The thrill of Indonesia's first contested presidential election started to pale yesterday on fears that discredited faces from the past might join the new government.
The stock market was down nearly one percent in afternoon trade and the country's rupiah currency was looking leaden after last week's surge on the election of President Abdurrahman Wahid and Vice-President Megawati Sukarnoputri.
"The market concerns lie in the possibility of some old faces from the old regime in the new cabinet," head of research of Trimegah Securities, David Chang, said.
PHOTO: AFP
There is also widespread speculation that Wahid will pick two respected aides of his Vice President Megawati Sukarnoputri to lead his economic team.
Economist Kwik Kian Gie is touted for finance minister and former senior banker Laksamana Sukardi as planning minister -- both key jobs in dealing with the International Monetary Fund.
The IMF, leading a US$45 billion package to bail out recession-hit Indonesia, has already welcomed Wahid's election and many expect it to resume loans, suspended over a domestic bank scandal, soon.
There is also talk that Wahid will ease out armed forces chief and defense minister General Wiranto, who has taken much of the blame for human rights abuses by the military in the past year of violence in which thousands have died around the country.
In return for giving up his two current posts, Wiranto may be handed a more supervisory role, such as coordinating minister for security, according to some politicians.
The final cabinet is expected to be announced this week, possibly as early as today.
Wahid has received a stream of visitors since taking office, including some closely linked to disgraced former president Suharto, prompting fears that corrupt officials could soon be back in office.
At the weekend, Wahid said repayment of political debts to get him the presidency meant he would have to take some people from governments of his predecessors.
Wahid has also made waves by indicating a shift in his nation's diplomatic priorities, saying he planned to visit China and other Asian countries in the coming weeks.
Indonesia's past regime also had close ties to its Asian neighbors, but it emphasized links with the US, other Western nations and neighboring Australia.
Wahid has also hinted at recognizing Israel, but reiterated yesterday that Israel would have to meet three conditions before Indonesia would consider forging diplomatic ties.
According to Palestinian ambassador Ribhi Awad, those conditions were: the establishment of a Palestinian state with Jerusalem as its capital, the withdrawal of Israelis from occupied Arab land, and the return of Palestinian refugees from all over the world.
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