JakartaPost-Oct 7
Indonesia’s industrialization drive is at a critical juncture as President Prabowo Subianto is doubling down on downstream processing while handing political allies greater sway over key economic posts in the latest cabinet shake-up. Analysts warned that the change could signal less emphasis on non-mineral industries such as textiles and footwear, while the energy transition could take a back seat when it conflicts with the government’s increasingly dominant down-streaming agenda. In his latest reshuffle on Oct. 1, which is the biggest to date, Prabowo appointed Golkar Party chairman Bahlil Lahadalia as coordinating downstream and energy transition minister, a new post that bring the number of coordinating ministers in his administration to eight. Meanwhile, the party’s secretary-general, Muhammad Sarmuji, has been appointed industry minister, replacing fellow Golkar politician Agus Gumiwang Kartasasmita, who had held the post for the past seven years. The bigger cabinet footprint essentially gives Golkar greater weight in the executive branch, mirroring its position as the second-largest party in the House of Representatives, said Wasisto Raharjo Jati, a political analyst at the National Research and Innovation Agency (BRIN). The new coordinating minister post was created to strengthen coordination and accelerate the government’s downstream and the energy transition agenda, with “one or two additional ministries” could eventually come under his portfolio, Bahlil told reporters on Wednesday. He added that the new ministry’s budget would be integrated with the Energy and Mineral Resources Ministry’s allocation, citing that 90 percent of downstream investment falls within the energy sector’s scope. The budget earmarks Rp 27.37 trillion (US$1.54 billion) for the energy ministry under the 2027 state budget bill, more than double its Rp 10 trillion 2026 allocation, with most of the increase allocated under the energy and electricity program. Read more at:
