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Market responds positively to Prabowo’s continuity signals
Indonesia’s stock market outperformed most of the region on the day after President Prabowo Subianto assumed office and unveiled a cabinet that signals a high degree of continuity in economic policies.
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Indonesian President Prabowo Subianto and Vice President Gibran Rakabuming Raka arrive on Oct. 21, 2024, for a group photo with newly appointed cabinet ministers at the Presidential Palace in Jakarta. (Reuters/Willy Kurniawan)
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ndonesia’s stock market outperformed most of the region the day after President Prabowo Subianto assumed office and unveiled a cabinet that signals a high degree of continuity in economic policies.
Sixteen of the 48 ministers in the Red and White Cabinet served until Sunday in the previous administration of Joko “Jokowi” Widodo, including several who held onto economic positions considered crucial for financial and capital market actors.
Airlangga Hartarto was reappointed as the coordinating economic minister and Sri Mulyani Indrawati will serve as finance minister once again. Rosan Roeslani, whose appointment in August garnered commendations from businesses, was also reinstalled as investment minister, now dubbed investment and downstream minister.
Prabowo announced the cabinet lineup on Sunday night and went on to inaugurate the roster the following morning.
“The cabinet announcement means we won’t see any 180-degree policy changes,” Bank Central Asia (BCA) chief economist David Sumual told The Jakarta Post on Monday, highlighting the reappointment of key ministers from a market perspective.
He pointed to Sri Mulyani’s reappointment, noting that she was expected to maintain fiscal stability as she has in the past.
Moreover, David brought up Prabowo’s inauguration speech, which reaffirmed previous economic priorities like food and energy security.
