Wednesday, August 31, 2005

President is not sure yet (on everything)

Indonesian are the best on acronyms including for President Susilo Bambang Yudhoyono (SBY). One of them is Susilo Bawahan Yusuf (gramatically means Susilo is staff of Yusuf Kalla, the vice president), a sarcastic acronym to criticize SBY who tend to follow Kalla's actions.
Another one is Saya Belum Yakin (I am not sure) is a an expression of SBY as a leader who always doubt and indecisive.
Today, people expects a different SBY with strong and clear policy signal. That's why market players speculated in rupiah's favor and help the currency appreciated for its second consecutive day. Stock market also rebound quite significant today on the same expectation.
What were those expectations? That SBY will announce timetable for fuel price hike that had sparked speculation on Indonesia's fiscal and monetary sustainability. That SBY will announce plans to improve availability of fuel and electricity. And that SBY will confirm his plan to reshuffle the cabinet that already lost trust from market.
"But after I followed through SBY's statement, I realize that nothing is clear and certain. On fuel price hike, he gave mix signal on timing. He said in the next two months, he will deliver funds to the poor as part of compensation package in March fuel price hike. But it's not clear whether it means by November fuel price will be raised or in December or January," said one blogger.
Asked what benchmark oil price to put in a revised 2006 budget, SBY said, "this is my personal opinion, well probably around US$55 per barel."
Wait a minute, president should not talk personal views, right?
Asked about cabinet reshuffle, he said, "that's not my priority at the moment. But I will keep my promise to review my minister's performance in two months. It's depend on how the current crisis is managed."
So, how will market react and respond SBY's statement? Let's just see tommorow!




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