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Palace Clarifies Shift in Seating Arrangement for Vice President Gibran Rakabuming Raka During Plenary Cabinet Meeting

by Lina Hope July 21, 2026

written by Lina Hope

The Indonesian State Palace has issued a formal clarification regarding a noticeable change in the seating configuration during the Plenary Cabinet Meeting held on Monday, July 20, 2026. Observers and members of the press noted that Vice President Gibran Rakabuming Raka was no longer seated directly adjacent to President Prabowo Subianto, a departure from the traditional protocol observed in previous high-level government gatherings. During the session at the State Palace in Jakarta, Vice President Gibran was positioned in the front row on the right-hand side of the President, placing him in a line traditionally reserved for senior cabinet members and coordinating ministers.

This specific arrangement saw the Vice President seated alongside the Coordinating Minister for Economic Affairs Airlangga Hartarto, the Coordinating Minister for Food Affairs Zulkifli Hasan, Minister of the State Secretariat Prasetyo Hadi, and Cabinet Secretary Teddy Indra Wijaya. The visual shift sparked immediate public discourse and speculation regarding the internal dynamics of the executive branch, as the Vice President typically occupies a seat of honor directly to the left or right of the Head of State during such formal proceedings.

A Departure from Established Visual Protocol

The contrast in seating was highlighted by comparing Monday’s session to a previous Plenary Cabinet Meeting held on Friday, March 13. In that earlier session, which also took place at the State Palace, Vice President Gibran was seated in the conventional manner, directly beside President Prabowo. During that March meeting, the President was seen in his signature brown safari shirt while the Vice President wore a formal white shirt, both positioned at the head of the assembly table to signify the unified leadership of the executive.

In the July 20 meeting, however, President Prabowo sat at the center of the head table, flanked by a different configuration of officials or, in some segments of the meeting, presiding with a more singular focus at the head of the "U-shaped" or rectangular arrangement. The placement of Gibran Rakabuming Raka among the coordinating ministers has been interpreted by some as a move toward a more functional, "working-style" cabinet meeting, where the Vice President is positioned closer to the ministers who manage specific sectoral clusters.

Official Justification from the State Secretariat

Addressing the inquiries from the media, Minister of the State Secretariat (Mensesneg) Prasetyo Hadi provided a detailed explanation for the adjustment. According to the Minister, the seating arrangement is not a fixed or rigid structure but is instead adapted based on the specific agenda, the technical requirements of the discussion, and the need for effective communication between the President, the Vice President, and the relevant coordinating ministers.

"There is no political significance or shift in authority behind this seating arrangement," Prasetyo Hadi stated in his briefing. "The layout of a Plenary Cabinet Meeting is designed to facilitate the most efficient flow of information. In this particular session, the focus was on cross-sectoral coordination between the Vice President and the Coordinating Ministers. By placing the Vice President in that specific row, it allowed for more direct interaction and synchronization on the implementation of priority programs."

The Minister further emphasized that the President and Vice President remain a singular unit of executive leadership. He noted that the Cabinet Secretariat, headed by Teddy Indra Wijaya, is responsible for the technicalities of these meetings and that changes are often made to ensure that the ministers most relevant to the day’s agenda have the necessary proximity to the executive leadership.

The Legal Framework: Law No. 9 of 2010 on Protocol

To understand the significance of this shift, it is necessary to examine the legal basis for state ceremonies and meetings in Indonesia. Law Number 9 of 2010 concerning Protocol (Undang-Undang Nomor 9 Tahun 2010 tentang Keprotokolan) dictates the "Order of Precedence" (Tata Tempat) for state officials.

Under Article 4 of the Protocol Law, the President and Vice President are classified as the highest-ranking state officials. In formal state ceremonies, the Vice President is required to be positioned immediately following the President. However, for "Working Meetings" or "Cabinet Meetings," the rules allow for more flexibility. Article 22 of the same law suggests that the seating for government meetings can be arranged to suit the nature of the event, provided that the dignity and status of the officials are maintained.

In the context of the July 2026 meeting, the Palace maintains that Gibran’s placement in the front row, alongside the most senior coordinating ministers, still upholds his status as the second-highest official in the land. By being at the "head" of the ministerial line, he acts as a bridge between the President’s directives and the ministers’ execution.

Chronology of Cabinet Meeting Configurations (2024-2026)

Since the inauguration of President Prabowo Subianto and Vice President Gibran Rakabuming Raka in October 2024, the administration has experimented with several meeting formats.

