JAKARTA — Indonesia's President-elect Prabowo Subianto has defended his proposal to increase the number of government agencies, emphasizing its necessity for a robust administration, despite criticism labeling it as a "fat" cabinet that would inflate the bureaucracy.
Prabowo, set to take office on October 20, intends to add around 10 ministries and agencies, a strategy perceived as a way to create high-ranking positions for politicians in his seven-party coalition.
"I aim to establish a united and strong government," he stated at an economic forum on Wednesday (October 9). "The coalition must be substantial, and some may refer to my cabinet as fat."
Foreign investors have expressed concerns that Prabowo might relax fiscal discipline in Southeast Asia's largest economy. However, a senior aide has assured that Prabowo will adhere to the agreed spending levels for 2025 and follow the current budget rules.
Prabowo indicated that his cabinet would retain many ministers from outgoing President Joko Widodo's administration, asserting that appointments will be based on merit, although he did not provide further details.
His cabinet is expected to include both non-politicians and party representatives, with an announcement likely to occur the day after the inauguration, according to a close aide.
Sources reveal that several leaders and senior officials from coalition parties will secure ministerial positions, including incumbents like Energy Minister Bahlil Lahadalia, Trade Minister Zulkifli Hasan, and Agrarian Affairs Minister Agus Harimuti Yudhoyono.
A significant question remains regarding whether Prabowo will retain Finance Minister Sri Mulyani Indrawati, a respected figure in financial markets and former World Bank managing director.
Advisers to Prabowo have indicated plans to establish a housing ministry aimed at achieving his goal of providing three million homes annually, as well as a carbon emissions regulatory body. He also intends to separate the tax and customs divisions from the finance ministry to create a state revenue agency. In August, a national nutrition agency was established to implement Prabowo's multi-billion-dollar free meals initiative.
Deputy Finance Minister Thomas Djiwandono, Prabowo's nephew, informed Reuters last month that the new government's spending would adhere to "principles of fiscal prudence," aiming to reduce the budget deficit to 2.53 percent of gross domestic product next year, down from an estimated 2.70 percent in 2024.
Prabowo aims to boost economic growth from the current five percent to eight percent while addressing poverty and malnutrition in a nation of 275 million people.
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