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Indonesia strengthens economic diplomacy with Cabinet reshuffle

Observers raise concerns that prioritizing the economy may lead to the neglect of a geopolitical security strategy, despite ongoing global and regional conflicts.

Yvette Tanamal (The Jakarta Post)
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Jakarta
Thu, July 20, 2023

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Indonesia strengthens economic diplomacy with Cabinet reshuffle President Joko “Jokowi“ Widodo (right) shakes hands with newly inaugurated Deputy State Owned Enterprises (SOE) Minister Rosan Roeslani after the ceremony at the State Palace in Jakarta on July 17, 2023. (Antara/Hafidz Mubarak A.)

T

he recent Cabinet shake-up saw President Joko “Jokowi” Widodo double down on his distinct brand of economic diplomacy, albeit at the risk of neglecting some of the nation’s most strategically important bilateral ties.

This week saw the addition of a seasoned businessperson to the Foreign Ministry’s top roster, while two highly coveted ambassadorship posts, Washington, DC in the United States and Seoul in South Korea, have been vacated after Monday’s reshuffle.

Former deputy state-owned enterprises minister Pahala N. Mansury has been given the new task as deputy foreign ministry, while Rosan P. Roeslani left his post as the Indonesian ambassador to the US to fill Pahala’s old post at the SOE Ministry. Meanwhile, Gandi Sulistiyanto, the Indonesian envoy to South Korea since late 2021, also returned home to be appointed as a new member of the presidential advisory board (Wantimpres).

Jokowi, whose administration since 2014 has largely focused on economic development, has been seen to be taking advantage of Jakarta’s diplomatic relations to further his domestic ambitions. The President has deployed people from business and political backgrounds to a number of diplomatic posts, rather than following the Foreign Ministry’s preference of fielding career diplomats.

The President’s foreign policy so far remains centered on securing investment for Jokowi’s grand vision, among other plans, of elevating Indonesia to becoming a high-income country over the next two decades and the downstreaming of the country’s critical mineral industry.

Read also: ASEAN remains focused on economy

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Deputy Minister Pahala, who is now second-in-command to two-term Foreign Minister Retno LP Marsudi, told reporters on Monday that Jokowi gave him the order to increase the country’s international trade and investments for the remainder of his tenure at the Jl. Pejambon.

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