Government and cabinets On the day of his inauguration in 2004, Yudhoyono announced his new cabinet, which would be known as the
United Indonesia Cabinet (
Kabinet Indonesia Bersatu). Consisting of 36 ministers, it included members of the Democratic Party, Golkar and the PPP, PBB, PKB, PAN, PKP, and PKS. Professionals were also named in the cabinet, most of them taking on ministries in the economic field. The
military were also included, with five former members appointed to the cabinet. As Yudhoyono's promised during the election, four of the cabinet appointees were female. Yudhoyono's
Second United Indonesia Cabinet was announced in October 2009 after he was
re-elected as president earlier in the year. The vice president in Yudhoyono's second cabinet was
Boediono, who replaced
Jusuf Kalla, Yudhoyono's vice president in his first cabinet.
Balance of political power with Kalla Although he had won the presidency, Yudhoyono was still weak in the Indonesian parliament, the
House of Representatives (DPR). The Democratic Party, even combined with all of its coalition partners, had far fewer representatives than Golkar and the PDI-P, which played the role of opposition. With a national congress to be held in December 2004, Yudhoyono and Kalla had originally backed
Agung Laksono speaker to become Golkar chairman. When Agung was perceived to be too weak to run against
Akbar Tandjung, Yudhoyono and Kalla threw their weight behind
Surya Paloh. Finally, when Paloh was perceived to be too weak to run against Akbar, Yudhoyono gave the green light for Kalla to run for the
Golkar Chairmanship. On 19 December 2004, Kalla was elected as the new chairman of Golkar. Kalla's victory posed a dilemma for Yudhoyono. Although it now enabled Yudhoyono to pass legislation, Kalla's new position meant that he was now more powerful than Yudhoyono in terms of influence in parliament. After the
2004 Indian Ocean tsunami Kalla, apparently on his own initiative, assembled Ministers and signed a vice-presidential decree ordering work to begin on rehabilitating Aceh. The legality of his vice-presidential decree was questioned although Yudhoyono maintained that it was he who gave the orders for Kalla to proceed. In September 2005, when Yudhoyono went to
New York City to attend the annual United Nations Summit, he left Vice President Kalla in charge. Yudhoyono held a
video conference from New York to receive reports from ministers. Critics suggest that this was an expression of distrust by Yudhoyono. The suggestion seemed to gain momentum when Kalla only showed up for one video conference and then spent the rest of the time taking care of Golkar matters. To defuse political tensions stemming from protests over rising fuel prices, President Yudhoyono dispatched Vice President
Jusuf Kalla to meet with several national figures, including former President
Abdurrahman Wahid and
Megawati Sukarnoputri. Vice President Kalla's arrival at the residence of former President
Abdurrahman Wahid in Ciganjur, Jakarta, was greeted by
Yenny Wahid, Gus Dur's eldest daughter, on the porch. Kalla, wearing a long-sleeved batik shirt, immediately entered the living room where Gus Dur was waiting. After shaking hands and hugging, Kalla sat on a long chair to Gus Dur's left with Ibu Mufidah. Meanwhile, Ibu
Sinta Nuriyah sat beside Yenny Wahid. The conversation immediately became warm, interspersed with Gus Dur's characteristic jokes. Vice President Kalla was greeted by former President
Megawati Sukarnoputri,
Taufiq Kiemas, and her eldest daughter,
Puan Maharani. The two leaders engaged in a relaxed conversation, with Megawati briefly discussing food. Meanwhile, the Vice President responded in a friendly manner, resulting in very warm communication. The meeting, which lasted approximately 15 minutes, gave the impression that there had never been any differences between the two leaders After the visit, Yudhoyono made an appeal to all Indonesians to pray for Suharto's recovery. Responding to some public requests for Suharto to be granted a pardon for possible past mistakes in governing Indonesia, presidential spokesperson Andi Mallarangeng said, "A visit from an incumbent president to a hospitalized former president is something normal. However, this show of humanity and legal steps are two different things."
