Indonesia leader in damage control, installs loyalists after protests

JAKARTA, Indonesia: In removing Indonesia’s finance minister and U-turning on protester demands, the leader of Southeast Asia’s biggest economy is scrambling to restore public trust while seizing a chance to install loyalists after deadly riots last month, experts say.

Demonstrations that were sparked by low wages, unemployment and anger over lawmakers’ lavish perks grew after footage spread of a paramilitary police vehicle running over a delivery motorcycle driver.

The ensuing riots, which rights groups say left at least 10 dead and hundreds detained, were the biggest of Prabowo Subianto’s presidency and the ex-general is now calling on the public to restore their confidence in his government.

He vowed tough action on the officers who ran over 21-year-old Affan Kurniawan, backtracked on lawmaker housing allowances, and on Monday removed five ministers, including respected finance minister Sri Mulyani Indrawati.

“We can read this as damage control after the wave of public anger, especially at… the misdirected budget efficiency,” Rani Septyarini, a researcher at the Center of Economic and Law Studies, told AFP.

Prabowo has focused on expensive social mega-projects funded by widespread budget cuts that already roused protests in February. His flagship policies include a free meal programme and a new sovereign wealth fund.

But his new finance chief Purbaya Yudhi Sadewa said Wednesday he would inject an unprecedented $12 billion into the economy to spur growth and calm simmering public anger.

“Prabowo sees this problem as something that needs to be anticipated seriously,” said Airlangga Pribadi Kusman, political analyst at Airlangga University.

“He wants to prevent further social damage.”

Consolidating power

Prabowo surged to victory in last year’s election and maintained a high approval rating of more than 80 percent 100 days after entering office in October, according to polls.

But the protests turned increasingly angry against the country’s political elite, with mobs burning buildings and looting politicians’ homes.

“This shows that the public has a real, legitimate problem with this administration,” said Airlangga.

Yet the Indonesian leader has used the reshuffle to replace officials linked to popular predecessor Joko Widodo, more commonly known as Jokowi, with his own people.

Sri Mulyani served for eight years under Jokowi, while new finance minister Purbaya is close to key government economic adviser Luhut Binsar Pandjaitan — an ex-military colleague of Prabowo.

“Prabowo is using the moment to slowly consolidate his political power by erasing Jokowi’s influence,” said Virdika Rizky Utama, a political researcher at think tank PARA Syndicate.

State Secretary Prasetyo Hadi said on Monday the replacements were the right people for the job.

The presidential palace did not respond to an AFP comment request.

To win back public trust, experts say Prabowo — former son-in-law of late dictator Suharto — needs to address an expanding wealth gap and weakening democracy in a nation long known for dynastic politics which only emerged from autocracy in the 1990s.

“What we need is the determination from the president, a political will, and real progress,” said Airlangga.