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COMMENTARY ON US-INDONESIA COMMERCIAL DEVELOPMENTS FROM THE AMERICAN INDONESIAN CHAMBER OF COMMERCE

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Thursday, May 20, 2010

Now Srikandi Can Laugh

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Indonesia’s departing Finance Minister, Sri Mulyani, has been speaking at gatherings held in her honor. As usual she does not speak indirectly, a style preferred by many of her countrymen. As the Jakarta Post reported: “During her general lecture on public policy and ethics in Jakarta on Tuesday, Mulyani, who is known for never addressing politics in her speeches, said a ‘political marriage’ (alluding to the President and Golkar Chairman, Aburizal Bakrie) had cost her the finance minister position. She said she could no longer exist in a political system in which ethics had become an exotic virtue. She said she was no longer wanted.”


Curiously, some members of the Golkar , many of whom directly accused her of illegally presiding over a bank bailout, complained that she should have been more grateful, diplomatic, and “less angry”. After all, in the words of one of them, she had been “allowed a soft landing”. (as opposed to a criminal prosecution ?) This not-so-subtle form of intimidation characterized Golkar’s approach during the administration of President Suharto.


"Corruption is everywhere and it depends on the (leaders') response to eradicate it," Indrawati said in a speech to university students Wednesday. "If the leaders are clean, others will follow."


Another party, PDI-P, applauded Sri’s statement and hoped for more to be revealed about her exit.


The Post also reported that at the University of Indonesia alumni event, Mulyani’s friend Rhenald Kasali, the MC at the event, invited Hariono, a fellow alumni, to tell the tale of Wayang Orang, a traditional Javanese play. Hariono told a story about a war in which Srikandi, a female warrior, was forced to withdraw from battle. “Where? To Washington,” Hariono said.


Bidding farewell to fellow alumni at the University of Indonesia’s Faculty of Economics, where she obtained her undergraduate degree, Mulyani said “Today is perhaps the first day in six years that I have been able to laugh full heartily,” she said.

Wednesday, May 5, 2010

Sri Mulyani Resigns

Indonesia's Finance Minister, Sri Mulyani, has resigned to take up a post at the World Bank as a Managing Director, June 1. A successor has yet to be named. Certainly, this able economist/reformer has many reasons to leave Indonesia's government, given the unending political efforts to blame the Bank Century debacle on her as well as the "push back" from her campaign to reform her corruption laden customs and tax offices. I suppose there are sighs of relief in many companies and within certain government offices but I hope the President appoints someone who will keep up the pressure. It would be natural to expect international investors to pause in their zeal for Indonesia debt or equity. We will all be waiting to see how President Yudhoyono plays his next move. Meanwhile, we have to acknowledge the courage and fortitude of one of Indonesia's most able public servants and wish her well in her new life here in the US. Mulyani will be part of World Bank President Robert Zoellick's inner circle.

Accepting the appointment Ms. Indrawati said: It is a great honor for me and also for my country to have this opportunity to contribute to the very important mission of the Bank in changing the world."

“Ms. Indrawati brings a unique set of skills and experience to the World Bank Group, from the vantage point of an advancing Middle-Income country that still faces significant challenges of poverty. She has received global recognition for her success in combating corruption and strengthening good governance,” noted Mr. Zoellick. “She has been a leader in the developing world on climate change, and active in the international arena through the G-20, APEC, ASEAN and other groups.”

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President of the American Indonesian Chamber of Commerce, a private not for profit membership organization based in NY.

These views do not necessarily represent those of the American Indonesian Chamber of Commerce or its members.

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