Japan’s Ishiba Becomes PM, Cabinet Signals Continuity

Shigeru Ishiba was confirmed as Japan’s new prime minister and named his cabinet lineup, as the pressure of managing the nation shifts onto the shoulders of a political idealist who has spent much of his long career offering critiques from the sidelines.

Ishiba’s near-term focus will be a national election he has called for Oct. 27. By opting for a quick election for the more-powerful lower house of parliament, the 67-year-old Ishiba is seeking to turn his public support into a mandate to rule. The appointment Tuesday of party veterans to the highest profile cabinet roles may provide stability for his administration in its early days.

Among his picks, the position of finance minister was handed to 68-year-old Katsunobu Kato, who has previously been the government’s top spokesman. The new foreign minister is 67-year-old Takeshi Iwaya, a close Ishiba confidante who has been defense minister.

Ishiba has indicated his economic policies will be largely in line with the adminstration of outgoing prime minister Fumio Kishida. Speaking soon after being appointed, Kato said Ishiba had called for wage rises and economic growth driven by private investment. He added that there would likely be a package of government-funded economic support measures.

New minister in charge of economic revitalization, 63-year-old Ryosei Akazawa, said defeating deflation would be the top priority, and he called for the Bank of Japan to be cautious in considering further rate hikes after two hikes this year.

Upheaval in the ruling Liberal Democratic Party after a series of scandals and the sidelining of senior power brokers could eventually present Ishiba with an internal challenge, and voter frustration over persistent inflation and the LDP’s past malfeasance may still lead to setbacks at the ballot box.

For now, Ishiba is riding high on a dramatic come-from-behind victory in the LDP leadership election. He’s installed heavyweights in senior roles in the party to try and ensure he has a solid power base, and he’s given up-and-coming LDP election rival Shinjiro Koizumi the job of managing the party’s national election campaigns.

A public opinion poll conducted by the Mainichi newspaper over the weekend showed 52% of those surveyed were optimistic about the incoming Ishiba administration, while 30% expressed pessimism.

One challenge for Ishiba will be managing the right-wing members of the LDP after conservatives were excluded from cabinet and senior party leadership positions, said Rintaro Nishimura, a Japan associate at The Asia Group, an advisory firm. If Ishiba fails to appease this cohort, “I fear conservatives will do everything they can to stall or water down Ishiba’s policies,” Nishimura said.

Among Ishiba’s rivals are Sanae Takaichi, who surprisingly lost to Ishiba in a run-off in the LDP leadership election despite leading him in the first round of voting. Takayuki Kobayashi, the other major right-leaning candidate in the LDP election, also missed out on a cabinet position. 

Only two women were named to Ishiba’s cabinet, an indication that increasing female representation in key policymaking positions is likely not one of his top priorities. The average age of cabinet members including Ishiba remains at 63.5, making it one of the oldest among nations in the Organisation for Economic Co-Operation and Development.

Ishiba was comfortably approved by both chambers of Japan’s parliament thanks to the LDP’s dominance. He is set to hold a press conference some time in the evening on Tuesday after he visits Emperor Naruhito for a ceremony in which he will be formally confirmed as prime minister.