New economic czar named<\/p>\n
JAKARTA (JP): In a second Cabinet shake-up in less than one
\nmonth, beleaguered President Abdurrahman Wahid reshuffled his
\neconomic ministers on Tuesday in a bid to create a more effective
\neconomic team.<\/p>\n
In a statement read out on behalf of the President by a
\nspokesman, Abdurrahman named Burhanuddin Abdullah, currently
\ndeputy governor of Bank Indonesia, as the new Coordinating
\nMinister for the Economy, replacing Rizal Ramli.<\/p>\n
Rizal will replace Prijadi Praptosuhardjo as Finance Minister.
\nPrijadi no longer has a position in the Cabinet.<\/p>\n
Abdurrahman, popularly called Gus Dur, also named the
\nsecretary-general of the Ministry of Communications Anwar Prijadi
\nas the new State Minister for Administrative Reforms, a position
\nwhich had effectively been vacant since January, following the
\nresignation of Ryaas Rasyid.<\/p>\n
\"The consideration that efficiency should be optimized is the
\nprimary purpose of the change (reshuffle) that was made to allow
\nus to achieve the set (of economic targets),\" Abdurrahman said in
\na brief opening statement, before asking his spokesman Yahya
\nStaquf to read out his decision at a brief afternoon media
\nconference at Merdeka Palace.<\/p>\n
But Yahya later told the media that Burhanuddin was expected
\nto be able to improve relations with the International Monetary
\nFund (IMF), which has delayed the disbursement of its next loan
\ntranche to the country since late last year, due to signs that
\nthe government was wavering in the implementation of an agreed
\neconomic reform program.<\/p>\n
Separately, Burhanuddin said that his top priority would be to
\nget the IMF economic reform program in the country back on track.<\/p>\n
Burhanuddin said that the move was crucial to help revive
\ninvestors' confidence in the economy.<\/p>\n
\"One very important thing for all of us is to get the IMF
\nprogram back on track. I will try to improve our relations with
\nthe IMF,\" he told reporters at Bank Indonesia headquarters.<\/p>\n
Experts have said that continued IMF support is crucial,
\nparticularly as the credibility of the current 2001 state budget
\nhinges on the financial support of international lenders such as
\nthe World Bank, the Asian Development Bank, and the Paris Club of
\ncreditor nations.<\/p>\n
Burhanuddin, who started his career at Bank Indonesia in 1981,
\nwas appointed deputy governor in charge of the banking sector and
\ninternational affairs in August last year. Between 1990 and 1993,
\nhe was an assistant executive director with the IMF in Washington
\nD.C.<\/p>\n
Rizal, who often expressed disagreement with the IMF, welcomed
\nthe appointment of Burhanuddin.<\/p>\n
\"What is very important is credibility, professional
\nexperience and the ability to engage in teamwork. Burhanuddin has
\nsuch qualities,\" he told reporters.<\/p>\n
Rizal said that after his inauguration, scheduled for today,
\nhe would immediately proceed with deliberations into the 2001
\nstate budget with the House of Representatives state budget task
\nforce.<\/p>\n
\"What has already been agreed with the House (task force) will
\nstand,\" he said.<\/p>\n
The House task force had earlier reached agreement with the
\noutgoing Finance Minister Prijadi to raise fuel prices by an
\naverage of 30 percent later this week, and electricity rates by
\nan average of 17.47 percent early next month. The moves are part
\nof measures proposed by Prijadi to help maintain the deficit in
\nthe current state budget at a safer level. The House has yet to
\nreach agreement over plans to raise value added tax (VAT) to 12.5
\npercent from 10 percent, and to issue so-named deficit bonds
\nworth around Rp 2.9 trillion.<\/p>\n
Rizal expected the state budget revisions to be completed as
\nsoon as possible.<\/p>\n
Prijadi had earlier said that the state budget revisions were
\nexpected to be completed later this week.<\/p>\n
The Cabinet reshuffle was announced at a time when Prijadi was
\ndebating the state budget revision with the House. The debate was
\nlater postponed following the announcement.<\/p>\n
\"... Honestly, I am no longer able to concentrate,\" Prijadi
\nsaid before closing the debate.<\/p>\n
Completion of the state budget revisions was part of the
\nconditions demanded by the IMF for the disbursement of its next
\nloan tranche.<\/p>\n
The IMF has also demanded that the government fully adopt the
\nrecommendations of an independent panel over the controversial
\namendment of the Bank Indonesia law which critics, including the
\nIMF, said was merely designed to accommodate the wish of the
\nPresident to dismiss the existing Bank Indonesia governor and the
\ndeputy governors.<\/p>\n
The House has yet to complete the debate over the government-
\nproposed amendment of the central bank law. (rei\/prb)<\/p>",
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