5 things to watch from Indonesia's cabinet reshuffle

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Indonesian President Joko Widodo’s cabinet shakeup strengthens his political position in Parliament and further cements his ambitious reform agenda: He put strong figures in crucial economic and finance roles. But he also sidelined others. Here are five things to watch as the cabinet gets to work.

1. Comeback Kid

Sri Mulyani Indrawati’s pursuit of corruption in the tax and customs offices during her first stint as finance minister gave her rock-star status but earned the ire of some powerful politicians. She resigned under pressure. While her return has been widely hailed, many of the same political elite are still around.

The difference this time, say analysts, is that she has the backing of the president, who has built a strong political base and earned support from forces once opposed to Ms. Sri Mulyani.

2. Clean Energy

Meanwhile at the energy ministry, the shakeup removed a corruption fighter. Respected for battling graft in an industry not known for transparency, Energy Minister Sudirman Said drove a wedge between himself and the palace by publicly feuding with fellow minister Rizal Ramli over an oil-and-gas block.

His replacement, Archandra Tahar, appears to be of the same pro-market breed as Mr. Said, and-like Ms. Sri Mulyani-he has the backing of the president. But he lacks political experience, and to advance the president’s priorities for the sector, which include redrafting oil and gas and mining laws, a “lot of political skills are needed,” said Rangga Fadillah, an analyst at the Bower Group Asia consultancy.

3. Trade Ties

Tom Lembong’s shift to the investment board from the trade ministry raises questions about whether Indonesia means to retain the more liberal trade approach it has taken recently.

Read the full article here.

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Friday, July 29, 2016 – 09:02
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