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Reuters
Reuters
Business
Kate Lamb and Stanley Widianto

Indonesia president reshuffles cabinet, names new trade minister

Newly appointed Indonesian Trade Minister Zulkifli Hasan looks on as he speaks to the media alongside Minister of Agrarian Affairs and Spatial Planning Hadi Tjahjanto, who was Indonesia's military chief, following their inauguration at a Presidential Palace in Jakarta, Indonesia, June 15, 2022. REUTERS/Willy Kurniawan

Indonesian President Joko Widodo announced a cabinet reshuffle on Wednesday, appointing a new trade minister following controversy over a series of policy flip-flops on palm oil exports.

In an official ceremony at the state palace the president inaugurated Zukifli Hasan, chairman of the National Mandate Party (PAN) and a former forestry minister as the country's next trade minister, among other changes.

Indonesian President Joko Widodo reads out vows taken by newly appointed ministers and deputy ministers during an inauguration at a Presidential Palace in Jakarta, Indonesia, June 15, 2022. REUTERS/Willy Kurniawan

The reshuffle comes after former trade minister Muhammad Lutfi faced political pressure over policy efforts to contain a surge in domestic cooking oil prices, which included a shock ban on palm oil shipments from the world's biggest exporter.

Minister Lutfi had blamed a "palm oil mafia" for undermining efforts to contain cooking oil prices after bringing in a surprise ban on palm oil exports in April.

The three-week export ban, lifted on May 23, sent shockwaves through global markets and led to a series of arrests for alleged corruption after the attorney general launched an investigation.

Indonesian President Joko Widodo speaks to the media, as newly inaugurated Trade Minister Zulkifli Hasan and Minister of Agrarian Affairs and Spatial Planning Hadi Tjahjanto, who was former Indonesia's military chief, stand besides him at a Presidential Palace in Jakarta, Indonesia, June 15, 2022. REUTERS/Willy Kurniawan

Political observers say the president may also have been looking to appoint a member of PAN to his cabinet after the party, which is connected to well-known opposition figure Amien Rais, joined the ruling coalition last year.

President Jokowi, as he is popularly known, is currently serving out his second term. He also announced changes to the agrarian and spatial planning ministry, appointing former armed forced chief, Hadi Tjahjanto.

He also inaugurated three deputy ministers to the ministries of manpower, spatial planning, and home affairs.

(Writing by Kate Lamb; Editing by Ed Davies and Kanupriya Kapoor)

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