Key Takeaways
- • Indonesian Vice President Gibran Rakabuming Raka submitted his resignation to the upper house of parliament on Thursday and also sent a letter to President Prabowo Subianto, ending days of speculation over his political future, according to Reuters.
- • Gibran's father, former President Joko Widodo (Jokowi), publicly backed Prabowo's administration, saying it would "continue to support" programmes serving the broader public, which may ease strain in the Prabowo-Jokowi alliance.
- • The resignation followed a push by lawmakers to impeach Gibran over inadequate educational credentials and rulings by the Constitutional Court and Supreme Court that his overseas high school qualifications did not meet legal requirements.
- • The rupiah weakened as much as 0.6% to a fresh record low of 18,248 per dollar as political turmoil, fiscal scrutiny and downgrade risks for the stock market weighed on investor sentiment.
- • Parliament must declare a vacancy, request two replacement candidates from the president, and hold an upper house election within 60 days.
Summary
Indonesia's Vice President Gibran Rakabuming Raka handed his resignation to the upper house of parliament on Thursday, ending days of speculation about his political future, according to Reuters. Minutes before the announcement, Gibran met parliamentary leaders for 20 minutes to submit the resignation and ask that it be processed, said Ahmad Muzani, the upper house speaker. Gibran had also submitted a resignation letter to Prabowo, Muzani said, and did not explain why he resigned.
The departure followed a push by lawmakers to impeach Gibran on grounds of inadequate educational credentials, as well as rulings by the Constitutional Court and the Supreme Court that his overseas high school qualifications fell short of legal requirements for vice presidential candidates and had been wrongly accepted by election authorities. Gibran, 39, was elected alongside Prabowo in a 2024 election, during which Jokowi was accused of meddling in the process by influencing a court decision that changed the election rules to enable Gibran to stand.
Jokowi, who twice defeated Prabowo for the presidency before backing him against term limits, told reporters outside his home in Solo, Central Java, that the family would "continue to support President Prabowo's administration, especially programmes that serve the interests of the broader public." Analysts had said a rift between the two could further destabilise the government, which is already facing scandals over signature political programmes and doubts about its management of Southeast Asia's largest economy. Analysts also pointed to last week's revelation of an inquiry into illegal wiretapping by senior police officials, including former police chief Listyo Sigit Prabowo, widely seen as a Jokowi loyalist. On Thursday, police said they had enough initial evidence to pursue treason charges against four suspects for wiretapping Prabowo, other politicians, activists and journalists.
Market reaction reflected the political uncertainty. The rupiah weakened as much as 0.6% to a record low of 18,248 per dollar, and investors are watching the government's fiscal plans, policy direction and lingering downgrade risks for the stock market.
Parliamentary leaders will now meet to discuss next steps. The upper house must hold a session to declare a vacancy, and send the president a letter requesting two replacement candidates, senior law minister Yusril Ihza Mahendra said on Wednesday. An upper house election will follow within 60 days. At a hearing, lawmakers also urged police chief Suyudi Ario Seto to determine who ultimately ordered Listyo to conduct the alleged wiretapping and what political interests may lie behind it.
The departure followed a push by lawmakers to impeach Gibran on grounds of inadequate educational credentials, as well as rulings by the Constitutional Court and the Supreme Court that his overseas high school qualifications fell short of legal requirements for vice presidential candidates and had been wrongly accepted by election authorities. Gibran, 39, was elected alongside Prabowo in a 2024 election, during which Jokowi was accused of meddling in the process by influencing a court decision that changed the election rules to enable Gibran to stand.
Jokowi, who twice defeated Prabowo for the presidency before backing him against term limits, told reporters outside his home in Solo, Central Java, that the family would "continue to support President Prabowo's administration, especially programmes that serve the interests of the broader public." Analysts had said a rift between the two could further destabilise the government, which is already facing scandals over signature political programmes and doubts about its management of Southeast Asia's largest economy. Analysts also pointed to last week's revelation of an inquiry into illegal wiretapping by senior police officials, including former police chief Listyo Sigit Prabowo, widely seen as a Jokowi loyalist. On Thursday, police said they had enough initial evidence to pursue treason charges against four suspects for wiretapping Prabowo, other politicians, activists and journalists.
Market reaction reflected the political uncertainty. The rupiah weakened as much as 0.6% to a record low of 18,248 per dollar, and investors are watching the government's fiscal plans, policy direction and lingering downgrade risks for the stock market.
Parliamentary leaders will now meet to discuss next steps. The upper house must hold a session to declare a vacancy, and send the president a letter requesting two replacement candidates, senior law minister Yusril Ihza Mahendra said on Wednesday. An upper house election will follow within 60 days. At a hearing, lawmakers also urged police chief Suyudi Ario Seto to determine who ultimately ordered Listyo to conduct the alleged wiretapping and what political interests may lie behind it.
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