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Indonesia: Will Mulyani’s Exit Slow Down Economic Growth?

Aris Ananta

ISEAS Viewpoints

17  May 2010

Whether forced or voluntary, the exit of Dr. Sri Mulyani Indrawati  from her post as Minister of Finance, Republic of Indonesia, has worried some investors and analysts that the Indonesian economy would be seriously hurt. High political maneuvering has been suspected behind the exit. However, her exit to a higher, world position as a Managing Director of the World Bank may be an optimal political compromise between President Yudhoyono and his attackers. The President may have released Mulyani  from her post  as an exchange with  tamed political tension, to avoid impeachment against the President and  Vice President.

The political tension since Yudhoyono started his second term in October 2009 has been very high and wild, especially with the Bank Century case. Opening the “wound” and “sins”  of each other, particularly its rivals, has become  a  recent common feature  in  Indonesia’s politics.  Politics have dominated news in Indonesia. For instance, a very important, high level, economic meeting, led by the President and attended by all ministers and governors, to socialize the economic targets during 2009-2014, failed to grasp significant space in Indonesia’s mass media.

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