Megawati swears in new team

Analysts have displayed cautious optimism following the cabinet announcement

By staff and wires

JAKARTA, Indonesia -- Indonesian President Megawati Sukarnoputri has sworn in her widely-praised cabinet, a team of technocrats and politicians that some analysts believe has the best chance yet of dragging the country out of crisis.

Megawati has yet to outline a detailed vision for ruling the unwieldy archipelago, but is expected to announce this next week in an address marking the anniversary of Indonesia's independence.

Officials said Megawati might also name an attorney-general on Friday after swearing in her team, one of the country's most sensitive posts and vital to efforts to root out endemic graft.

It took nearly three weeks for the president to unveil her administration.

QUOTE "We face disintegration whether its territorial, social or economical. We face a future where reform is being halted." - Megawati

Consisting mainly of professionals, the new 30-member cabinet must tackle a host of problems, ranging from separatist unrest to economic woes and corruption.

"God willing this cabinet that I will lead with the help of my vice-president will be able to face the challenges that have been given to me," Megawati said.

Though there were no major surprises, the Indonesian leader changed the set up of the cabinet, appointing three coordinating chief ministers rather than two.

VIDEO CNN's Maria Ressa has more on the new cabinet in Indonesia (August 9) Play video (QuickTime, Real or Windows Media)   AUDIO CNN's Maria Ressa on the cautious optimism among analysts. 1.2MB / 1:46secs WAV sound   MORE STORIES • The challenges ahead   • World Bank looks to restart loans   • Australia to renew Indonesia ties   • Megawati tells relatives to avoid graft   ANALYSIS: Cabinet aims for new balance   ANALYSIS: Power transfer boosts military     IN-DEPTH Indonesia's new leaders   Shadows over Indonesia     COUNTRY PROFILE At a glance: Indonesia Provided by CountryWatch.com    CNN.com Asia More news from our Asia edition

She also handed a number of posts to major parties and potential foes.

Two respected technocrats got the nod for the top economic posts, promotions viewed as welcome news for the country's efforts to cement economic recovery and repair the shattered financial system.

There had been widespread criticism over the time taken for Megawati to fill the cabinet posts.

The delay was blamed on political infighting and haggling as the many political factions who ousted her predecessor tried to jockey into positions of power.

Local media reports suggested Megawati had the final say on who filled the cabinet posts, rather than a vote from her party, the Indonesian Democratic Party of Struggle (PDIP).

Call for unity

As she made her choices, she will have had on her mind the many problems facing her country including financial markets, investor confidence, the country's various independence-seeking troublespots and the need to bond a team from many political and cultural backgrounds.

"I am faced by the huge hopes of people of Indonesia to quickly resolve the problems of Indonesia. I fully understand the problems facing this cabinet," Megawati said.

But the biggest pressure on the new leader involves attempts to rectify the spiraling economy.

Among the host of economic challenges is improving ties with the International Monetary Fund, which has frozen new loans to the government since late last year.

The president called for unity as her cabinet begins the daunting task of rectifying Indonesia's damaged economy.

"The working areas are to retain unity of Indonesia within the framework of the republic of Indonesia, to continue the reform and democratization in every aspect of life," she said.

The Associated Press & Reuters contributed to this report.