World
2019.10.23 11:18 GMT+8

Indonesia announces new cabinet, taps opposition, startup founder

Updated 2019.10.23 16:54 GMT+8
Vanessa Gu

Indonesian President Joko Widodo has introduced his cabinet line-up for his second five-year term, which includes his main political rival, a startup founder, professionals, plus old and new faces.

Prabowo Subianto, Widodo's sole challenger in April's bitterly fought election, was named defense minister. While the co-founder of Indonesian ride-hailing and payments firm Gojek, Naidem Makarim, will serve as education and culture minister.

Amid global economic uncertainty and a slowdown in Southeast Asia's largest economy, former industry minister Airlangga Hartarto will head Widodo's economic team, and economist Sri Mulyani Indrawati has been retained as finance minister.

Widodo was sworn in on Sunday for a second term. After a first term marked by heavy infrastructure spending, the 58-year-old has pledged to cut red tape, create jobs for young people, and to keep building infrastructure to underpin economic growth.

Keeping his rivals close

Former general Prabowo Subianto attends the inauguration ceremony of Indonesian President, Joko Widodo, and Vice President, Ma'ruf Amin at the House of Representative building, Jakarta, October 20, 2019. /VCG Photo

Subianto's appointment as defense minister has ruffled feathers, especially among the president's supporters. After this year's presidential election, Subianto had initially refused to concede defeat, and even went to the constitutional court citing systematic fraud and abuse of power.

The move is aimed at consolidating power in Widodo's second term, said Edbert Gani Suryahudaya, researcher at the Jakarta-based think tank Centre for Strategic and International Studies (CSIS). "It's risky, but I think Jokowi chose this because he wants security in his second term," he continued.

With his entry into the cabinet, Widodo should now have the support of about 74 percent of the seats in parliament, including Subianto's Gerindra party.

Even then, it is "a gamble" said Suryahudaya. "The newcomer from the coalition that has Prabowo might be a bit challenging. Prabowo, despite all of his reconciliation, was the prominent actor in the opposition," he said. However, the CSIS researcher also added that "you need political stability to build economy."

Ramping up on skills and education

About half of Indonesia's 260 million people are below the age of 30, making education and skills a top priority for the sprawling archipelago. It is also why Widodo stressed that his new cabinet needs millennials and professionals to remain relevant.

"This is a big challenge and also a great opportunity. This could be a big problem if we cannot provide jobs, but it will be a big opportunity if we are able to develop superior human resources, supported by an advantageous political and economic ecosystem," said Widodo at his inauguration address.

Nadiem Makarim, founder of the Indonesian ride-hailing and online payment firm Gojek, October 21, 2019. / Reuters

In this latest round of cabinet appointments, he named the Gojek founder as the education and culture minister. Media mogul Erick Thohir – a former owner of Italian football club Inter Milan and the 2018 Asian Games organizing committee chief – was appointed minister of state-owned enterprises.

While many expected 35-year-old Makarim to take up a digital economy portfolio, he was instead picked for education, signaling that the president is taking "a more pragmatic approach in the sense to bring a more tech-oriented education," said Suryahudaya.

Indonesia's technology sector is booming, its internet economy is forecast to reach more than 100 billion U.S. dollars by 2025, and the Indonesian leader has repeatedly pledged to invest in bridging the acute skills shortage faced by the country's startups.

Widodo's leadership is under mounting criticism after he faced a string of challenges, from nationwide anti-government demonstrations and smog-belching forest fires that sparked diplomatic tensions with Indonesia's neighbors, to deadly unrest in Papua and an economic slowdown.

It remains to be seen if this new cabinet line-up, some of whom have limited credentials, will be able to carry out Widodo's ambitious reforms. Meanwhile, one can only wait and see, as Suryahudaya quipped: "We need to see the first hundred days of the cabinet, what will they do."

(With input from agencies)

(Cover photo: Indonesian President Joko Widodo (C) and his Vice President Ma'ruf Amin (L) give a press conference after the Presidential Inauguration Ceremony at the House of Representative building, Jakarta, October 20, 2019. /VCG Photo) 

Copyright © 

RELATED STORIES