EYE-TO-EYE: Finance Minister Sri Mulyani listens to Bank Indonesia Governor Boediono during a hearing at the House of Representatives in Jakarta on Wednesday. They discussed the fate of the financially troubled Indover Bank. (JP/P.J. Leo)

The government has brushed aside claims there is a conflict among Cabinet members that has placed the position Finance Minister Sri Mulyani Indrawati in jeopardy, in relation with her handling of companies hammered by the recent stock market dive.

As reported earlier by The Jakarta Post, sources say attempts are underway to unseat Mulyani for her stern moves to safeguard the state budget and reportedly reject government assistance to rescue a business empire struggling to deal with the impact of its plummeting share prices.

Sources name the business empire as the Bakrie group of companies -- controlled by the politically wired family of welfare minister Aburizal Bakrie -- whose share-price dive helped drag down the Jakarta stock market.

However, presidential spokesman Andi Mallarangeng rejected the claims, saying relations between Cabinet members were just as good as ever.

"No, that's not true. I was a bit surprised myself to read (the report)," he told reporters on Wednesday on board a Garuda flight carrying an Indonesian delegation, led by President Susilo Bambang Yudhoyono, to Beijing, where leaders of Asian and European countries will gather for the Asia-Europe Meeting (ASEM).

Mulyani has carved out a formidable ministerial career since 2004, thanks in part to her fearless stance in making tough decisions.

In her early years as a minister, for instance, she initiated a massive overhaul in two units under her ministry known to be among the most corrupt state institutions in the country -- the tax and customs offices.

But her efforts have brought her plenty of enemies, the sources claim, who are now teaming up in a bid to unseat her.

Ministry sources say businessmen involved in violations in the mining sector, the customs and excise business, and the tax sector are among those teaming up with businessmen who recently got burned in the stock market and could not recover their losses.

Andi, however, dismissed this as "mere speculation". He said the President had never discussed the issue with his Cabinet ministers, saying "there is no such thing at all."

Mulyani refused to comment on the issue Wednesday, saying only that it was a difficult question to answer.

However, when asked for her response to businessmen who were unsatisfied with her recent policy in dealing with the havoc in the financial sector, Mulyani said the ministry remained committed to upholding transparency and accountability.

"Financial market stakeholders believe we have enforced all regulations based on the highest standards of responsibility and accountability," she said.

"We are requesting companies facing special situations that need special attention to settle their problems based on capital market protocols."

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