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Minister resigns after Megawati takes charge

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Indonesian Vice President Megawati Sukarnoputri listens as she attends Wednesday night's session of the People's Consultative Assembly at the Parliament in Jakarta, Wednesday Aug. 9, 2000. Adored by millions Indonesia's silent and enigmatic vice president propelled into a position of power on Wednesday when she was given the responsibility to manage the daily affairs of government - a step closer to the job she has coveted for years. (AP Photo)

August 11, 2000 

JAKARTA (AP) - Indonesia's pro-democracy government was thrown into further turmoil Thursday when the minister charged with rescuing the ailing economy quit.

Senior economics minister Kwik Kian Gie resigned less than 24 hours after embattled President Abdurrahman Wahid surrendered day-to-day administration of the world's fourth most populous nation to Vice President Megawati Sukarnoputri.

Although a close ally of Megawati, Kwik has been widely criticized along with Wahid for not ending a crippling financial crisis.

As the chief architect of economic policy, Kwik has been the government's prime contact with the International Monetary Fund, which is overseeing a multibillion-dollar rescue and reform package.

Wahid, empowered the popular but inexperienced Megawati, on the insistence of disgruntled lawmakers who earlier threatened to impeach him.

In stormy sessions of the national assembly, they complained that his erratic leadership during the past 10 months had worsened the many crises facing the sprawling Southeast Asian nation.

Others have raised concerns about the president's health and strength. He appeared to doze off in front of the assembly several times.

Although Wahid, 60, is nearly blind and has been weakened by a series of strokes and diabetes, he maintains that he is fit for office.

While Megawati will be in charge of a new and streamlined cabinet, she would be answerable to him, he said.

After a meeting with Wahid, Law Minister Yusril Mahendra said the new ministerial lineup would be announced on Aug. 21.

FILE--Indonesian Coordinating Minister for Economics Kwik Kian Gie, center, is mobbed by reporters in this Aug. 7, 2000 file photo. Kwik tendered his resignation Thursday in a letter to President Abdurrahman Wahid dated Aug. 10, 2000, saying he had decided to step aside ahead of a cabinet reshuffle later this month. (AP Photo)

Kwik's resignation, which Wahid accepted on condition he stay on until the new Cabinet is named, has added to uncertainty over how this unprecedented power-sharing arrangement will work.

Some of the vice president's aides complained Thursday that it was unclear exactly how far her authority would extend.

"We still need to clarify some of her executive powers," Laksamana Sukardi, a former trade minister and close aide to the vice president, said.

Kwik's resignation was widely anticipated. On Thursday, financial markets reacted positively to the news with the currency strengthening by two percent to 8,400 against the U.S. dollar. The stock market also rose by 1.5 percent.

It was not immediately clear how the development will affect Jakarta's patchy relationship with the IMF.

The fund has repeatedly complained that Indonesia has been slow to meet agreed targets of reform. It has sometimes delayed crucial loan payments to push the government into action.

Kwik's departure has also muddied the water over the possible lineup of the new Cabinet.

Sukardi, whom Wahid fired in April against Kwik's and Megawati's wishes, said she wanted her enhanced powers to include a veto on who would serve in the new Cabinet.

Although her Indonesian Democratic Party of Struggle has the biggest slice of seats in the assembly and the national parliament, Megawati, 54, has confined herself to ceremonial duties.

Critics accuse her of lacking ability despite her popularity and pedigree as the daughter of Indonesia's founding president, Sukarno. Some question her grasp of the problems facing Indonesia, citing her failure to negotiate an end to a bloody Muslim-Christian conflict in the Maluku islands after Wahid named her a special envoy to the region.

"Her leadership will now be tested," said Salim Said, a prominent political analyst. "If it works, that means she could be elected president in the (2004) elections. But if she fails, she is finished."

Sukardi acknowledged Megawati lacked experience in government.

"But Megawati is someone who respects the due process of law and strong discipline," Sukardi said. "This is what is needed from our leaders."

Last October, the national assembly chose Wahid - a moderate Muslim cleric - over Megawati in an election for the presidency. Wahid then engineered Megawati's election as his deputy.

The two had been longtime political allies and led a joint campaign to bring about democratic reform after the downfall of ex-dictator Suharto two years ago.