Editorial: Sri Mulyani Will Be a Tough Act to Follow

Jakarta Globe, May 06, 2010

Sri Mulyani speaking at an infrastructure development conference last year. (JG Photo/Yudhi Sukma Wijaya)

The sudden news of the resignation of Sri Mulyani Indrawati as finance minister to take up a prestigious senior position at the World Bank caught us all by surprise.

The departure of one of the country’s most capable and professional ministers was greeted with mixed reactions from politicians, the business sector and the public in general. Most would agree that Sri Mulyani was a key factor in ensuring that the country kept its head well above water and its economy growing strong while everyone else in the region was suffering in the midst of the global economic crisis.

But whatever the reaction — surprise, pride, joy, consternation or sadness — the decision has been taken, Sri Mulyani is leaving and President Susilo Bambang Yudhoyono has given her decision his blessing. Now we must turn our attention to the urgent task in front of us: selecting her successor.

The country’s economy cannot be left too long without able leadership. The top economics minister, Hatta Rajasa, has already said there is no plan for an interim finance minister. And with the country’s central bank still lacking a leader, it is imperative that the government waste no time in coming up with a suitable figure to replace Sri Mulyani at the helm of the Ministry of Finance.

But finding someone to match Sri Mulyani’s professionalism, integrity, character and firmness will certainly be no easy task for the government.

The need for the government to quickly find a new finance minister becomes even more urgent amid what appears to be the beginnings of a stock market meltdown and growing fears of contagion spreading from the fiasco in Greece. The prospect of a new phase of the global crisis has already sent alarm bells ringing across the globe, including in Asia

The government needs to keep a steady hand on the tiller to steer the nation clear of treacherous waters. Whoever the government eventually chooses to become the next finance minister, it is important that this person leaves no doubt that he or she is committed to continuing the reforms already put in place by Sri Mulyani inside her ministry.

The government must also act quickly to assure investors, both at home and overseas, that it will continue to implement prudent fiscal policies and that it is committed to state reforms. Sri Mulyani’s departure has already led many people to begin calculating the impact of her absence at the helm of the Finance Ministry, especially on the perception of risk in the country.

All eyes are watching us closely and the slightest sign of backtracking, of a rolling back of fiscal discipline and structural reforms, could spell disaster.