Indonesia's New Lineup

Indonesia has a promising new Cabinet, thanks to a compromise deal between President Abdurrahman Wahid and Vice-President Megawati Sukarnoputri. The coalition government had been paralyzed by the mid-August resignation of Indonesia's economic policy czar, who was one of Megawati's allies, as the two leaders battled over his successor. They came to terms in a surprisingly quick meeting on Aug. 23. The result: Respected economist Rizal Ramli will replace Kwik Kian Gie in formulating the country's economic policy. Kwik, during 10 months in office, had scared businessmen with threats of jail and frightened away foreign investors by warning of instability. Investors are hoping Ramli, who recently cleaned house when he took over the notoriously corrupt National Logistics Agency, will give new credibility to the office.

Another of Wahid's appointments comes with a clean reputation as well. Priyadi Prapto Suharso, an executive of a state bank, replaces a Suharto-era stalwart as finance minister. Priyadi's career had been previously stymied by his refusal to take bribes in exchange for signing off on sweetheart loans during former President Suharto's three decades in power. While the new lineup was welcomed by analysts and investors as a good first step, it will probably still take years for Indonesia to regain investor confidence. The government needs to attract capital from abroad if it is to carry out its plan to privatize large industries and sell off seized collateral and rehabilitated loans.