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Widodo picks Brodjonegoro as Indonesia finance chief

The formation of the Cabinet was the first test for Jokowi as he seeks to fulfill promises to curb corruption, cut fuel subsidies, reduce bureaucracy and build infrastructure

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Bloomberg Jakarta
Last Updated : Oct 27 2014 | 12:31 AM IST
Indonesian President Joko Widodo turned to members of previous governments and executives from state-owned enterprises as he named his new Cabinet, promoting Bambang Brodjonegoro from former deputy to finance minister.

Brodjonegoro, who was the vice-finance minister for the last government, joins Coordinating Minister of Economic Affairs Sofyan Djalil, a former state-owned enterprises minister, for the top two posts to run Southeast Asia's largest economy. Widodo, known as Jokowi, named them among 34 ministers for his cabinet at the state palace in Jakarta on Sunday, after delaying the announcement for a week as he shuffled his pack.

The formation of the Cabinet was the first test for Jokowi as he seeks to fulfill promises to curb corruption, cut fuel subsidies, reduce bureaucracy and build infrastructure. Jokowi, who was inaugurated Oct. 20, has inherited an economy growing at its slowest pace since 2009 and a near-record current-account deficit that is weighing on the rupiah.

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"On balance they've chosen a better cabinet than previously," said Paul Rowland, an independent political analyst in Jakarta. "Most of them stand out as being relatively competent or well-known," he said, highlighting that appointees from political parties had good experience and women had been picked for high profile roles. Jokowi had said he would appoint technocrats or professionals for more than half his cabinet, with politicians making up the rest. Prospects for a strong political opposition hampering Jokowi's reform plans have led the rupiah to lose most of its gains this year and foreign funds to pull over $1 billion from Indonesia stocks since the start of September.

'Safe hand'

"Brodjonegoro is a safe hand, Djalil however failed to impress when he was in Yudhoyono's first cabinet," said Keith Loveard, head of political risk at Jakarta-based security company Concord Consulting. Brodjonegoro, 48, who was previously acting head of the fiscal office at the finance ministry, holds a PhD from the University of Illinois at Urbana-Champaign, and is also a professor in the economic faculty at the University of Indonesia, according to the finance ministry's website.

Djalil is an independent commissioner at Jakarta-based brokerage Trimegah Securities. He was a minister twice in former President Susilo Bambang Yudhoyono's cabinet, for communication and state-owned enterprises. He has a PhD from Tufts University, Massachusetts, according to Trimegah's website.

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First Published: Oct 27 2014 | 12:07 AM IST

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