What's happened
Indonesia's President Prabowo Subianto has reappointed Sri Mulyani Indrawati as finance minister, aiming to reassure markets of fiscal stability. Her experience is crucial as the country faces significant debt obligations. Analysts express concerns over continuity in economic policies and potential dependency on China amid rising geopolitical tensions.
Why it matters
What the papers say
According to the South China Morning Post, Sri Mulyani's reappointment is seen as a move to reassure markets about fiscal management under Prabowo's leadership. Siwage Dharma Negara noted that her experience is vital for engaging with multinational financial agencies. Conversely, analysts like Bhima Yudhistira express concerns that retaining Widodo's economic team could perpetuate a pro-China stance, potentially limiting Indonesia's economic diversification. The Japan Times highlights Prabowo's intent for continuity in foreign policy, which may overlook pressing domestic issues. This reflects a broader debate on how Prabowo's administration will balance economic growth with democratic integrity, as noted by The Independent.
How we got here
Prabowo Subianto was inaugurated as Indonesia's president on October 20, 2024, succeeding Joko Widodo. His administration promises to continue Widodo's policies, but faces scrutiny over human rights and democratic integrity, especially given Prabowo's past and the protests during the transition.
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