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Good luck!: Acting
finance minister and Coordinating Economic Minister, Hatta Rajasa
(left), shakes hands with outgoing finance minister Agus Martowardojo at
a handover ceremony on Monday. JP/R. Berto Wedhatama
Acting
finance minister Hatta Rajasa is set to have full authority in setting
the course of fiscal policy, including issuing regulations and making
key decisions in the deliberations of the 2014 state budget.
Hatta,
who is also coordinating economic minister and chairman of the National
Mandate Party (PAN), said his authority applied until President Susilo
Bambang Yudhoyono named a definite finance minister.
“As
stipulated in the presidential decree, what I want to highlight here is
that even though my role is temporary, I have the full authority as
finance minister,” Hatta said on Monday after a ceremony in which
outgoing finance minister Agus Martowardojo officially handed over his
tasks to Hatta. Agus is slated to be inaugurated as the new central bank
governor in mid-May.
Hatta, whose daughter is married to
Yudhoyono’s youngest son, was tasked with the additional role after
Yudhoyono honorably dismissed Agus on Thursday while the latter was
attending an event held by the International Monetary Fund (IMF) and the
World Bank in Washington DC.
“Pak Agus was slated to return on
Wednesday. He cut short his trip upon knowing that he was suddenly
stripped of his job,” said Deputy Finance Minister Mahendra Siregar.
The
President, however, did not provide a clear explanation as to why Agus —
a reform icon known for his toughness and fiscal prudence — was
dismissed one month prior to taking the central bank job.
A
source at the National Economic Committee (KEN) said the President’s
decision to accelerate Agus’ departure was triggered by protests from
fellow Cabinet members over Agus’ firm stance on freezing the channeling
of budget funds to several ministries until they complied with good
governance practices.
The Finance Ministry has been blamed for the sluggish spending of the state budget, which only reached 85 percent last year.
“I
believe there is no need for the Finance Ministry to freeze the budget.
They should proactively coordinate with relevant institutions in order
for the budget to be allocated smoothly,” said Hatta.
In
response to the issue, Agus said there was no intention by the ministry
other than to ensure good governance and appropriate management of the
bureaucracy.
Hatta said that as finance minister he would not be
introducing any drastic policy changes, adding that he would stick to
the medium-term work plan prepared by his predecessor.
He also
pledged not to make any decision on the controversial construction of
the Sunda Strait Bridge, a US$20 billion infrastructure megaproject that
will connect Java and Sumatra. The project, managed by politically
wired tycoon Tomy Winata, is known to be a source of friction between
Hatta and Agus.
“Let the new and definitive finance minister
think about the Sunda Strait Bridge. I won’t make the call,” said Hatta,
who has no educational background in economics.
Hatta said he
would also be involved in the deliberations of the 2014 state budget
law, which is expected to be passed in October or November.
However,
the House of Representatives’ Deputy Speaker, Mohamad Sohibul Iman,
warned that Hatta’s involvement in deliberating the state budget could
spark controversy.
“The status of ‘interim finance minister’ is
not regulated by law, meaning that it has a weak legal position,” said
Iman, adding that Hatta’s background as a politician could also ignite
disputes with lawmakers.
— JP/Satria Sambijantoro
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