Overview
The Indonesian president has enacted a significant cabinet reshuffle, replacing key ministers in response to recent widespread protests and in an effort to strengthen government strategy and address economic concerns.
Cabinet Reshuffle Highlights
- President Prabowo Subianto has dismissed the finance and security ministers amid ongoing nationwide protests and perceived cabinet shortcomings.
- Finance Minister Sri Mulyani Indrawati, a widely respected official, was replaced by Pabaya Yudi Sarda due to economic slowdown fears.
- Pabaya Yudi Sarda aims for 8% economic growth and seeks greater public/private involvement in the economy.
- Indrawati was known for tax reforms and crisis management, having served under three presidents and a World Bank tenure.
- Indrawati reportedly stepped down following public anger and a protestor-led intrusion at her home.
- Security Minister Budhi Gunawan was also dismissed, with Defense Minister Saffrey Samsodin serving as interim replacement.
- Three other ministers replaced: Protection of Indonesian Migrant Workers (Abdul Karding by Mktar Rudin), Cooperatives (Budari by Ferry Yulano), and Youth and Sports (Dito Ariotedjo, successor not yet named).
Creation of New Ministry
- A new Ministry of Hajj and Umrah has been established, to be led by Muhammad Uran Yusov.
Context and Reasons for Changes
- The reshuffle follows two weeks of deadly protests over economic inequality and demands for a fairer tax system.
- Analysts suggest the reshuffle aims to consolidate presidential priorities, strengthen cabinet solidarity, and potentially improve performance.
- Official explanations cite administrative evaluation, the new ministry’s establishment, and recent unrest as influencing factors.
Protest Background and Fallout
- Protests escalated after a police vehicle killed a delivery driver, fueling public anger.
- Nearly 600 protestors remain detained following the demonstrations.
- Public dissatisfaction focused on finance policies and economic disparities.
Decisions
- Replace finance and security ministers following unrest.
- Establish new Ministry of Hajj and Umrah.
- Appoint interim defense minister as acting security minister.
- Replace several other cabinet ministers.