As Indonesia picks new vice-president to succeed Gibran, investors see risks and opportunities

Detailed summary

Several names have emerged, including senior figures from Prabowo’s Gerindra Party and coalition partners

Several names have emerged, including senior figures from Prabowo’s Gerindra Party and coalition partners

[JAKARTA] Investors are closely watching Indonesian President Prabowo Subianto’s pick for the next vice-president, for clues about the direction of his administration and its approach to economic policymaking.

His choice to replace Gibran Rakabuming Raka could indicate whether power is becoming increasingly concentrated around the administration, at a time of eroding investor confidence and growing concerns over policy direction and regulatory certainty.

Mohit Mirpuri, senior partner at SGMC Capital, said the latest political developments could further unsettle investors, potentially prompting businesses to delay major capital commitments.

Investors will be looking for a successor who demonstrates independence and credibility, and is committed to upholding institutional checks and balances.

“Instead, if the appointment raises further concerns about the concentration of political power, it could add another layer of uncertainty. Investor confidence is already fragile,” Mirpuri told The Business Times.

Gibran, 39, formally submitted his resignation on Thursday (Nov 12), ending his term as vice-president less than two years into the administration.

Find out how enterprises are navigating power constraints and sustainability targets

His tenure was dogged by controversies, from legal challenges over his eligibility to run for office to questions surrounding his educational qualifications.

Opening of the article, excerpted from The Business Times. To read the rest, open the article on the publisher's site.