A changing
political constellation
Jakarta Globe, Shoeb K Zainuddin and Alberto Weldison, Dec 08, 2014
It took President Joko Widodo less than a month in office to make his first major decision.
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| Every country, just like a corporation, needs constant renewal. New leadership brings new ideas, new energy and a new focus on driving progress. Indonesia has a new president and a new cabinet with high hopes placed in them by the public. The 2014 GlobeAsia Power 50 list reflects this changing political landscape and identifies those individuals who will have a say in the country’s direction over the next 12 months. (Investor Daily Photo/David Gitarosa) |
It took President Joko Widodo less than a month in office to make his first major decision.
By cutting
fuel subsidies by more than 30%, the president not only freed billions of
dollars for infrastructure development and other essential government spending,
he sent out a strong message that he has the courage to take unpopular but
vital decisions that are in the best interest of the nation.
Fresh from
his return from China where he met with Asia-Pacific leaders such as US
President Barrack Obama and Chinese premier Xi Jinpeng and the G-20 summit in
Australia, the president moved swiftly on the domestic front. The fuel price
hike was widely expected but not guaranteed and the president himself made the
announcement, rather than delegating it to one of his ministers.
A few days
later, he inaugurated Basuki Tjahaja Purnama as the governor of Jakarta despite
heavy opposition from the Jakarta City Council and politicians from the Greater
Indonesia Movement (Gerindra). Not an easy start for the new president.
President
Joko Widodo’s rise to the apex of Indonesia’s political structure has been
nothing short of spectacular. Born in a river shantytown in Solo, Central Java,
Jokowi, as he is widely known, is the first businessman to become president of
Indonesia.
Vice
President Jusuf Kalla also comes from an entrepreneurial background, which
explains the fact that there are nine former chief executives in the new
cabinet.
Jokowi’s
rise will, over a period of time, alter the face of Indonesian politics and in
the process also change the faces that appear on the GlobeAsia Power 50 list.
Over the past five years, the list has been dominated by politicians close to
former President Susilo Bambang Yudhoyono.
While the
2014 Power 50 list still features some old-timers such as Megawati
Sukarnoputri, Aburizal Bakrie and Amien Rais, a host of new names now appears
on the list. Apart from Jokowi, the list includes Sofyan Djalil, the new chief
economics minister; Bambang Brodjonegoro, the Minister of Finance; Rini
Soemarno, the Minister of State-Owned Enterprises; Tjahjo Kumolo, Minister of
Home Affairs; Anies Baswedan at Basic Education and Culture and Susi
Pudjiastuti as Minister for Maritime and Fisheries.
Other
newcomers to the list include Pratikno, the former rector of Gajah Mada University
(UGM) and a supporter of Joko Widodo throughout his presidential bid. He will
now play a substantial role in formulating the new administration’s policies,
setting targets and re-organizing government structures as the State Secretary.
It remains
to be seen if these new faces will be on the 2015 Power 50 List as they face
significant challenges in the coming months.
There is no doubt however that a shift in the country’s political
constellation is underway and will likely accelerate in the coming years as the
old actors fade into the background.
The new
government has its work cut out. The president has outlined his economic
agenda, which is premised on improving maritime infrastructure and providing
better public services. This was clearly laid out by during his recent foreign
trips.
“The first
and foremost would be how to reduce inequality and at the same time reduce
poverty,” Finance Minister Bambang Brodjonegoro told Bloomberg in Brisbane
recently. “We believe by doing infrastructure development we not only create
growth but also create better equality,” he added.
Boosting
growth
Such
balancing acts will become commonplace for the new government and
administration. According to former tourism minister Mari Elka Pangestu,
raising fuel prices is only a small part of what the new government needs to do
to achieve optimal balance between spending and revenue generation; and between
empowering local businesses and remaining open to foreign investments.
“The
demographic bonus and urbanization will drive growth over the next few years
with 90 million more people living in cities,” she noted. “Destructive
technologies will provide new sectors of growth worth around $625 billion in
value.”
The key to
sustainable growth will be improving connectivity and increasing power supply.
This is where new Energy and Mineral Resources Minister Sudirman Said and
Indroyono Soesilo, the Coordinating Minister for Maritime Affairs will play key
roles. The government has plans to allow 100% foreign ownership of power plants
over 100 MW and removing PLN’s monopoly over power transmission.
The
ministry of Energy and Mineral Resources is also said to be ready to set up a
one-stop shop for the power sector so private investors can get all their paper
work done quickly.
