Govt denies rumors of Cabinet reshuffle

Govt denies rumors of Cabinet reshuffle

JAKARTA (JP): The government denied on Friday there was about
to be a Cabinet reshuffle amid strong speculation that
Coordinating Minister for the Economy, Finance and Industry Kwik
Kian Gie was about to tender his resignation.

But sources told The Jakarta Post that it took strong
intervention from President Abdurrahman Wahid, Vice President
Megawati Soekarnoputri and senior officials of the Indonesian
Democratic Party of Struggle (PDI Perjuangan) to avert further
disintegration of the Cabinet, formed just four months ago.

Apparently aware of the public speculation, President
Abdurrahman, without even being asked, told journalists that
there would be no reshuffle.

"There are a lot of questions on reshuffles. There is no
reshuffle of the Cabinet. It was the media which made this
(uproar)," the President remarked after having dinner with Gen.
Wiranto at the latter's official residence on Jl. Denpasar Raya,
South Jakarta.

Separately, State Secretary Bondan Gunawan explicitly said the
President would not consider dismissing Kwik from his post.

Bondan confirmed that Abdurrahman received Kwik at his
official residence of Merdeka Palace on Friday evening, but
emphasized there was no discussion at all of Kwik leaving the
Cabinet.

"No, it is not true at all. Pak Kwik will remain in the
Cabinet. It is true that he met with the President this evening
but they only discussed routine work," Bondan told the Post and
Kompas at his office on Friday night.

Bondan said he would weed out those who spread the rumors as
such talk was aimed at hampering the government's efforts to
restore economic stability.

"I will seek out those responsible because they only want to
create chaos," Bondan said.

Rumors of Kwik's impending resignation were linked to the
alleged involvement of his son, Inghie Kwik, in negotiations for
the acquisition of PT Humpuss Terminal Petikemas, the operator of
the Koja container terminal at Tanjung Priok seaport, with
Hutchison Port Holdings of Hong Kong.

Kwik himself was not available for comment, but sources told
the Post that he considered resigning on Friday afternoon.

Sources confirmed that several meetings were held at the
palace compound in the evening and involved Abdurrahman,
Megawati, Kwik and foreign minister Alwi Shihab, who is a
confidante of the President.

Kwik's change of heart was said to have been due to bidding
from senior PDI Perjuangan officials and Megawati's own
insistence that he retain his post as a strict party order.

Other sources remarked that Kwik finally agreed after there
were assurances that the issue would not be used again to
humiliate him.

It is believed that a "political threat" was sent out, warning
of a political collapse of the Cabinet and party-wide opposition
if a senior PDI Perjuangan Cabinet member withdrew from the
Cabinet.

The controversy surrounding Kwik first emerged when State
Minister of Investment and State Enterprises Development
Laksamana Sukardi publicly castigated Inghie Kwik for his
involvement in the sale of the Humpuss terminal.

Laksamana said Inghie had no right to sell the company as it
was one of the debtor companies under the management of the
Indonesian Bank Restructuring Agency (IBRA).

Both Kwik and Laksamana are senior executives of PDI
Perjuangan.

Inghie has denied involvement in the sale, arguing that he, as
an executive of The Asset Management Group of Indonesia, acted
only as a consultant for Hutchison.

The intriguing developments of Friday evening were capped off
by a unique visit by Abdurrahman, who personally visited
Wiranto's residence for a home-cooked dinner.

Abdurrahman said he missed Wiranto and wanted to enjoy Uga's,
Wiranto's wife's, cooking.

Apart from Wiranto, whom Abdurrahman suspended as Coordinating
Minister for Political Affairs and Security, also present was Lt.
Gen. Djadja Suparman who will soon be controversially replaced as
chief of the Army's Strategic Reserves Command (Kostrad).

"We did not touch any issues regarding TNI (the Indonesian
Military) at all. We just exchanged jokes," Abdurrahman told
journalists after dinner with Wiranto and TNI chief Adm. Widodo
A.S. by his side.

Also present during the evening affair were Cabinet Secretary
Marsilam Simajuntak, Bondan and Alwi Shihab.

Wiranto, his wife Uga and Djadja could not hide their feelings
of comfort about the visit.

"I miss Pak Wiranto, as I have not seen him for a long time,"
the President joked. (vin/dja/prb/mds)