Backgrounder
This month, protests demanding political and economic change continue, although smaller and more orderly. A clearer picture of demands that the government can respond to has been compiled into the “17+8 People’s Demands”.
Sri Mulyani Indrawati has finally stepped down as finance minister after nearly 14 years of steering Indonesia’s economy through crises and reforms. Less than a year into President Prabowo Subianto’s presidency, one of the most capable and respected figures in government has been reshuffled out. The decision has sent shockwaves through financial markets and reignited fears about waning foreign investor confidence. Many are asking if this moment will once again prove to be “Indonesia’s loss, and the world’s gain.”
The lack of a justification for President Prabowo Subianto 's cabinet reshuffle has raised more questions than answers. The effectiveness of the reshuffle is questionable since two key positions, the coordinating political and security affairs minister and the youth and sports minister, remain unfilled.
Shortages have gripped Indonesia once again, with Shell, BP and Vivo fuel stations running low in several regions. The fuel shortages have caused long lines at Shell, BP and Vivo stations as well as increased demand at state-owned Pertamina stations, despite scandals over low-quality fuel.
Indonesia’s stock market took a heavy blow in late August during nationwide riots and protests. On the Sep. 5 market close, the Indonesia Stock Exchange Composite fell to 7,867.35; by Sep. 8, after the weekends, it had dropped to 7,766.85, a decline of about 1.28 percent.
The controversy over double jobs for deputy ministers should now end after the Constitutional Court prohibited them from serving as commissioners in state-owned enterprises (SOEs), reinforcing its previous ruling that barred ministers and other high-ranking officials from holding such positions.
As nationwide protests have subsided, a new power struggle has emerged among Indonesia's political elite, centering on who was behind the widespread unrest last week.