Yep, that is the Locking Bar.
As long as you have the key and the cylinder turns it is as simple as popping that bar back into the cylinder and the old cylinder will flop out of the housing.
When you have it apart peer inside and look at the plastic bit that mates to the end of the cylinder. It is the "sector" and works the rack but the teeth are prone to wear and failure which will cause it to slip on the rack and this leads to problems. It is a $10 part but to replace it means taking the wheel off etc. If yours has broken, worn or bent teeth it is worth replacing.
BagusJeep lives in Bali, the Land of Temples.
With a Jeep every prayer counts.
1981 CJ7 258ci - Bagusjeep
1984 CJ7 258ci - Puthijeep
1981 J20 258ci - Gladys
1995 Cherokee 4.0 - CHEROKEE