Gibran Duduk di Barisan Menteri saat Sidang Kabinet, Mensesneg Beri Penjelasan

October 2024 – January 2025: The "Unity Phase." Almost all meetings featured the President and Vice President sitting side-by-side at a long head table, emphasizing the transition and the "Continuity" (Keberlanjutan) narrative from the previous administration.
February 2025 – Early 2026: The "Sectoral Phase." As the administration began rolling out its "Free Nutritious Meals" program and food sovereignty initiatives, the Vice President began taking a more active role in supervising specific ministries. Seating began to vary slightly depending on whether the meeting was held in Jakarta or at the new capital, Ibu Kota Nusantara (IKN).
March 13, 2026: A return to the classic side-by-side arrangement during a plenary session focused on national security and foreign policy.
July 20, 2026: The "Functional Realignment." The most recent shift where the Vice President moved into the ministerial row to oversee technical deliberations on food security and economic stability.

Analytical Perspective: Functionalism vs. Symbolism

Political analysts suggest that this shift reflects a broader trend in the Prabowo-Gibran administration toward a more "technocratic" approach to governance. In traditional Indonesian political symbolism, the proximity of the Vice President to the President is often scrutinized as a measure of their "chemistry" or the level of trust between the two leaders.

However, an alternative view suggests that Gibran Rakabuming Raka is being positioned as a "Chief Operating Officer" of sorts. By sitting with the Coordinating Ministers, the Vice President is visually and physically integrated into the "engine room" of the government. This allows him to lead discussions within the ministerial clusters more effectively before the final decisions are elevated to the President.

"The Vice President is being given a very specific mandate by President Prabowo to oversee the implementation of ground-level programs," says a policy analyst from a Jakarta-based think tank. "Sitting him with Airlangga Hartarto and Zulkifli Hasan sends a signal that the Vice President is not just a ceremonial figurehead but is deeply embedded in the economic and food security coordination which are the pillars of this administration."

The Role of the Coordinating Ministers

The presence of Airlangga Hartarto (Economy) and Zulkifli Hasan (Food) in the same row as the Vice President is significant. These two portfolios represent the most critical challenges facing the administration in 2026. With global supply chain fluctuations and the domestic push for food self-sufficiency, the "Food Affairs" coordinating ministry—a relatively new addition to the cabinet structure—requires constant synchronization with the Vice President’s office.

By placing Gibran in this row, the administration may be attempting to streamline the decision-making process. Rather than the Vice President observing from the head table, he is actively part of the "frontline" of the cabinet during the debate. This setup also includes Prasetyo Hadi and Teddy Indra Wijaya, the two men responsible for the administration’s logistics and secretarial flow, ensuring that any decision made during the meeting is immediately recorded and processed into official state documents.

Public and Political Reaction

Despite the Palace’s clarification, the change has not gone unnoticed by the opposition and political observers. Some members of the House of Representatives (DPR) have called for consistency in state protocol to avoid public confusion.

"Protocol is a symbol of the state’s stability," said one legislator from the Commission II, which oversees home affairs and the state secretariat. "While we understand the need for efficiency, the visual of the President and Vice President sitting together is a powerful symbol of national unity. We hope this change is indeed purely technical and not a sign of a shift in the constitutional role of the Vice President."

Conversely, supporters of the administration argue that the public should focus on the outcomes of the meetings rather than the seating chart. They point to the successful rollout of the national food program and the stabilization of inflation as evidence that the administration’s "working" format is yielding results.

Implications for Future Governance

As the Prabowo-Gibran administration approaches its second anniversary in late 2026, the evolution of cabinet dynamics will likely continue. The State Palace has indicated that seating arrangements will remain flexible, determined by the "needs of the state" and the "nature of the agenda."

This flexibility may become the new standard for Indonesian governance, breaking away from the more rigid, formalistic traditions of the past. If this "functional seating" leads to more productive cabinet sessions and faster policy implementation, it could redefine the role of the Vice President in the Indonesian presidential system—moving the office from a "spare tire" or purely symbolic role to a more integrated, executive oversight position.

In conclusion, the seating of Vice President Gibran Rakabuming Raka among the ministers during the July 2026 Plenary Cabinet Meeting appears to be a calculated move toward operational efficiency. While it deviates from traditional visual protocols, the explanation provided by the State Secretariat emphasizes a focus on synergy and technical coordination. As the administration continues to navigate complex national issues, the physical layout of the State Palace’s meeting rooms may continue to serve as a barometer for its evolving style of leadership and management.

July 21, 2026 0 comment

Business and Finance

Iran’s Currency Crisis: Geopolitical Pressures, Chronic Inflation, and the Transformative Shift from Rial to Toman.

by Ammar Sabilarrohman July 20, 2026

written by Ammar Sabilarrohman

Jakarta (ANTARA) – The Iranian currency has been under intense global scrutiny, particularly in light of escalating geopolitical tensions and the far-reaching impact of international economic policies. A significant turning point occurred when the administration of former U.S. President Donald Trump reimposed stringent sanctions, including tariffs of up to 25 percent, on nations engaging in business with Iran. This aggressive "maximum pressure" campaign has profoundly impacted Iran’s economy, contributing to the severe weakening of its national currency, the rial. Recent reports have indicated the rial’s value plummeted to unprecedented lows against major international currencies like the euro, underscoring the immense economic strain from prolonged sanctions and persistent inflation.

