Megawati names bank reform chief

Megawati has won praise for her cabinet picks since she was sworn in as president on July 23

By staff and wire reports

JAKARTA, Indonesia -- New President Megawati Sukarnoputri on Monday installed State Enterprises Minister Laksamana Sukardi as head of the bank-restructuring agency.

Sukardi is expected to tackle graft and reform as head of the Indonesian Bank Restructuring Agency (IBRA).

Megawati, who took office on July 23, appointed her cabinet last week. She has won early praise for her picks, where she resisted pressure to choose an all-private sector team.

She also included representatives of her coalition partners, which may help her achieve some aims.

IBRA used to fall under the finance minister's supervision. But chief security minister Susilo Bambang Yudhoyon said the finance minister, Boediono, would focus on the budget.

Analysts have applauded the appointment of Boediono, a respected former central banker, and also received Sukardi's selection warmly.

IBRA is one of Indonesia's most important institutions. It is trying to sell $66 billion (600 trillion rupiah) in assets that it took over during the Asian economic crisis.

Analysts say Sukardi's clean reputation will help him push ahead those necessary reforms. They expect him to make unpopular moves if he has to.

Megawati took office when Indonesian lawmakers ousted Abdurrahman Wahid after three months of political turmoil. Business interests say they hope reforms can now take place in Indonesia.