JAKARTA: Indonesia’s President Joko Widodo (pic) ordered his cabinet to maintain stability and avoid implementing any abrupt policy changes ahead of the leadership transition next month.
Jokowi, as the outgoing leader is known, told his ministers on Friday (Sept 13) to support the flagship programmes of President-elect Prabowo Subianto, including his campaign pledge of a US$29-billion free meal programme for children.
"We must support and ensure the transition runs effectively. If new regulations are needed, we should finalise them immediately,” Jokowi said at the last scheduled plenary cabinet meeting of his term, which was held in the future capital city of Nusantara. He is expected to see out the final days of his decade-long presidency there.
The latest pronouncements reinforce the government’s message of continuity ahead of Prabowo’s inauguration on Oct 20. Jokowi has appointed key Prabowo allies into his own cabinet. The incoming president has likewise committed to continue Jokowi’s landmark policies, while raising the economic growth target to 8% from the current 5% path.
In the coming weeks, ministers should work to maintain Indonesia’s purchasing power, inflation and economic stability, Jokowi said.
"Do not make extreme policies, especially those related to livelihood, that could potentially harm the wider community and cause turmoil,” he said.
This comes as Indonesia weighs fuel subsidy reforms - a move that could shore up cash for the incoming Prabowo government but could potentially stoke inflation and middle-class pushback.
Jokowi’s recently appointed Energy Minister Bahlil Lahadalia said they could restrict the sale of subsidised fuel for certain vehicle types starting October, according to local media reports. - Bloomberg
