The return of Sri Mulyani Indrawati as finance minister, replacing Bambang Brodjonegoro, telegraphs Jokowi’s intention to improve state budget management and increase state income, especially from tax – which so far has not reached the government’s own target.
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It will be Widodo’s second Cabinet reshuffle in less than two years.
Wiranto was removed from the same Cabinet position in 2000 under president Abdurrahman Wahid when tribunals at home and overseas reviewed the abuses in East Timor.
A report said that Wiranto’s appointment was likely to draw criticism from human rights activists who say he was responsible for violence that marred East Timor’s vote for independence from Indonesia in 1999.
Tobias Basuki, a political analyst at the Centre for Strategic and International Studies in Jakarta, said the new Cabinet is a “very mixed bag” reflecting crisscrossing priorities that included giving ministries to political parties that have joined Jokowi’s coalition in parliament.
He denies any wrongdoing has never faced court over the atrocities.
Wiranto controls Hanura, “a party which has supported Jokowi from the get-go, and one way of seeing this is for the president to secure its continued support”, wrote Wellian Wiranto, economist at OCBC.
He replaces Luhut Panjaitan in the key role of chief security minister, overseeing five ministries including foreign, interior and defence.
East Timor formally became independent in 2002.
Cabinet Secretary Pramono Anung defended the appointment of Wiranto, describing him as “tested and experienced”.
Panjaitan moved to the post of coordinating minister for maritime affairs, still a key job at a time Indonesia is embroiled in rows with China over the South China Sea.
Wiranto’s appointment as chief security minister, however, could prove to be a controversial choice. “Sri Mulyani is smart, she has the capacity and a good track record to go with her strong global connections”, Abbas said.
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Financial markets in Southeast Asia’s largest economy rose in morning trade, with stocks up more than 1 percent and the rupiah strengthening 0.3 percent against the dollar.
