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span class="caption">Rizal Ramli - JP/Wendra Ajisetyatama

Newly appointed Coordinating Maritime Affairs Minister Rizal Ramli marked his second day in his new job on Thursday with strong criticism of the country'€™s ambitious electricity development plan, and the long-established expansion program of national flag carrier Garuda Indonesia.

Speaking to reporters at his new office, the former economic coordinating minister under former president Abdurrahman '€œGus Dur'€ Wahid said the 35,000-megawatt power plant development plan was unrealistic.

He also suggested Garuda should cancel its recent deal to secure loans of up to US$4.5 billion to finance its fleet expansion, saying that the financing was too expensive for the airline.

Rizal was installed to replace Indroyono Soesilo as part of the Cabinet reshuffle made by President Joko '€œJokowi'€ Widodo on Wednesday, after 10 months in office following mounting criticism over the lack of coordination among his ministries.

Regarding the target of generating an additional 35,000 MW of electricity by 2019, he specifically called it unrealistic.

'€œWe still have unfinished projects of 7,000 MW from the previous government. This means the total we have to build is 42,000 MW, which is difficult to achieve within five years. I will ask the energy and mineral resources minister to reevaluate which projects make sense,'€ he said.

Rizal, known to be a strong nationalist, said that Garuda should cancel its expansion plan, which included its international flights, saying that such a strategy no longer made sense in the current tight aviation market.

The flag carrier has signed a letter of intention to purchase 30 Airbus A350 aircraft, which Garuda says will help the company become a leading premium airline in the long-distance flight market.

But his criticism of Garuda'€™s long-established expansion plan irked State-Owned Enterprises (SOE) Minister Rini Soemarno, not only because the plan was drafted after an extensive study, but also due to the fact that her office does not fall under Rizal'€™s supervision.

'€œThe SOE Ministry is under the Office of the Coordinating Minister for the Economy, not Coordinating Maritime Affairs. On what basis does he [Rizal] talk like that? Garuda is expanding its business and it is a public company and we have to be responsible. A decision cannot be made by one person,'€ Rini said.

Rizal said he was extremely concerned about the airline'€™s financial condition. '€œI have met the President and he agrees. I don'€™t want Garuda to go bust. A350s only suit long-distance routes but it doesn'€™t have a decent record in this market, which is very competitive. It'€™s better to strengthen our position in the domestic and regional markets,'€ he said

Uneasiness was also expressed by Energy and Mineral Resources Minister Sudirman Said when he was asked about Rizal'€™s idea to review the 35,000 MW program.

'€œFor now, out of the 35,000 MW, 20 percent is in the process of construction. We are optimistic but because the volume is so huge we have to continue evaluating it, not reduce it, 35,000 MW is the volume we need or we will face blackouts. So, what we have to do is seek a way to realize the program,'€ Sudirman said.

Rizal'€™s strong character had the potential to create clashes between him and the ministers under his coordination who wish to implement their respective policies, warned Kahlil Rowter, the chief economist of Danareksa Research Institute.

'€œThey will have to solve it internally. If the clashes come out, both sides will be weakened. There must be a clear division of functions between a coordinating minister and the ministries so the market can see the government'€™s presence and the delivery of policies,'€ Rowter said.

However, he said, having coordinating ministers with strong leadership qualities such as Rizal or Darmin Nasution, the new Coordinating Economic Minister, would be helpful. Meanwhile, the President is scheduled to deliver his annual speech in front of members of House of Representatives Friday ahead of Independence Day on Aug. 17. Later in the afternoon, he will also present the draft of the 2016 state budget to House members. (fsu)