Foreign policy greeting US President
George W. Bush and his wife
Laura Bush at
Bogor Palace, November 2006 to sign a defence deal in Jakarta, September 2007 President Yudhoyono's foreign policy sought to create new breakthroughs for the strategic development of Indonesia's defense, namely ending the US military embargo, which was aided by support from Washington. The Bush administration claimed that ending the arms embargo and modernizing the
Indonesian Defence Force will help
Jakarta address mutual security concerns such as terrorism, maritime piracy, narcotics trafficking, pandemic disease, and disaster relief. Undersecretary of State for Political Affairs Nicholas Burns said that Indonesia, as "the world's largest Muslim state and its third-largest democracy, is a voice of moderation in the Islamic world and plays a unique strategic role in Southeast Asia". In February 2005, the US government reinstated Indonesia's eligibility for the International Military Education and Training program in order to upgrade the quality of its officer corps. In May 2005, it removed restrictions on nonlethal defense equipment such as communications and transport systems. This lifted the last remaining barrier, a ban on sale of lethal weaponry and related equipment. Still recovering from the
Asian financial crisis, the Indonesian government lacked the funds to purchase new armaments but took advantage of the new rules to purchase spare parts for its aging fleet of 10 U.S.-supplied F-16 fighters. While there, he also spoke with Russian President
Vladimir Putin about further defence cooperation with Moscow following the 2003 purchase of four Sukhoi warplanes and two MI-35 assault helicopters.n addition to the
United States and
Russia, Yudhoyono considered purchasing weapons from other potential suppliers, which included several
European Union countries,
South Korea,
India, and
China. After the collapse of the
New Order, relations between Indonesia and
Pacific countries received less attention from Indonesian leaders. Only after President Yudhoyono was elected did he begin to focus Indonesian foreign policy on the Pacific islands. In 2010, President Yudhoyono visited Australia and addressed the
Australian parliament. He also succeeded in renewing defence and security cooperation with Australia by including the principle of recognizing Indonesia's territorial integrity in the
Lombok Treaty. He also made a historic visit to
Papua New Guinea following President Suharto's visit some 31 years earlier, where he spoke about the importance of strategic cooperation between the two countries in various fields. The improving relationship between Indonesia and Papua New Guinea is also reflected in mutual support for Indonesia's role in the
Melanesian Spearhead Group (MSG), the
Pacific Islands Forum, and Papua New Guinea's role in
ASEAN. In 2014, he also became the first Indonesian president to visit the Pacific island nation of
Fiji and address the Pacific Islands Forum.
Aceh Peace Agreement During his leadership, President Yudhoyono achieved many important achievements, especially related to domestic stability. The Indonesian government succeeded in reaching a peace agreement with the
Free Aceh Movement (GAM). The memorandum of understanding was signed in
Helsinki,
Finland, on August 15, 2005. The conflict that has been going on for almost thirty years was initially a form of dissatisfaction with the socio-economic inequality that occurred in Aceh, especially during the
New Order era. Resistance to the New Order government has turned into an armed conflict that has claimed thousands of lives. GAM has an army that conducts guerrilla warfare that disrupts national stability. Various efforts have been made by the government from time to time, but GAM continues to exist. Peace negotiations between GAM and the Indonesian government initially began at the beginning of the reform era but stalled due to misunderstandings between the two parties. Then the negotiations were restarted during the Yudhoyono administration, the Indonesian government's chief negotiator, Mr.
Awaludin, explained why the peace process in Aceh was successful from his perspective as the Indonesian government's chief negotiator during the
Helsinki Agreement. The government began the peace negotiations with a clear action plan and reasonable offers, including an amnesty for the Free Aceh Movement (GAM) and a clear and concrete social, political and economic justice program. President Yudhoyono succeeded in convincing the military, parliament and the international community to actively participate in monitoring and safeguarding the
Aceh peace process, as he had already been actively involved in negotiations since 2000 when he served as
Minister of Politics and Security and also important factors, especially the
2004 tsunami disaster, which encouraged both sides to focus more on helping victims than fighting, and international pressure on GAM to enter the negotiations. Ultimately, the sincerity of both sides commitment to dialogue proved decisive.
