The new cabinet: What the world says

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The new cabinet: What the world says
Yanto Soegiarto | November 06, 2011

The new Unity Cabinet II line-up installed by Susilo Bambang Yudhoyono has drawn mixed comments and criticism, with many voicing skepticism and stating that the appointments fell short of expectations.

The new line-up, which features seven new names and five ministers with new portfolios, includes two professionals who have received the most attention from the public: Dahlan Iskan, the former president director of state power utility PLN, and former chairman of the Investment Coordination Board (BKPM) Gita Wirjawan.

The ruling Democratic Party now has only three cabinet seats after losing Transportation Minister Freddy Numberi. The Prosperous Justice Party (PKS) also lost a seat with Research and Technology Minister Suharna Surapranata out. The party now has three ministers, the same as another coalition party, Golkar.

However, eyebrows were raised at the portfolios given to the remaining Democratic ministers. Jero Wacik, the outgoing tourism and culture minister, was appointed as the new energy and mineral resources minister, replacing Darwin Zahedy Saleh.

E.E. Mangindaan was shifted from the state administrative reforms portfolio and given the crucial transportation portfolio. The new justice and human rights minister, Amir Syamsuddin, Jero and Mangindaan are members of the Democratic Party’s ethics council and are all close to the president. And sSo is the new intelligence chief, Lt. Gen. Marciano Norman, a close confidant of the president who was formerly commander of the elite presidential bodyguard.

Former trade minister Mari Elka Pangestu now leads a newly renamed Tourism and Creative Industries Ministry. That appointment failed to win much applause as doubters fear she could still implement unpopular policies, as she did when she was trade minister.

Yunarto Wijaya from political research institute Charta Politika says the new line-up reflects a problematic managerial style. He said the president had the right to put loyalists in the cabinet, but pointed out that they have been placed in important posts. One subject of much criticism is Jero Wacik, who was less than popular even as tourism minister.

“The Energy Ministry is one of the lucrative posts. I don’t want to accuse people, but it’s not a secret anymore that ministries are seen as profit centers,” said Yunarto.

Questions were also raised about the ministers who were retained. Adnan Topo Husodo from Indonesia Corruption Watch said the president was using a double standard by keeping two ministers tainted by graft allegations — Manpower and Transmigration Minister Muhaimin Iskandar and Youth and Sports Affairs Minister Andi Mallarangeng.

“I don’t see that the president considers his ministers’ integrity as one of the points in appointing them,” Yunarto told Agence France-Presse. “I doubt that he has a strong will to truly eradicate corruption.”

Other analysts told GlobeAsia’s sister publication Investor Daily that the new appointments were unlikely to improve economic management. “By and large the reshuffle is not going to make a huge impact on investment. The government has only three more years in its term, and having new ministers coming in is not necessarily going to be efficient,” said Standard Chartered economist Fauzi Ichsan.

No shortage of work

Chairman of the Indonesian Businessmen’s Association (Apindo) Sofjan Wanandi is more positive. He says the line-up of new economic ministers is “fairly good.” But the ministers must work together to act swiftly in facing the threat of a global crisis. “Our hope is that the new team will be able to bring Indonesia out of the lingering crisis,” he said.

Sofjan added that countering the pressure of imported products and accelerating infrastructure development remain the priorities. “Up to now, 70% of the national economic growth originates from the domestic market. The president must create sound and clear policies so that the economic ministers will not conflict with each other,” he said.

Haryadi B Sukamdani, deputy chairman of the Indonesian Chamber of Commerce and Industry (Kadin) commented that the ministers would also be critical in making their newly-appointed deputies effective.

“The ministers must give clear authority to the deputies, not just for ceremonial purposes. I hope they will not become puppets only without coordination within the ministry. What we have seen in the past is that the director general preferred to bypass the deputy minister in communicating with the minister. If that happens it’s a joke,” he said.

Haryadi said the main focus of attention should be securing the domestic market from the pressure of imports, solving the problems of energy policies, infrastructure, law enforcement and overcoming labor problems as well as providing jobs.

Indonesian Institute of Sciences (LIPI) economist Latif Adam believes that the new cabinet line-up is not ideal as almost half of the ministers come from the political parties. “So many ministers with a political background will potentially ignite conflicts of interest and promote sectoral egotism. Based on experience, mis-coordination will likely happen,” he said.

Another economist, Roy Sembel, adds a positve note: he believes the new economic team will be able to bring change and direct the economy into a better position. “Our economy has two potentials, to run fast or very fast because we have very generous resources. The most crucial thing is to complete infrastructure projects and reorganize regulations which hamper investments. These regulations have slowed disbursement of the state budget,” said Roy.

Prominent businessman Hashim Djojohadikusmo said the keyword is performance. “I think the appointment of Dahlan Iskan is good for the state-owned companies,” Hashim told GlobeAsia

Although some analysts doubt Jero Wacik’s ability to manage the energy ministry, Coordinating Minister for the Economy Hatta Rajasa supported his appointment. “He’s an engineer who knows about the oil and gas,” he said.

Right man, right place

Sofjan Wanandi, Hariyadi Sukamdani and Fauzi Ichsan agree that the appointment of Dahlan Iskan as state-owned companies (SOEs) minister and Gita Wirjawan as Trade Minister complies with Yudhoyono’s statement of putting the right man in the right place.

Sofjan, reflecting the views of the business community, said Dahlan succeeded in making breakthroughs at PLN. “We need people like him in facing crisis,” Sofjan said.

Fauzi adds that the president’s decision to appoint Dahlan was right. “Dahlan has proved himself capable in managing PLN and has won a positive evaluation from both business and the public in general. His managerial capability is proven.”

Both Sofjan and Hariyadi add that they support the appointment of Gita Wirjawan as trade minister. “Gita has excellent international networks. Now he has to strengthen the domestic market,” they said. GA