Wahid names new cabinet

Wahid is handing over powers to Megawati

Indonesian President Abdurrahman Wahid has unveiled a new slimline cabinet to tackle a myriad of problems from the country's ailing economy to separatism.

Mr Wahid named academic Rizal Ramli as the new co-ordinating minister for the economy and retired general Susilo Bambang Yudhoyono as chief political minister.

Key Cabinet Posts

CHIEF POLITICS MINISTER Susilo Bambang Yudhoyono

CHIEF ECONOMIC MINISTER Rizal Ramli

FINANCE Prijadi Praptosuhardjo

FOREIGN Alwi Shihab

INTERIOR Surjadi Sudirja

DEFENCE M D Mahfud

MINES/ENERGY Purnomo Yusgiantoro

ATTORNEY GENERAL Marzuki Darusman

TRADE/INDUSTRY Luhut Pandjaitan

Under a new system they will help Mr Wahid and his deputy, Vice President Megawati Sukarnoputri, take key decisions.

The shake-up is aimed at addressing complaints that Mr Wahid's government has been ineffectual, particularly in resolving separatist violence and rebuilding the economy.

However, the Indonesian currency fell in value following the naming of the new cabinet.

The rupiah had reached a three month high against the United States dollar in expectation of the reshuffle, but slumped on news of the line-up.

Analysts blamed the fall on the controversial appointment of banker Prijadi Praptosuhardjo as the new finance minister.

He was blocked from heading a state-owned bank this year after he was deemed unsuitable by regulators.

Power sharing

The current 35-member cabinet, formed following Mr Wahid's election in October, has been criticised for lack of co-operation.

Wahid: Under fire for erratic leadership

Mr Wahid's new streamlined cabinet, which will be sworn in on Saturday, has just 26 ministers.

He has also agreed to transfer some powers to Vice-President Megawati.

Under the power sharing agreement Megawati will take on the daily running of government, but report to the president.

Megawati will set government priorities, chair cabinet meetings and monitor policy implementation.

She will have the authority to summon ministers and explain government decisions to the public.

Although Megawati heads the country's most popular political party, correspondents say she has shown little inclination to get involved in dealing with Indonesia's enormous problems.