By Stefanno Sulaiman
JAKARTA (Reuters) - Indonesia's President-elect Prabowo Subianto has defended his plan to expand government agencies, saying it is needed for a strong administration even if critics call it a "fat" cabinet that will bloat the bureaucracy.
Prabowo, who will be sworn in on Oct. 20, plans to add about 10 ministries and agencies, a move seen as a way to create senior jobs for politicians in his seven-party coalition.
"I want to create a united and strong government," he told an economic forum on Wednesday. "The coalition must be big and some will say my cabinet is fat."
Foreign investors have been worried that Prabowo may ease fiscal discipline in Southeast Asia's largest economy. A senior aide has said Prabowo will stick to agreed 2025 spending levels and will adhere to existing budget rules.
Prabowo suggested his cabinet will keep many ministers from the administration of outgoing President Joko Widodo, saying decisions will be merit-based. He did not elaborate.
His cabinet will consist of non-politicians and party representatives and could be announced the day after the inauguration, a close aide said.
Sources said some heads and senior officials of coalition parties will get ministerial seats. These include several incumbents: Energy Minister Bahlil Lahadalia, Trade Minister Zulkifli Hasan and Agrarian Affairs Minister Agus Harimuti Yudhoyono.
A key unknown is whether Prabowo will keep Finance Minister Sri Mulyani Indrawati, a former World Bank managing director respected in financial markets.
Prabowo's advisers have said he plans to create a housing ministry to pursue his goal of providing 3 million homes annually, and a carbon emissions regulator, and to spin off the finance ministry's tax and custom offices to create a state revenue body. A national nutrition agency, which will execute Prabowo's multi-billion-dollar free meals programme, was set up in August.
Deputy Finance Minister Thomas Djiwandono, Prabowo's nephew, told Reuters last month the incoming government's spending will remain "within principles of fiscal prudence", reducing the budget deficit to 2.53% of gross domestic product next year from an estimated 2.70% in 2024.
Prabowo wants to accelerate economic growth to 8% from the current 5% while ending poverty and malnutrition in the nation of 275 million people.
(Reporting by Stefanno Sulaiman and Ananda Teresia; Additional reporting by Stanley Widianto; Editing by William Mallard)