Despite the rial being the legally recognized tender, a striking dichotomy exists within Iran’s domestic economy. Visitors exploring traditional bazaars or modern shopping centers will seldom hear the term "rial" in daily transactions. Instead, locals universally refer to prices in "toman." This widespread colloquial usage is a direct consequence of decades of hyperinflation, a coping mechanism adopted by the populace to simplify large numerical values that would otherwise be necessary to express prices in rials. This phenomenon often bewilders tourists and international economic observers alike, prompting questions about the actual official currency and the fundamental differences between the rial and the toman. A comprehensive understanding requires delving into the historical context, the nuances of Iran’s financial system, and the government’s recent ambitious reforms aimed at resolving this long-standing monetary dualism.

The Weight of Sanctions: A Historical Context

Iran’s economic vulnerabilities, particularly concerning its currency, are deeply rooted in a complex history of international relations, primarily with the United States. Following the 1979 Islamic Revolution, the U.S. imposed its first wave of sanctions, which have since evolved and intensified in response to various issues, including Iran’s nuclear program and alleged support for regional militant groups. The Joint Comprehensive Plan of Action (JCPOA), signed in 2015 between Iran and the P5+1 world powers, offered a brief period of economic respite as many international sanctions were lifted in exchange for curbs on Iran’s nuclear activities. However, this relief was short-lived.

In May 2018, the Trump administration unilaterally withdrew from the JCPOA, re-imposing and expanding a comprehensive suite of sanctions designed to exert "maximum pressure" on Tehran. These measures targeted critical sectors of the Iranian economy, most notably its oil exports, which are the lifeblood of the nation’s finances. Sanctions also crippled Iran’s access to the international banking system, stifled foreign investment, restricted its ability to import essential goods, and deterred international shipping and insurance companies from dealing with Iranian entities. The immediate consequence was a sharp decline in oil revenues, a drastic reduction in foreign currency reserves, and an accelerated depreciation of the rial. For example, before the JCPOA withdrawal, the rial traded at around 42,000 to the U.S. dollar in official markets; by late 2018, it had plummeted to over 100,000 rials per dollar, and it has since continued its volatile descent, often trading at significantly weaker rates on the unofficial market.

Iran’s Economic Landscape Under Persistent Pressure

The combination of international sanctions and domestic economic mismanagement has fostered an environment of chronic inflation within Iran. This inflation is not merely a recent phenomenon but a persistent challenge that has eroded the purchasing power of Iranian citizens for decades. Sanctions make imports more expensive, limit access to essential technologies and components, and force the government to print money to cover budget deficits, all contributing to rising prices. The official inflation rate, as reported by the Statistical Center of Iran, has frequently hovered in the double digits, often exceeding 40-50% annually in recent years, reaching peaks even higher during periods of extreme economic stress. For instance, in 2019-2020, inflation rates were persistently high, making it difficult for average Iranians to afford basic necessities.

This economic malaise has led to significant capital flight, reduced foreign direct investment to a trickle, and severely hampered the private sector’s ability to grow and create jobs. The official exchange rate often differs dramatically from the unofficial or black-market rate, which truly reflects the scarcity of foreign currency and market sentiment. Businesses often rely on the unofficial rate for their transactions, further complicating pricing and financial planning. The depreciation of the rial has had a profound impact on the daily lives of Iranians, leading to a decline in living standards, increased poverty, and a growing sense of economic uncertainty.

The Rial vs. Toman Conundrum: A Deep Dive into Monetary Dualism

At a legal and administrative level, the Iranian Rial (IRR) is unequivocally the official currency of the Islamic Republic of Iran. All formal banking operations, government documents, and price listings in major modern retail outlets are denominated in rials. The Central Bank of Iran (CBI) issues banknotes and coins in rials, and international financial transactions involving Iran recognize only the rial.

However, the reality on the ground presents a fascinating example of monetary dualism. In the everyday commerce of Iran – from bustling bazaars and street vendors to local shops and service providers – the term "toman" reigns supreme. This practice is not arbitrary but a deeply ingrained coping mechanism born from historical precedent and the practicalities of dealing with hyperinflation. Historically, before the introduction of the rial in 1932, the toman was indeed Iran’s official currency. When the rial replaced the toman, it was set at a rate of 1 toman = 10 rials. Over time, as inflation began to take its toll, the value of the rial diminished significantly. To simplify transactions and avoid the unwieldy string of zeros that would otherwise be required, Iranians instinctively reverted to using the toman as a mental accounting unit, essentially dropping a zero from the rial value.

