Indonesia’s president appoints Prabowo’s nephew as deputy finance minister

JAKARTA - Indonesia’s outgoing President Joko Widodo swore in on July 18 as a deputy finance minister Thomas Djiwandono, nephew of President-elect Prabowo Subianto and his adviser for fiscal issues, to help the imminent government handover.

Mr Djiwandono will work with Mr Widodo’s finance minister Sri Mulyani Indrawati, who has won plaudits for prudent fiscal policy, including during the Covid-19 pandemic.

The appointment was intended “to smooth the transition of government from the administration of Mr Jokowi to Mr Prabowo,” a senior politician from Mr Prabowo’s Gerindra political party Sufmi Dasco Ahmad, told Reuters, using the president’s nickname.

Mr Prabowo, 72, won February’s election by a huge margin and is

set to take over from Mr Widodo

in October, but his pick for finance minister and fiscal plans face investor scrutiny due to costly promises including a plan for free school meals.

The rupiah fell as much as 0.4 per cent against the US dollar on July 18, the biggest drop among emerging Asian currencies, prompting the central bank to intervene to shore up confidence.

Concerns that debt may rise during Mr Prabowo’s upcoming administration had previously added to pressure on the rupiah and Indonesian bond prices.

Mr Djiwandono said he will not be Prabowo’s finance chief, and that he was tasked with synchronising the next administration’s plans with the 2025 budget being designed at the finance ministry.

“Mr Prabowo is still considering professional candidates for the role of finance minister,” he told Reuters.

Mr Dasco said Mr Djiwandono will remain deputy finance minister when Mr Prabowo’s term officially starts in October.

US-educated Djiwandono is Mr Prabowo’s main spokesperson on fiscal issues, often reiterating the incoming president’s commitment to fiscal rules and keeping the 2025 budget deficit under the legal limit of 3 per cent of gross domestic product.

Mr Djiwandono previously worked in a securities firm in Hong Kong and for the Arsari Group, an Indonesian conglomerate led by Mr Prabowo’s brother Hashim Djojohadikusumo, according to his profile on the official Gerindra party website.

Mr Djiwandono also serves as the party’s chief treasurer.

“We hope Djiwandono’s appointment will lead to better communication on fiscal synergy and the programmes proposed during the campaign can be implemented in a prudent manner ... according to our fiscal conditions,” said Maybank Indonesia economist Myrdal Gunarto.

The appointment should have a neutral impact on markets as there has been no change in the fiscal numbers, he said, adding that the rupiah’s drop was likely due to external factors.

Mr Widodo also appointed a senior Gerindra politician Sudaryono as a deputy agriculture minister. REUTERS