Oct 19, 2011

Indonesia - New Indonesian Cabinet unveiled



President Susilo Bambang Yudhoyono announced changes in a highly anticipated Cabinet reshuffle yesterday, replacing several ministers in a move that many saw as aimed more at salvaging his sliding popularity.

The changes were quickly criticised as cosmetic by many observers, who also raised questions about whether some of the ministers were a mismatch for their new portfolios.

Some underperformers and scandal-tainted names were dropped, as expected, several professionals were added and ministers from political parties removed, in what appeared to be an effort to soothe fears that Dr Yudhoyono was accommodating coalition partners.

Investment board chief and former banker Gita Wirjawan was appointed as the new trade minister, while Mr Dahlan Iskan, the head of a state electricity firm, joined the Cabinet as state-owned enterprises minister.

Both men have good track records as reformists and are not linked to any political party.

"It aims at facilitating more professionals, which can boost the effectiveness of the Cabinet," Dr Yudhoyono told a press conference. "With the current global economic situation, I want our trade to penetrate global markets."

He also said that economic factors greatly influenced his choice of ministers and deputies whom he will be appointing formally today, adding that he had picked or moved people whom he felt could strengthen Indonesia's economy.

But while he stressed that the reshuffle was meant to "improve the performance and effectiveness of the Cabinet", some of the appointments raised eyebrows.

One of the most significant was the transfer of former trade minister Mari Elka Pangestu - who had won kudos in her job - to tourism and creative industries.

Under the seven-year tenure of the internationally-respected Dr Mari, Indonesia's exports have posted strong growth, while imports have also boomed.

The President explained that Dr Mari could do for the country's creative economy what she had done for trade, but critics questioned her experience in tourism.

Some also suggested that her move to a less prominent ministry was due to clashes she had had with the agriculture and fisheries ministers over imports hurting domestic industries.

In an opinion piece in the Jakarta Post, political academic Donny Syofyan noted the impact of the clashes.

"Tensions between Dr Mari and Maritime Affairs and Fisheries Minister Fadel Muhammad... have given the impression that there is serious conflict among members of the Cabinet. This is clearly stressful for Yudhoyono."

Another appointment that drew criticism was that of former tourism minister Jero Wacik to the energy and mineral resources portfolio.

"This is a big question mark," said Professor Iberamsyah, who teaches political science at the University of Indonesia. "Indonesia has a lot of experts on this sector, why put Jero Wacik there? What kind of energy-related background does he have?"

He added: "There are so many irregularities, many mismatches."

Many observers were less than impressed with yesterday's changes, seeing them largely as a gesture made by a president facing mounting pressure to address his sliding popularity.

"Most will see the drip-fed reshuffle for what it is - change made to achieve certain internal political aims rather than anything more ambitious," Mr James Bryson of fund management firm PT HB Capital Indonesia told Reuters.

Last month, a poll by the Indonesian Survey Circle recorded the lowest approval ratings for Dr Yudhoyono since he assumed the presidency in 2009 after a landslide win. It came after a government audit which assessed some ministers as underperforming.

The President's move to raise the number of deputy ministers from 10 to 19 also drew criticism that it would lead to a bloated government that could cut efficiency while increasing costs.

And while some ministers were dropped, as expected, because they were seen as graft-tainted or underperforming, several others were retained, to the surprise of some observers.

Many were expecting Sports and Youth Minister Andi Mallarangeng and Manpower and Transmigration Minister Muhaimin Iskandar to go after they were questioned by the anti-graft authorities over their ministries' involvement in corruption scandals, but they kept their posts.

Critics say their survival suggests that they are still regarded as part of Dr Yudhoyono's inner circle and are seen as allies.

Prof Iberamsyah said: "What really stands out is that those ministers with the most conspicuous problems are staying in. This will be the heaviest burden for the Cabinet in the next three years, as the administration will have to face the public, who would question the integrity of the Cabinet."

Zubaidah Nazeer & Wahyudi Soeriaatmadja
The Straits Times



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