Indonesia’s Indrawati to stay on as finance minister

Indrawati said she had agreed to stay on as finance minister and to ensure policies supported the president’s priorities. (File/AFP)
Updated 22 October 2019

Indonesia’s Indrawati to stay on as finance minister

  • Widodo has since Monday tapped more than a dozen candidates for ministerial posts
  • Indrawati, a former managing director of the World Bank, has been finance minister in Southeast Asia’s largest economy since 2016

JAKARTA: Indonesian Finance Minister Sri Mulyani Indrawati said on Tuesday she had been asked by President Joko Widodo to stay on in her post as his new cabinet takes shape for a second five-year term in office.

Widodo has since Monday tapped more than a dozen candidates for ministerial posts, including his presidential election rival Prabowo Subianto, who looks set to be defense minister.

The candidates — all wearing white shirts — have come to the presidential palace to be interviewed by Widodo, with most declining to confirm the positions offered ahead of an official announcement expected on Wednesday.

After meeting Widodo, Indrawati said she had agreed to stay on as finance minister and to ensure policies supported the president’s priorities such as improving human resources, creating jobs and executing government budgets well.

“Indonesia I think is facing a very dynamic and uncertain global economy and an economic slowdown that is pressuring the whole world,” Indrawati said.

“Therefore, a continued policy is needed in order to be able to guard our economy from the challenge of this global slowdown,” she said, noting she also discussed ways to narrow Indonesia’s current account and trade deficits.

Indrawati, a former managing director of the World Bank, has been finance minister in Southeast Asia’s largest economy since 2016, spearheading tax reform efforts, seeking to capitalize on a tax amnesty program in 2016-2017. She is now one of the longest serving finance ministers in Indonesia, having also held the post in the previous administration of President Susilo Bambang Yudhoyono.

“Sri Mulyani is seen as a key architect behind the fiscal discipline in recent years and many wish for her continued leadership in driving deeper fiscal reforms,” Bank of America wrote in a note.

The make-up of the cabinet is being closely watched to see how many technocrats — who are more likely to fall in with Widodo’s plans for boosting growth and investment — were included.

Other ministerial candidates who came to the palace on Tuesday included Basuki Hadimuljono, who is credited with driving infrastructure projects as public works minister in Widodo’s first term, and Siti Nurbaya Bakar, environment minister in the first term.

On Monday, Nadiem Makarim, the chief executive of tech startup Gojek and media tycoon Erick Thohir, a former chairman of Italian soccer club Inter Milan, were among those confirming they had been asked to join the cabinet.

Speaking to media ahead of his inauguration on Sunday, Widodo said around 16 ministers in the new cabinet would come from political parties out of an anticipated 34 posts.


IAEA urges Iran to explain uranium particles at undeclared site

Updated 21 November 2019

IAEA urges Iran to explain uranium particles at undeclared site

  • IAEA said in a report last week that its inspectors had "detected natural uranium particles of anthropogenic origin at a location in Iran

VIENNA: The UN nuclear watchdog on Thursday urged Iran to explain the presence of uranium particles at an undeclared site, as a landmark deal aimed at curbing Tehran's atomic activities threatens to collapse.
The International Atomic Energy Agency (IAEA) said in a report made public last week that its inspectors had "detected natural uranium particles of anthropogenic origin at a location in Iran not declared to the agency".
The agency's acting head Cornel Feruta said IAEA and Iranian officials would meet in Tehran next week to discuss the matter, adding that the UN body had not received any additional information.
"The matter remains unresolved... It is essential that Iran works with the agency to resolve this matter promptly," he told IAEA member states at a meeting of the agency's board of governors.
A diplomatic source told AFP that the IAEA would send a high-ranking technical delegation to Iran next week.
The particles are understood to be the product of uranium which has been mined and undergone initial processing, but not enriched.
While the IAEA has not named the site in question, diplomatic sources have previously said the agency asked Iran about a site in the Turquzabad district of Tehran where Israel has alleged secret atomic activity in the past.
Sources say the IAEA took samples from the site in the spring and that Iran has been slow in providing answers to explain the test results.
The 2015 deal between Iran and world powers has been faltering since last year when the United States pulled out and started to reinstate punishing sanctions on Tehran, leaving the other signatories struggling to salvage the agreement.
Over the past few months, Iran has breached several parts of the deal it signed with the US as well as Britain, China, France, Germany and Russia, in which it committed to scaling back its nuclear programme in exchange for sanctions relief.
But Britain, France and Germany have said they are extremely concerned by Iran's actions in stepping up its uranium enrichment and other breaches.
Enrichment is the process that produces fuel for nuclear power plants but also, in highly extended form, the fissile core for a warhead.
On Monday, the IAEA confirmed Iran's stock of heavy water for reactors has surpassed the 130-tonne limit set under the agreement.
Heavy water is not itself radioactive but is used in nuclear reactors to absorb neutrons from nuclear fission.
Heavy water reactors can be used to produce plutonium for nuclear weapons as an alternative to enriched uranium.
The IAEA has also said one of its inspectors was briefly prevented from leaving Iran, calling her treatment "not acceptable".
Iran has cancelled the inspector's accreditation, saying she triggered a security check at the entrance gate to the Natanz enrichment plant last month.
The IAEA has disputed the Iranian account of the incident, without going into details.