The market has signaled disappointment with the cabinet lineup announced by President Susilo Bambang Yudhoyono on Wednesday night, according to analysts.
The market may be somewhat disappointed that except for some key technocrats, cabinet posts may signal 'business as usual'," Citi analyst Johanna Chua said in a statement Thursday.
Such a lineup may slow the structural reforms expected to boost Indonesia's growth to a higher level, as promised by Yudhoyono during his campaign, she added.
The appointment of Hatta Rajasa as the coordinating for the economy and Darwin Saleh as the energy and mineral resources minister are the biggest question to the market -- while Finance Minister Sri Mulyani Indrawati, Trade Minister Mari Elka Pangestu, Industry Minister MS Hidayat, State Minister for State-owned Enterprises Mustafa Abubakar are seen as positive.
Bank Danamon economists Helmi Arman and Anton Gunawan shared a similar opinion, saying the market might start toning down their expectations seeing the lineup that accommodates political parties.
"It is the implementation that has been the problem and for now it could not be said for sure whether the new cabinet lineup would result in significant change or business as usual," they said in a statement.