Camelia Pasandaran – President Susilo Bambang Yudhoyono finally signed a long-awaited new agreement Monday with members of his sometimes-frayed ruling coalition.

"This morning, the coalition parties met with a single agenda – to sign an enhanced and renewed agreement," Yudhoyono said prior to a cabinet meeting at the presidential office.

"Praise Allah, the rearrangement of the coalition has been done, including an agreement to improve it. I hope it can be more effective so the government's work can be done better for the benefit of the people."

All coalition parties had agreed to sign the deal earlier except for the often-wayward Prosperous Justice Party (PKS). It finally signed, leaving it nominally within the government camp.

Golkar Chairman Aburizal Bakrie, however, did not attend the meeting; coordinating minister for people's welfare Agung Laksono signed on behalf of Golkar.

One change in the coalition structure is that Aburizal is no longer the formal managing chairman of the group, a position he assumed in 2010 after former Finance Minister Sri Mulyani Indrawati stepped down following a bitter battle with Golkar and others, including the PKS, over the 2008 Bank Century bailout. Yudhoyono remains the overall head of the coalition.

Coordinating economic minister Hatta Rajasa said parties will take turns in the position of managing chairman.

The new deal is intended to calm the waters for a ruling coalition that appears dominant on paper, since it contains the top two parties, Yudhoyono's Democratic Party and Golkar, as well as PKS plus the smaller National Mandate Party (PAN), United Development Party (PPP) and National Awakening Party (PKB).

In practice, since taking office in late 2009, Golkar and PKS have frequently gone their own way on a number of issues, including the Bank Century bailout and a controversial recent move to call a special House investigation of the so-called tax mafia case.The rumor mill has been rife for months that PKS might leave the coalition.

With an election looming in 2014 and intense politicking already underway behind the scenes, it remains to be seen how long the coalition can hold together in the face of ambitions to succeed Yudhoyono, who is barred from standing for a third term.

"The main point is that there's still room for democracy," Agung said. "We agreed that strategic things should be done both by government and parliament, but only strategic things. However, for technical matters, such as ministerial policy, there's room for discussion, so there's still democracy."

The problems in the coalition led Yudhoyono to meet in recent months face to face with all party chairpersons, except PKS. There had been speculation that the Great Indonesia Movement (Gerindra) party led by retired Suharto-era General Prabowo Subianto would replace PKS in the coalition and a possible cabinet reshuffle.

"We agreed through a process of discussion about what should be done [by coalition members]," Agung said. "[Sanctions] might be brought against those who after some effort could not agree. That party could withdraw from the coalition."

He said the new agreement does not imply that disagreements will result in a cabinet reshuffle. However, Julian Pasha, the president's spokesperson, said a cabinet reshuffle is still possible despite the new agreement.