Prabowo’s first Cabinet takes shape, with Sri Mulyani likely to continue as finance minister

[JAKARTA] Ahead of his inauguration as Indonesia’s new president on Sunday (Oct 20), Prabowo Subianto has been busy meeting and interviewing candidates for senior government positions, including those who will be in his Cabinet line-up.

In signs that the 72-year-old has a preference for continuity, he has already reached out to several key ministers who served under outgoing President Joko Widodo, including Finance Minister Sri Mulyani Indrawati.

Prospective candidates were seen arriving at Prabowo’s private residence in Jakarta on Monday and Tuesday to discuss their potential roles in his administration, which will officially begin after the inauguration ceremony.

At the end of the session on Monday, which lasted close to six hours, Prabowo said that 49 people had expressed their willingness to work with him to run the government.

“In the meeting, I simply confirmed their readiness to help me in the areas I offered them. Thankfully, they agreed,” he told reporters.

He did not give specific names as the interviews and selection process will continue until the end of Wednesday.

The Business Times understands that those who have already met with Prabowo were asked to sign a letter of intent and an integrity pact.

One of the most closely watched posts is that of finance minister, after Prabowo’s comments earlier in the year on taking on more debt to fund numerous schemes and plans.

Sri Mulyani, a 62-year-old economist and the favourite to continue in her current role, said after her meeting with the president-elect: “Our discussions have happened several times, not just tonight. I think what (Prabowo) conveyed has remained consistent – to guard state finances, particularly revenues and spending.”

She added: “We discussed various steps to strengthen the country’s finances in support of his programmes. For the formation of his Cabinet, he has asked me to return as finance minister.”

When asked whether she had accepted the invitation, the former World Bank director simply replied: “I will help as much as I can.”

Her likely return as finance minister came as a surprise to many political observers, as she had previously been reported to be stepping away from the new Prabowo administration.

Last month, Sri Mulyani, who served as finance minister under Indonesia’s last two presidents, bade farewell to parliament while finalising the draft of the 2025 state budget, which is set to be implemented by Prabowo’s government.

Fithra Faisal, a senior economist at Samuel Sekuritas, said her likely reappointment signifies a commitment to the continuity of policies championed by Prabowo and his deputy, Gibran Rakabuming Raka.

Amid market concerns about Prabowo’s hefty state spending plans to support his campaign initiatives, Faisal expressed confidence that Sri Mulyani – regarded by investors as a prudent and experienced technocrat – will bring clarity to the fiscal direction of the new administration.

“We see her as a symbol of continuity. The market is somewhat worried about an unfamiliar figure taking on the role of finance minister, but with her continuing in her position, there are unlikely to be any surprises,” he told BT.

Sri Mulyani first served as finance minister under President Susilo Bambang Yudhoyono, before returning to the post in 2016 under Widodo. Her stewardship of the country’s fiscal policy earned widespread acclaim, particularly during the Covid-19 pandemic.

Apart from Sri Mulyani, businessman and current Minister of Investment Rosan Roeslani revealed he had been invited to serve in the next administration.

Observers said that Roeslani, a former Indonesian ambassador to the US, is expected to cultivate a more balanced investment landscape, to counter the dominance of China’s influence that prevailed during Widodo’s two terms in office.

Airlangga Hartarto, the current coordinating minister for economic affairs, was also summoned by Prabowo, sparking further speculation about his potential role. However, it remains unclear what position he might take up.

“I was called regarding a Cabinet position related to my area of expertise,” said Hartarto.

Meanwhile, the future of the downstreaming policies, a key agenda of Widodo, appears to rest in the hands of Bahlil Lahadalia, the current minister of energy and mineral resources.

Lahadalia, who also serves as chairman of the Golkar party, a key coalition partner of Prabowo, said the president-elect tasked him with continuing initiatives similar to those he led in Widodo’s administration, including overseeing the management of mineral resources.

At an investment forum in Jakarta last week, Prabowo announced his intention to assemble a sizable Cabinet aimed at ensuring the seamless execution of his initiatives.

His plan was supported by recent legislative changes that increased the number of ministries from 34 to 46, paving the way for a broader range of governmental functions.

Former secretary of state Yusril Ihza Mahendra, who was also at Prabowo’s residence on Monday, announced that the Coordinating Ministry for Political, Legal, and Security Affairs would be split into two separate ministries.

He said that he had been invited to lead the new Coordinating Ministry for Law and Human Rights.