Indonesia's Indrawati to stay on as finance minister

INDONESIA - JAKARTA. Indonesian Finance Minister Sri Mulyani Indrawati said on Tuesday she had been asked by President Joko Widodo to stay on in her post as his new cabinet takes shape for a second five-year term in office.

Widodo has since Monday tapped more than a dozen candidates for ministerial posts, including his presidential election rival Prabowo Subianto, who looks set to be defence minister.

The candidates - all wearing white shirts - have come to the presidential palace to be interviewed by Widodo, with most declining to confirm the positions offered ahead of an official announcement expected on Wednesday.

After meeting Widodo, Indrawati said she had agreed to stay on as finance minister and to ensure policies supported the president's priorities such as improving human resources, creating jobs and executing government budgets well.

"Indonesia I think is facing a very dynamic and uncertain global economy and an economic slowdown that is pressuring the whole world," Indrawati said.

"Therefore, a continued policy is needed in order to be able to guard our economy from the challenge of this global slowdown," she said, noting she also discussed ways to narrow Indonesia's current account and trade deficits.

Indrawati, a former managing director of the World Bank, has been finance minister in Southeast Asia's largest economy since 2016, spearheading tax reform efforts, seeking to capitalise on a tax amnesty programme in 2016-2017. She is now one of the longest serving finance ministers in Indonesia, having also held the post in the previous administration of President Susilo Bambang Yudhoyono.

"Sri Mulyani is seen as a key architect behind the fiscal discipline in recent years and many wish for her continued leadership in driving deeper fiscal reforms," Bank of America wrote in a note.

The make-up of the cabinet is being closely watched to see how many technocrats - who are more likely to fall in with Widodo's plans for boosting growth and investment - were included.

Other ministerial candidates who came to the palace on Tuesday included Basuki Hadimuljono, who is credited with driving infrastructure projects as public works minister in Widodo's first term, and Siti Nurbaya Bakar, environment minister in the first term.

On Monday, Nadiem Makarim, the chief executive of tech startup Gojek and media tycoon Erick Thohir, a former chairman of Italian soccer club Inter Milan, were among those confirming they had been asked to join the cabinet.

Speaking to media ahead of his inauguration on Sunday, Widodo said around 16 ministers in the new cabinet would come from political parties out of an anticipated 34 posts.