Indonesia appoints former investment chief as trade minister

  Indonesian President Susilo Bambang Yudhoyono on Wednesday named former head of investment coordinating board, Muhammad Lutfi, as new trade minister. Lufti,44, replaces Gita Wirjawan who resigned last month to focus on his campaign to become presidential candidate for the ruling Democratic Party. The appointment was undertaken as President Yudhoyono's cabinet is to end in months to come before the direct presidential polls in July. U.S.-educated Lufti was most recently Indonesian ambassador to Japan, the top investor in the Southeast Asia's largest economy last year, according to a survey. "I have conducted a fit and proper test to someone who I chose as trade minister, Muhammad Lutfi," Yudhoyono told a press conference at the State Palace on Wednesday. In his message, President Yudhoyono asked Lutfi to lobby at the international forum for fair trade. "I gave a special attention to encourage the trade minister to conduct effective diplomacy. Hence, Indonesia will not witness unfair trade," said Yudhoyono. The government slapped broad mineral ores export ban on Jan. 12, which may erode export earning. Lutfi would also shoulder task to narrow the country's trade deficit which widened to 4.02 billion U.S. dollar last year from 1. 65 billion U.S. dollar at the previous year. President Yudhoyono said that he would officially install Lutfi on Friday. On his comment, Lutfi said that stabilizing prices, inflation and scaling up exports were among his top priority. Pressure on inflation lingers in the vast archipelago country as the meteorology and geophysics agency foresees rainy season is going to peak up by up to March that may disrupt food and other products transport. Lutfi was head of the country's investment board during President Yudhoyono first five-year term ending in 2009, during the time the investment scaled up to about 11 billion U.S. dollar in 2009 from about 5 billion U.S. dollar in 2004. .