(Bloomberg) — Indonesian President-elect Prabowo Subianto is considering to offer a cabinet seat to current Finance Minister Sri Mulyani Indrawati, according to a report by Reuters, citing people it didn’t name. The rupiah erased an earlier loss.
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Indrawati could be asked to remain as finance minister or take the position of coordinating minister for economic affairs, the Reuters report said. Representatives for Indrawati and Prabowo did not respond to a request for comment, while the finance ministry declined to comment.
The rupiah strengthened as much as 0.1% to trade at 15,558 per dollar after the report, rebounding from its loss in morning trading and outperforming Asian currencies on Monday. The yield on 5-year bonds held an earlier two basis point decline at 6.42%, while benchmark 10-year yields were little changed at 6.68%.
Prabowo said last week that he may keep “many” of the ministers currently serving in outgoing President Joko Widodo’s cabinet, without mentioning any names. The incoming leader is set to be inaugurated on Sunday and may immediately announce his line-up of his ministers after his swearing-in.
The reappointment would be huge boost to assuring investors of Indonesia’s economic stability and policy continuity ahead of the leadership change. Indrawati, 62, has been President Jokowi’s finance minister since 2016 and has been a pivotal figure in solidifying Indonesia’s investment-grade credit ratings and reputation for fiscal prudence.
She previously served in the same post in 2005-2010 in President Susilo Bambang Yudhoyono’s administration, before leaving to the US to become the World Bank’s managing director for six years.
Investors have earlier said that the person filling the finance ministry post will be crucial for maintaining confidence in the country’s fiscal and debt outlook amid the next administration’s large spending plans. Among Prabowo’s main policy priorities is the distribution of free meals to school children, which would cost the government some $29 billion — larger than Indonesia’s fiscal deficit for 2023.
–With assistance from Zoe Ma and Matthew Burgess.
(Updates with market moves)
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