JAKARTA Indonesian President-elect Prabowo Subianto is likely to appoint a finance minister who favours state interventionism to drive the growth of the economy and promote industries, according to economists.
This would be a marked departure from finance ministers during the decade-long tenure of President Joko Widodo, who relied on market forces to determine the course of the economy.
The economists said that under Mr Prabowo, Indonesia is likely to shift gears towards a state-led economic growth model, in a transition from a consumer-led one.
The Straits Times understands that ongoing discussions on the choice of the finance minister are leaning towards an individual who is comfortable carrying out targeted policy tasks - such as cherry-picking certain strategic industries to be given more protection and support - and championing tax policies that underpin the growth of specific industries like the electric vehicle (EV) sector.
Indonesia held its five-yearly presidential election on Feb 14, which was preceded by a 212-month campaign period during which candidates gave speeches and held rallies. The election commission announced on March 20 that Mr Prabowo, 72, won the election, beating his two rivals.
"From his speeches, vision and mission statements, Mr Prabowo has shown that his style is more towards an active state involvement approach rather than laissez-faire," Mr David Sumual, a senior economist with publicly listed Bank Central Asia,
Indonesia's third-largest bank by assets, told The Straits Times.
This story is from the April 04, 2024 edition of The Straits Times.
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This story is from the April 04, 2024 edition of The Straits Times.
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