INDONESIAN President Suharto has unveiled a new financial team dominated by loyal allies and cronies of the First Family, in a move that is likely to further strain relations with the International Monetary Fund on the eve of talks. The international community had been calling on Mr Suharto to name a more efficient, independent-thinking cabinet, better able to implement the IMF-sponsored economic reforms. Instead, on first glance, his line-up is seen as even more backward-thinking than the last. Timber tycoon Mohammad 'Bob' Hasan, Mr Suharto's golfing chum, is to replace Trade and Industry Minister Tunky Ariwibowo, becoming the first Indonesian of Chinese descent to enter the cabinet during the president's 32-year rule. Mr Hasan, who runs the Kiani group, is seen as one of Mr Suharto's closest confidantes and cronies, having ruled Indonesia's plywood cartel for years. 'He is clearly not the kind of guy you expect to be pro-reform,' said one analyst. As widely expected, reform-minded Mar'ie Muhammad, who had been well respected abroad, has been ousted as Finance Minister and made the fall guy for the country's financial crisis. He will be replaced by Faud Bawazier, the former tax minister, who is widely seen as a yes-man. Mr Bawazier is closely associated to Mr Suharto's second son, Bambang Trihatmodjo, having previously served on a number of Mr Bambang's Bimantara Group boards. Mr Muhammad had been expected to be offered some junior posting. Instead, he has walked away from his thankless job with nothing. Sjaril Sabirin, also seen as a yes-man, will stay on as Bank Indonesia governor. He was recently promoted to replace reform-minded Sudradjad Djiwandono, who was believed to have dared criticise the president's proposals for a currency board exchange rate system. Mr Muhammad and Mr Sudradjad made the career-ending mistake of upsetting the president's children late last year by daring to include banks in which they had stakes among 16 ailing financial institutions that were ordered to be shut. Many others in the new cabinet line-up are nominees of Mr Suharto's eldest daughter Siti 'Tutut' Hardyanti Rukmana, who is a senior leader of the ruling Golkar Party and has herself been named as Social Affairs Minister. 'The feeling is he's moved out most of the technocrats and brought in the loyalists,' the director of a local brokerage said. 'His priority is to protect the First Family.' Matt Pecot, president director of GK Goh Ometraco Securities, said: 'This is the last thing that the market and investors wanted to hear. 'It is full of people close to the family who seem less likely to carry out reforms. This unfortunately has been a clearing out from the cabinet of people who were considered impartial and technocrats in the eyes of international investors.' This is likely to cause friction with the IMF which has been pushing for a freer market economy and an end to the lucrative monopolies held by Mr Suharto's family and their friends. Mr Suharto and his family are rumoured to have built up business interests and savings worth more than US$60 billion at home and abroad over the years, though no accurate or official figures are available. Officials from the IMF began arriving in Jakarta yesterday to begin talks with Mr Suharto's new government over its apparent lack of commitment in implementing the prescribed economic reforms upon which the international community's $43 billion bailout is hinged. The IMF has controversially deferred payment of a second $3 billion tranche from the bailout both because of its concern over Indonesia's progress in implementing reforms and to wait and see the make-up of the Suharto administration. The United States, the IMF's main backer, had led callers for Mr Suharto to name a more independent thinking and more efficient cabinet, including ministers with more financial expertise. Mr Suharto's new team does include a couple of market-pleasing appointments. The most notable is the appointment of Tanri Abeng to a newly created post of State Minister for State Enterprises, charged with turning around the country's many ailing state firms. Mr Abeng, president of Bakrie Brothers, is considered the brains behind the listed conglomerate and widely respected for his business prowess. His boss, Aburizal Bakrie, president commissioner of Bakrie Group and chairman of the Indonesia Chamber of Commerce, had been nominated for a cabinet posting as trade and industry minister. However, he is believed to have been considered too outspoken and controversial. Mr Bakrie has led recent calls for ownership of firms controlled by Indonesian Chinese to be redistributed to ethnic Indonesians.