Two Years In, Prabowo Consolidates Command Over Economic Engine and Security Apparatus

JAKARTA, Investortrust.id — Beneath the crystal chandeliers of the State Palace on Thursday, Oct. 1, 2026, President Prabowo Subianto carried out a wide-ranging shake-up of his Red and White Cabinet, executing a decisive consolidation of executive authority across Indonesia’s economic and security apparatus. Coming barely three weeks before his administration marks its two-year milestone on Oct. 20, the sweep sworn into office three coordinating ministers, two line ministers, one deputy coordinating minister, four deputy ministers, and several ministerial-level agency leaders.

The maneuvers signaled a clear transition toward tighter executive control as external headwinds mount. In the security realm, General Listyo Sigit Prabowo was reassigned from his post as National Police Chief to become Head of the Presidential Staff Office, replaced at the helm of the national police force by General Suyudi Ario Seto. Concurrently, former army chief Dudung Abdurachman assumed the post of Coordinating Minister for Political and Security Affairs, while former deputy police chief Dedi Prasetyo was tapped to lead the newly formed National Agrarian Reform Agency.

Tightening Grip on Energy and Downstreaming

Economic and energy command saw an unprecedented concentration of authority. Energy and Mineral Resources Minister Bahlil Lahadalia was sworn in to concurrently serve as Coordinating Minister for Downstreaming and Energy Transition, placing him at the helm of the country’s industrial processing and clean energy programs. Bahlil framed his dual appointment as a mission requiring complete operational focus amid shifting global dynamics.

"We were assigned by the President to receive a new mandate; in addition to being Minister of Energy and Mineral Resources, I also concurrently serve as Coordinating Minister for Downstreaming and Energy Transition," Bahlil said on Thursday afternoon. "God willing, as an assistant to the president, I will strive with full totality to carry out this task properly, both as coordinating minister and as minister of energy."

Addressing the geopolitical climate, Bahlil underlined that driving domestic industrialization alongside international climate obligations cannot be approached haphazardly.

"Why is this important? We know that amid uncertain geopolitical conditions and dynamic global economic constellations, the transition toward clean energy is imperative," Bahlil said. "Therefore, the President views priority programs related to downstreaming and the energy transition as a global commitment under the Paris Agreement to be vital. This cannot be done in a partial manner, but must be executed comprehensively, measurably, and aligned directly with the targets instructed by the President."

Seasoned Hands for Foreign Policy and Finance

Diplomatic leadership also turned toward deep institutional experience. Veteran diplomat and Deputy Foreign Minister Arrmanatha Nasir was elevated to Minister of Foreign Affairs, replacing Sugiono, who was reassigned as Coordinating Minister for Human Development and Culture. A former ambassador to France and permanent representative to the United Nations, Arrmanatha affirmed that his tenure will focus on national interests and advancing Indonesia’s candidacy for the UN Security Council for the 2029–2030 term.

"We will continue what was executed exceptionally well by Pak Sugiono, and naturally we will follow the directives of the President," Arrmanatha said on Thursday. "This also demonstrates our conviction in the importance of multilateralism, ensuring that we continuously use our candidacy to push for reforms within the multilateral system."

At the Ministry of Finance, the administration reinforced its technocratic ranks by appointing central bank senior economist Nurkholisoh Ibnu Aman alongside Luky Alfirman as deputy ministers. Arriving at Lapangan Banteng on Thursday evening, Nurkholisoh struck a modest and collaborative tone as he prepared to help steer the treasury.

"I am truly the new person here, so I am the learner," Nurkholisoh told ministry officials on Thursday. "I ask for assistance, to be taught, to be given information, to be given knowledge, and personally I always consider myself a lifelong learner. I want to learn about the main duties of the Ministry of Finance, but also about the internal organization itself so that I can be beneficial to its effectiveness."

Luky Alfirman, stepping into his post alongside Nurkholisoh, highlighted the urgent fiscal timetable ahead, stressing that the treasury must close out current spending while laying the groundwork for the 2027 fiscal blueprint.

"Last time I also discussed with the minister how we will consolidate internally to continue driving reforms and transformations within the Ministry of Finance," Luky said on Thursday. "This is the final stage in the fourth quarter, and we know there are many challenges. There is still much homework to finish so the 2027 state budget is up and running."

Industry Mandates and Business Expectations

The industrial front saw political and business interests intersect as Golkar Party Secretary-General Muhammad Sarmuji was installed as Minister of Industry, succeeding Agus Gumiwang Kartasasmita. Sarmuji pledged to step down from the House of Representatives immediately to honor governance boundaries.

"Certainly, one cannot hold concurrent positions," Sarmuji told reporters at the State Palace on Thursday. "You cannot hold concurrent posts between the executive and the legislature. In principle, we are automatically no longer lawmakers, but if an official resignation is required administratively, we will complete it as swiftly as possible."

The change in industrial leadership drew immediate attention from the business community. Saleh Husin, Deputy General Chairman for Industry at the Indonesian Chamber of Commerce and Industry (Kadin) and former Minister of Industry, noted that cabinet reshuffles are entirely within presidential authority.

"Cabinet changes are the prerogative of the President and are completely normal," Saleh said in Jakarta on Thursday. "The President certainly knows best who is most suited to serve as his assistant in each field, particularly as rumors regarding this shift had already circulated earlier."

Saleh, who commended Agus Gumiwang for completing his service with distinction, emphasized that Sarmuji’s legislative track record must now be translated into tackling four stubborn structural impediments: securing domestic and imported raw material supplies, simplifying burdensome industrial licensing, providing reliable energy at competitive prices, and ensuring long-term regulatory certainty.

"Because Pak Sarmuji has long served as a member of parliament and sat on the commission partnering with the Ministry of Industry, he naturally understands the various issues faced by domestic manufacturers, especially amid global economic volatility that continues to churn," Saleh said. "I believe that if these four issues can be fully resolved by Industry Minister Sarmuji, our national industry will grow rapidly and advance."

By binding seasoned political party figures to executive accountability, expanding energy coordination, and reinforcing fiscal and diplomatic benches with technocrats, Prabowo’s mid-term reshuffle demonstrates an administration reshaping its apparatus to meet mounting economic tests with centralized resolve.