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Reuters

The biggest, and possibly riskiest, move in Indonesian President Joko Widodo’s cabinet reshuffle this week was the appointment of Luhut Pandjaitan as coordinating minister for security and political affairs.
A former special forces chief, Pandjaitan, 67, was already one of the country’s most powerful men thanks to his role as chief of staff in the president’s office, a job he will keep.
As coordinating minister, Pandjaitan will have six ministers reporting to him, including those with the foreign, home affairs and defence portfolios.
The wily and avuncular ex-general already leads an inner circle of advisers, who together have brought policymaking more squarely under the presidential palace than at any time since the fall of authoritarian leader Suharto in 1998.
With economic growth at its slowest pace for six years, Widodo may feel he needs extra levels of control.
The president has gone into damage control mode in recent months, bypassing economy ministers and personally intervening to soothe and charm investors. Pandjaitan was brought in by Widodo as part of that drive.
The country’s first president from outside the political and military elite, Widodo is perceived by some to be out of his depth and unable to navigate vested interests in Jakarta.
Insiders say that his unprecedented consolidation of power within the palace shows a determination to assert himself.
But Pandjaitan’s emerging role as gatekeeper to the president is not without risks, causing confusion among investors who are key to reviving Indonesia’s stalling economy, and alienating the political parties that support him.
For some in the business community, the enhanced powers of the presidential office add to a sense of muddled policymaking that has been a hallmark of Widodo’s first year in office.
“We’re not sure who’s calling the shots on policymaking - is it the presidential office or the ministries?” said one member of the foreign investment community, who asked not to be named due to the sensitivity of the issue.
There is also the possibility that leaders of political parties in Widodo’s ruling coalition could feel shut out.
Atmadji Sumarkidjo, a deputy to Pandjaitan, said his boss’s role was clear “and there shouldn’t be any confusion about it”.
“He doesn’t interfere in any ministry,” said Sumarkidjo. “He only steps in when there is confusion about policy or overlapping regulations.”
 
Pandjaitan was not available to comment for this article.
 
To many, Pandjaitan is something of a chameleon.
Under Suharto, he headed the military’s special forces and in retirement remains influential in military affairs.
But after the fall of the Suharto regime he transitioned into civilian life, serving in successive governments and overseeing a sprawling commodities group.
An early investor in Widodo’s furniture business, Pandjaitan became a key financier of Widodo’s presidential campaign and was rewarded with a newly created position in government.
 
As chief of staff he is also tasked with talking to the opposition coalition that controls parliament, to make sure Widodo’s programmes can be passed without a hitch.
But with such wide-reaching influence, Pandjaitan is already ruffling feathers. The vice-president and leaders in Widodo’s own party, the PDI-P, bristle at being sidelined.
“From what we’ve seen, the presidential office is just more bureaucracy and we haven’t seen any results,” said senior PDI-P politician Andreas Paraeira.
“In fact it can make things like communicating with the palace difficult, especially if it’s run by a political figure like Luhut. Why do we need him?”
 


Indonesian president Jokowi consolidates power under his wily chief of staff,  Luhut Pandjaitan

The man in the middle. Luhut Pandjaitan with Co-ordinating Minister for the Economy Darmin Nasution (left) and Cabinet Secretary Pramono Anung (right) at their inauguration at the Indonesian presidential palace on Wednesday. Photo: AP

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