One reason for the growing uncertainty has been the protracted problem of the Bank Century bailout. As the inquiry drags on, the outcome of this case has increasingly become anybody's guess. For example, there has been speculation that the Finance Minister Sri Mulyani, who has been at the center of attention alongside Vice President Boediono, may leave her post by the end of February. Worse, some have even begun to speculate about the possibility of the impeachment of the Vice President, and even the President.

It is unfortunate that the second Yudhoyono administration, which received a landslide mandate from the people, began so badly. It is frustrating to see that all the energy and attention, that should have been devoted to laying a stronger foundation for the next stage in consolidating democracy and economic recovery, is now absorbed by this problem.

Yet, it is imperative that the Bank Century issue be resolved quickly, because the future credibility of Indonesia as a democracy and an emerging market is at stake. More importantly, international confidence in Indonesia might be affected by the case.

Therefore, the government needs to get its act together to prevent the loss of international confidence in the country. For one, the resignation of Finance Minister Sri Mulyani would not help because she - regardless of whether she is guilty or not in the Bank Century bailout - is seen by the outside world as a symbol of economic reform in Indonesia. Even if she does eventually leave the Cabinet, President Yudhoyono should start devising a strategy to lessen the impact on Indonesia's credibility in the eyes of the international community. An assurance that her departure would not affect the pace of reform is absolutely necessary.

The long overdue plan to initiate and accelerate judicial reform in a serious manner needs to be implemented soon. It cannot take a piecemeal approach if the government is really serious about it. An improvement in international confidence in Indonesia requires a clear plan on how judicial reform will be executed, within what timeframe, and who will be in charge of the overall plan to do so. This significant agenda and challenge cannot be left to the ad hoc body such as the "Judicial Corruption Taskforce" alone. A more comprehensive and coherent plan is needed.

Judicial reform should also include a major initiative to reform the police. Its image, which has been at the lowest over the last few months, needs to be restored. That can only be done through a series of comprehensive reforms aimed at eradicating corrupt practice, improving professionalism and enforcing discipline.

When people generally feel comfortable when they see or meet a policeman on the street, they we will know that the reform has worked. Before that happens, reform should continue to be on the agenda.

Indonesia's image abroad has been quite positive so far. Many have come to see Indonesia as the only stable democracy in Southeast Asia. Indonesia has also been seen as a good candidate for joining the informal club of the emerging markets called BRIC (Brazil, Russia, India and China).

This image needs to be preserved and nurtured. And, the best and effective way to do this is not by changing other countries' perceptions through either propaganda or public diplomacy. We must do this by changing the reality at home for the better.

The writer is the executive director of the Centre for Strategic and International Studies (CSIS).

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