Curbing Political Pressure: Labour Activist Said Iqbal Tipped to Join Prabowo’s Cabinet

The State Secretariat stated that Said Iqbal is being considered to join the Red and White Cabinet and is likely to occupy a position related to employment and protection of Indonesian workers, which is the expertise of Iqbal who has been active in labour activism since 1992.

Iqbal himself was quoted in Indonesian media (on Sunday 7 June 2026) saying:

"Yes. Let's just wait for the official announcement from the State Secretary on behalf of the President."

If Iqbal does indeed enter the cabinet this certainly seems to be part of a strategy to fence off rising criticism in Indonesian society on governance of the Prabowo cabinet. Amid high global oil prices and expectations of rising interest rates in the United States, the rupiah has been weakening significantly in recent months, passing beyond IDR 18,000 per US dollar (a historic low). The main threat for Indonesia in this scenario is imported inflation. In May 2026 we already saw the first signs of an acceleration in Indonesian inflation (rising to 3.08 percent year-on-year).

So far, inflation remains under control because the government has frozen prices of subsidized and government-controlled fuel prices. However, this risks seeing a widening budget deficit. This deficit stood at 0.70 percent of Indonesia's gross domestic product (GDP) through May 2026. Moreover, inflationary pressure are expected to rise in June 2026.

Over the past days there has been speculation that big demonstrations are to follow if the rupiah will not strengthen on the short term. Typically, workers and students are among the key forces in society. If these groups (involving millions of individuals) start demonstrating, then pressures on the government can rise quickly. In such tense circumstances matters can escalate rapidly when soldiers or policemen injure demonstrators.

It is likely that President Prabowo tries to prevent a fall-out with workers and therefore brings in a well-respected labour leader like Iqbal, essentially transforming the leader of a potential protest movement into a stakeholder of government policy.

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