Indonesia’s outgoing President Joko Widodo is set to appoint Thomas Djiwandono, the nephew of president-elect Prabowo Subianto, as a deputy finance minister. This appointment, confirmed by a senior member of Prabowo’s Gerindra political party, is scheduled for later on Thursday. Djiwandono, who served as Prabowo’s advisor on fiscal issues, will continue in this role after Prabowo’s term begins in October.
This appointment aims to facilitate a smooth transition of power from Widodo’s administration to Prabowo’s. Djiwandono will work alongside Sri Mulyani Indrawati, the current and highly respected finance minister known for her prudent fiscal management, particularly during the COVID-19 pandemic.
Financial markets have been closely monitoring Prabowo’s finance minister selection and fiscal policies. This is due to warnings from ratings agencies about potential increases in fiscal risks resulting from Prabowo’s costly campaign promises, including a flagship program to provide free school meals. Concerns about rising debt during Prabowo’s administration have put pressure on the rupiah and Indonesian bond prices.
Djiwandono, a US-educated economist, has been the primary spokesperson for Prabowo’s fiscal stance. He has repeatedly reiterated the incoming president’s commitment to adhering to fiscal rules and maintaining the 2025 budget deficit below the legal limit of 3% of gross domestic product. Djiwandono’s previous experience includes working for a securities firm in Hong Kong and the Arsari Group, an Indonesian conglomerate headed by Prabowo’s brother Hashim Djojohadikusumo. He also serves as the chief treasurer of the Gerindra party.