Law enforcement and political role model In the area of law enforcement, President Yudhoyono's administration has made a number of breakthroughs in Indonesia's law enforcement culture. The president has sought to make law enforcement in Indonesia, particularly during his administration, more authoritative. In 2005, former Bank Indonesia deputy chairman Aulia Pohan, who was also the father-in-law of his son
Agus Harimurti, was arrested by the
Corruption Eradication Commission (KPK), this was the first case involving a relative of a leader in this country. He also tried to prioritize a culture of legal order, for example, the Corruption Court Law and the Juvenile Court Law. He also did not hesitate to dismiss ministers suspected of corruption, even though the minister was his former spokesman and came from the same party as him. The dismissal of an active minister suspected of corruption and already a corruption suspect was the first case in Indonesia of an active minister being a corruption suspect. In 2008, the
global financial crisis occurred. The Indonesian government, which had already had bitter experience during the
Asian financial crisis, tried to be more responsive in handling the crisis, especially during the Yudhoyono presidency. He tried to build togetherness in handling the global financial crisis, with Indonesia actively participating in the
G20. Also at that time, he succeeded in maintaining a calm and stable domestic economic condition in handling the crisis with the policy of closing the
Indonesian Stock Exchange and providing bailout funds for Bank Century to prevent panic in the financial industry. At last, Indonesia managed to survive the crisis unlike ten years ago, the steps he took were quick and tactical. He also did not forget about law enforcement by supporting the arrest of several people who took personal advantage of the policy, such as the arrest of the President Director of Bank Century and the Deputy Governor of
Bank Indonesia. President Yudhoyono's administration sought to establish a new tradition that the democratic political system is not solely for personal and group gain, but rather for serving the people. At an event organized by the Indonesian Young Entrepreneurs Association (HIPMI), the President stated: Previously, rumours circulated about amendments to the 1945 Constitution regarding presidential terms and the possibility of presidential family members running for re-election. The President sought to clear the political air at the time. He also strengthened Indonesia's democratic system by ensuring a smooth and orderly leadership transition.
Ensuring Political Stability and Security During the Reformation Era Political and security stability in Indonesia during the early stages of the Reformation era were fraught with challenges, due to numerous political, social, and cultural conflicts. These conflicts also led to rapid changes in government, resulting in political and security instability, further exacerbated by military-civilian rivalries in politics. During President Yudhoyono's administration, despite his military background, he effectively positioned himself as a mediator, particularly regarding civilian and military supremacy in bureaucratic positions. He maintained a neutral stance and did not appoint military personnel to civilian positions. The early stages of the Reformation era were indeed fraught with turmoil, particularly regarding the military's dual role in politics (
Dwifungsi ABRI). During the 69th
Indonesian National Armed Forces (TNI) anniversary celebration, which coincided with the end of his term, President Yudhoyono delivered a speech: The challenge of maintaining national security became even more challenging early in his first term as terrorist attacks continued in Indonesia. He was able to maintain security stability through swift and responsive action, stopping terrorist attacks and promptly apprehending the perpetrators. For example, during the terrorist attacks in 2005 and 2009, his administration was able to respond quickly and tactically, ensuring public security and enabling the economy to grow.
Economic policy In a meeting with regional heads, President Yudhoyono outlined some of the government's achievements in the economic field During his leadership, state finances were managed effectively. He was able to formulate appropriate fiscal policy strategies with his ministers, who were economists, resulting in more efficient state financial management, particularly regarding grants and foreign debt. He sought to transform misperceptions about state financial management into effective financial management. In his final state address of his term, he stated: He indicated that GDP and foreign exchange reserves had increased significantly and the ratio of debt to
gross domestic product could be reduced from 56 percent to 23 percent. President Yudhoyono added that Indonesia's debt ratio of 23 percent to GDP was far below that of developed countries such as
Germany (86.1 percent),
United States (104.1 percent), and
United Kingdom ( 107 percent). He said, during the 2004–2014 period, domestic and foreign debt could also be reduced while the state budget was increased fourfold. In 2004, the country's per capita income was recorded at US$1188 but ten years later it rose to US$3490. Indonesia is also recorded as a country with the second highest economic growth rate since 2009 after
China with the country's exports increasing threefold. At that time, Indonesia's debt-to-GDP ratio was the lowest among the developed countries in the
G20. Unfortunately, this sound state financial management policy was not continued by subsequent presidents. He also successfully repaid the
IMF debt incurred during the 1998 monetary crisis, which was originally due in 2010 but was repaid early in 2006. In 2015, he explained the reason for this early repayment. In 2012, after successfully paying off its IMF debt, his government also provided a loan to the international donor agency because Indonesia's economy was considered quite strong at that time. In 2007, President Yudhoyono also successfully initiated the dissolution of the
