REDEFINING BUSINESS 

August 10, 2001

In The Best Of All Worlds
The cabinet lineup will be the first test of how Megawati will deal with a fractious parliament and revitalize Indonesia

By WARREN CARAGATA

Nothing nurtures confidence after a change in government more than the rapid installation of a cabinet filled with seasoned professionals. That was supposed to happen within a few days of President Megawati Sukarnoputri's inauguration on July 23. It didn't happen. Then she was to finalize the list with freshly chosen vice president Hamzah Haz on July 30. No such luck. Instead, there has been relentless negotiation between officials of the big parties as Megawati was confronted by a reality of Indonesian politics cabinet-making as a rush for the spoils.

Most of the large parties have presented Megawati with lists of their stalwarts in almost every position, Rais says. Megawati's own Democratic Party of Struggle (PDI-P) gave her four different lists from four different factions. Even ousted president Abdurrahman Wahid's small National Awakening Party, which claims Megawati's election was illegal, says it wants cabinet posts. To aid negotiations, PDI-P leaders have developed a mathematical formula: the presidency is worth 15 points, a regular portfolio three points, and so on. Jeffrey Winters, an American academic with long experience watching Indonesian politics, says the tangle over the spoils reminds him of scavengers in the wild fighting over a kill: "It's a nice place as long as you're one of the hyenas."

Senior PDI-P leaders say they hope to reserve economic portfolios for nonpolitical technocrats, ensuring expertise. But the need to accommodate the demands of necessary coalition partners makes it unlikely there will be much of a hoped-for Dream Team. The measure of the cabinet will also come not just by who's in it, but what's in it. If there's no active military officer at defense, that's good. If Megawati re-creates the discredited ministry of information, Suharto's center of censorship and propaganda, that's bad. Possible dream-teamers:

Foreign Affairs: LAKSAMANA SUKARDI, a former Citibank executive and a favorite of economic liberals � and a senior member of Megawati's party. Keeping Sukardi out of an economic portfolio means the president can reserve all the economic posts for technocrats rather than politicians. That will reduce the chances of corruption and increase the possibility of economic momentum.

Finance: SRI MULYANI INDRAWATI is one of the country's best-known economists and a champion of reform.

Attorney General: J.E. SAHETAPY, head of the Indonesian Law Commission and one of the few people in the legal system with a reputation for honest dealing.

Security: SUSILO BAMBANG YUDHOYONO, a retired general who Wahid dumped from his cabinet for opposing the imposition of an emergency decree that would have dissolved parliament.

Industry & Trade: LUHUT PANJAITAN is a onetime general and former ambassador to Singapore. Although his appointment to Wahid's cabinet last year was greeted by initial skepticism, he has since won the praise of the business community.

Mines & Energy: Anyone but ARIFIN PANIGORO. As head of PDI-P's parliamentary caucus, Panigoro may be more responsible than anyone for pushing Wahid's impeachment, which gave Megawati the top spot. But as one of Indonesia's oil barons, giving him this job would be a bad sign indeed.

All, some or none of the above may be on the final list. There are others equally worthy (and many more who aren't). But whatever the cabinet looks like in the end, it will have to measure up to what ought to be.

� 2001 Asiaweek.


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