Jakarta Post
Jokowi Pins Reform Hopes On Economic Team
President Joko “Jokowi” Widodo has appointed
professionals to strategic posts on his economic team, providing a breath of
fresh air for investors seeking the implementation of economic reforms in Indonesia
amid challenges faced by the global economy.
The economic team that will steer Southeast Asia’s largest economy in the next
five years comprises Coordinating Economic Minister Sofyan Djalil, Finance
Minister Bambang Brodjonegoro, Energy and Mineral Resources Minister Sudirman
Said, Trade Minister Rachmat Gobel and National Development Planning Board
(Bappenas) head Adrinof Chaniago.
Appointees who have raised eyebrows due to their political affiliations are
Industry Minister Saleh Husin, a businessman-cum-politician from the Hanura
Party, as well as State-Owned Enterprises Minister Rini Soemarno, a close aide
to Megawati Soekarnoputri, the chairwoman of the Indonesian Democratic Party of
Struggle (PDI-P), which backed Jokowi’s presidency.
Jokowi’s economic lineup, nonetheless, is still seen by analysts as superior to
the choices of his predecessor Susilo Bambang Yudhoyono, who picked politicians
for his strategic economic posts such as coordinating economic minister, as
well as energy and mineral resources minister.
Jokowi has inherited an economy in which growth, at 5.1 percent in the second
quarter, has slowed to its lowest level in four years, with limited fiscal
space to boost growth amid the prevailing global uncertainties.
“There are a few names that may be
deemed less than ideal, but overall this is a solid set of ministers,” said
John D. Rachmat, an analyst with Mandiri Sekuritas. “A good beginning. Much remains to be
done, but we believe the stock market will react positively to this solid start.”
Jokowi has said that economic growth of 7 percent is attainable, with
top-priority programs including reducing the budget-straining fuel subsidy and
being self-sufficient in staple foods such as sugar, corn, rice and wheat flour
within three to four years.
Bambang, who will lead the Finance Ministry, was known as an outspoken and
no-nonsense official during his time as deputy finance minister in the previous
administration. Acting as his deputy is Mardiasmo, formerly the chief of the
Development Finance Comptroller (BPKP).
Jokowi fulfilled his promise to appoint a professional to lead the graft-ridden
Energy and Mineral Resources Ministry, which will be led by Sudirman Said, the
president director of state-owned weapons maker PT Pindad and a former expert
staffer at state-owned oil and gas firm PT Pertamina.
Sudirman was a person with integrity, excellent leadership skills and a clean
track record, said Brawijaya University economist Ahmad Erani Yustika, who
pointed to the new minister’s active role in the Indonesian Transparency
Society (MTI) in the past.
Meanwhile, the appointment of Rachmat as the trade minister won praise from
economists, though the same could not be said for Rini and Saleh who were
chosen as state-owned enterprises minister and industry minister, respectively.
Rachmat is a successful businessman known for his tough management style in
leading PT Panasonic Gobel Indonesia.
“Rachmat Gobel meets the criteria [of a good minister] and he has a great deal
of experience in trade, such as in the creation of new markets,” argued Latif
Adam, an economist with the Indonesian Institute of Sciences (LIPI). “One of
our major trade challenges will be to diversify export products and
destinations, and I believe he can attain higher goals for trade.
However, Latif gave a low score for the industry minister post, which was
filled by politician Saleh, a businessman with a relatively unknown track
record, besides his rags-to-riches story of coming from Rote Island in East
Nusa Tenggara (NTT) to build a successful business empire in Jakarta.
“We have so many weaknesses in our
industry and such a strategic post should have been filled by a more capable
figure,” Latif said. Without the support of the industrial sector, the downstream sector might
not accelerate as fast as expected, he added.
Direct sentence :
1. John D. Rachmat said “There are a few names
that may be deemed less than ideal, but overall this is a solid set of
ministers,” said John D. Rachmat
2. Latif said “We have so many weaknesses in
our industry and such a strategic post should have been filled by a more
capable figure,” Latif said
Indirect sentence :
1. John D. Rahmad said
that there were a few names that might be deemed less than ideal, but overall
that was a solid set of ministers.
2. Latif said that they had so many weakness in their
industry and such a strategic post should have been filled by a solid set of
ministers.