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This is an archive article published on August 27, 2000

Can the controversial Indonesian cabinet sworn in deliver?

JAKARTA, AUG 26: Indonesia's impulsive President Abdurrahman Wahid on Saturday swore in a new cabinet which already faces doubts it can le...

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JAKARTA, AUG 26: Indonesia’s impulsive President Abdurrahman Wahid on Saturday swore in a new cabinet which already faces doubts it can lead the country out of three years of destitution and political mayhem.

But one positive sign was the presence at the brief swearing-in of smiling Vice President Megawati Sukarnoputri, widely seen as furious at being excluded from the selection process of the new government.

Megawati conducted part of the swearing-in ceremony for the nearly-blind Indonesian President.

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The new cabinet immediately promised to put the recovery ofIndonesia’s near-ruined economy as its top priority.

"The important thing is to restore the economy," Chief political and security affairs minister, Bambang Susilo Yudhoyono, told reporters after meeting Wahid, Megawati and senior ministers.

One of two Chief ministers — the other heads the economic portfolios — Yudhoyono said they had agreed that coordination within the new cabinet was crucial to recovery.

Wahid named the new government to appease mounting criticism of his erratic 10-month rule which has failed to resurrect the floundering economy or end the bloodshed in some provinces.

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But many analysts worry that the cavalier — some say arrogant — way in which he picked his cabinet last Wednesday would sow the seeds for more confrontation.

Megawati failed to show up at Wednesday’s announcement suggesting she was livid at not having a say in the new cabinet.

In a concession to criticism, Wahid has handed Megawati the daily running of government, including heading the cabinet.

But the frail Moslem cleric has made it quite clear he is only sharing duties with his deputy, not power.

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Megawati has maintained her customary silence over the issue, breaking it only once since Wednesday’s cabinet was named to say she was not going to quit.

Her aides say Megawati, whose public silence belies her political clout, would never step aside in pique, believing it would only bring catastrophe to the already battered nation.

Many fear that members of her Indonesian Democratic Party-Struggle (PDI-P), angered by the apparent slight against her, could become much more obstructive to Wahid in parliament.

The second largest party in parliament, Golkar, is also seen as unhappy at its complete exclusion from the new cabinet.

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The test of parliament’s mood will be soon, with the Assembly resuming next week.

Parliament’s first order of business on Monday will be to discuss a scandal linked to the presidential palace involving the theft of $4.1 million from the national food agency Bulog by people claiming to be acting on the President’s behalf.

Also slated for discussion is Wahid’s acceptance of a $2million donation from the Sultan of Brunei for humanitarian aid in the restive Aceh province.

MPs will convene a full session on Monday to debate whether parliament should launch an official inquiry into both issues.

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Worries over conflicts in parliament and the choice of Finance Minister have sent the rupiah and share prices tumbling.

But acting Central Bank Governor Anwar Nasution said he was confident the rupiah would recover as international institutions underwriting Indonesia’s recovery backed the new economic team.

One of the biggest worries in the market was the naming of Prijadi Praptosuhardjo as Finance minister.

Prijadi, a career banker, came to the public eye this year when the central bank said he was unfit to head a state bank.

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Nasution said he could work with Prijadi but declined to comment on the new Finance minister’s failure to pass the central bank’s "fit and proper" test.

New Chief economic minister Rizal Ramli, speaking just before the cabinet swearing-in, reiterated that relations with the International Monetary Fund were good.

There have been doubts over how Ramli would deal with the IMF, which is leading an international rescue of Indonesia’s economy. Ramli has in the past criticised the IMF’s programme.

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