An
efficient and effective government, starting from the very top, is crucial to
the country’s economic progress. President Jokowi will have to lead by example,
rolling up his sleeves and going down to the ground. His ministers are already
following in his footsteps, conducting “blusukan” or announced visits to their
staff.
“Jokowi’s
strength is that he can act as a manager and share power with his
subordinates,” said Indria Samego a professor from the Indonesia Institute of
Sciences (LIPI).
The rise of
the middle class
While the
Power 50 list is dominated by politicians and government leaders, it also has a
healthy sprinkling of business leaders. This is primarily because private
business owners and entrepreneurs are going to play an increasing role in
determining the economic direction of the nation.
With
growing consumption, big business owners such as Anthoni Salim from the Salim
Group, Chairul Tanjung from Trans Corp and Budi Hartono from Djarum Group will
define consumption trends. How they direct investments and create new products
will ensure that Indonesia’s industrial base remains competitive and that the
country can compete on the global stage.
The Power
50 List 2014
1 Joko
Widodo – President of Indonesia.
2 Megawati
Soekarnoputri – Indonesian Democratic Party of Struggle (PDIP) chairwoman.
3 Jusuf
Kalla – Vice President of Indonesia and former Golkar party chairman.
4 Aburizal
Bakrie – Golkar party chairman.
5 Zulkifli
Hasan – The speaker of the People’s Consultative Assembly.
6 Susilo
Bambang Yudhoyono – Head of Democratic Party and former president.
7 Hatta
Rajasa – Head of the National Awakening Party (PAN).
8 Amien
Rais – Former speaker of the People’s Consultative Assembly, or MPR.
9 Prabowo
Subianto – Head of Gerindra party.
10 Setya
Novanto – The speaker of the House of Representatives (DPR).
11 Surya
Paloh – Nasdem Party leader.
12 Pratikno
– State Secretary.
13 Hamdan
Zoelva – Head of Constitutional Court, or MK.
14 BJ
Habibie – Former President.
15 Sofjan
Djalil – Coordinating Minister for the economy.
16 Puan
Maharani – Coordinating Minister for Welfare, Megawati’s daughter.
17 Irman
Gusman – The Regional Representative Council (DPD) speaker.
18 Harry
Azhar Aziz – Head of the Supreme Audit Agency (BPK).
19 Luhut
Panjaitan – Jokowi’s senior adviser.
20 Bambang
Brodjonegoro – Finance Minister.
21 Yasona
Hamongan Laoly. Minister of law and Human Rights.
22 Rini M
Sumarno – State Owned Enterprise Minister.
23 Sofjan
Wanandi – Former Apindo Chairman.
24 Tjahjo
Kumolo – Home Affairs Minister.
25 Chairul
Tanjung – Founder CT Corp, former Coordinating Minister for the economy.
26 Retno
Marsudi – Foreign Minister.
27 Andi
Wijajyanto – Cabinet Secretary.
28 Sudirman
Said – Energy and Mineral Resources Minister.
29 KH
Mustofa Bisri – NU leader
30 Dien
Syamsuddin – Muhammadiyah leader
31 Tedjo
Edy Purdjianto – Coordinating Minister for Political and Security Affairs
32 Andrinof
Chaniago – National Development Planning Chief.
33
Indroyono Soesilo – Coordinating Minister for Maritime Affairs.
34 Sutarman
– National Police Chief.
35 Abraham
Samad – Corruption Eradication Commission (KPK) chairman.
36 Wiranto
– Hanura party leader.
37
Ryamizard Ryacudu – Defense Minister.
38 Rachmat
Gobel – Trade Minister.
39 Saleh
Husin – Industry Minister.
40 Suryo
Bambang Sulisto – The Indonesian Chambers of Commerce and Industry (Kadin)
Chairman
41
Hamengkubuwono – Sultan and governor of Yogjakarta
42 M Reza –
Oil trader
43 Anies
Baswedan – Education and Culture Minister
44 Nila F
Moeloek – Health Minister
45 Susi
Pudjiastuti – Maritime and Fisheries Minister
46 Budi
Hartono – Djarum Group
47 Anthoni
Salim – Salim Group
48 Franky
Wijaya – Sinar Mas
49 Tommy
Winata – Artha Graha Group
50 Basuki
Tjahaya Purnama – Jakarta Governor
The story
was first published on Globe Asia’s December 2014 edition.
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