Ted Bardacke, Jakarta – Indonesian president Abdurrahman Wahid yesterday formed an economic advisory council chaired by Emil Salim, a cabinet minister under former President Suharto.

Mr Salim was one of five former ministers named to the 13-member council, which will serve the president directly to give him a "second opinion" on economic matters. Sri Mulyani Indrawati, an independent economist from the University of Indonesia, will be secretary general of the council.

Mr Salim was one of the members of the "Berkeley mafia" of technocrats who guided the economic policies of the Suharto regime from the 70s through the early 90s before high-level corruption started to undermine government policy.

Mr Salim had a falling-out with Mr Suharto and against the former president's wishes tried to become vice-president after 1997 general elections.

Other former ministers on the council, whose formation has invited speculation that the authority of senior economics minister Kwik Kian Gie would be undermined, include former co-operatives minister Subiakto Tjakrawerdaya and Bambang Subianto, finance minister under former President B.J. Habibie.

Mr Tjakrawerdaya was considered especially close to Mr Suharto, while Mr Subianto has been linked to the Bank Bali scandal whereby funds from the nationalised bank were funnelled to Mr Habibie's failed re-election bid.