T

he second Joko “Jokowi” Widodo Cabinet reshuffle was a long time coming, but did not disappoint. The changes were sweeping and mostly hit the mark. It reveals the hand of a much more decisive President and also shows his pragmatism and desire to get things done fast. Who are the new faces?

Sri Mulyani brings experience, maturity and a certain celebrity glamor to the Cabinet. In the Susilo Bambang Yudhoyono administration, she improved the government budget before steering the economy through the global financial crisis in 2007-2008. Her imprints are all over government finance and management of the Finance Ministry.

Note that during her term, tax collection hit a high of 12.5 percent of GDP. The deficit, meanwhile, was below 1.5 percent of GDP.

After moving to the World Bank, she remained popular in the country. She gained immense experience running one of the world’s most complex organizations. That is what she now brings to the table. This should raise our game to a higher level.

The challenges are daunting. First is to revamp revenues that have floundered after the end of the commodity boom. Second, spending needs to be made much more efficient. In the longer term, we should start enlarging and deepening the financial sector. Better inclusion in the modern financial sector will raise productivity and reduce poverty. It will also unleash resources to fuel growth.

Airlangga Hartarto is a rare combination of a successful businessman and an experienced politician at the same time. He sits on the board of several large firms and was once head of the listed companies’ association. He is one of the most knowledgeable House of Representatives members on industrial matters. He is responsible for listed companies getting income tax concessions.

If anyone can turn the fate of industry around it will be men like Airlangga. Since the crisis of 1997 and 1998, our manufacturing industry has been in continuous decline. Until then this sector was the main engine of job creation and a key driver of better income distribution.

Enggartiarso appears like the odd man out. What can a former head of a real estate association do for trade policy? A seasoned politician, Enggartiarso was with the Golkar Party until he moved to the NasDem Party. There he headed the international relations department. He also sits on the board of several property companies. What he brings to the table are long political experience and a strong business sense. He is also plugged into the business community.

The main challenge for him will be ensuring price stability in the short run without dislocating producers. In the longer run, he should balance calls for nationalism against our role in the global arena. Furthermore, he should ensure market access for Indonesian products and services.

Budi Karya Sumadi spent most of his career in Jakarta city-owned property companies. There he was successful in completing several of Jokowi’s initiatives as governor of Jakarta. These included the enhancement of the Pluit and Ria-Rio dams. He then moved to lead Angkasa Pura II, the airport operator. And there he continued using his magic touch to speed up the building of a new airport terminal in Jakarta.

As transportation minister, he should expedite the building of key infrastructure projects. These include the Jakarta-Bandung high-speed railway, airports and sections of the Java toll road. His cool manner should help overcome the controversies that this sector often experiences.

Archandra Tahar is an offshore petroleum engineer who has spent more than 20 years working in the US. That is as far from politics and commercial interests here as you can get. Hence his appointment shows how serious is the aim to clean up this sector.

His experience and network in the oil production sector should prove valuable for Indonesia. During the last two decades, oil and gas exploration has not expanded, while production has dwindled. Now, with low global oil prices, investment in this sector is more challenging. Hence the need for ever more innovative solutions. Besides, Indonesia needs to invest in electrical power and think about clean energy.

What about the old faces?

Bambang Brodjonegoro is now tasked with planning. His time at finance equips him with the big picture for medium- to longer-term economic planning. Given more power, this portfolio could play a bigger role in improving public investment.

Thomas Lembong at the Investment Coordinating Board (BKPM) looks appropriate given his background in investment advice. His role in private equity does not hurt either. Both gave him first-hand knowledge of the impediments in investing in Indonesia. His spell at the Trade Ministry also opens up access to major exporters to Indonesia. Now he can take one step forward to invite them to look at Indonesia as a production base.

Now that all the pieces are in place, what can we expect from the new Cabinet?

One is potential stronger political support with the inclusion of Golkar and National Mandate Party (PAN) representatives. But this is not assured. In the Yudhoyono administration, parties maintained their independence despite representation in the Cabinet. The difference this time, though, is that they are businessmen first and politicians second.

Second, the conductor has shown that he has the power and inclination to replace any player out of tune. With new and more experienced players the orchestra should perform better — and Indonesia will be the beneficiary.
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The writer is chief economist at PT Danareksa Sekuritas. The views expressed are his own.