JAKARTA (Reuters) - Indonesian President Megawati Sukarnoputri will unveil her cabinet Thursday after more than two weeks of political power-broking which has frayed the nerves of the country's financial markets.
Few Indonesian cabinet announcements have been as closely watched or attracted such high expectations. The team will be named at 11 a.m. (midnight EDT).
Likely to be a smattering of new and old faces, the cabinet will need to move quickly to mend the country's near ruined economy and help restore stability across the giant archipelago.
The frail rupiah and Jakarta stocks, while nervous about the shape of the economic team, have been energized by Megawati's rise to power and analysts said a well chosen cabinet would be critical to maintain that momentum.
``This cabinet is very important because Indonesia has entered into a (period of) euphoria with the strengthening of the rupiah, so there is a real window of opportunity to fix things now,'' said Lin He We, head of research at SG Securities.
It is also the first big test of Megawati's leadership abilities and will show something of the influence she has over the disparate parties that swept her to power on July 23.
While Megawati has kept a tight lid on her selections, a number of leading contenders have emerged this week including low profile bureaucrat Boediono as chief economics minister.
Boediono was head of the planning and development ministry under former President B.J. Habibie and until recently was only considered an outside chance for a top post.
But some leading newspapers Thursday speculated Boediono would actually be named finance minister and outgoing ambassador to the United States, Dorodjatun Kuntjoro-Jakti, chief economics minister.
A number of former ministers could also be recycled.
Another strong contender for the powerful post of finance minister is Bambang Sudibyo, who Megawati's sacked predecessor, Abdurrahman Wahid, dumped from the same position last year.
Widely respected former chief security and politics minister Susilo Bambang Yudhoyono is expected to return to his old job.
Sources have said it was nearly certain the defense minister's job would be given back to a retired general after being in the hands of two civilians.
Local newspaper Media Indonesia said Thursday it was imperative the cabinet had the backing of all political parties until the end of Megawati's term in 2004.
``The market may give a positive reaction to the new cabinet but that is not enough for the long term, unless there is agreement from political parties to respect and support the cabinet until 2004,'' it said in an editorial.
Megawati is expected to increase the government's size to 30-35 portfolios from 26 and change some ministries.
PHOTO CAPTION:
A combination photo shows Susilo Bambang Yodhoyono(top L), Bambang Sudibyo(top R), Hendropriyono(bottom L) and Boediono, all leading contenders for various posts in Indonesian President Megawati Sukarnoputri's cabinet, due to be announced on August 9, 2001. Yudhoyono is expected to return to his old job as chief security and politics minister, Hendropriyono is likely to become defense minister, Sudibyo is a strong contender for finance minister, while Boediono is tipped to become chief economics minister. (Enny Nuraheni/Reuters)