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Surprises in new Indonesia line up

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Wednesday, October 20, 2004 Posted: 8:58 PM EDT (0058 GMT)

JAKARTA, Indonesia -- Indonesia's new president has named a cabinet line up that includes several surprise choices, appointing professionals and several women to key posts.

President Susilo Bambang Yudhoyono has named economist Jusuf Anwar, who currently works at the Asian Development Bank, as finance minister.

In another unexpected move, business tycoon Aburizal Bakrie -- one of only two ministers from the country's largest party, Golkar -- has been appointed chief economy minister.

Yudhoyono holds a doctorate in economics and it will be financial challenges that could prove his first major test after taking office.

Indonesia is Southeast Asia's largest economy, but it has struggled in recent years with chronic unemployment and underemployment, as high as 40 percent.

The line up also includes four generals which could raise some concerns that Yudhoyono -- a former general himself -- remains under the sway of the powerful military.

Outgoing president Megawati Sukarnoputri's Indonesian Democratic Party of Struggle is not represented in the new cabinet.

The shift away from Megawati's strategy of putting political appointees in many ministries is a gamble for Yudhoyono.

"I realize that whoever I nominate as minister, there will be pro and cons," Yudhoyono said at a news conference.

"I realize that not all ministers will please everybody."

Four women have been included in the cabinet, the most ever, which should please those who have long complained of a lack of women in top government posts.

The president has warned Indonesians not to expect miracles, but has pledged to stimulate the economy, fight corruption and end separatist rebellions.

Yudhoyono was sworn in to office on Wednesday after winning a sweeping mandate from Indonesia's 116 million voters.

In a nationally televised speech after the swearing in ceremony, the new leader spelled out his priorities for government, warning that "the specter of terrorism" still haunted the world's most populous Muslim nation.

He said he would personally head up a new team to fight official corruption, which he said "remained a systematic problem," the Associated Press reported.

Yudhoyono also said his government would "give special attention to the conflicts in Aceh and Papua," referring to two provinces where bloody conflicts between government forces and separatist rebels have killed thousands.

Megawati, whom Yudhoyono defeated in the September 20 poll, did not attend his swearing in ceremony.

Security forces were on high alert following a warning that Islamic militants blamed for the 2002 Bali bombings and last month's suicide attack on the Australian Embassy may have launched an attack to coincide with the ceremony.

The inauguration marks a major step in Indonesia's transition to democracy following the violent and messy six years following the 1998 downfall of the autocratic Suharto, a former general who ruled with an iron fist for 32 years.

While the former general is seen as a strong, decisive and capable leader, his victory was also driven by the electorate's dissatisfaction with his predecessor's performance over the last three years.

While a lot had to be done, the new leader was sending the right type of messages about achieving economic growth and reform, Indonesia watcher Ray Jovanovich from Credit Agricole Asset Management told CNN Wednesday.

Changing the nation's atmosphere on corruption would be vital, Jovanovich said, adding that the strength of Yudhoyono's personal mandate should make an early impact on driving reform.

But Yudhoyono will face problems pushing through reforms against deeply entrenched vested interests in the business, government and legal elite.

Moreover, his tiny Democratic Party only holds 10 percent of the seats in parliament, and his opponents could easily block new legislation.

"I think he will probably try to do some bold decisions early in his tenure when he has his honeymoon period, but I think the half-life of his honeymoon is not going to be very long," Ken Conboy, a risk management consultant in Jakarta, told Reuters.

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Copyright 2004 CNN. All rights reserved.This material may not be published, broadcast, rewritten, or redistributed. Associated Press contributed to this report.

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