Vaudine England, Jakarta – President Megawati Sukarnoputri finally announced her cabinet yesterday and immediately won praise for achieving a judicious balance of professionals, politicians and personal friends.

Of greatest significance were the reappointment of Susilo Bambang Yudhoyono as Co-ordinating Minister for Politics and Security, and the choice of former ambassador to the United States Dorodjatun Kuntjoro Jakti to co-ordinate economic policy.

Both men are regarded as professionals with safe hands. Mr Susilo was fired from his co-ordinating role over politics by former president Abdurrahman Wahid, allegedly for refusing to implement Mr Wahid's call for a state of emergency. A retired general, he has gained international respect for his administrative skills.

Mr Dorodjatun recently returned from Washington, where he made many friends. He was formerly head of the economics faculty at the University of Indonesia and a student activist imprisoned by former president Suharto for his part in the Malari riots of 1974. He will be supported by respected former national economic planning chief Boediono as Minister of Finance.

The new Foreign Minister is Hasan Wirayuda, a career diplomat. He often filled the shoes of predecessor Alwi Shihab, who spent more time backing his boss, Mr Wahid, than focusing on foreign affairs. Mr Hasan's appointment sends a message of continuity for the less than three years remaining in Ms Megawati's presidency.

One major gap remains in the line-up – that of attorney-general. Ms Megawati said this post would be filled soon, which left some analysts wondering if this was a good sign of her carefulness in tackling such a key job, or a bad sign of her inability to find someone both politically acceptable and capable of cleaning up rampant corruption.

But the glaring worry in the new line-up for many analysts was the appointment of Hari Sabarno to head the Ministry of Home Affairs, which includes responsibility for the controversial programme of decentralisation and regional autonomy. He is the head of the military faction in Parliament, which pivotally backed President Megawati's rise to power, and represents a politicised and hard-line armed forces eager to quash unrest in the regions.

In Ms Megawati's speech introducing her new cabinet she spoke of the need for national unity without mentioning regional autonomy. This, combined with Mr Sabarno's appointment, heightens fears she aims to re-centralise power in Jakarta at the regions' expense.

Ms Megawati reinstated a formerly weak co-ordinating ministry for social welfare and picked a Golkar party member with strong support in powerful South Sulawesi, Yusuf Kalla, to head it. This was one of several appointments analysts described as a slap in the face to Mr Wahid, as Mr Kalla had been sacked by Mr Wahid amid allegations of corruption. Key Megawati aides Kwik Gian Gie and Laksamana Sukardi return to the cabinet.

Alongside Ms Megawati's many appointments of people linked to the political parties that brought her to power in a parliamentary putsch 17 days ago, she also chose those who have been known to do her favours in the past.

One example is new Minister for Manpower Jacob Nuwawea. He was her personal bodyguard for many years and played a pivotal role at party congresses in the early 1990s when she battled Suharto's attempts to take over her support base.

The man who used to chair Mr Wahid's National Awakening Party but crossed over to Ms Megawati days before the ailing cleric's downfall is also rewarded. Matori Abdul Djalil takes on the hot seat at the Ministry of Defence. He has some expertise in military affairs, having previously been trusted by Mr Wahid to pick reformist generals for promotion.

Observers eager to see the armed forces kept out of politics saw merit in Mr Matori's appointment, suggesting he may not be a favourite among the generals. He is also the third civilian in a row to be put in charge of ties with the military.

Another dig at Mr Wahid is the choice of Said Agil Munawar as Religious Affairs Minister. He is a respected Muslim scholar and a member of the board of the Nahdlatul Ulama, Mr Wahid's mass Muslim support base, but comes from a wing long opposed to Mr Wahid.