Prabowo Subianto Plans a Broad Government Cabinet: Indonesia's Future Under New Leadership

Prabowo Subianto, the designated President of Indonesia, has announced that his future cabinet could include numerous ministers from the current government under Joko Widodo. This decision is likely to ensure continuity in the policies of Southeast Asia's largest economy. Prabowo, who currently serves as the Defense Minister in Widodo's cabinet, is set to assume office on October 20 and is expected to soon present his cabinet lineup. According to reports, he plans to implement a significantly larger government to effectively execute his political priorities. In doing so, he can rely on a solid majority in parliament. A broad coalition cabinet is justified given the size and diversity of Indonesia, said Prabowo. He emphasized the importance of harmonious and cooperative leadership for a stable business environment. "No one goes to the market when there is unrest, right?" he remarked with a smile. Economists like David Sumual of PT Bank Central Asia and Euben Paracuelles of Nomura Holdings have expressed positive views on the potential impact of Prabowo's cabinet policies on investment security. The composition of his team could become more technocratic, thereby addressing the needs of the economy. In an impressive speech, Prabowo spoke about his plans to continue many of his predecessor's programs, including the refinement of raw materials within Indonesia and ensuring food and energy security. He particularly focuses on self-sufficiency in food and aims to achieve this within four years. Prabowo also plans to optimize the distribution of subsidies to make them more targeted for low-income households. In doing so, cleansed databases and the nationwide networks of Indonesia’s postal service and banks will be utilized. Prabowo inherits an economy that has steadily grown by 5% over the past decade, yet he sees challenges posed by declining consumer sentiment and unemployment rates. Nevertheless, he is ambitious about increasing growth to 8% during his term, and even considers growth of up to 9%.