Corruption scandals, rupiah fall revive reshuffle talks in Indonesia

JAKARTA – Speculation over a possible broader Cabinet reshuffle has resurfaced as Indonesian President Prabowo Subianto is scheduled to swear in new appointees to his government on June 8 following corruption-related dismissals and amid growing concerns over the economy.

The ceremony will inaugurate Nanik Sudaryati Deyang as the new head of the National Nutrition Agency, which oversees Prabowo’s signature free nutritious meal programme, alongside two new deputies, Major-General Trenggono and Agustina Arumsari, according to State Secretary Prasetyo Hadi last week.

The leadership change came after Prabowo, on June 2, sacked the agency’s head, Dadan Hindayana, and his deputies Sony Sonjaya and Lodewyk Pusung, who were later arrested as suspects in a corruption investigation tied to the programme.

Although Nanik and her deputies effectively began their new jobs last week following their appointments, the inauguration was postponed to allow time for internal consolidation and ensure a smooth transition, Prasetyo said.

“We need them to first focus on (planning ways to) make improvements within the agency,” Prasetyo, who is also a politician from Prabowo’s Gerindra Party, told reporters on June 4, a day after he announced Dadan’s dismissal.

The June 8 event will also follow Prabowo’s dismissal of the deputy immigration and corrections minister, Silmy Karim, after he was named a suspect on June 3 in a separate corruption case, prompting speculation about his replacement.

But Prasetyo said there were no plans to fill the vacant deputy minister post, arguing that the Immigration and Corrections Ministry remains capable of functioning under the leadership of minister Agus Andrianto.

Attention has also increasingly turned to whether the upcoming ceremony could turn into a broader Cabinet reshuffle, particularly within Prabowo’s economic team, as scrutiny mounts over the government’s handling of the economy after the rupiah and the stock market have continued to plunge in recent weeks.

Rumours circulated last week among political and financial circles that Finance Minister Purbaya Yudhi Sadewa was preparing to leave his post for a top seat at the central bank, with former finance minister Chatib Basri and Health Minister Budi Gunadi Sadikin tipped as his possible replacement.

Purbaya quickly quashed the rumours last week, while Prasetyo on June 6 ruled out an imminent Cabinet shake-up, including any changes to the economic team, saying the government’s current priority is to “strengthen coordination among economic authorities” rather than make personnel changes.

Regardless of whether it happens on June 8 or later, political analysts say a Cabinet reshuffle remains likely, citing pressure on the rupiah, stock market volatility and cost-of-living concerns as signs of economic strain requiring a policy response.

“Changes in the economic team are becoming a necessity to stabilise the market,” analyst Agung Baskoro said, calling for the appointment of technocrats capable of addressing the root causes of the problem.

Analyst Lili Romli, meanwhile, said adjustments to economic ministries might be necessary amid ongoing market volatility and currency depreciation, warning that failure to act decisively could deepen economic instability and “spill over into (a) political crisis”.

There has also been speculation about the possible appointment of Labour Party chairman Said Iqbal to the Cabinet at the June 8 ceremony, which would further expand labour representation in the government following the appointment of labour activist Mohammad Jumhur Hidayat as environment minister in April.

Said Iqbal is also the president of the Confederation of Indonesian Trade Unions. But Prasetyo claimed that discussions on Said Iqbal’s possible appointment were still ongoing and did not confirm whether the labour leader would be among those sworn in.

“We are still discussing what role would be the most appropriate. It is likely related to his longstanding advocacy for workers and labour issues,” Prasetyo said.

Said Iqbal has declined to confirm or deny his possible appointment to the Cabinet, urging the public to wait for an official announcement from the government.

Also included on Prabowo’s agenda on June 8 is a ceremony at which 17 new foreign ambassadors are expected to present their letters of credence to the President, according to the State Secretary.

The government has faced criticism over a delayed accreditation following reports that some incoming envoys had been waiting for up to eight months to submit their credentials. THE JAKARTA POST/ASIA NEWS NETWORK