest since Suharto’s fall in 1998, includes several previous administration figures, solidifying his control. Notable appointments include Zulkifli Hasan as head of the new food affairs ministry and Rosan Roeslani for the expanded investment and downstreaming ministry.
Focus on Fiscal Stability and Continuity
Reappointing Indrawati, a former World Bank official, signals Indonesia’s focus on fiscal stability. Known for keeping budget deficits within the 3% legal limit, her inclusion is seen as an effort to maintain investor confidence. With Prabowo planning to expand social programs, Indrawati’s role becomes crucial in balancing ambitious spending with economic discipline.
Expansion of the Cabinet
Prabowo’s 109-member cabinet, the largest in modern Indonesian history, includes newly created ministries like food affairs and infrastructure. These ministries will play central roles in managing key programs such as Prabowo’s free lunch initiative for schoolchildren and housing projects. However, the expanded cabinet raises concerns over potential bureaucratic inefficiency and increased patronage.
By consolidating political power with key appointments, Prabowo aims to push his administration’s policy goals while managing Indonesia’s growing economic challenges.
