Indonesian President Joko Widodo has initiated a major cabinet reshuffle, replacing key figures in the energy and investment sectors. This reshuffle is widely seen as an effort by the outgoing president, commonly known as Jokowi, to ensure that his policies remain priorities for the incoming administration of Prabowo Subianto.
The reshuffle, announced during an inauguration ceremony on Monday, saw Jokowi appoint Bahlil Lahadalia, a close ally, as the new Minister of Energy and Mineral Resources. Lahadalia, who previously served as Indonesia’s investment minister, will be stepping into a crucial role as the nation continues to focus on optimizing its vast natural resources. Replacing Lahadalia as investment minister is Rosan Perkasa Roeslani, the chief campaign strategist for President-elect Prabowo Subianto.
Jokowi has rearranged his cabinet four times in the past year, including this latest change. Jokowi is reportedly making calculated efforts to ensure the continuance of his important programs, especially those pertaining to the onshore processing of Indonesia’s vital minerals and the development of the country’s future capital, Nusantara. This assumption has been fueled by the timing and nature of these adjustments.
Jokowi’s determination to uphold policy continuity is demonstrated by his decision to appoint representatives of Prabowo’s political party to these important positions. As Prabowo gets ready to assume the presidency in October, he seems to be setting the stage for a seamless handoff by doing this.
Rosan Perkasa Roeslani, the new investment minister, is well-connected with both Jokowi and Prabowo, signaling a bridge between the outgoing and incoming administrations. This connection is expected to help maintain stability and continuity in Indonesia’s investment policies. Additionally, Supratman Andi Agtas, who was appointed as the new Law Minister, is a prominent figure from Prabowo’s party, Gerindra. His appointment further indicates Jokowi’s strategy of aligning his cabinet with Prabowo’s incoming government.
Last month, in a move that surprised many, Jokowi also appointed Prabowo’s nephew as a deputy finance minister, further consolidating the relationship between the outgoing and incoming administrations. Political analysts have observed that Jokowi is using this final reshuffle to place his loyalists in critical positions within the government. D. Nicky Fahrizal, a political analyst at the Jakarta-based Center for Strategic and International Studies, noted that this is part of Jokowi’s effort to consolidate power and ensure that his key policies continue to be prioritized under Prabowo’s leadership.
Bahlil Lahadalia’s appointment as energy minister is particularly significant. During his tenure as investment minister, Lahadalia was known for his decisive actions, including the revocation of numerous inactive mining permits. His appointment as the new head of the Ministry of Energy and Mineral Resources is expected to bring a renewed focus on maximizing Indonesia’s natural resource potential. Lahadalia emphasized on Monday that his primary task will be to optimize the country’s natural resource production to boost state revenue and create jobs.
Lahadalia’s predecessor, Arifin Tasrif, oversaw a ministry that implemented strict policies to ban the export of certain raw commodities, a move designed to push investors to establish processing facilities within Indonesia. This policy successfully attracted billions of dollars in investment, particularly in nickel smelters, which drew significant interest from Chinese firms. However, the policy’s success has been more limited with other minerals, such as bauxite, where the desired level of investment has not yet materialized.
As Lahadalia prepares to take on his new role, he remains uncertain whether he will continue in this position after Prabowo takes office in October. He acknowledged that the decision to retain him would ultimately lie with the incoming president. Nonetheless, his appointment signals Jokowi’s intent to ensure that his administration’s focus on resource optimization and economic growth continues seamlessly under the new leadership.
In addition to the reshuffling of key ministers, Jokowi also established a new national nutrition agency, appointing Professor Dadan Hindayana as its head. This new agency aims to improve health outcomes, particularly among children and pregnant mothers, and is expected to play a critical role in implementing one of Prabowo’s flagship campaign promises: providing free nutritious meals to schoolchildren.
The feeding program, which could cost up to 450 trillion rupiah ($29 billion) annually when fully implemented, has raised concerns among investors about its potential impact on the country’s economy. To address these concerns, the government has allocated a more modest budget of 71 trillion rupiah for the program next year. Economists estimate that the program could contribute 0.1 percentage point to economic growth. Meanwhile, Jokowi has set a conservative budget deficit target for 2025, aiming to keep government spending under control as he prepares to leave office.
Jokowi has kept Finance Minister Sri Mulyani Indrawati, who is well-liked both at home and abroad, in place despite the significant reorganization. Although Mulyani was said to be considering leaving earlier this year, her decision to continue gives the nation stability as it deals with the last few months of Jokowi’s presidency.
Jokowi’s activities as his tenure draws to a close indicate that he wants to make a lasting impression on the economic and political state of Indonesia. Jokowi’s recent actions show that he still has a lot of power, according to Achmad Sukarsono, an associate director at Control Risks with a focus on Indonesia who is headquartered in Singapore. Sukarsono said, “Jokowi is showing his muscles as an outgoing president,” adding that Jokowi wants to demonstrate that he is still a dominant figure even as his presidency draws to a close.
