By Stefan Sulaiman and Gayatri Suroyo
JAKARTA – Indonesia’s outgoing President Joko Widodo is set to appoint Tomas Jiwandono, the nephew of President-elect Prabowo Subianto and an adviser on financial affairs, as deputy finance minister later on Thursday, a senior politician said.
Sukhumi Dasko Ahmad, a senior member of Prabowo’s Gerindra party, confirmed the plans reported by Reuters, adding that Jiwandono would take on the same role from October when Prabowo’s term officially begins.
Dziwandono, the presidential palace and the finance ministry did not respond to requests for comment.
Dasko told Reuters that he was using the nickname for the current president “to ensure a smooth transition of power from the Jokowi administration to the Prabowo administration.”
The rupiah fell about 0.4 percent against the U.S. dollar in early trading on Thursday, the biggest drop among Asia’s emerging currencies.
Jiwandono will be working with President Widodo’s current respected finance minister, Sri Mulyani Indrawati, who has been praised for his prudent fiscal policies, including fiscal management during the COVID-19 pandemic.
Financial markets are focusing on Prabowo’s nominees for finance minister and fiscal policy proposals after ratings agencies warned that his big-ticket election pledges, including a flagship program to provide free school meals, could pose increased risks.
Concerns about rising debt under Prabowo’s incoming administration have so far increased pressure on the rupiah and Indonesian bond prices.
The US-educated Jiwandono has been Prabowo’s chief fiscal voice and has frequently repeated promises that the president-elect will abide by fiscal rules and keep the 2025 budget deficit within the legal limit of 3% of gross domestic product.
According to his profile on the Gerindra party’s official website, Mr. Ciwandono previously worked for a Hong Kong securities firm and for the Indonesian conglomerate Arsari Group, run by Mr. Prabowo’s brother, Hashim Djojohadikusumo. Mr. Ciwandono also serves as the party’s financial director.
“We hope that Dijuwandono’s appointment will improve communication on fiscal synergy and ensure that the programs proposed during the election period are implemented carefully in line with the country’s fiscal situation,” said Maybank Indonesia economist Mirdar Gunnarto.
He said the appointment should have a neutral impact on the market as there are no changes to fiscal figures, adding that the rupiah’s fall was likely due to external factors.
This article has been generated from an automated news agency feed without any modifications to the text.
