New cabinet to be formed soon to hasten end of economic crisis

JAKARTA (JP): Newly reelected President Soeharto is expected to form his new cabinet almost immediately in order to allow the country to consolidate its resources and apply effective policies to deal with the economic crisis, Assembly members said yesterday.

Golkar executive Akbar Tandjung and colleague Indra Bambang Utoyo, and Hamzah Haz from the United Development Party faction separately agreed that the next cabinet would be announced soon, given the amount of action needed to prevent the economy from collapsing completely.

"It's possible the cabinet will be formed on March 14, given the great difficulties facing us now, and maybe (the President) will immediately consolidate... his aides to work and cope with the crisis as soon as possible," Akbar was quoted by Antara as saying.

Hamzah said the country needed a cabinet whose members were not only strong but also had international recognition.

Indra said Soeharto would probably -- with the support of fellow ASEAN nations -- apply a fixed-rate currency regime in order to stabilize the rupiah.

"The IMF (International Monetary Fund's) stance has indirectly forced us to choose the 'fixed rate' regime," Indra said. "The new cabinet is expected to apply the fixed rate currency."

"The situation will force the new cabinet to, as soon as possible, take clearly defined policies so the national economy wouldn't get worse even if the IMF fund is not disbursed within a month or even two months," he said.

After the reelection of Soeharto to his seventh five-year term yesterday and the impending accession of B.J. Habibie to the vice presidency today, the next subject for speculation is the formation of the cabinet.

Many people have voiced their opinions as to how the cabinet should look -- for example, with fewer personnel than the last cabinet's 41 members. Others have demanded that only people with integrity, honesty and the appropriate capabilities should be included in the cabinet.

The dire economic situation -- the rupiah has depreciated by 75 percent against the U.S. dollar since the crisis began last July -- has prompted many people to demand that the next cabinet be better equipped for the challenge of reversing the meltdown.

In the past Soeharto named his ministers about one week after he was elected. Speculation is growing that he may announce his cabinet as soon as tomorrow given that the IMF bailout package is hanging in the balance.

Last Friday, the international body effectively delayed the second installment of its US$43-billion bailout package to Indonesia. This tranche, worth $3 billion, was originally scheduled to be issued by March 15.

Chinese

There have also been growing calls for the inclusion of Chinese-Indonesians in the lineup as recognition that the ethnic group is a valued part of the nation,

Golkar member Fahmi Idris cited reliable sources and said there was the possibility that members of the ethnic group be given ministerial posts.

"As to how many (Chinese-Indonesians) or who they are, that's entirely the prerogative of the President," he was quoted by Antara as saying.

Golkar's deputy chairman in the House of Representatives, Abdul Gafur, said suitable Golkar candidates for the next cabinet should be those with outstanding records who are dedicated, are of good conduct, and with strong loyalty and untainted backgrounds.

Golkar has prepared a list of names which it considers suitable candidates for cabinet positions, although it will not present it unless asked for suggestions by Soeharto.

The list only contains names and is not accompanied by the posts the individual should be assigned to.

"Our priorities would be those people who, all this time, have dedicated themselves to the country. They may be businesspeople, but Golkar members would be prioritized," he said.

"I am sure that in this (economic) situation, the cabinet would be established soon," he said.

He conceded that Indonesia was facing a relatively hard stage in its political development, but stressed that efforts should be done gradually and in an integrated manner.

"We need to be patient; slow but sure," he said. (swe)