JAKARTA – Figures known to be close advisers to Indonesia President Prabowo Subianto have established the Prasasti Center for Policy Studies (Prasasti), which has been pitched as an independent think tank to help businesses – including foreign investors – navigate the country’s complex bureaucracy.
But there is some unease over its promised role to bridge the gap between the government and the private sector, given the close ties its founders have to the government and the possible conflicts of interest that could arise. There are also concerns that Prasasti, which says it will also advise the government, could end up a quasi think tank that functions more as a lobby group.
The self-styled independent research institute based in Jakarta, which was launched on June 30, has 21 senior figures who make up its board of directors, board of experts (tasked to ensure solid research), board of trustees (to oversee effective governance), and board of advisers (to provide strategic guidance).
Among Prasasti’s key members and supporters are Mr Prabowo’s younger brother Hashim Djojohadikusumo and senior figures like former finance minister Chatib Basri, as well as former central bank governor Burhanuddin Abdullah who also helped steer Mr Prabowo’s 2024 presidential campaign.
Professor Soedradjad Djiwandono at the S. Rajaratnam School of International Studies, who sits on the board of trustees, will oversee the think tank’s research-management team. He, along with Mr Burhanuddin who is on the board of advisers, will advise the researchers.
Research director Gundy Cahyadi, a member of the board of directors, told The Straits Times that Prasasti would source for corporate clients in order to be financially sustainable. He did not elaborate on what kind of client base the think tank aimed to build, or the staffing required for such an undertaking.
Prasasti’s research focus on food security, energy, investment and industrialisation, and it will produce regular materials for paying clients as well as the general public, he said.
“Sometimes, policymakers are not aware of the dilemmas that businesses are facing on the ground. Sometimes, businesses do not know what the government’s perspective and grand plan is. We serve as the bridge to encourage discussion between the private sector and policymakers,” said Mr Gundy, a former economist with DBS Group Holdings, at a press conference after the launch.
“Our operations need to be financially sustainable. There will also be tailored research work and advocacy projects based on clients’ needs,” he said.
At the launch event, Mr Hashim, a member of Prasasti’s board of advisers, told the audience comprising members of the media and business community that the think tank is independent and will not hesitate to critique government policy.
“If we see that the government is wrong, we must be honest and courageous to say so… We will not become a tool of government propaganda,” Mr Hashim said, adding that the think tank’s work would be data driven and based on scientific studies.
Elaborating, he said that Prasasti, which will also position itself as an adviser to the government, would complement the two advisory bodies with direct access to the president – DEN (National Economic Council) and Watimpres (Presidential Advisory Council).
“Prasasti is a more independent and flexible version of these two institutions because we are outside the government,” he stressed.
However, Mr Fabby Tumiwa, Executive Director of the Institute for Essential Services Reform (IESR), told ST there are some concerns about the slant of the new think tank and potential conflicts of interest, given that the people involved with Prasasti are known to be loyal supporters of Mr Prabowo.
Some of the names behind Prasasti are also cadres from Gerindra, the political party co-founded by Mr Prabowo, noted Dr Djayadi Hanan, an associate professor at Universitas Islam Internasional Indonesia. These include Mr Hashim, Mr Burhanuddin and former finance minister Fuad Bawazier.
Still, analysts say if the new think tank is able to back up its findings and advice with proper data, proper methodology and evidence-based research, it could ease some of the challenges that businesses based in Indonesia face in dealing with the government.
The inclusion of seasoned economists like Mr Chatib and Mr Gundy in Prasasti will add credibility to the think tank, said analyst Henry Pranoto.
There are also concerns that Prasasti could function more as a lobby group, rather than an independent think tank. Unlike think tanks that focus on research and analysis of public policy issues, lobby groups seek to influence government policies as well as legislation in favour of certain interests or clients, and are often viewed negatively if they are overly tied to any corporate influence.
Then again, it all boils down to whether Prasasti will be able to affect policy matters positively amid Indonesia’s business environment, which can oft-times be complex and awash with red tape.
“But they (Prasasti) should not prioritise business interests and become a lobbying group that influences changes to regulations at the expense of public interests,” said Mr Fabby of IESR, a local research and advocacy institution on energy and environment policy.
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