Habibie names ex-finance minister as economic adviser

JAKARTA, Sept. 21 Kyodo

Indonesian President B.J. Habibie on Monday named Mar'ie Muhammad, who served as finance minister under former President Suharto, as his economic adviser in a bid to revive the country's economy.

"The president decided today (Monday) to appoint Mr. Mar'ie Muhammad as his economic adviser," State Secretary Akbar Tanjung told reporters.

He did not go into details, but the decision was taken only a few days after Mar'ie refused an ambassadorial position, saying he wanted to dedicate himself to a position inside the country.

Since he came to power in May, Habibie has taken a number of steps to try to pull the country out of its worst economic trouble in decades, which has triggered protests and riots across the country and led to then President Suharto's resignation in May.

Habibie has predicted that the country's economy will take off starting next year, but analysts have a far more pessimistic view, suggesting that it could take several years.

Mar'ie, 59, who was widely known as "Mr. Clean" when he was finance minister from March 1993 to March 1998, is expected to contribute his ideas on how to perk up the country's economy, Akbar said.

Mar'ie, a student activist during the early 1970s, was not included in Suharto's cabinet in March after he voiced strong opposition to the former president's plan to institute a currency board system that would peg the rupiah, Indonesia's currency, to the U.S. dollar.

His most controversial decision came last November when he decided to close 16 ailing commercial banks, including those owned by Suharto's half-brother Probosutedjo and son Bambang Trihatmodjo.

Probosutedjo and Bambang filed and later dropped lawsuits against Mar'ie and Soedradjat Djiwandono, who was then the central bank governor, over the closures. However, many people, including leading reformer Amien Rais, praised their actions.

"If he makes a decision, he will not step back," former Manpower Minister Cosmas Batubara said of Mar'ie. "He is even willing to die for it."

Some analysts have said Mar'ie is a very clean, moralistic, mechanistic but rational figure, and it is expected the he will be able to make tough but necessary decisions.

Mar'ie, a graduate of the University of Indonesia's School of Economics in 1969, has served in government positions since 1970.

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