Analysts: Indonesia’s Strong MoF Leadership Team To Boost Investor Confidence

By Mohd Iswandi Kasan Anuar

JAKARTA, Oct 17 (Bernama) -- The reappointment of Sri Mulyani Indrawati as head of Indonesia’s Ministry of Finance (MoF) is expected to instil confidence among investors, according to PT Maybank Sekuritas Indonesia.

In a research note on Thursday, the brokerage firm stated that her role under the upcoming administration of President-elect Prabowo Subianto for the 2024-2029 term will ensure fiscal prudence and policy continuity.

bootstrap slideshow

“There is now less chance that the next government will abolish the legal limit on the budget deficit or significantly increase public debt ratios to finance its priority programmes,” it noted.

Sri Mulyani is currently serving her second term as Minister of Finance under outgoing President Joko Widodo since 2016, having previously held the same position under President Susilo Bambang Yudhoyono (2005-2010).

On Monday, she was spotted visiting Prabowo’s residence and shared a photo with him on her social media account, highlighting her participation in a gathering with several prospective ministers at Prabowo’s residence in Hambalang, Bogor, on Wednesday night.

The brokerage firm also noted that a trio of vice ministers has been identified to assist her, bringing a wealth of experience.

These vice ministers include Suahasil Nazara, currently serving as Deputy Minister of Finance; Anggito Abimanyu, the former head of the Fiscal Policy Agency at the MoF during President Susilo Bambang Yudhoyono’s first term, and Thomas Djiwandono, a Johns Hopkins University graduate, who also currently serves as Vice Minister in the MoF.

Meanwhile, Muhammadiyah Surabaya University economist Arin Setyowati, in a statement, has praised Sri Mulyani’s reputation for upholding the integrity of the ministry, and ensuring the effectiveness of its budget policies.

Notably, her capabilities in tax management and state spending were recognised in 2006 when she was named the best Finance Minister in Asia by the Emerging Markets Forum.

Arin further noted that the minister’s extensive international experience as a managing director at the World Bank (2010-2016) bolsters the case for her continued position at the ministry.

-- BERNAMA