Balancing Size and Strategy: Prabowo’s New Cabinet

"Structure follows strategy" - Chandler (1962)

Public skepticism surrounds the recent expansion of Indonesia's cabinet, with concerns that a larger structure could lead to inefficiency, corruption, and bureaucratic bloat. Under President Prabowo, the cabinet has expanded, increasing the number of coordinating ministries from 4 to 7 and splitting the Ministry of Law and Human Rights into three entities. The Ministry of Tourism and Creative Economy has also been divided. This expansion, outlined in Perpres Nomor 139 Tahun 2024, is part of the new Kabinet Merah Putih aimed at improving coordination and addressing national priorities such as economic development, security, and governance reform.

In his inauguration speech, Prabowo emphasized the need for self-reliance in food and energy, addressing challenges like poverty, corruption, and inefficient governance. He retained several ministers from Jokowi’s cabinet, continuing key economic policies while reorganizing ministries to address Indonesia’s new priorities. These moves reflect a continuation of existing policies while introducing structural changes to tackle existing and new challenges.

Therefore, the question arises: does Prabowo’s large cabinet align with his vision for Indonesia over the next five years? This essay explores the benefits and challenges of this structure, providing a strategic perspective on how the administration can balance size with efficiency to achieve national goals in an increasingly complex global environment.

• Advantages of a Large Cabinet

Specialization and Expertise Splitting ministries allows for sharper focus and better resource allocation. For example, dividing the Ministry of Education, Culture, Research, and Technology into Primary and Secondary Education, Higher Education, and Science and Technology allows for more targeted efforts in each area. This approach is supported by Task Specialization principles, as outlined by Adam Smith (1776) and further developed by Frederick Winslow Taylor (1911), emphasizing efficiency through specialized units.

Political Stability and Representation A larger cabinet can enhance political stability by ensuring representation for various political factions and regions. This inclusivity promotes cooperation and reduces conflict, aligning with Pluralism Theory by Robert A. Dahl (1961), which highlights the benefits of power-sharing among diverse groups for stable governance.

Flexibility in Crisis Management A larger cabinet provides flexibility, enabling quicker responses to crises. Special envoys and advisors allow for targeted action in areas like national security or economic challenges. This flexibility aligns with Contingency Theory by Burns and Stalker (1961), emphasizing the need for structures to adapt to unpredictable environments. This is especially important for addressing Prabowo’s goals of economic resilience, particularly in sectors like industrial downstreaming.

• Disadvantages of a Large Cabinet

Coordination and Decision-Making Challenges Managing a larger cabinet can complicate decision-making due to overlapping responsibilities and conflicting priorities. Agency Theory by Jensen and Meckling (1976) explains that ministries may prioritize their own interests over national objectives, leading to inefficiencies.

High Costs and Bureaucratic Redundancy In addition to coordination challenges, a larger cabinet incurs higher costs, with more ministries requiring additional administrative resources. Transaction Cost Economics by Coase (1937) highlights how larger organizations incur higher coordination costs, reducing efficiency.

Dilution of Accountability Expanding the number of ministries can dilute accountability, making it harder to hold individual ministers responsible for failures. Span of Control Theory by Vroom and Yetton (1973) explains that an increase in subordinates makes supervision and oversight more difficult, potentially leading to inefficiencies or corruption.

In line with Chandler’s "Structure follows strategy," Prabowo’s cabinet expansion reflects his strategic priorities for Indonesia. New ministries like Investment and Industrial Downstreaming and Migrant Worker Protection demonstrate a focus on specialized governance to address economic and social challenges. Aligning these ministries with Indonesia’s long-term strategic objectives could enhance their ability to deliver on national goals. The first 100 days are crucial for finalizing ministry structures, appointing leadership, and setting short-term and 5-year programs to support self-reliance and growth.

The retention of key ministers, such as Sri Mulyani, ensures continuity in economic policies. Her presence could help maintain fiscal discipline, while other ministers focus on sustaining or increasing national revenue. This continuity provides the financial stability needed to implement the government’s broader strategic objectives.

In conclusion, Prabowo’s expanded cabinet offers opportunities for specialization and political inclusivity but also presents risks of inefficiency and accountability challenges. By aligning the cabinet’s structure with strategic objectives, as outlined in Chandler’s "Structure follows strategy," the administration can better balance size with efficiency. Regular evaluation and a focus on fiscal discipline will be key to mitigating these risks, ensuring the cabinet remains a strategic tool for achieving key priorities like food self-reliance, economic growth, and governance reform.

May you lead with integrity, wisdom, and compassion!