Wed, 13 Jun 2001

Megawati laughs at Abdurrahman's move

JAKARTA (JP): Vice President Megawati Soekarnoputri was reported to have just laughed at President Abdurrahman Wahid's latest Cabinet shake-up on Tuesday, when minister of finance Prijadi Praptosuhardjo became the 11th Cabinet member dismissed by the President during his 20-month tenure.

The secretary-general of the Indonesian Democratic Party of Struggle (PDI Perjuangan), Soetjipto, said Megawati, who is also the party chairwoman, was not informed beforehand of the President's decision to reshuffle the Cabinet.

"Ibu just laughed when we asked for her comment on the latest Cabinet reshuffle," Soetjipto said after attending PDI Perjuangan's weekly meeting, chaired by Megawati.

Echoing Megawati's stance on the matter, Soetjipto said the Cabinet shake-up would not stop the planned special session of the People's Consultative Assembly in August, which could lead to the President's impeachment.

An adjutant to the President, an Army colonel, was the highest level official accompanying the President when he announced the Cabinet changes at Merdeka Palace.

Since October 1999, Abdurrahman has dismissed 11 Cabinet ministers, apart from the major Cabinet reshuffle he ordered following the Assembly's annual session in August, which produced a warning to him over his poor performance. At that time he streamlined his Cabinet from 35 ministers to 26.

United Development Party (PPP) chairman Hamzah Haz was the first Cabinet minister to be shown the door, losing his position as coordinating minister for social welfare just one month after his appointment in 1999.

The most welcome dismissal, for international observers at least, was that of Gen. Wiranto as coordinating minister for political and security affairs in February last year.

The President also dismissed Laksamana Sukardi, a member of PDI Perjuangan, in April last year. Ryaas Rasyid was the only minister to resign from the Cabinet, giving up his post following a disagreement with the President.

"How can a minister perform well when he is fired even before being active as a minister," Soetjipto commented.

Golkar chairman Akbar Tandjung said Abdurrahman would do well to prepare for the Assembly's special session rather than wasting time changing his Cabinet.

"Such moves will not help him," Akbar contended.

PPP secretary-general Alimarwan Hanan agreed, saying, "The President should concentrate on the special session."

Political dispute

An economist at the Centre for Strategic and International Studies, Pande Raja Silalahi, noted that the country's most fundamental problems were related to politics and security, not the Cabinet lineup.

The deterioration of the country's macroeconomic indicators is mainly the result of domestic political instability, so the country's political leaders must first of all settle their political disputes, he said.

"Even if the President installs a genius on the economic team, it is just useless," Pande noted.

He also said it would be difficult for the financial market to react positively to the reshuffle with the President so close to being impeached by the Assembly.

Those in the market said the Cabinet reshuffle failed to affect sentiment on the local currency because the move was not likely to save the President from impeachment.

The rupiah ended flat on Tuesday at Rp 11,250 against the U.S. dollar.

Economist Arief Ramlan Karseno from Gadjah Mada University, however, praised Rizal Ramli's appointment as new finance minister.

Karseno said Rizal was proficient in the fiscal field, a quality desperately needed by the minister of finance given the government's difficulty in coping with the budget deficit.

"The government's fiscal policy will change under Rizal's direct control of the government's monetary policy," Karseno told The Jakarta Post. (44/rei/prb)