JAKARTA (AFP) - A judge with a reputation for honesty joined experienced economists in a cabinet formed by Indonesia's new president to fulfil promises to battle graft and revive the economy.
Susilo Bambang Yudhoyono, who last month won Indonesia's first direct presidential polls and was inaugurated Wednesday, led the swearing-in of his ministers.
He urged them to show integrity as they pursued badly needed reform.
"You have voluntarily and in full conscience pledged to be loyal to the government and the state, to be honest, to work hard, to put the interest of the government and the state over the interest of parties and groups," he said.
The broad selection of professionals and political appointments was seen by analysts as a balancing act to appease Yudhoyono's parliamentary backers while delivering on election pledges to curb endemic corruption.
But though market reaction was mixed after weeks of buoyant speculation that Yudhoyono would produce a business-friendly government, traders were expected to give him breathing space before passing judgment.
Observers praised the new attorney general, Supreme Court judge Abdul Rahman Saleh, who made his name in a high-profile case against House of Representatives speaker Akbar Tanjung. But they said it will not be easy for him to overcome an entrenched culture of corruption.
Saleh stood alone in issuing a dissenting opinion when a panel of five Supreme Court judges overturned a conviction against Tanjung for misusing almost five million dollars of state funds allocated in 1999 to feed the poor.
Arbi Sanit, a political scientist at the University of Indonesia, said both Saleh and new Justice Minister Hamid Awaluddin, who will join him in trying to reform the corruption-tainted legal system, were known for their integrity.
"But the issue is how far will they be given the power, authority and full trust by the president to take action against corruptors," Sanit said.
Corruption, seen as a major disincentive to badly-needed foreign investors, is widespread throughout Indonesia. Global watchdog Transparency International Wednesday named the country as one of the world's worst offenders.
Achmad Ali, a law professor, said he was concerned Saleh lacked the bureaucratic experience needed to confront prosecutors implicated in corruption within his own department. Saleh is a lawyer by profession.
"I know Abdul Rahman Saleh is clean but honesty is not enough to combat corruption as serious as this," Ali said.
The president's economic team will be led by Aburizal Bakrie, a tycoon who analysts said may generate concern. His credibility has been undermined by the massive debts his business group incurred during the 1997/98 financial crisis.
Financial markets reacted cautiously to the cabinet in Thursday trading with the Jakarta Stock Exchange slipping 6.622 points to close at 834.169.
"It's a good team but not a 'dream team' like that of Megawati's," said Jasso Winarto of the Sigma Research Institute, referring to the economic ministers under Yudhoyono's predecessor Megawati Sukarnoputri.
"The markets are waiting (to see) what kind of measures this cabinet will take. Investors are not over-reacting and are adopting a realistic attitude. They are giving it a chance to work," Winarto told AFP.
The selection of two pro-International Monetary Fund economists had been opposed by Muslim parties backing Yudhoyono in the September 20 presidential polls. They argue that IMF policies are to blame for many of Indonesia's financial woes.
Former admiral Widodo Ado Sucipto, as security minister, will be in charge of hunting terrorists, a key concern of Western governments who want Jakarta to take a tough line on Islamic militancy.
Indonesia in the past three years has suffered three major terrorist attacks blamed on the Al-Qaeda-linked Jemaah Islamiyah group. The worst of the attacks killed 202 people in Bali two years ago.