SCENARIOS-Indonesia's possible presidential teams, coalitions

JAKARTA | Mon May 11, 2009 2:38am EDT

JAKARTA May 11 (Reuters) - Indonesian President Susilo Bambang Yudhoyono's Democrat Party won last month's parliamentary elections with 20.85 percent of the votes, final results showed, and is due to announce his running mate later this week.

Voters and investors will be watching closely to see who he picks and who are his main rivals, factors that will influence the pace of reform in Southeast Asia's biggest economy.

Former President Megawati Sukarnoputri of PDI-P and Jusuf Kalla of the Golkar Party are expected to contest the presidency but will need to form alliances as neither PDI-P nor Golkar won enough votes to field a presidential candidate. [ID:nJAK465260]

Here are some possible presidential-vice presidential scenarios, in order of the most likely.

YUDHOYONO RUNS FOR PRESIDENT, PICKS A TECHNOCRAT AS VP

Yudhoyono could show his commitment to reform by picking a technocrat running mate. Boediono, the governor of the central bank and a former economic co-ordinating minister, leads the field, followed by Finance Minister Sri Mulyani Indrawati.

Both are reformers, respected for their handling of the economy and loyal to Yudhoyono. The selection of either would be very positive for Indonesia's financial markets with bonds, stocks .JKSE, and the rupiah IDR= likely to jump on the news.

Post-election, one concern is that Yudhoyono may hand out key cabinet post to the Suharto-era, old guard -- either Megawati and her close associates, or Golkar -- in order to build a bigger alliance and get parliament to pass legislation.

YUDHOYONO PICKS A POLITICAL PARTNER AS HIS VICE PRESIDENT

If Yudhoyono picks State Secretary Hatta Rajasa of the Muslim-based National Mandate Party (PAN), who holds the key administrative job in government, that could help deliver the support of parliament when it comes to passing legislation.

As a former transport minister and minister of research and technology Rajasa has backed protectionist policies in the past, so his appointment would be relatively negative for investors.

YUDHOYONO PICKS AN ISLAMIST AS VICE PRESIDENT

Yudhoyono has already said his coalition is likely to include the Prosperous Justice Party (PKS), an Islamist party which takes a tough line on graft and is keen to clean up the bureaucracy.

Former PKS president Hidayat Nurwahid is seen as a potential vice presidential candidate: his appointment could be positive for tackling corruption and overhauling the civil service and judiciary, but potentially negative in other areas.

The PKS wants to renegotiate natural resources contracts that it deems unfair, and could push for more sharia-style laws or policies, leading to religious and social tensions.

MEGAWATI RUNS FOR PRESIDENT, PICKS PRABOWO OR OTHER VP

Megawati is running out of options when it comes to winning enough support for PDI-P to field a presidential candidate.

She could still team up with ex-general Prabowo Subianto of the small Gerindra Party, but as both leaders have their eye on the top post, they haven't been able to reach an agreement.

Both lack reform credentials, and favour nationalist policies and centralised government over regional autonomy.Prabowo, who was married to one of Suharto's daughters, also has a poor human rights track record.

Support for this team is weak, but if it won, expect heavy selling by investors of Indonesian stocks, bonds and the rupiah.

KALLA RUNS FOR PRESIDENT, PICKS WIRANTO AS VICE PRESIDENT

Both Kalla, a businessman from South Sulawesi, and Wiranto, a Suharto-era ex-general with a poor human rights track record, have very low ratings in the opinion polls, making it extremely unlikely that a combination of the two will win.

But if Kalla does badly in the presidential election, Golkar could oust him and join Yudhoyono's alliance. Golkar's presence in a Democrat-led coalition would probably hinder reform of the civil service, a Golkar stronghold, and other key institutions.

PRABOWO RUNS FOR PRESIDENT

A long shot, but Prabowo has invested time and money in raising his profile and cultivating good relations with a range of parties. He is well-funded, thanks to his tycoon brother, Hashim Djojohadikusumo, and would represent a step back to the Suharto era. Very negative for financial markets. (Editing by Andrew Marshall)

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