This customary usage has evolved further due to extreme inflation. Today, one toman is colloquially understood to be equivalent to 10,000 rials, effectively representing the rial value with four zeros removed. This allows Iranians to quote prices in much smaller, more manageable numbers. For instance, if an item officially costs 600,000 rials, a vendor will typically quote the price as "60 toman." While this simplifies daily transactions for locals, it creates considerable confusion for foreign visitors and those unfamiliar with Iran’s monetary practices. Tourists often find themselves in situations where they are quoted a price in toman but pay in rials, sometimes leading to misunderstandings or accidental overpayments if they are not aware of the "four zero" rule. This informal redenomination has been a de facto solution for the public, highlighting the disconnect between the official currency and its practical application.

The Redenomination Initiative: A Bold Economic Reform

Recognizing the widespread confusion, the psychological burden of large numbers, and the administrative inefficiencies caused by the rial-toman dichotomy, the Iranian government and the Central Bank of Iran (CBI) have been pursuing a formal redenominational policy for over a decade. The idea gained serious traction in the late 2010s, culminating in a significant legislative step. In May 2020, the Iranian parliament approved a bill to formally change the national currency from rial to toman, effectively removing four zeros from the national currency.

The primary objectives of this ambitious reform are multifaceted:

Simplification: To streamline financial transactions and accounting by eliminating the need to deal with excessively large numbers.
Restoring Prestige: To psychologically bolster the value and credibility of the national currency, both domestically and internationally.
Reducing Costs: To potentially reduce the costs associated with printing and handling large volumes of high-denomination banknotes.
Aligning with Public Usage: To officially align the legal currency with the de facto currency used by the general public for decades.

Under the new scheme, 10,000 old rials will be officially converted into 1 new toman. The new toman will also be subdivided into smaller units called "qiran," with 1 toman equivalent to 100 qirans, similar to how many international currencies are divided into 100 cents or pence.

The implementation of this change is planned to be gradual, spanning a transitional period from 2025 to 2026. During this phase, both the old rial banknotes and the new toman notes will circulate concurrently, allowing the public and businesses time to adjust to the new system. New banknotes will initially feature smaller nominal values, often with faint or shadowed zeros to visually indicate the impending change and facilitate a smooth transition. The CBI is tasked with managing this complex process, ensuring public awareness campaigns, and adapting banking systems and automated teller machines (ATMs) to handle the new denominations.

Challenges and Potential Implications

While redenominating the currency is a significant administrative and psychological move, it is crucial to understand that it is largely a cosmetic change and not a magic bullet for Iran’s deep-seated economic problems. Critics argue that merely removing zeros without addressing the root causes of inflation – such as persistent budget deficits, U.S. sanctions, and an overreliance on oil revenues – will only provide temporary relief. Without fundamental economic reforms and a resolution to international tensions, the new toman could eventually suffer the same fate as the old rial, requiring further redenominations in the future. The cost of implementing such a large-scale currency change, including redesigning and printing new banknotes and coins, and updating financial infrastructure, is also substantial.

However, proponents of the reform, including officials from the Central Bank of Iran, emphasize the psychological benefits. They hope that by presenting a currency with smaller nominal values, public confidence might be restored, and the perception of economic stability could improve, even if the underlying economic challenges remain. It could also simplify reporting and analysis for international financial institutions, making Iran’s economic data more comparable.

Official Responses and Broader Impact

Iranian officials, including the Governor of the Central Bank and spokespersons for the economic ministry, have consistently presented the redenominational plan as a necessary step towards modernizing the country’s financial system and combating the psychological effects of hyperinflation. They acknowledge the challenges but underscore the long-term benefits of aligning the official currency with public usage.

The broader impact extends beyond mere convenience. For domestic commerce, the simplification could reduce errors and improve efficiency in transactions. For international trade, once underlying economic conditions allow for greater engagement, a more stable and understandable currency unit could facilitate smoother dealings, though the primary barrier remains sanctions. For the average Iranian citizen, the change could bring a sense of relief from the burden of handling huge sums, but their daily struggle against rising prices and diminishing purchasing power will continue until the fundamental economic pressures are alleviated. The success of the toman as a stable currency ultimately hinges on the government’s ability to control inflation, foster economic growth, and navigate the treacherous waters of international geopolitics.

In conclusion, Iran’s currency saga is a microcosm of its broader economic and geopolitical struggles. The transition from the rial to the new toman, while a significant administrative undertaking, represents an attempt to bring order and clarity to a monetary system battered by sanctions and inflation. Yet, this reform alone cannot insulate Iran from the powerful external forces and internal challenges that continue to shape its economic destiny. The true test of the new toman’s resilience will be its ability to withstand the ongoing pressures and serve as a stable foundation for Iran’s future economic development.

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July 20, 2026 0 comment