Agus Dermawan Wintarto Martowardojo
of Bank Mandiri is Indonesia's new finance minister.
In a move seen as trying to please political and economic circles, President Susilo Bambang Yudhoyono on Wednesday night named veteran banker Agus Martowardojo as the new finance minister and Anny Ratnawati, a senior finance official, as his deputy.
“I perceive these two figures as competent to work as the finance minister and the deputy minister. They have capacity and integrity,” the president said, announcing the decision at his private residence in Cikeas, Bogor.
He said both had the experience, knowledge and exposure, domestically and internationally, to succeed in their new positions.
Agus, with no political background, is most notably credited with revitalizing the almost-bankrupt PT Bank Permata into a stable performer during his time as president director of the private bank from 2003 to 2005.
He has since headed the nation’s largest lender, PT Bank Mandiri, turning it into one of the most profitable banks in Indonesia, raising its net profit from Rp 603 billion ($60 million) in 2005 to Rp 5.31 trillion in 2008.
Anny is currently the Ministry of Finance’s director general of budgeting.
The appointments had been hotly anticipated after outgoing Finance Minister Sri Mulyani Indrawati’s controversial exit amid a wave of political turbulence seen by many as a result of her strong reform drive.
Businesspeople and experts aired broad confidence in Agus’s abilities. Political analysts said they believed his appointment would reduce the hostility between the government and lawmakers, which came to a head with the attacks on Sri Mulyani and Vice President Boediono during the House’s investigation into the PT Bank Century bailout.
Yunarto Wijaya, a political analyst from Charta Politika, said Agus’s appointment would improve communication between the Finance Ministry and politicians, while Anny’s presence would be a reminder that Sri Mulyani’s reforms would go on.
But Burhanuddin Muhtadi, an analyst from the Indonesian Survey Institute (LSI), said Agus would not necessarily be free from political pressure. The House rejected his nomination for central bank governor in 2008.
Agus and Anny will be sworn in today at the State Palace.
Politicians had mostly kept out of the way, saying the appointments were solely the president’s prerogative.
Tjahjo Kumolo, a senior member of the opposition Indonesian Democratic Party of Struggle (PDI-P), said the party would not question the choices. “It will be the market that will judge,” he said.
Earlier, Sri Mulyani said in a speech to alumni of the University of Indonesia that her successor should improve the ministry’s performance. She advised the new minister to train officials to be independent. “The more dependence the Finance Ministry has on me, the more dangerous it is for the institution,” she said. “I tried my best so officials could decide on things based on their conscience, instead of just following directions from me.”
Sri Mulyani said she was confident reform would continue. “There are still many bureaucratic officials with good integrity, so I’m still confident in the reform efforts,” she said.
