The Iron Lady is Winning The Battle

Sri Mulyani Indrawati always attracts my attention since she publicly appeared in TV talk show in the middle of monetary crisis that hit Indonesia in 1997-1998.

In the talk show aired by SCTV on February 1998 that I watched curiously, she revealed her view about Currency Board System (CBS) idea that brought in by Steve Hanke 1). Speaking among Emil Salim, Frans Seda, Peter Gontha and Ekky Syahruddin, she was not seen nervous, but delivered her sharp thought and frankly defied the idea, confronted Peter Gontha as the CBS supporter.

She was still 36 years old at that time. So young, smart and never felt inferior in front of the elders economist whom we knew have been acting as economic drivers during Suharto era. She spoke with clear articulation and logical that eases everybody to understand the economy matters. People said the woman who graduated from University of Illinois at Urbana – USA with doctoral degree, was a rising star at that time.

She then involved in National Economy Council (DEN – Dewan Ekonomi Nasional) within then President Abdurrahman Wahid presidency term. But, after Megawati Sukarnoputri took the power in 2001, she suddenly disappeared despite rumors she would be assigned for taking a key role in Megawati’s cabinet. There was no news anymore about Sri Mulyani in media. The woman who always drew public attention in the beginning of reformation era left the country for Atlanta, Georgia USA where she joined USAID. In 2002, she moved to Washington DC after she was appointed as IMF Executive Director for Asia Pacific region.

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In 2004 she was back to the game.

Yes, her reputation attracted President SBY to ask her joining his cabinet. When rumors spread-out about her name became one of the minister, her foes blew negative issues questioning her nationalism, creating an image that she might be prefer standing in foreigner interest since she was serving as IMF Executive Director. Fortunately, President SBY defied public rumors and then put his confidence to Sri Mulyani to take the helm of Bappenas (National Development Planning Agency).

When she was moved to head Finance Ministry replacing Yusuf Anwar in cabinet reshuffle in 2005, without buying time she took a stern action to curb the most corrupted institution under her ministry, i.e. Custom and Taxation Office. As usual, such action would create friends and enemies. But, the ball has been kicked-off and no one could stop till the game finished. The ball continues rolling and spectators surrounding the arena eagerly want to see how Sri Mulyani playing so many attractive moves. She sometimes moves slow-elegantly as Javanese dancer, but sometimes moves fast-strong-firmly as roaring thunder without compromise.

The recent global economy downturn puts her in the middle of the wake of political interests where friends and enemies standing around. But the most phenomenal action that I really admire was as she’s shown to public the way she handled Bumi Resources, the most prestige of Bakrie conglomerate, owned by Aburizal Bakrie, the Coordinating minister for people welfare.

It was very clear to public when shares of prominent companies plunged to the lowest level, the owners of those companies attempt to seek salvation by asking the government to bail them out. However, Sri Mulyani, as the guard of the state finance said: “I am the Finance Minister. My job is to protect the state fund. Companies have a job to protect their own financial affairs. If they fail, it is their fault and they deserve to go bust.”

We all knew the strong stance of Sri Mulyani, again, created more and more enemies. It was the most brilliant and confident government official that I saw so brave defended the principle than anyone else. While friends always applaud her steps in defending the nation interest, the enemies, who see her as a stumbling block towards their business interest, attempted to topple her from the top position. Many people praised her not to afraid of any risks by taking her uncompromised actions despite knowing Aburizal Bakrie was the main fund supporter of SBY-JK2) presidency campaign.

The tension between Sri Mulyani and her bosses escalates when she protested to President SBY for overturning her decision to end the one month suspension on trading of Bumi Resources shares. She, as reported by media even threatening to resign if her bosses keep interfere her decision over Bakrie problem. I personally believe “the iron lady” will really determine to deliver her threat. Why not? It’s a basic principle that she believes every step she took was merely based on professionalism and high moral standard. As the minister she should maintain a clean government by rejecting any pressure in abuse of power, moreover, the key role she has been handling in the finance ministry always heavily used by corrupted officials and dirty government in the past. I could not imagine what would happen if the finance minister post is not taken by her particularly in the global economic turmoil that hit all countries including Indonesia.

It was not wrong when Forbes magazine put her in the 23rd the most powerful woman in the world in 2008. She even defeated Hillary Rodham Clinton (Senator of New York, USA), Queen Elizabeth of Great Britain and Aung San Suu Kyi of Myanmar which are put in 28th, 35th and 38th respectively. “It’s inspiring to look at what some these women have done and to listen to some of their life stories,” said Chana Schoenberger, Forbes’s associate editor.

President SBY was put in the big dilemma when accommodating two confronting sides. The Bakrie family would not be easily thrown-away, but, losing Sri Mulyani would put the President in the big risks in this situation. As the boss, he supposedly looks at her achievement, from creating clean administration in the finance ministry, reforming the dirt directorates under her supervision, imposing travel ban to businesspeople who evade tax payment, till increasing the foreign exchange reserves to more than USD 60 Billion. For people who think rationally, the cost would be too expensive if Sri Mulyani left the cabinet before the current government ends the term.

Fortunately, President SBY has a high consciousness to stand in the right side. As markets have already confident with the economic team that Sri Mulyani leads, he has no other choice but to keep Sri Mulyani in her post. The ‘iron lady’ is winning the battle, despite she has to face the war lonely against the enemies who gang up on her and try to defame her of being un-nationalistic because of not defending indigenous business people.

I personally believe, the higher career of Sri Mulyani in Indonesia politics is widely opened. She even could reach the higher position than only a minister. Besides her competency, professional, and clean track record, so far people know how she puts the nation interest far higher than anything else. People should feel proud of having her, the high quality figure that hardly ever to find out among other high ranking officials in this country. And the most important thing: she does not have any fear to anyone – including her boss, as long as she believes every step she’s taking is right, accountable and responsible – to people, to the country, and to God, the Name that she mentioned with tremble when she took the oath.


Serpong, 8 February 2009
Titus J.


Note:
1. Steve Hanke is a Professor of Applied Economics and Co-Director of the Institute for Applied Economics and the Study of Business Enterprise at The John Hopkins University in Baltimore, and a Distinguished Professor at the Universitas Pelita Harapan in Jakarta, Indonesia. He is a member of the International Advisory Board of the National Bank of Kuwait and a member of the Financial Advisory Council of the United Arab Emirates. He is also Chairman Emeritus at the Friedberg Mercantile Group, Inc. in Toronto and a Principal at Chicago Partners, LLC. (http://www.cato.org/).
2. SBY-JK stands for Susilo Bambang Yudhoyono – Jusuf Kalla, who are the President and VP of Republic Indonesia.

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