Bank Indonesia's accountability<\/p>\n
The amendment of Law No. 23\/1999 on Bank Indonesia (BI) has
\nbeen delayed for a couple of years, mainly due to the insistence
\nof the bank's board of governors in rejecting the proposal by the
\nMinister of Finance to set up a supervisory board that would
\noversee the performance of the central bank.<\/p>\n
The Oct. 14 edition of The Jakarta Post quoted the finance
\nminister as saying that it was important to set up a supervisory
\nboard in order to strike a balance between the central bank's
\nindependence and its accountability.<\/p>\n
What stunned us was BI's response -- that the plan be
\npostponed by at least five years. This means that the existing
\nlaw, which almost makes the board of governors untouchable in
\nregards their accountability, would be maintained for at least
\nfive years.<\/p>\n
It is a pity that an independent and prestigious monetary
\ninstitution like BI could not lead the country in being more
\naccountable and transparent toward the public. Moreover, as this
\ninstitution is now under the governorship of Burhanuddin Abdullah
\n-- a person who worked at the IMF headquarters for many years --
\nhe could have led the bank as a champion of good governance.<\/p>\n
Keeping this mind, one may assume that BI's rejection of the
\nfinance minister's plan would end up in financial
\nmisappropriation, and that the country's program of eradicating
\ncorruption would go nowhere and may be postponed for at least
\nfive years -- if it ever begins at all.<\/p>\n
M. RUSDI
\nJakarta<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bank-indonesias-accountability-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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