NEW FINANCE MINISTER ACCEPTABLE TO MARKET

By Andi Abdussalam

Jakarta, May 20 (ANTARA) - Even though his experience in the macro economic sector is doubted, newly named Finance Minister Agus Martowadojo is a professional banker who has a good track record in micro economies, understands the real sector and is acceptable to the market, analysts say.          "I think he is acceptable to the financial market and investors. He is independent, reliable, competent, professional and non partisan," Bank BNI economist Ryan Kiryanto said.          President Susilo Bambang Yudhoyono on Wednesday night appointed Bank Mandiri President Director Agus Dermawan Wintarto Martowardojo as the new finance minister to replace Sri Mulyani Indrawati, who will assume the post of managing director at the World Bank as of June 1.          According to Umar Juoro, chairman of the board of directors of the Center for Information and Development Studies (Cides), Agus who has more capabilities in the micro sector is acceptable to the financial market.          "The financial market likes the new finance minister," Umar Juoro said. His lack of experience in the macro economic sector could be overcome by his vice minister, Anny Ratnawati, and by directors generals in the finance ministry.          On Wednesday, President Yudhoyono also named Director General of Budget Affairs at the Finance Ministry Anny Ratnawati as deputy finance minister.          Umar Juoro expressed his hope that the new finance minister would continue the bureaucratic reforms launched by his predecessor Sri Mulyani. "He has to give a priority to the reforms, especially in the field of taxation and budget efficiency," he said.          Ryan Kryanto concurred with Juoro's argument, saying that the new finance minister must continue the bureaucratic reforms sphere headed by Sri Mulyani. For this purpose, Agus Martowardojo must maintain good communications with all stakeholders.       In other aspect, the new finance minister must also be able to accelerate the absorption of budget in order that the real sector development could be generated. "He has to have more harmonious coordination with Bank Indonesia (BI) as the holder of the monetary authority," he said.          Economist Tjuk K Sukiadi of the Surabaya-based Airlangga University (Unair) said however that Agus Martowardojo had to have the courage to solve and put in order the tax problem in the finance ministry.           "As a professional, all know that he is a successful banker but as finance minister who has to settle macro economies, he has to prove his ability to put in order the problems of taxes left by Sri Mulyani," he said.          The ministry of finance needs courageous personality like that of Sri Mulyani. The taxation problems left by Sri Mulyani are proof that macro economy needs not only smart and professional people but also courageous ones.          "At least Pak (Mr) Agus must be able to carry out economic reforms and to boost the performance and honesty of tax officials (who receive payments six times better than other civil servants) six times better," he said.          Besides carrying out improvements within the taxation institution itself, the new minister should also be professional in handling tax dodgers of major groups like the Bakrie Group.          Meanwhile, Indra Nur Fauzi, director f Regional Economic Development Institute (REDI), has doubts about the new minister's capability in the macro economic sector.       "Although Agus Martowardojo is experienced in the banking sector, yet  we have doubts about his capacity as new finance minister in handling macro economies, especially in the fiscal policies," he said.         In general, however, the appointment of Agus as new finance minister was welcomed by businesses.          "I agree to President Susilo Bambang Yudhoyono's wise decision to choose Agus Martowardojo as new finance minister to replace Sri Mulyni, because he was  able to save Bank Mandiri from the  crisis,  to make reform of the bank, and have problematic debtors pay their debts," Franky Sibarani of the Indonesian Employers Association (Apindo) said.          Franky said that as a banker, Agus understood well issues related to real sector and therefore he was expected to be able to help the government improve developments of the real sector. "As a banker, Agus is a business player who knows a great deal about the real sector, and that is what businessmen really want," Franky said.         Young entrepreneurs also welcomed the appointment of Agus as finance minister. "We supports Agus,," Erwin Aksa, chairman of the Indonesian Young Entrepreneurs Association (Hipmi) said.          Erwin Aksa, who is also chief executive officer" (CEO) of Bosowa Grup, said that Agus was close to the real sector and understand well the need for investment of the business world.          Erwin said that at present many projects were facing difficulties to run well due to the fact that investments were still confined to commitment only because the fiscal policies had not yet been made interactive with business.          "If tax incentives run well, investments will also run well. So, a banker who is named finance minister would bring fresh winds to businesses," Erwin said.          Agus DW Martowardojo who was graduated from the School of Economics of the University of Indonesia (UI) in 1984 is an experienced banker. He occupied the post of director at Bank of America in 1984 and Bank Niaga from 1986 to 1994.     In 1995 he was appointed president director of Bank Bumiputera for three-year term. He was later appointed president director of Export-Import Bank (Bank Exim) in 1998, president director of Bank Permata from 2002 to 2005 and president director of Bank Mandiri since 2005.     He also worked as one of the leaders of the Indonesian Bank Restructuring Agency (IBRA) in 2002.      (T.A014/A/HAJM/12:50/A/O001) 20-05-2010 12:49: