Indonesian president replaces key members in his Cabinet to boost economy

Prior to the private meeting between Jokowi and Kalla on Tuesday, they also had a meeting with several ministers including Trade Minister Rachmat Gobel; Coordinating Economic Minister Sofyan Djalil; Coordinating Political, Legal and Security Affairs Minister Tedjo Edhy Purdijatno; National Development Planning Minister Andrinof Chaniago; and Cabinet Secretary Andi Widjajanto.

The president’s office declined to comment, saying an announcement would be made later in the day. Jokowi picked Thomas Lembong as trade minister.

Gross domestic product growth in Southeast Asia’s largest economy eased to 4.67 percent in the second quarter, its slowest pace in six years. Lembong is known for his involvement in restructuring Indonesia’s banking sector in the aftermath of the Asian monetary crisis in the late nineties.

Since he took office last October, Widodo’s government has passed a raft of measures aimed at boosting industry and consumption that have been criticised by investors as protectionist.

The cabinet of ministers under President Joko Widodo.

By appointing ministers with worldwide experience and an external focus he may address concerns that his government too readily resorts to protectionism and is not wholly committed to nurturing foreign investment, the source said.

Supporters said the former governor of Jakarta would root out corruption, promote people based on merit rather than connections and create an environment where a stalling economy could reignite and investment flourish. Mr. Nasution served as Governor of the Central Bank from 2009 to 2013.

Wellian Wiranto, an economist with Singapore-based OCBC Bank, said there was hope that Nasution will “have a better chance at coordinating economic policies among the myriad of ministries and agencies which have been largely lacking thus far”.

Five of the six ministers appointed Wednesday were seen as technocrats as opposed to political appointees, following criticism that Widodo had been pressured into making previous appointments by his party’s chief, former president Megawati Sukarnoputri.

“We believe that this will be temporary”, Adityaswara said.