Indonesia Roundup: Major cabinet changes, BRICS talk, rupiah falls

Cabinet shakeup sees four Jokowi-era ministers exit

Indonesian President Prabowo Subianto conducted a cabinet reshuffle on September 8, replacing five ministers, four of whom previously served under former president Joko Widodo. The ministers removed include Legal and Security Affairs Minister Budi Gunawan, Minister of Cooperatives Budi Arie, Youth and Sports Minister Dito Ariotedjo, and Finance Minister Sri Mulyani. In addition, Abdul Kadir Karding, who formerly held the role of Minister for the Protection of Indonesian Migrant Workers, has now joined the Red and White cabinet. Reports suggest his appointment was made with the recommendation of Widodo.

Reshuffle aimed at strengthening Prabowo gov’t, secretary says

State Secretary Prasetyo Hadi has said that the Cabinet overhaul was made after “various developments, input, and continuous evaluations” carried out by President Prabowo Subianto and his team. Prasetyo said the reshuffle aimed to strengthen the government in meeting its goals. “Hopefully this decision will bring goodness to the nation, state and society,” Prasetyo said. The changes affected six ministries, with five ministers replaced and one new ministry created. The Ministry of Hajj was established to replace the Hajj Organising Agency (BPH) following revisions to the Hajj and Umrah Law.

Prabowo criticises double standards in international law at BRICS meeting

President Prabowo Subianto addressed a virtual BRICS leaders’ meeting on September 8, criticising what he called “double, even triple, standards” and ignorance of international law. The meeting was also attended by Russian President Vladimir Putin, Chinese President Xi Jinping, and Egyptian President Abdul Fattah al-Sisi. Prabowo described the bloc as a pillar of strength, stability and hope, and pledged Indonesia’s support for its growth. He expressed full backing for closer cooperation, praising Xi’s proposals and Brazil’s leadership under President Luiz Inácio Lula da Silva.

Rupiah drops 1.16% after Prabowo replaces finance minister

The Indonesian rupiah fell 1.16% to Rp16,498 per US dollar ($1.01) in spot market trading on September 10. The currency weakened by 188 points following President Prabowo Subianto’s replacement of Finance Minister Sri Mulyani with Purbaya Yudhi Sadewa. Analyst Lukman Leong said the rupiah’s fall was linked to the cabinet change, noting the US dollar index remains under pressure due to expectations of a Federal Reserve rate cut.

Indonesia’s youngest minister hit by Cabinet revamp

The Ministry of Youth and Sports was among five ministries reshuffled by President Prabowo Subianto on September 8. Dito Ariotedjo, who previously held the post, was removed from the Red and White Cabinet. He was active in student and youth organisations before joining Golkar. At 33, he became the youngest minister in President Joko Widodo’s cabinet, later serving again under Prabowo before his dismissal.