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July 20, 2023

Indonesia Analytical Update: Cabinet Reshuffle

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July 20, 2023

On July 17, 2023, President Joko Widodo (Jokowi) inaugurated the new Communications and Informatics (KOMINFO) Minister, Budi Arie Setiadi. Along with that, five Vice Ministers were sworn in, including Nezar Patria as the new Vice Minister of KOMINFO – a newly designed role in government; Pahala Nugraha Mansury, the former State-Owned Enterprises (SOE) Vice Minister who is now the Vice Minister of Foreign Affairs; Paiman Raharjo who took the role of Vice Minister of Villages, Disadvantaged Regions, and Transmigration; Saiful Rahmat Dasuki who assumed the role as Vice Minister of Religious Affairs; and the Indonesian Ambassador to the United States, Rosan Roeslani, who has been appointed as Vice Minister II of State-Owned Enterprises.

 
HIGHLIGHTS
 
 
  • The reshuffle marks the eighth reshuffle during President Jokowi’s nine-year presidency, seven of which happened in his second term.

  • Albeit unprecedented, this latest reconfiguration might be Jokowi’s endgame strategy to solidify his legacies and expedite the government’s work to fulfill his political promises, notably related to digital and SOEs transformation.

  • It could also be a calculated move during a crucial period when politicians are building coalitions and shaping the trajectory of Indonesia’s presidential race.

 
ANALYSIS
 
 

Minister Budi Arie Setiadi, affiliated with PDI-P party, is known as a loyalist and ally who formed Jokowi's most prominent supporter group “Projo” in 2013. He replaces former Minister Johnny G. Plate of Nasdem Party, and is now tasked to complete the national 4G BTS project which was delayed due to the graft scandal involving the former minister in May. Additionally, Minister Budi identifies Artificial Intelligence (AI) and data protection as key priorities.

Working alongside with Minister Budi is Vice Minister Nezar Patria, who was a former journalist, activist, and special advisor to the current SOE Minister Erick Thohir. This Vice Minister post, created during the reshuffle, is aimed to accelerate the government’s digital transformation efforts. Noting this goal, President Jokowi is also forming a special task force to assist the Minister of KOMINFO. “We have limited time, so everything related to data sovereignty, AI, frequency, and satellite needs to be finalized promptly," explained the President.

The appointment of Ambassador Rosan Roeslani’s as the SOE Vice Minister is set to help the Ministry’s goal in enhancing the management and competitiveness of SOEs. This role aligns with his extensive expertise in the realms of trade, investment, and industry gained through his successful business career, his previous leadership at the Indonesian Chamber of Commerce and Industry (KADIN), and his achievements in diplomatic roles. Notably under his leadership, KADIN collaborated with SOE Ministry to roll out the Gotong Royong Vaccination Program in 2021, highlighting his long-standing connection with the Ministry. Minister Erick said that Rosan Roeslani will focus on transforming Indonesian SOEs into global players. Moreover, this move holds significance, especially if Minister Erick Thohir decides to pursue a presidential nomination. In multiple simulations conducted during the latest survey, Minister Erick consistently remains the top choice for vice-presidential candidate.

Lastly, the re-assignment of former Vice Minister of SOE Pahala Mansury to Vice Minister of Foreign Affairs is further seen to reflect Jokowi’s strategic move to advance collaboration between the two Ministries. The position of Vice Minister of Foreign Affairs had remained vacant since July last year when the former Vice Minister, Mahendra Siregar, assumed the role of Financial Services Authority (OJK) Chair. Prior to joining the cabinet, Pahala held leadership roles in banking and several SOEs such as PT Pertamina and PT Garuda Indonesia. His current mandate is to bolster Indonesia’s international trade and investment.

Please find the complete biographies of the newly appointed Minister and Vice ministers here and the Analytical Update on the Indonesian 2024 election here.

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