Sri Mulyani to stay as finance minister: SBY

Abdul Khalik ,  The Jakarta Post ,  Jakarta   |  Fri, 04/04/2008 1:18 AM  |  Headlines

President Susilo Bambang Yudhoyono said Thursday he would retain Sri Mulyani Indrawati as finance minister, sparking speculation the replacement for chief economic minister Boediono would come from outside the Cabinet.

Sri Mulyani is seen as the strongest candidate to replace Boediono, who has been nominated by the government to become the next Bank Indonesia governor.

"There have been news reports the finance minister will leave her post and will be replaced by another person. That is not true. There will be no change of finance minister," Yudhoyono told a news conference after a Cabinet meeting at the presidential office.

He said he needed Sri Mulyani to continue consulting the House of Representatives in adjusting the state budget so it could finance the government's expenditures and stimulate economic growth.

"In a time like this, the finance minister is a pillar of the government. We need her to concentrate on handling financial problems amid soaring food and fuel prices affecting our budget," the President said.

Yudhoyono has nominated Boediono as his only candidate to replace current Bank Indonesia Governor Burhanuddin Abdullah, whose term ends May 17.

The House rejected the government's nomination last month of Bank Mandiri president director Agus Martowardojo and PT Perusahaan Pengelolaan Aset vice president Raden Pardede for the central bank's top post.

After the Cabinet meeting Boediono said he was prepared to undergo a so-called fit-and-proper test at the House scheduled for April 7.

However, he would not mention any names for his replacement as the coordinating minister for the economy.

Speculation surfaced that Agus, who was called by the President to attend the Thursday meeting along with Boediono and Sri Mulyani, was a strong contender to replace Boediono.

Also present at the Cabinet meeting were State Minister for National Development Planning Paskah Suzetta, State Minister for State Enterprises Sofyan Djalil, State Secretary Hatta Radjasa and Bank BNI president director Gatot Suwondo, who is a brother-in-law of First Lady Ani Yudhoyono.

An anonymous official said Sofyan would remain at his current post as he was trusted by the President to handle state enterprise ahead of the 2009 general elections, while the possible appointment of Gatot would draw criticism due to his family relationship with Yudhoyono.

The promotion of Agus would be a consolation for him and the President after the House did not appoint him as the central bank chief, added the official.

Another source said noted economist Syahrir, one of Yudhoyono's advisers, was also someone the President was considering to replace Boediono.

Earlier, Energy and Mineral Resources Minister Purnomo Yusgiantoro was mentioned as another candidate for the chief economic minister's post.

Speculation circulated the post would be left empty with the job to be taken over by Vice President Jusuf Kalla, who has been in charge of the government's economic affairs.

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