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The Jakarta Post
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Palace warns of another Cabinet reshuffle next year

  • News Desk
    News Desk

    The Jakarta Post

Jakarta | Sun, December 11, 2016 | 03:03 pm
Palace warns of another Cabinet reshuffle next year New squad: President Joko “Jokowi” Widodo, accompanied by Vice President Jusuf Kalla, unveils his new ministers following a Cabinet reshuffle at the State Palace in Jakarta on July 27. The ministers are (from left) Trade Minister Enggartiasto Lukita, Villages, Disadvantaged Regions and Transmigration Minister Eko Putro Sanjoyo, Coordinating Political, Legal and Security Affairs Minister Wiranto, Administrative and Bureaucratic Reform Minister Asman Abnur, Industry Minister Airlangga Hartarto, Finance Minister Sri Mulyani Indrawati, Coordinating Maritime Affairs Minister Luhut Pandjaitan, Energy and Mineral Resources Minister Archandra Tahar, Agrarian and Spatial Planning Minister Sofyan Djalil, Transportation Minister Budi Karya Sumadi, Investment Coordinating Board (BKPM) chairman Thomas Lembong and Culture and Education Minister Muhadjir Effendy. (Antara/Widodo S. Jusuf)

Cabinet Secretary Pramono Anung has signaled that another Cabinet reshuffle is likely to take place should Indonesia fail to narrow its position gap with regional powerhouses in the World Bank’s flagship report on ease of doing business next year.

Pramono said although Indonesia had jumped significantly by 15 places to 91st position in the World Bank’s Ease of Doing Business index for 2017, released in October, it was still far below Singapore and Malaysia, ranked second and 23rd, respectively, in the index.

Continuous improvements, Pramono said, were currently being undertaken to make sure that the country could secure a position above 50th in the index, regarded as a parameter for investors around the world, by next year.

“President [Joko “Jokowi” Widodo] has decreed that [the country's ease of doing business ranking] should be better than 50th next year, otherwise he will replace [relevant] ministers,” Pramono said on Saturday during the “Indonesianisme Summit” seminar initiated by the Bandung Institute of Technology’s alumni association.

In April, President Jokowi issued the 12th economic stimulus package that specifically targeted a significant improvement in the World Bank’s index by scrapping many procedures and reducing both the time and cost involved in starting a business.

The significant jump in Indonesia’s ranking is based on improvements made in starting a business, getting electricity, registering property, getting credit, paying taxes, trading across borders and enforcing contracts.

On July 27, the President announced the composition of his new Cabinet, which saw nine new names replacing previous officials, in an effort to create a more efficient Cabinet. This was the second reshuffle the President made after the first one in August 2015, when he sacked six Cabinet members.

Also attending Saturday’s seminar were Tourism Minister Arief Yahya, Industry Minister Airlangga Hartarto and Transportation Minister Budi Karya Sumadi, the latest two are among the new members of the Cabinet. (win/hwa)