Consultative Group on Indonesia (CGI) because he wanted Indonesia to be more independent and less dependent on so many parties. President Yudhoyono stated that Established in 1992, the CGI was a consortium of countries and institutions providing loans to Indonesia, set up by the Indonesian government and the World Bank. Its membership was made up of 30 bilateral and multilateral creditors, including the
World Bank, the
Asian Development Bank, the
International Monetary Fund and industrialized countries such as
Japan and the
United States, as well as many other smaller countries and many other world financial and aid institutions. In 2006 the Consultative Group on Indonesia pledged $5.4 billion in fresh loans and grants for Indonesia. Finance Minister
Sri Mulyani said the
Consultative Group on Indonesia (CGI) was no longer needed as the country's primary creditors were only the World Bank, the Asian Development Bank (ADB) and Japan, and that Indonesia now preferred one-on-one negotiations rather than round table, multilateral ones. She said the dissolution of the CGI was also of benefit to Indonesia as it freed the government of the need to explain its intentions and plans to many different parties. The Yudhoyono era is also known as the golden age of Indonesia's economic growth. During his era, the Indonesian economy began to recover from the
1998 monetary crisis, as he was a president who truly implemented the fifth principle of Pancasila, namely social justice for all Indonesians. In his state address to the
People's Consultative Assembly (MPR), he explained that He wanted to ensure that every development undertaken was in accordance with the principles of Pancasila and did not only benefit a select few. Therefore, development programs and investments undertaken by the government were truly needed by the wider community. He also formulated a model for transforming Indonesian development that was more strongly oriented toward human development. Therefore, the government encouraged development based on pillars oriented toward pro-growth, pro-jobs, and pro-poverty reduction. This philosophy of development and investment was more productive and involved the wider community. Through pro-people programs, such as the (PNPM), the Family Hope Program (PKH), and the (KUR). Through this economic development strategy, he strives to improve the welfare of the people without exception, because the government is truly present to help the underprivileged. For example, the PKH program specifically targets very poor Indonesian families, often referred to as extreme poverty. The KUR program is a soft loan program with very low interest rates, which allows for a favorable business climate. PNPM is a special program for people who are under-absorbed in the labor market, so they can be more productive. Essentially, the program was created by the government to provide fishing equipment and bait for catching fish (money). Before ending his term, President Yudhoyono created a detailed RPJP (long-term poverty reduction plan) for 2005-2025 to ensure the program's rollout and sustainability. However, unfortunately, one of the poverty alleviation programs, namely PNPM, was abolished and not continued in the next presidential leadership era, and more focus was placed on developing infrastructure and economics, forgetting the basic principles of developing a social justice economy as stated in Pancasila. The Yudhoyono government understands that good economic growth also requires good connectivity, namely through infrastructure development. He initiated the formation of MP3EI () which has the principles of pro-growth, pro-employment and pro-poverty in accordance with the fifth principle of social justice for the Indonesian people. Therefore, he also formed KP3EI () which consists of elements of the government (ministries), private sector (Kadin) and academics (KIN/BRIN) to monitor and evaluate infrastructure development programs to be in accordance with the initial idea of its formation. But unfortunately after the next presidential administration, MP3EI and KP3EI were abolished and replaced by PSN (National Strategic Project) which was suspected of not having a chain effect on increasing economic productivity and seemed wasteful because it was deemed not needed by the community. During President Yudhoyono's leadership, he sought to strengthen laws that increased Indonesia's economic productivity, such as the Extension System Law, the Teachers and Lecturers Law, the Sports Law, the Trade Law, the Industry Law, the Plantation Law, the Maritime Affairs Law, the Fisheries Law, the Islands and Coastal Law, the Agricultural Land Protection Law, the Zakat Law, the Social Welfare Law, the Social Security Agency (BPJS) Law, and the Village Law. The
Village Law is a law that reforms the village institutional system and makes it the subject of national economic development. Development planning is carried out from the bottom up, ensuring that national development is effective and enjoyed by the lowest levels of society. This includes village funds, which are sourced from the state budget. Government support for legal certainty across all sectors of the Indonesian economy has also contributed to increasing Indonesia's economic productivity. However, after he left office, the direction of national economic development began to change, with less involvement from the business sector, academia, civil society, and participatory planning from the grassroots level. This resulted in much of the national development being less beneficial and failing to generate economic productivity. Furthermore, laws affecting many people's lives (strategic economic sectors) were combined into one
Omnibus law (the Job Creation Law), which reduced oversight and protection for workers, particularly those with low wages, and favoured foreign investors.
