Boediono may replace Aburizal

Apriadi Gunawan, The Jakarta Post/Medan

Respected former finance minister Boediono is expected to be included in the new Cabinet that will be announced soon, President Susilo Bambang Yudhoyono said on Friday.

The rupiah and stocks strengthened on the news as financial markets were hopeful Boediono, seen by some as the architect of the country's brief return to macroeconomic stability after the late 1990s financial crisis, could once again turn around an economy undermined by rising inflation, a weak currency and nervous investors.

Susilo said he spoke with Boediono, whose fiscal prudence was widely respected when he served as finance minister under Megawati Soekarnoputri, on Thursday at Halim Perdakusumah airport in East Jakarta before flying to North Sumatra.

"I have discussed with Boediono the possibility of him joining the economic team. Frankly speaking, Pak Boediono told me he wanted to relax, and wanted to help the nation anyway he could without having to join the Cabinet. But I told him ... if the state needs you and the people want you, you must join the administration. It is a mandate," Susilo said in North Sumatra.

Susilo said he would announce his new Cabinet in two or three days, but did not say what Boediono's position would be in the Cabinet.

Susilo offered Boediono a Cabinet position after winning the country's first direct presidential election in 2004. However, Boediono declined the offer, according to some because tycoon Aburizal Bakrie was also going to be part of the economic team.

There was also some speculation Boediono was reluctant to join the Cabinet because he did not want to offend Megawati, who was defeated by Susilo in the election.

But a source close to Susilo said on Friday Megawati recently proposed Boediono's name to Susilo, who for the past several weeks has been struggling over a Cabinet reshuffle amid reports of strong pressure from political parties that support his government to offer positions to their candidates.

Another source said Boediono, who is not tied to any political party, would be appointed coordinating minister for the economy and chairman of the National Development Planning Agency (Bappenas). Aburizal Bakrie, the current economics minister and a senior member of Golkar Party, would be moved to coordinating minister for people's welfare, replacing Alwi Shihab, who would be ousted from the Cabinet.

The same source said Sri Mulyani Indrawati, current Bappenas chairwoman, would be appointed finance minister, replacing Yusuf Anwar, Mari Pangestu would retain her post as trade minister and businessman Rachmat Gobel would replace Andung Nitimihardja as minister of industry.

"After evaluating the performance of my Cabinet... I concluded that the Cabinet, particularly the economic team, needs restructuring," Susilo said.

"We need to strengthen the Cabinet by adding strong ministers who can sustain macroeconomic policies and management

"We need a team that can move the real (economy) and investment sector," the President said.

Boediono declined to say whether he was prepared to join Susilo's Cabinet.

"Later, when the time has arrived and everything is certain, we will meet in Lapangan Banteng," he was quoted as saying by news portal detik.com, referring to the area where the Office of the Coordinating Minister for the Economy and the Ministry of Finance are located.

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