29-2-2024 (JAKARTA) Prabowo Subianto, the newly declared victor in Indonesia’s presidential election, is eyeing former bankers for the position of finance minister. He is seeking technocrats who possess financial expertise and can secure funding for his campaign promises while maintaining fiscal prudence.
According to sources familiar with the matter, potential contenders for the finance minister role include Health Minister Budi Gunadi Sadikin, Deputy Minister of State-owned Enterprises Kartika Wirjoatmodjo, financial regulator chairman Mahendra Siregar, and Bank Negara Indonesia president director Royke Tumilaar. These individuals are believed to be well-suited for the position due to their financial acumen and effective leadership.
It is reported that Prabowo views the finance minister position as apolitical and requiring astute budget management, and he will not involve it in any political bargaining. The finance minister will succeed Sri Mulyani Indrawati, the only woman to have held the role since Indonesia’s independence in 1945. Indrawati successfully navigated the country’s economy through the challenges posed by the COVID-19 pandemic by implementing an unprecedented debt monetization program for stimulus spending and bringing the budget deficit back within the legal limit earlier than expected.
The chosen finance minister will face significant responsibilities in guiding Southeast Asia’s largest economy amidst geopolitical risks and disruptions in the global supply chain resulting from the rivalry between the United States and China. They will need to maintain fiscal discipline to stabilize the rupiah and instill confidence in foreign investors while securing sufficient funding for Prabowo’s ambitious spending plans.
Prabowo’s proposed expenditures could reach 460 trillion rupiah (S$39.4 billion), surpassing the entire budget deficit for 2023. His focus includes enhancing health and education outcomes through initiatives such as providing free school lunches and milk to over 80 million children and generating employment opportunities for women and small businesses. He also aims to promote “youth downstreaming” to encourage young individuals to pursue higher-paying tech-related jobs.
A spokesperson for Prabowo has yet to respond to requests for comment. Although Prabowo’s current list of candidates consists entirely of men, the sources suggest that plans may change.
Discussions to shape Prabowo’s new Cabinet are ongoing, but they are in the early stages and will intensify once he is officially declared the winner and president-elect by the General Elections Commission. Official results are expected by March 20.
Here is a closer look at the potential contenders for the finance minister role:
Budi Gunadi Sadikin: Appointed as health minister in December 2020, Budi played a crucial role in curbing the spread of COVID-19 in Indonesia by leveraging international networks and domestic resources for testing and vaccine procurement. He previously served as deputy minister of state-owned enterprises. Budi holds a degree in nuclear physics from Bandung Institute of Technology and has a strong background in the private sector, including positions at IBM Asia-Pacific and Bank Mandiri, Indonesia’s largest bank.
Royke Tumilaar: From 2019 to 2020, Royke served as president director of Bank Mandiri, having held various positions within the bank since 1998. He joined Bank Negara Indonesia as president director after his tenure at Mandiri. Royke holds an economics degree from the University of Trisakti and a master’s degree in business finance from the University of Technology Sydney.
Kartika Wirjoatmodjo: Kartika succeeded Budi as president director of Bank Mandiri and previously held leadership positions at the Deposit Insurance Corp and Indonesia Infrastructure Finance. He also served as deputy minister of state-owned enterprises. Kartika earned an accounting degree from the University of Indonesia and an MBA from Erasmus University Rotterdam.
Mahendra Siregar: With a background in economics, Mahendra has previous experience at the Finance Ministry as deputy finance minister under former president Susilo Bambang Yudhoyono. He also served as deputy minister for foreign affairs and trade and was Indonesia’s ambassador to the US. Since 2022, Mahendra has chaired the Financial Services Authority, responsible for regulating the banking and capital markets sectors. He holds an economics degree from the University of Indonesia and a master’s degree in the same field from Monash University.
