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Thursday, August 09, 2001, updated at 16:28(GMT+8)
World  

Indonesian President Megawati Announces Her Cabinet

President Megawati Sukarnoputri unveiled her new Cabinet on Thursday, almost three weeks after taking office.

The announcement, which was being closely watched by financial markets, had been delayed several times, apparently because of jockeying by rival political factions and parties.

She said the new Cabinet will include Susilo Bambang Yudhoyono, a retired army general, as the senior security minister. The top economics minister will be Indonesia's outgoing ambassador to the United States, Dorodjatun Kuntjoro-Jakti.

In a significant step, Megawati resisted pressure to stack the Cabinet with political appointees. At least 14 of the 32 ministers are regarded as nonpolitical technocrats or experts in their fields, such as Foreign Minister Hasan Wirayuda, an envoy engaged in peace talks with separatist rebels from Aceh province.

The government's main duty will be to pull Indonesia out of its prolonged economic slump and maintain the unity of the sprawling archipelago in the face of separatist rebellions, and escalating ethnic and religious violence.

"National unity will be the first priority of my Cabinet," Megawati said in a nationally televised speech.

She said the lineup was designed to improve relations with Indonesia's creditors, which are backing a multibillion dollar economic rescue program led by the International Monetary Fund.

Megawati identified the wildly fluctuating exchange rate of the national currency, and the difficulties of restructuring banking sector as Indonesia's main economic problems.

Hours before the announcement, the rupiah rose sharply to a 10-month high as financial sector speculated that market-friendly ministers would be appointed.

The national assembly impeached former President Abdurrahman Wahid on July 23, replacing him with Megawati.

Although her Indonesian Democratic Party of Struggle is the nation's largest party and holds one-third of seats in Parliament, it still lacks a governing majority. Because of this, Megawati had to rely on the additional backing of other parties to win office.

Among other appointments was that of civilian Matori Abdul Jalil as defense minister. Matori had been chairman of Wahid's party but deserted the former leader to support Megawati.

On Wednesday, the leaders of a paramilitary Muslim group accused of killing hundreds of Christians in the Maluku islands paid a courtesy call on newly elected Vice President Hamzah Haz, a conservative Muslim politician.

Ja'far Umar Thalib, the commander of the Laskar Jihad, or Holy War Troops, said he had urged Haz to take the religious conflict in the Malukus more seriously, state news agency Antara reported.

At least 5,000 people have been killed in fighting between Christians and Muslims in the eastern Maluku Islands over the last two years. Indonesia is the world's most populous Islamic country.

Local officials and human rights groups accuse Laskar Jihad of being behind the bloodiest incidents in the conflict.











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President Megawati Sukarnoputri unveiled her new Cabinet on Thursday, almost three weeks after taking office.

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