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Finance minister choice is seen as politically astute

Source
Jakarta Globe - May 20, 2010

Armando Siahaan – President Susilo Bambang Yudhoyono's choices for finance minister and his deputy reflected a good combination of the best political options available, analysts said on Wednesday.

Yudhoyono named banker Agus Martowardojo as finance minister and promoted Anny Ratnawati from director general of budgeting to deputy minister. "President Yudhoyono is showing the public that the replacement of [outgoing Finance Minister Sri Mulyani Indrawati] is not dictated by anyone," said Burhanuddin Muhtadi, a political analyst with the Indonesian Survey Institute (LSI).

Both Agus and Anny came from nonpartisan backgrounds and have track records of political independence, he added.

Yunarto Wijaya, a political observer for Charta Politika, said the newly appointed duo was a good combination that could neutralize the heat between the government, the politicians.

Agus, he said, had the ability to reduce the hostility between the ministry and the lawmakers, arguing that he had a more flexible political stance than Sri Mulyani, who was seen as more "rigid and uncompromising."

Burhanuddin also said Agus carried less political baggage than other candidates such as Darmin Nasution and Anggito Abimanyu. During his time as the director general of taxation, Darmin was involved in a number of tax cases of companies linked with elites of political parties such as Golkar's Aburizal Bakrie. Appointing Anggito, who is seen to be favored by Golkar, could have been seen as compliance to a political interest, Burhanuddin said.

On the other hand, Anny, though seen also as favored by Golkar, served under Sri Mulyani and could present an image that the president is committed to continuing Sri Mulyani's reform drive, Yunarto said. "The president is under public scrutiny over whether he will follow Sri Mulyani's footsteps," he said.

However, Burhanuddin said Agus's appointment could invite political conflict in the future, as he has a history with political parties. Agus was rejected by the House of Representatives a number of times as a candidate for governor of Bank Indonesia; as the president director of PT Bank Mandiri, he conflicted with politically linked parties; and Agus was one of those who supported the state-funded bailout of Bank Century, Burhanuddin said.

Both analysts said the short-term barometer for Agus's political independence is whether he can follow Sri Mulyani's strong fight against tax evasion. Burhanuddin said: "This is the ultimate test case, will President Yudhoyono and Agus show the country that they are above business and political powers?"

But Yunarto said Yudhoyono expected Golkar would not put any more political pressure on the new finance minister, as he has given the party "enough political compensations."

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