Lindsay Murdoch, Jakarta – President Abdurrahman Wahid yesterday appointed a retired army general and an economist to key posts in a streamlined Cabinet he hopes will pull Indonesia out of nearly three years of economic, civil and political turmoil.
The reshuffle will see Mr Susilo Bambang Yudhoyono, a former general, serve as chief political minister with wide powers, while Mr Rizal Ramli becomes the top economics minister. They will report to the Vice-President, Ms Megawati Sukarnoputri, who will assume control of daily government business.
Mr Wahid cut the Cabinet from 35 members to 26 and trimmed many government departments. He announced the radical changes after coming under enormous pressure for failing in his first 10 months in office to clear up the country's political and economic mess.
Mr Prijadi Praptosuhardjo, a close friend of Mr Wahid who failed a recent central bank "fit and proper test", has been appointed Finance Minister.
The Foreign Affairs Minister, Mr Alwi Shihab, retains his post despite wide speculation he would be moved. This is bad news for Australia. Mr Shihab has emerged as a strong critic of the Howard Government and has stressed that restored relations with Canberra will depend on economic benefits for Indonesia.
Mr Marzuki Darusman will remain Attorney-General, a high-profile and difficult job that includes responsibility for bringing former president Soeharto to court on graft charges, and trying Indonesians responsible for last year's violence in East Timor.
The new Defence Minister, Mahfud M.D, is a civilian academic. The Mines and Energy Minister, Mr Purnomo Yusgiantoro, is the deputy head of a military think-tank.
The Interior Minister, Mr Surjadi Sudirja, has been reappointed, and the new Law and Human Rights Minister, Mr Yusril Ihza Mahendra, stays on in a new merged portfolio as Law and Human Rights Minister.
The Trade and Industry Minister, Mr Luhut Pandjaitan, has been reappointed, as has the Transport and Communications Minister, Mr Agum Gumelar.
The new ministers will be sworn in at a ceremony tomorrow and sit in Cabinet on Monday. Their priorities will include completing the 2000 Budget and preparing for the implementation of regional autonomy laws in January.
Mr Wahid has already made clear the Government will remain committed to economic policies agreed with the International Monetary Fund, which has arranged for $US40billion to bail out the collapsed economy.
Government administration in effect collapsed last month ahead of the annual session of the People's Consultative Assembly, the top legislature, which castigated Mr Wahid's often erratic style of leadership.
He placated the 700 assembly members, some of whom argued for his impeachment, by promising to devolve more power to Ms Megawati. Mr Wahid has said that while Ms Megawati, the daughter of Indonesia's first president, Dr Sukarno, will be in charge of the daily running of government, he will retain overall authority.
Under pressure from politicians, Mr Wahid has disbanded two key economic advisory groups, the National Economic Council and the National Business Development Council.