Transition in Finance: Djiwandono Takes Deputy Role Amid Fiscal Uncertainty

Indonesia's outgoing President Joko Widodo appointed Thomas Djiwandono, nephew of President-elect Prabowo Subianto, as deputy finance minister. This move aims to ensure a smooth transition of power. Concerns over fiscal policy have impacted the rupiah, which fell by 0.4%. Djiwandono will synchronize future fiscal plans with the 2025 budget.

Indonesia's outgoing President Joko Widodo has appointed Thomas Djiwandono, the nephew of President-elect Prabowo Subianto, as deputy finance minister. Djiwandono's role is crucial in facilitating a smooth government transition as Widodo's administration prepares to hand over power to Prabowo.

The appointment has raised questions about Indonesia's future fiscal policy, with the rupiah falling by 0.4% against the U.S. dollar. Concerns about rising debt during Prabowo's upcoming administration have added pressure on the currency and bond prices. Djiwandono ruled out the possibility of becoming the finance chief, stating his focus would be aligning the next administration's plans with the 2025 budget.

Djiwandono, who is also the main spokesperson on fiscal issues for Prabowo, emphasized the incoming president's commitment to maintaining the fiscal rules. His appointment aims to foster better communication on fiscal policies and ensure that campaign promises are implemented prudently.

(With inputs from agencies.)