Megawati gets a little help from friends

Howard expresses the scale of his affection for Indonesia

By Maria Ressa
Jakarta Bureau Chief

JAKARTA, Indonesia -- She swore-in her cabinet on Friday. On Saturday, she and key ministers met with US Trade Representative Robert Zoellick -- who came out of meetings with words of praise for the new administration.

Finally, on Sunday, she had her first visit with a visiting head of state -- Australian Prime Minister John Howard.

It was a busy weekend for Indonesian President Megawati Sukarnoputri, and it has helped to boost confidence in her new government.

Australian Prime Minister John Howard visited on a fence-mending mission after relations between the two countries were strained by East Timor.

Australia took the lead in criticizing the violence and abuses in the run-up to the August 30 vote for independence as well as heading the multinational forces which entered East Timor after the destruction of most of its cities.

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On Monday, Howard and Megawati signed a joint communiqué. Among its provisions: that both countries would forge ties with East Timor, now under UN administration as it prepares for independence next year.

Megawati said: "This joint communiqué is the memorandum that we need to tighten Indonesian-Australian relations."

Both Indonesia and Australia say they want to put the past behind them.

"This is a relationship that is important, should be grounded in realism and common sense, mutual respect and mutual benefit," said Howard.

He came out of his meetings with more words of praise for Megawati's cabinet.

Following similar enthusiasm from the World Bank, the IMF and the United States, analysts from the Bank of America have called it a "benign conspiracy."

"Everyone who is anyone is praising the new Government," the report adds.

That has helped boost confidence and push the currency, the rupiah, to new highs -- breaking 9,000 to the dollar on Monday for the first time in more than 10 months.

All smiles as Megawati meets US Trade Representative Robert Zoellick

Certainly, Megawati's government needs all the help it can get.

Indonesia has had four presidents in three years -- along with the social, political and economic turmoil that led to these changes in government.

As her cabinet met for the first time on Monday, Megawati gave control over state enterprises and the Indonesian Bank Restructuring Agency or IBRA to a trusted and respected aide, former Citibank executive Laksamana Sukardi.

This government's first task is clear: to get the economy back on track. That will be easier -- with friends helping along the way.