News analysis: Indonesian finance chief's reappointment seen as reassuring investors on stabili

But she may face challenges in trying to achieve Prabowo’s ambitious growth target

- Hariz Baharudin

JAKARTA - Dr Sri Mulyani Indrawati was sworn in as Indonesia's Finance Minister on Oct 21, marking her appointment under a third consecutive president after months of speculation that she might not join the new administration of President Prabowo Subianto.

An economist with a distinguished background, including roles at the World Bank and International Monetary Fund, Dr Sri Mulyani previously served under presidents Susilo Bambang Yudhoyono and Joko Widodo.

Her reappointment, which seemed uncertain just months ago, is likely to reassure investors that the Prabowo administration is committed to policy stability and continuity.

But challenges remain, particularly in achieving President Prabowo's ambitious target of raising Indonesia's economic growth, which is currently at 5 per cent.

SURPRISE REAPPOINTMENT?

Mr Prabowo unveiled his 48-member Cabinet hours after being inaugurated on Oct 20.

However, in the months leading up to this, speculation was rife about potential successors to Dr Sri Mulyani.

The uncertainties stemmed from rumours that the 62-year-old was keen to retire from politics and return to the international financial organisations where she had worked.

Some observers highlighted other reasons. For example, in an article on Oct 22 in The Jakarta Post, local think-tank Tenggara Strategics said that when Dr Sri Mulyani and then Defence Minister Prabowo were both serving in Mr Widodo's Cabinet, they had disagreements over defence spending.