JAKARTA: Indonesia's president has appointed a political cohort with little financial experience as acting finance minister, as the nation battles a weakening currency and strained state budget.
Hatta Rajasa, the coordinating economic minister, will temporarily replace Agus Martowardojo, a technocrat who will take his reformist reputation to head the central bank from late May.
"The president still has not decided on the permanent finance minister post, so until then it will be held by Hatta," a presidential spokesman said late Friday, adding the position would not officially be filled until next year.
Analysts have dubbed Indonesia's constant changing of the finance minister post as a blow to investor confidence and to fiscal and monetary stability -- Rajasa would be the third minister in just three years.
President Susilo Bambang Yudhoyono's son is married to Rajasa's daughter, and Rajasa leads the National Mandate Party in the president's ruling coalition.
Rajasa, 59, has also been pegged as the president's favourite potential candidate to replace him when he is due to step down next year after serving the maximum two terms.
The appointment came as the country struggles to relieve the heavy burden of fuel subsidies on the budget, a "political minefield" for former finance ministers, according to David Chang, a director of UOB Kay Hian Securities in Indonesia.
It is also battling a weakening rupiah and inflation above target levels.
Local daily Kontan quoted Indonesian Workers Association head Sofjan Wanandi as saying the finance minister role should be filled "by professionals, not politicians", while a Chamber of Commerce official said Rajasa would be "too busy" to perform both roles.
Before Martowardojo, the post was filled by Sri Mulyani Indrawati, a renowned reformist who was ousted in a politicised bank bailout scandal.
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