Sjamsoeddin named Indonesia’s acting senior security minister

Sjamsoeddin named Indonesia’s acting senior security minister

Indonesia's President Prabowo Subianto announced a significant Cabinet reshuffle on Monday, replacing key economic and security ministers following deadly protests that erupted across the country over lawmakers' perks. The protests, which resulted in at least 10 deaths according to the National Commission on Human Rights, were sparked by reports that all 580 members of the House of Representatives receive a monthly housing allowance of 50 million rupiah ($3,075), nearly 10 times the minimum wage in Jakarta [1].

The reshuffle saw the removal of five ministers, including Finance Minister Sri Mulyani Indrawati, a widely respected technocrat who had served as the executive director of the International Monetary Fund and managing director of the World Bank. Indrawati's tenure was marked by her strong credibility in maintaining a stable, prudent, and sustainable fiscal policy [1]. She was replaced by economist Purbaya Yudhi Sadewa, chairman of the Deposit Insurance Corporation.

In addition to Indrawati, ministers Budi Gunawan, who served as the coordinating minister for politics and security, and Abdul Kadir Karding, the minister for migrant workers protection, were also removed. The protests grew more violent following the death of 21-year-old ride-hailing driver Affan Kurniawan, who was reportedly killed by an armored police car [1].

The Cabinet shake-up comes as public dissatisfaction with the government has risen due to economic hardships, including widespread layoffs and declining purchasing power. The protests led to the revocation of lawmakers' perks and privileges, including the housing allowance, and the suspension of overseas trips by lawmakers [1].

The Jakarta Composite Index closed down 1.28% on Monday, shedding 100.5 points, while the rupiah strengthened 0.75% against the U.S. dollar to 16,309 [1]. Despite the reshuffle, Indonesia remains attractive to investment due to its large market and strategic location.

Subianto also appointed Sjamsoeddin as the acting senior security minister, replacing Budi Gunawan. Sjamsoeddin is a seasoned politician with a background in law enforcement and security affairs, which could help stabilize the situation amid ongoing protests [1].

References:
[1] https://apnews.com/article/indonesia-protests-ministers-fired-3776bd9365804cda9f7c3f85b2104502