JAKARTA – Indonesian President Joko Widodo fired five ministers and transferred one in a long expected cabinet reshuffle announced Wednesday afternoon. Trade Minister Rachmat Gobel was replaced by Thomas Lembong, a Harvard graduate and former investment banker. Coordinating Economic Minister Sofyan Djalil was replaced by Darmin Nasution, the central bank governor from 2010 to 2013. Djalil’s new post is minister of national development planning. The appointment of Nasution and Lembong has been welcomed by those who feared party hacks might be appointed based on political connections. “As a former central bank governor, [Nasution] knows very well the fiscal and macroeconomic matters that need to be addressed,” said Djayadi Hanan, executive director at Saiful Mujani, a Jakarta political consultancy. Gobel’s decision to slash cattle imports led to beef prices surging and protests from consumers already struggling with a sliding rupiah and growing inflation.”It is no surprise that the trade minister was replaced,” said Yohanes Sulaiman, a lecturer at the Indonesian National Defense University. “Many business people said he was incompetent.”
JAKARTA – With restrictions on small retailers now in place, a wider ban is now being pushed by two of the four Islamic parties represented in Indonesia’s parliament, the United Development Party (known by its Indonesian initials as the PPP) and the Prosperous Justice Party (PKS). The proposed law seeks to ban the production, distribution, sale and consumption of beverages containing more than 1% alcohol. Offenders found distributing or producing alcohol could face between two and 10 years in prison, or a fine of up to 1 billion rupiah ($77,205). Anyone caught drinking alcohol could face a prison term of between three months and two years.