New Indonesian finance minister, former bank CEO, says he will continue on reform path

Indonesia’s new finance chief: reforms will go on

JAKARTA, Indonesia — Indonesia’s new finance minister pledged Thursday to continue with the reform agenda started by his predecessor, who maintained economic growth but angered some with her anti-corruption sweep and tax enforcement.

Agus Martowardojo, CEO of state-owned Bank Mandiri — the country’s largest bank — was named Wednesday to take over the Finance Ministry from Sri Mulyani Indrawati, who resigned to take a position at the World Bank.

“We will continue the bureaucratic reforms that have been administered by Minister Sri Mulyani,” Martowardojo told reporters Thursday at his house. “In addition, we will maintain fiscal resilience and will maximize all efforts in creating a harmonious relationship between fiscal and monetary policy, so that our economic growth can be sustained.”

Economists and businessmen have already voiced support for Martowardojo, who will go from leading a national bank to managing the budget of Southeast Asia’s largest economy.

“He has dedicated his knowledge as banker to maintain a good performance in managing the country’s largest bank,” said economist Fauzi Ichsan. “He really understands how to keep the country’s rupiah and bonds stable.”

Martowardojo is a career banker who successfully led a private bank before becoming CEO of Bank of Mandiri in 2005. He was reappointed just last week for a second term as CEO at the bank after reforming Mandiri’s assets by slashing non-performing loans and raising the bank’s profile among international investors.

His weakness may be his lack of government experience, Ichsan said, but that will be balanced by his deputy minister, Anny Ratnawati, a longtime bureaucrat who is the ministry’s current director-general of budgeting.

Sofyan Wanandi, chairman of the Indonesian Employers Association, said the new minister was well-informed on the workings of the Indonesian economy but would also have to learn a little about politics.

“I am confident that the new minister will manage the Indonesian economy well as long as he can confidently stand up to some challenges,” Wanandi said. “Sri Mulyani dared to say ‘no’ to the president. We don’t know whether Martowardojo has the guts to say ‘no’ for the sake of the economy or can overcome the hurdles of politics and policy in relation to the economy.”

The minister and his deputy will be sworn in later Thursday.

Outgoing minister Indrawati praised the new appointments.

Associated Press writer Niniek Karmini contributed to this report.