Globe Asia’s Power 50 List: Most Influential Indonesians in 2014

A changing political constellation

Jakarta Globe, Shoeb K Zainuddin and Alberto Weldison, Dec 08, 2014

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.