Jokowi names new trade minister after palm oil ban controversy

INDONESIAN President Joko Widodo announced a Cabinet reshuffle on Wednesday, appointing a new trade minister following controversy over a series of policy flip-flops on palm oil exports.

In an official ceremony at the state palace the president inaugurated Zukifli Hasan, chairman of the National Mandate Party (PAN) and a former forestry minister as the country’s next trade minister, among other changes.

The reshuffle comes after former trade minister Muhammad Lutfi faced political pressure over policy efforts to contain a surge in domestic cooking oil prices, which included a shock ban on palm oil shipments from the world’s biggest exporter.

Minister Lutfi had blamed a “palm oil mafia” for undermining efforts to contain cooking oil prices after bringing in a surprise ban on palm oil exports in April.

The three-week export ban, lifted on May 23, sent shockwaves through global markets and led to a series of arrests for alleged corruption after the attorney general launched an investigation.

Political observers say the president may also have been looking to appoint a member of PAN to his Cabinet after the party, which is connected to well-known opposition figure Amien Rais, joined the ruling coalition last year.

SEE ALSO

Indonesia eases export rules further to 'flush out' palm oil stocks

Asean Intelligence

Get insights into businesses across South-east Asia

Get the free report

President Jokowi, as he is popularly known, is currently serving out his second term. He also announced changes to the agrarian and spatial planning ministry, appointing former armed forced chief, Hadi Tjahjanto. REUTERS