SBY's New Economic Team, The Market Awaits

Last night(Oct 21st), the economic team of the elected president Susilo Bambang Yudoyono, was finally conveyed to public as the president announced his cabinet members at 22.00 WIB.

All the presidents men

The names that arise are names that were ones expected before. When the names first arise to the media before the official announcement, there were pro and contra about the capability of these candidates. In the presidential system it�s a prerogative right for a president to choose his men.


Basically it can be chosen from the competence background, a political decision, and the passionate of the person to that field says political analyst. So its totally up to the president, whether his choice is based on the track record and competence of the candidate i.e economic degree and experience in the field. It can also be based on the political choice by means that accommodating coalition parties. In this case the candidate could be a choice of the party leader. And the last is from the concern, shown by sound track record and the interest to the field and pledge to make positive changes.


But the real thing or indicator after all is the market reaction to the candidates or to the final announcement. There was a slight fall of the index (Wed (21/10/2009) closed at 25,419 poin or 1,02 % decrease) when the candidate names shown, it was said that because the market felt that the candidate was incompetent and has little or no track record in the field. But overall it affected positively to the market and investors, because there were equalizers (like Sri Mulyani and Djoko Kirmanto) with proven track record.


But the president's words were that he can't satisfy everyone since this is the beauties of democracy. If these new ministers do not perform, reshuffle awaits.

To make it straight, we will list the tasks that the economic team must do or take care of are :

* Increase the tax to GDP ratio which is relatively low (13%)
* Decrease the dependency of international debt
* Reduce the dependency of Non Sustainable energy (hard task for the energy and resource minister)
* Create Jobs to reduce national unemployment rate and the poor.
* Increase industrial and economic competitiveness
* Empower small and medium enterprises / SME (UMKM)
* Make economic policy that is friendly for investors.
* Equalize the development of the Eastern side of Indonesia


The first task of these ministers is to translate the 100 days goals of the president to planned, achievable programs in their departments. And the second give prosperity to the people.

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