Education and social protection The Yudhoyono administration also strives to ensure that all Indonesians are protected through national social security, which can improve the welfare and protection of Indonesians in the areas of health and old-age security. This is achieved through Law No. 24 of 2011 concerning the Social Security Administering Body (BPJS). This law is a government initiative to improve public welfare through a health and employment insurance system. According to the
Coordinating Minister for People's Welfare,
Agung Laksono The law calls for the establishment of a Social Security System which will be operated by an institution that will be formed by combining two state-owned companies, namely PT Jamsostek which provides workers' social security BPJS Ketenagakerjaan and PT Askes which is engaged in health insurance
BPJS Kesehatan. The merger of the two companies was expected to occur before 1 January 2014. Meanwhile, according to Suryo Bambang Sulisto, Chairman of the
Indonesian Chamber of Commerce and Industry (Kadin) In the field of education, Yudhoyono has implemented a number of programs to improve the development of Indonesian human resources, including the (BOS) program which was established in July 2005. Under this arrangement, the government provides money to school principals to help finance the running of schools. BOS is expected to provide significant financial assistance to schools, schools are expected to reduce fees or if they are able, eliminate fees altogether, in addition in June 2006, Yudhoyono launched "BOS Buku" which provides funds for the purchase of textbooks. In 2011, he founded
LPDP, a social institution that provides scholarships for Indonesian children who want to continue their higher education at home and abroad. He also founded the Indonesian Defense University, a higher education institution that specifically studies military and defence strategy studies and near the institution was founded the (IPSC) an institution that specifically educates Indonesian peacekeeping troops for the UN, which he initiated because of his time as part of the
UN peacekeeping force.
Other activities , September 2013 in 2013 On 17 August 2007, Yudhoyono proposed that eight nations that were home to some 80% of the world's tropical
rainforests join diplomatic ranks amid increasing concern over
global warming. Indonesia led a summit of eight countries (on 24 September in New York) –
Brazil,
Cameroon,
Congo,
Costa Rica,
Gabon, Indonesia,
Malaysia and
Papua New Guinea. On 3–15 December 2007, Indonesia hosted the 13th Conferences of the Parties (COP-13) under the
United Nations Framework Convention on Climate Change (UNFCCC) in
Bali. During the
Pope Benedict XVI Islam controversy, Yudhoyono stated that the Pope's comments were "unwise and inappropriate," but also that "Indonesian Muslims should have wisdom, patience, and self-restraint to address this sensitive issue....We need them so that harmony among people is not at stake." Yudhoyono was one of the 100 World's Most Influential People in 2009 according to
TIME Magazine. During an official visit to Australia on 9–11 March 2010, he was appointed an Honorary Companion of the
Order of Australia (AC) and addressed
Australian Parliament, the first Indonesian head of state to do so. Yudhoyono was made an honorary
Knight Grand Cross of the Order of the Bath (GCB) by HM Queen
Elizabeth II on 30 October 2012.
Assassination plot Indonesian security forces claimed to have uncovered a plot to murder Yudhoyono, which was set on Indonesian
Independence Day on 17 August 2010.
Political party During his presidency, Yudhoyono further consolidated his position within the
Democratic Party. In May 2005, at PD's first National Congress, Yudhoyono was elected chairman of the executive board (
Ketua Dewan Pembina). In this position, Yudhoyono had the highest authority, superseding that of chairman.
Presidential hotline and social media On approximately June 2005, Yudhoyono started a
SMS hotline service linked to phone number 0811109949, but the service encountered a technical problem due to too many SMS messages. Then, Yudhoyono switches the SMS service to 9949, in which the SMS will later be directed to the main number. Number 9949 is a symbolic number as it was a code for Yudhoyono's birthday, 9 September 1949. Later on 28 June 2005, Yudhoyono sent a SMS message to the public to warn them about
drugs. The SMS was verified and Yudhoyono's presidential spokesperson said that the president will send more SMS regarding to it later. Yudhoyono is the first Indonesian president to have an official social media account. On 13 April 2013, he sent his first tweet in
Twitter through his private account @SBYudhoyono. This twitter account is run by his staff and himself, with posts directly written by him were tagged as *SBY* at the end of the message. His first tweet was as follows: Through this twitter account, Yudhoyono hopes to be able to hear the people's voice. He also states that he is ready to be sneered by other social media users. ==Post-presidency (2014–present)==