Bahlil Lahadalia Holds Dual Cabinet Roles Without Extra Pay
Indonesian cabinet minister Bahlil Lahadalia holds two senior positions simultaneously in President Prabowo Subianto’s Kabinet Merah Putih, serving concurrently as the Minister of Energy and Mineral Resources (ESDM) and the Minister Coordinator for Downstreaming and Energy Transition, as finance.detik.com reported. Despite managing two distinct portfolios under Presidential Decree Number 104P of 2026, Bahlil confirmed he will draw a single salary associated solely with his role at the Ministry of ESDM to prevent state budget waste.
The establishment of the new coordinating ministry aims to accelerate the execution of President Prabowo’s downstreaming and energy transition targets outlined in the Asta Cita agenda. However, the structural addition has drawn criticism from policy analysts and industry watchdogs who point to potential planning gaps, potential conflicts of interest, and lingering contradictions surrounding fossil fuel reliance.
Consolidation Plans for the New Coordinating Ministry
Speaking at the Investor Daily Summit in Jakarta on Wednesday, Oct. 7, 2026, Bahlil stated that the scope and structure of the new coordinating ministry remain under consolidation. Operational capacity currently remains limited because he lacks deputies and a secretary, requiring him to handle foundational administrative tasks directly.
Antara News noted that the administrative headquarters of the new coordinating ministry will temporarily operate out of the Ministry of ESDM. Bahlil explained that 90 percent of total investment is concentrated within the ESDM sector, making the existing ministry a logical base of operations while consolidation continues.
Regarding structural subordination, Bahlil outlined which government bodies will fall under his new purview during interviews covered by CNBC Indonesia and ANTARA News:
- Ministry of Energy and Mineral Resources (ESDM): Confirmed as a direct constituent under the new coordinating body.
- Ministry of Investment and Downstreaming (BKPM): Confirmed as part of the coordination chain.
- Ministry of Industry: Expected to join the coordination framework to synchronize industrial value-addition with manufacturing instruments, according to Bahlil’s projections.
Structural Design Concerns and Conflict of Interest Warnings
Independent observers and economic analysts have raised questions regarding the expansion of the cabinet. Faisal Basri, cited in coverage by CNN Indonesia, criticized the institutional design as immature, pointing out that forming a coordinating ministry before identifying the subordinate technical ministries signals a lack of thorough planning.
Faisal also highlighted that Bahlil’s dual executive roles—serving simultaneously as the Minister Coordinator for Downstreaming and Energy Transition, Minister of ESDM, and Chairman of the Golkar Party—create a concentrated vertical command structure carrying a potential for conflicts of interest.
Additional policy friction centers on regulatory overlap. Analysts suggest the new coordinating ministry’s mandate overlaps with the authorities held by the Coordinating Ministry for Economic Affairs.
Energy Transition Strategy Versus Fossil Fuel Realities
Environmental watchdogs have questioned whether the newly established ministry will genuinely advance renewable energy or inadvertently extend the lifespan of fossil fuels. Aryanto Nugroho, National Coordinator for Publish What You Pay (PWYP) Indonesia, warned in a written statement covered by CNN Indonesia that massive nickel smelter projects backed by captive coal-fired power plants (PLTU) will prolong coal demand.
Nugroho pointed out a contrast with international commitments made by President Prabowo at the G20 Summit in Rio de Janeiro in November 2024, where the administration pledged to stop coal-fired plants and fossil generation within 15 years while aiming for net-zero emissions before 2050. Critics argue that empowering a coordinating ministry closely tied to mining sectors risks pushing through incentives like zero-percent royalties for fossil projects that are actually unviable at public expense.
Frequently Asked Questions About the Downstreaming Ministry
What specific legal decree established the new coordinating position for Bahlil Lahadalia?
President Prabowo Subianto established the position under Presidential Decree Number 104P of 2026 concerning the Dismissal and Appointment of State Ministers and Deputy Ministers of the Red and White Cabinet 2024–2029, which was issued on Sept. 30, 2026.
Which ministries are officially confirmed to answer to the new coordinating office?
Bahlil Lahadalia stated that the Ministry of Energy and Mineral Resources (ESDM) and the Ministry of Investment and Downstreaming are definitively confirmed, while the Ministry of Industry is projected to join.
Where is the temporary administrative office of the new coordinating ministry located?
The administrative base operates out of the existing Ministry of ESDM offices while structural consolidation continues.
This Coordinating Ministry needs to answer one question from the start: transition for whom?
said Ariyansah, as reported by CNN Indonesia.
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