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Jakarta Post

Economic team on the edge

President Joko “Jokowi Widodo has sought input from a number of economists on how to improve the performance of his economic ministers who have been unable to ease the current economic slowdown

Ina Parlina, Putera Satria Sambijantoro and Margareth S. Aritonang (The Jakarta Post)
Jakarta
Tue, June 30, 2015

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Economic team on the edge

P

resident Joko '€œJokowi Widodo has sought input from a number of economists on how to improve the performance of his economic ministers who have been unable to ease the current economic slowdown.

Jokowi welcomed economists Tony Prasetiantono, Lin Che Wei, Iman Sugema, Hendri Saparini, Djisman Simanjuntak, Anton Gunawan, Destry Damayanti, Prasetyantoko, Poltak Hotradero, Arif Budimanta and Raden Pardede to the State Palace for a meeting on Monday.

Tony, a Gadjah Mada University economist, said Jokowi acknowledged that although the economic ministers had good skills, they had failed to gain market confidence as a result of poor communication.

Tony went further, saying that Jokowi fully understood that reform was needed within the Cabinet'€™s economic team.

'€œHe was very aware of that. He said that '€˜if I find someone today, I will immediately inaugurate them'€™ [or] something like that,'€ Tony said after Monday'€™s meeting.

Calls for a Cabinet reshuffle have been coming since April, especially following a slump in Jokowi'€™s popularity, much of which has been caused by the economic slowdown and his controversial decisions in the fight against corruption.

Jokowi'€™s recent statements have revealed an intention to fire officials, including ministers, for their failure to overcome the problematic dwelling times at Tanjung Priok Port. This also increased speculation over a Cabinet reshuffle.

In the first quarter, economic growth fell to a five-year low of 4.7 percent, is slowest in five years, while in May annual inflation accelerated by 7.1 percent, the highest monthly price surge this year.

The poor performance in the domestic economy has eroded investors'€™ confidence, with the rupiah leading losses in Asia as it has depreciated by around 7 percent this year, while the Jakarta Composite Index (JCI) has fallen by 6.6 percent year-to-date, the worst performance in the region.

Lin Che Wei revealed that poor performances by certain ministers were discussed at Monday'€™s meeting, but he refused to mention names.

On Monday, Jokowi also held a separate meeting with Ahmad Syafii Maarif, former leader of the country'€™s second-largest Islamic organization, Muhammadiyah.

Ahmad said he believed a Cabinet reshuffle was imminent. '€œI can see it coming, but I don'€™t want to speak before [Jokowi],'€ he said.

Although he understood that having politicallywired ministers was unavoidable given that Jokowi was not a political party chairman, Maarif said he told Jokowi to seek capable persons who had broad perspectives, even if they were politicians.

Yet, the Palace played down speculation, refusing to comment on whether a reshuffle was needed, but saying that the President understood the importance of building better communication between the various economic ministries and the market.

Presidential communications team member Teten Masduki said Jokowi and the economists believed that the country'€™s macroeconomic fundamentals were still strong, amid the external negative perceptions.

'€œThis [negative] perception is related to confidence in the market and among investors regarding the government'€™s current programs,'€ he said.

'€œTherefore, I believe that the economic ministries need to build a communications strategy to inform [the market and the public] about the progress of each economic development.'€

State Secretary Pratikno also denied that the meeting was held in connection with the President'€™s ongoing Cabinet evaluations.

Home Minister Tjahjo Kumolo, however, hinted toward a shake-up on Monday, saying that there was a minister who liked to belittle the President behind his back. Tjahjo, a member of the ruling Indonesian Democratic Party of Struggle (PDI-P), declined however to mention the person by name.

His fellow PDI-P politician, Masinto Pasaribu, who is also a lawmaker, claimed that the minister in question was State-Owned Enterprises Minister Rini Soemarno, who is Jokowi'€™s confidant and formerly the head of the transition team that helped him to set priorities and select ministers during his early days in office.

Rini denied the rumor, saying that as a subordinate of the President, she had only respect for him.

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