18-7-2024 (JAKARTA) Outgoing President Joko Widodo is set to appoint Thomas Djiwandono as deputy finance minister later today. Djiwandono, who is the nephew of president-elect Prabowo Subianto and serves as his adviser on fiscal matters, will step into this crucial role as the nation prepares for a change in leadership.
This appointment, revealed by two sources who spoke on condition of anonymity due to the sensitive nature of the information, is being viewed as a strategic manoeuvre to facilitate a smooth transition of government. The decision to bring Djiwandono into the current administration underscores the complex interplay of politics and economics in Southeast Asia’s largest economy.
Djiwandono, educated in the United States, has been a prominent voice in articulating Prabowo’s fiscal policies during the recent election campaign. He has consistently emphasised the incoming president’s commitment to adhering to fiscal rules and maintaining the 2025 budget deficit below the legal threshold of 3% of gross domestic product.
The appointment comes at a critical juncture for Indonesia’s economy. Financial markets have been closely monitoring Prabowo’s fiscal stance, particularly in light of his ambitious campaign promises. These include a flagship programme to provide free school meals, which has raised concerns among ratings agencies about potential fiscal risks and rising debt.
These economic uncertainties have contributed to recent pressure on the Indonesian rupiah and bond prices, although both have shown signs of recovery in recent days. The appointment of Djiwandono to a key financial post may be seen as an attempt to reassure markets and provide continuity in fiscal policy during the transition period.
However, the move also raises questions about the blurring of lines between the outgoing and incoming administrations. Critics may view this appointment as premature, given that Prabowo has not yet officially taken office. It could be interpreted as an early consolidation of power by the president-elect’s camp within the existing government structure.
The choice of Djiwandono, with his family ties to Prabowo, may also spark debate about nepotism in Indonesian politics. While his qualifications and experience in fiscal matters are not in question, the optics of appointing a close relative of the incoming president to a senior government position could prove controversial.
