Promising signs seen in Megawati: DBS Bank

Promising signs seen in Megawati: DBS Bank

SINGAPORE (AFP): DBS Bank said Wednesday it sees "some promising signs" in the leadership of new Indonesian President Megawati Soekarnoputri.

In an upbeat initial assessment of Megawati's first two weeks in office, Southeast Asia's largest bank said she may speak softly but was apparently aware of what needed to be done to restore investor confidence in her country.

"At least we see some promising signs," the bank said. "Megawati may not speak much, but for now, she seems to know what needs to be achieved to regain investor confidence.

"By itself, this is a refreshing change from Gus Dur's controversial banter. After all, it's always prudent to 'under promise and over deliver', especially to a disillusioned market," DBS said.

Gus Dur is the nickname of former Indonesian president Abdurrahman Wahid, the half-blind, half-deaf Muslim cleric who was ousted earlier this month on questions over his ability to lead Southeast Asia's biggest country and Singapore's immediate neighbor.

DBS said it remained concerned over the "myriad of economic and political challenges" confronting Megawati, but added that over the past two weeks she had been in office, she had sprung some positive surprise moves.

It lauded the appointment of Muslim politician Hamzah Haz as vice president, Megawati's careful deliberation on the composition of her cabinet and her move to expand human rights investigation into alleged massacres in East Timor.

The delay in the announcement of her cabinet could stem from a desire to choose the right people, especially a "credible economic team which would mend and establish a more stable relationship" with the International Monetary Fund, the bank said.

"Megawati's first 15 days as president of Indonesia deserve more credit than what the market accords her," DBS said.