Ginandjar has been active in politics since the 1970s when he sat in Suharto's cabinet. He has always called himself a nationalist, due to the influence of his parents who were both National Party of Indonesia activists before World War II. Ginandjar served as Minister of Mining, and Energy and State Minister of PPN/Head of the Indonesian National Development Planning Agency Bappenas. He has been attacked as a part of the "New Order," but argued that his membership in the cabinet was professional. Ginandjar commented, "I'm a part of the system, but I'm a professional in the cabinet." Ginandjar played a role in encouraging Suharto to resign in May 1998 when he and other ministers refused to sit in the reformation cabinet to be formed by president Suharto. When it became clear that it would be hard for Suharto to form a cabinet, the president chose to stand down in favor of his vice president B.J. Habibie. In October 2004, Ginandjar was elected the first speaker of the newly formed DPD. He won 72 of 128 votes in a run-off against Irman Gusman, who together with La Ode Ida became his deputies. He completed his five-year term on 1 October 2009 and was succeeded by Irman Gusman.
Corruption arrest
In late March 2001, state prosecutors issued an arrest warrant for Ginandjar for alleged corruption that caused state losses of $24.8 million. His arrest was delayed because he was hospitalized for tests on his stomach. He was arrested on 6 April 2001 at a Jakarta hospital and held at the detention center at the Attorney General’s Office compound. He denied any wrongdoing and said his arrest was politically motivated and ordered by then-president Abdurrahman Wahid. Ginandjar challenged the arrest warrant and tried to sue the Attorney General's Office for wrongful arrest. He was a suspect in a case involving PT Ustraindo Petro Gas, a company owned by Suharto’s middle son Bambang Trihatmodjo and state oil and gas firm Pertamina. Ginandjar was mines and energy minister when Pertamina paid for Ustraindo’s costs in developing four oil fields, whereas Ustraindo was contractually required to cover the costs. The arrangement caused state losses of $18 million. State prosecutors said the terms of the government-company production sharing contract were altered to Ustraindo’s benefit, inflicting additional state losses. Ginandjar was released after a month. He acknowledged it was difficult to shake off corruption allegations because he was part of the Suharto regime. “Saying that I'm not corrupt is a bit like the saying: 'I'm not beating my wife.' No one ever believes you," he said in 2001.