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Indonesian Finance Minister to Assume World Bank Post

Indonesia's finance minister has been named to the post of managing director of the World Bank.

Sri Mulyani Indrawati is being hailed as an outstanding finance minister in a statement by World Bank president Robert Zoellick announcing her appointment. But analysts say her departure could be a blow to Indonesian economic reforms.

The 47-year-old Sri Mulyani, along with Indonesian Vice President Boediono has played a key role in President Susilo Bambang Yudhoyono's efforts to institute economic reforms and crackdown on graft and tax evasion. The reforms have credited with attracting greater economic investment to Indonesia in recent years.

Indonesia's stock market dropped 3.2 percent Wednesday following the news of Sri Mulyani's appointment.

However, some analysts think her departure will not have an adverse impact on the country's economic reforms. "I think Indonesia is much bigger than just Sri Mulyani herself. I don't believe country's reforms are going to be derailed. A lot of the macro-economic changes have been secured in over the last few years," said Nicholas Cashmore, of the financial group CLSA in Indonesia, in an interview with VOA.

Sri Mulyani assumes her new post at the World Bank on June 1.

Sri Mulyani and Boediono, who was formerly Indonesia's central bank governor, have come under fire by opposition lawmakers for authorizing a $740 million bailout of PT Bank Century in 2008, amid allegations the money was misspent.