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View all search results‘Political’ reshuffle puts RI industrial policy at a crossroads
Analysts warned that the change could signal less emphasis on non-mineral industries such as textiles and footwear, while the energy transition could take a back seat when it conflicts with the government’s increasingly dominant downstreaming agenda.
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Bahlil Lahadalia is sworn in as coordinating minister for downstreaming and energy transition on Oct. 1 at the State Palace in Jakarta. (Government Communication Agency/-)
I
ndonesia’s industrialization drive is at a critical juncture as President Prabowo Subianto is doubling down on downstream processing while handing political allies greater sway over key economic posts in the latest cabinet shake-up.
Analysts warned that the change could signal less emphasis on non-mineral industries such as textiles and footwear, while the energy transition could take a back seat when it conflicts with the government’s increasingly dominant downstreaming agenda.
In his latest reshuffle on Oct. 1, which is the biggest to date, Prabowo appointed Golkar Party chairman Bahlil Lahadalia as coordinating downstream and energy transition minister, a new post that bring the number of coordinating ministers in his administration to eight.
Meanwhile, the party’s secretary-general, Muhammad Sarmuji, has been appointed industry minister, replacing fellow Golkar politician Agus Gumiwang Kartasasmita, who had held the post for the past seven years.
The bigger cabinet footprint essentially gives Golkar greater weight in the executive branch, mirroring its position as the second-largest party in the House of Representatives, said Wasisto Raharjo Jati, a political analyst at the National Research and Innovation Agency (BRIN).
“I think these [appointments] are more political than technocratic. [...] Its growing weight in the coalition shows that the party is seen as strategic with strong loyalty,” Wasisto told The Jakarta Post on Wednesday.
Read also: Businesses urge ‘continuity’ as Bahlil gets senior minister post
