Luhut Appointed as Head of National Economic Council, Here are His Duties and Career Journey

TEMPO.CO, Jakarta – Indonesian President Prabowo Subianto appointed Luhut Binsar Pandjaitan, 77 years old, as the Head of the National Economic Council at the Merdeka Palace, Jakarta, on Monday, October 21, 2024.

Luhut mentioned that he was tasked with digitizing the national economic system to make it more efficient.

“President Prabowo asked for assistance to improve our governance, because with digitalization, I believe it can make us more efficient,” he said.

Luhut stated that the digitalization of the national economic system is part of the quick win program of Prabowo Subianto-Gibran Rakabuming Raka as President and Vice President of the Republic of Indonesia.

The National Economic Council, according to Luhut, aims to achieve the realization of refining the digitalization of the economy within a working duration of 1 to 2 years ahead.

“I think e-catalog version 6, I think has been continued by him promptly. Of course, it will make 85 percent of government procurement better,” he said.

The National Economic Council was previously formed by President Abdurrahman Wahid in November 1999 with Emil Salim as its head, accompanied by Vice Chairman Subiakto Tjakrawerdaya and Secretary Sri Mulyani Indrawati.

There were prominent names as members, such as Boediono, Bambang Subianto, Kuntoro Mangkusubroto, Moh. Arsjad Anwar, Hadi Susastro, H.S. Dillon, Anggito Abimanyu, Gunarni Soeworo, Hasan Zein A. Mahmud, and Theodore Permadi Rachmat.

At that time, Gus Dur issued Presidential Decree of the Republic of Indonesia Number 144 of 1999 concerning the National Economic Council, which among others contains DEN’s task to provide advice to the President in the economic field in an effort to expedite crisis mitigation and national economic recovery, as well as preparedness in response to globalization dynamics.

In addition, DEN’s tasks are, first, to study economic issues as input for advising the President for further action recommendations. Second, to respond to economic issues that exist in society to be submitted to the President.

Third, to carry out other assignments in the economic sector from the President related to the functions of the National Economic Council.

There is no explanation from the Prabowo Government regarding Luhut’s tasks at DEN.

“Regarding the National Economic Council to be led by Luhut Binsar Pandjaitan and has been our partner in the cabinet for almost a decade, communication is smooth,” said Airlangga at the Presidential Palace in Jakarta on Monday.

He only mentioned that the work assignments of all cabinet members have been explained by President Prabowo.

Furthermore, Airlangga stated that one of his work programs at the Coordinating Ministry for Economic Affairs will focus on the medium to long-term to ensure the sustainability of people’s purchasing power.

Luhut’s Career in Government

Before being appointed as the Head of the National Economic Council, Luhut served as the Coordinating Minister for Maritime Affairs and Investment (Menko Marves) since 2019 in the Working Cabinet of Indonesia Maju.

Luhut also served as the Coordinating Minister for Political, Legal, and Security Affairs in 2015-2016, replacing Tedjo Edhy Purdijatno.

As the Menko Marves, Luhut played a strategic role in the maritime sector, the environment, as well as toll roads, high-speed trains, the development of battery industries for electric vehicles, and actively bridging the government with foreign investors.

Luhut also played a crucial role during the COVID-19 pandemic in controlling the spread of SARS-CoV-2. Luhut is also known publicly as someone who often recommends various solutions to the Jokowi-Ma’ruf government in responding to sensitive issues.

Luhut ended his military career upon retiring as a lieutenant general and served as the Commander of Kodiklatad (1997-1998). After that, he was appointed as the Indonesian Ambassador to Singapore (1999-2000). He was then recalled and appointed as the Minister of Industry and Trade by President Gus Dur (2000-2001).

After Gus Dur was dismissed by the People’s Consultative Assembly (MPR), Luhut moved into the private sector by establishing PT Toba Sejahtra Group engaged in energy and mining sectors.

During Jokowi’s presidential campaign in 2014, Luhut joined the winning team and was later appointed as the Chief of Presidential Staff until 2015, before being appointed as the Coordinating Minister for Political, Legal, and Security Affairs until 2016. After that, he served as the Coordinating Minister for Maritime Affairs and Investment until the end of Jokowi’s administration.

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