Firings to mark Yudhoyono's first year in power

Indonesian President Susilo Bambang Yudhoyono is expected to reshuffle his 
coalition Cabinet when he marks one year in power next month - a move that 
could be a battle of wills with his powerful deputy.

Dean Yates and Achmad Sukarsono

Friday, September 23, 2005

Indonesian President Susilo Bambang Yudhoyono is expected to reshuffle his 
coalition Cabinet when he marks one year in power next month - a move that 
could be a battle of wills with his powerful deputy.

Indonesia's financial markets have begun to buzz with speculation about 
changes to the economic team in the wake of a near meltdown of the rupiah 
last month and concerns the government is moving too slowly to improve the 
business climate.

One top government official close to Yudhoyono said the former army general 
will sack some underperforming ministers.

"He will definitely change some ministers," the official said.

Among those likely to go are Finance Minister Jusuf Anwar, who was a 
compromise choice last year.

Chief economics minister Aburizal Bakrie could also come under scrutiny, but 
his close ties to Vice President Jusuf Kalla makes him virtually impossible 
to remove.

Yudhoyono took office October 20 last year after winning Indonesia's first 
direct presidential election. He made all ministers sign accountability 
contracts and warned them he would evaluate their work after one year.

A Yudhoyono spokesman said the president will assess his Cabinet but 
declined to comment on a reshuffle. But the top official said Yudhoyono will 
use the October 20 anniversary to make changes.

Some believe that Yudhoyono, 56, is at a crossroads, especially as he girds 
for protests that could erupt when he increases fuel prices early next month 
to cut fuel subsidies that are crippling the budget. He also has a bird flu 
outbreak on his hands.

"I think the next two months are probably going to be the most important two 
months in the Yudhoyono presidency," said James Castle, a prominent business 
consultant in Jakarta.

"He has to raise fuel prices and shuffle the Cabinet. The market expects 
them both and, fairly or not, if they don't happen he will be shown in their 
minds to be weak and indecisive or confused by the difficulties he is 
facing."

Standing in the way could be Kalla, 63, a former businessman and head of 
Golkar, the biggest party in parliament. Some believe Kalla out-muscled 
Yudhoyono in choosing economic ministers last year, and big changes will 
reflect badly on him.

Kalla also believes ministers should not take the rap for the external 
events that have hurt Indonesia, such as soaring world oil prices, a senior 
Golkar member said.

"Whoever is in charge will face these problems and the challenge is to 
overcome them," said Andi Matalatta, who is Golkar's faction chief in 
parliament and close to Kalla.

Added the top government official: "This won't be easy. Jusuf Kalla is 
reluctant to change ministers."

Yudhoyono chose Kalla as his election running mate last year after they had 
served together in the previous administration. His shoot-from-the-hip style 
contrasts with the scholarly Yudhoyono, who has been dogged by perceptions 
he is indecisive.

Yudhoyono needs Kalla for the support Golkar gives his tiny Democrat Party 
in parliament, but the public, media and businessmen are clamoring for 
cabinet changes. Rama Pratama, an MP from the Prosperous Justice Party, a 
Yudhoyono ally, said economic ministers such as Anwar and Mines and Energy 
Minister Purnomo Yusgiantoro should lose their jobs.

"The finance minister must be replaced because he has not performed at all," 
said Pratama, who sits on parliament's finance and banking commission. "The 
energy minister also needs to go. He has been in and out of Cabinets and 
still cannot get us out of this energy crisis."

Some analysts have called on Yudhoyono to coax respected former finance 
minister Boediono out of retirement. Boediono stabilized Indonesia's fiscal 
accounts in the last government. REUTERS

http://www.thestandard.com.hk/news_detail.asp?pp_cat=17&art_id=1908&sid=4695794&con_type=1




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