Politics in Indonesia-Bye-bye beer banner-Amid slow growth and currency woes, Jokowi reshuffles his cabinet

Politics in Indonesia-Bye-bye beer banner

Amid slow growth and currency woes, Jokowi reshuffles his cabinet

Since taking office last October, Joko Widodo, best known as Jokowi, has been Indonesia’s pitchman as well as its president. He has trotted the globe seeking foreign cash for infrastructure. He promised that investors in Indonesia would “make incredible profits”.
That looks increasingly fanciful. Growth last quarter was the lowest since 2009, as the price of commodities has fallen and demand from China has weakened. Jokowi took office aiming for growth of 7% but he will struggle to hit 5% this year. Consumer confidence has plummeted and the rupiah has slid. Political infighting and bureaucratic delays have hampered ambitious infrastructure plans. Investors are frustrated. And so, apparently, is Jokowi; on August 12th he shuffled his cabinet.

Thomas Lembong, a Harvard-educated private-equity specialist, is Indonesia’s new trade minister. He replaces the eccentric Rachmat Gobel, who appeared fonder of banning trade than encouraging it. Mr Gobel barred imports of second-hand clothes for fear they could spread AIDS. After he banned minimarts from selling beer, Bintang, one of Indonesia’s biggest brewers, reported a 42% drop in profits. His recent decision to slash cattle imports sent the price of beef soaring. Mr Lembong is a political novice, but he should not find it hard to do better than Mr Gobel.
Darmin Nasution replaces Sofyan Djalil as economy minister. Mr Nasution led Indonesia’s central bank from 2009 to 2013 and before that served in the finance ministry under Sri Mulyani Indrawati, a respected minister now at the World Bank. With this background he may prove better suited to his position than Mr Djalil, an able politician but not an economist. Jokowi also dismissed three other cabinet members.
Paul Rowland, a Jakarta-based political consultant, believes the reshuffle is politically savvy but insufficient. Big guns have not been brought in to shake things up and push through changes that inspire investors. They, meanwhile, will still face legal uncertainty and a Byzantine civil service.

From the print edition: Asia The Economist