Rendi A. Witular and Aditya Suharmoko, The Jakarta Post, Jakarta | Thu, 05/06/2010 9:50 AM |
More than six months of political bickering within President Susilo Bambang Yudhoyono’s coalition camp has resulted in the loss of the nation’s reform-minded Finance Minister Sri Mulyani Indrawati.
Yudhoyono announced Wednesday his approval for Mulyani’s resignation and her acceptance of a prestigious job as one of the World Bank’s managing directors, the highest rank under World Bank president Robert Zoellick.
The Indonesian stock exchange tumbled 3.8 percent Wednesday, the steepest one-day decline in 17 months after the announcement, because it remains unclear who will replace Mulyani.
Mulyani, 47, will start her new job on June 1, replacing Juan Jose Daboub. She will oversee 74 nations in Latin America, the Caribbean, East Asia and the Pacific, the Middle East and North Africa.
“I have to convey to the people that we are losing one of our best ministers,” Yudhoyono said in a press conference.
He said the new finance minister should continue with the tax, customs and financial reforms initiated by Mulyani.
Yudhoyono said he had received a letter dated April 25 from Zoellick on April 30 that requested Mulyani be allowed to take the job at the World Bank. Yudhoyono instantly agreed to the request.
However, it was the World Bank that broke the story first by announcing the news on its web site. Yudhoyono later confirmed it.
Mulyani’s sudden departure from the Cabinet has raised speculation that a deal might have been struck between Yudhoyono and his coalition camp to end the political instability stemming from the Bank Century bailout debacle, which centered on Mulyani and Vice President Boediono.
Politicians have been using the bailout issue to oust Mulyani and reform-minded Boediono, alleging them of recklessness for approving the Rp 6.76 trillion (US$716 million) bailout at the height of the global financial crisis in late 2008.
The issue was first raised in mid 2009, and later in December that year the House of Representatives set up an investigation committee to study the circumstances of the bailout and especially the roles Mulyani and Boediono played in it.
Some critics believe the House’s real motive may have been founded in their opposition to Mulyani’s reform program, which has made it difficult for politicians to plunder the state budget or to gain access, illicitly, to government projects.
“It’s a kind of a good versus evil thing going on in this bickering between politicians and Mulyani and Boediono — both are pictured as the good guys,” said political analyst Arbi Sanit from the University of Indonesia.
“Mulyani’s resignation may suggest a compromise was reached by the coalition to keep the political condition conducive at the cost of a reformer,” he said.
Several Finance Ministry top officials told The Jakarta Post Mulyani was actually forced to resign, and was offered the World Bank job as an honorable exit route.
“We understood later the minister had never applied for the job, and actually had no prior plan to resign. But she was told by the President on Monday to take the job,” said one of the officials.
Mulyani’s “dismissal” was actually planned in early February when the Post reported a deal was struck between Yudhoyono and Golkar Party chairman Aburizal Bakrie to oust Mulyiani.
Yudhoyono at that time rebutted the report, saying it was “poor fiction”.
“This is exceptionally creative, but awful fiction. This [speculation] won’t benefit the people. This is the politics of fiction; they made up what’s not there,” he said.
However, Yudhoyono has now released Mulyani, allowing her to serve an overseas job with an annual salary of around $500,000 even though she remains very much needed to keep the reform program rolling.
Controversies Surrounding Mulyani’s exit
1. During Wednesday’s breakfast meeting with Finance Ministry’s top officials, Mulyani indicates that she has been ordered to accept the World Bank job by the President.
2. The World Bank is the first to announce Mulyani’s appointment.
3. Yudhoyono says Mulyani is among the nation’s best ministers, yet allows her to serve overseas.
4. In a meeting with the Judicial Mafia Taskforce on Monday, Mulyani said she would not back down from fighting graft at the tax and customs offices.
5. Mulyani refuses to explain her resignation.
More than six months of political bickering within President Susilo Bambang Yudhoyono’s coalition camp has resulted in the loss of the nation’s reform-minded Finance Minister Sri Mulyani Indrawati.
Yudhoyono announced Wednesday his approval for Mulyani’s resignation and her acceptance of a prestigious job as one of the World Bank’s managing directors, the highest rank under World Bank president Robert Zoellick.
The Indonesian stock exchange tumbled 3.8 percent Wednesday, the steepest one-day decline in 17 months after the announcement, because it remains unclear who will replace Mulyani.
Mulyani, 47, will start her new job on June 1, replacing Juan Jose Daboub. She will oversee 74 nations in Latin America, the Caribbean, East Asia and the Pacific, the Middle East and North Africa.
“I have to convey to the people that we are losing one of our best ministers,” Yudhoyono said in a press conference.
He said the new finance minister should continue with the tax, customs and financial reforms initiated by Mulyani.
Yudhoyono said he had received a letter dated April 25 from Zoellick on April 30 that requested Mulyani be allowed to take the job at the World Bank. Yudhoyono instantly agreed to the request.
However, it was the World Bank that broke the story first by announcing the news on its web site. Yudhoyono later confirmed it.
Mulyani’s sudden departure from the Cabinet has raised speculation that a deal might have been struck between Yudhoyono and his coalition camp to end the political instability stemming from the Bank Century bailout debacle, which centered on Mulyani and Vice President Boediono.
Politicians have been using the bailout issue to oust Mulyani and reform-minded Boediono, alleging them of recklessness for approving the Rp 6.76 trillion (US$716 million) bailout at the height of the global financial crisis in late 2008.
The issue was first raised in mid 2009, and later in December that year the House of Representatives set up an investigation committee to study the circumstances of the bailout and especially the roles Mulyani and Boediono played in it.
Some critics believe the House’s real motive may have been founded in their opposition to Mulyani’s reform program, which has made it difficult for politicians to plunder the state budget or to gain access, illicitly, to government projects.
“It’s a kind of a good versus evil thing going on in this bickering between politicians and Mulyani and Boediono — both are pictured as the good guys,” said political analyst Arbi Sanit from the University of Indonesia.
“Mulyani’s resignation may suggest a compromise was reached by the coalition to keep the political condition conducive at the cost of a reformer,” he said.
Several Finance Ministry top officials told The Jakarta Post Mulyani was actually forced to resign, and was offered the World Bank job as an honorable exit route.
“We understood later the minister had never applied for the job, and actually had no prior plan to resign. But she was told by the President on Monday to take the job,” said one of the officials.
Mulyani’s “dismissal” was actually planned in early February when the Post reported a deal was struck between Yudhoyono and Golkar Party chairman Aburizal Bakrie to oust Mulyiani.
Yudhoyono at that time rebutted the report, saying it was “poor fiction”.
“This is exceptionally creative, but awful fiction. This [speculation] won’t benefit the people. This is the politics of fiction; they made up what’s not there,” he said.
However, Yudhoyono has now released Mulyani, allowing her to serve an overseas job with an annual salary of around $500,000 even though she remains very much needed to keep the reform program rolling.
Controversies Surrounding Mulyani’s exit
1. During Wednesday’s breakfast meeting with Finance Ministry’s top officials, Mulyani indicates that she has been ordered to accept the World Bank job by the President.
2. The World Bank is the first to announce Mulyani’s appointment.
3. Yudhoyono says Mulyani is among the nation’s best ministers, yet allows her to serve overseas.
4. In a meeting with the Judicial Mafia Taskforce on Monday, Mulyani said she would not back down from fighting graft at the tax and customs offices.
5. Mulyani refuses to explain her resignation.
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