Clean figure needed to replace BI governor<\/p>\n
Dadan Wijaksana, The Jakarta Post, Jakarta<\/p>\n
As Sjahril Sabirin's term as Bank Indonesia (BI) governor
\ndraws near, calls are mounting for President Megawati
\nSoekarnoputri to name new faces with integrity and untainted
\ntrack records as candidates for the central bank's top post.<\/p>\n
Senior lawmakers said independent and uncontroversial figures
\nfor the job would be of high importance to send positive signals
\nto the market.<\/p>\n
\"Asides from integrity of high quality, what we need is
\nfigures that are controversy free. This is important because this
\nposition is crucial for market confidence.<\/p>\n
\"It means that appointing controversial candidates could well
\nshatter confidence,\" Paskah Suzetta, deputy chairman of the House
\nof Representatives' Commission IX on financial affairs, told The
\nJakarta Post on Sunday.<\/p>\n
Paskah did not elaborate on what he meant by controversial,
\nbut his statement appears to indicate his objections to some, if
\nnot most, of the names already coming to the surface.<\/p>\n
While no names are yet to be officially announced, there has
\nbeen speculation about who could be in the running.<\/p>\n
The names include State Minister for State Enterprises
\nLaksamana Sukardi, State Minister for National Development
\nPlanning Kwik Kian Gie, Sjahril himself or his deputies Miranda
\nGoeltom or Aulia Pohan.<\/p>\n
Most of are not necessarily free of controversy.<\/p>\n
While Laksamana and Kwik are senior members of the ruling
\nIndonesian Democratic Party of Struggle (PDI Perjuangan) -- a
\nsituation which prohibits them from being elected unless they
\ndrop their party memberships -- the other candidates are also
\nprone to resistance, partly due to their \"troubled\" pasts.<\/p>\n
Sjahril, for instance, has a problem with the law.<\/p>\n
Despite having been acquitted of all criminal charges in the
\nJakarta High Court over his involvement in the Bank Bali saga,
\nhis legal battle is set to continue as an appeal process to the
\nSupreme Court is still underway. Restoring his already tainted
\nimage would be an uphill task.<\/p>\n
Similar treatment will also likely impede the chances of
\nMiranda, who has been accused of alleged wrongdoings when the
\ncentral bank injected hundreds of trillions worth of liquidity
\nsupport loans to local banks during the crisis. Most of the funds
\nwere later misused.<\/p>\n
Paskah did not confirm whether those reasons fitted in with
\nhis idea of a controversial figure, only saying: \"I leave it all
\nto the public to judge.\"<\/p>\n
Fellow lawmaker Max Muin, who chairs the commission, has said
\nthe next governor should be independent and someone that could
\nguide market confidence.<\/p>\n
\"It would be rather complicating if it turns out to be
\nSjahril. We need someone who is clean, either from inside or
\noutside the bank,\" Max said.<\/p>\n
The legislators were commenting on the rising public debate
\nover who should lead the central bank after the end of Sjahril's
\nterm. His tenure will expire by May 17, although he is still
\neligible to stay on for another five-year term.<\/p>\n
The president has one week left to submit the list of
\ncandidates to the House for approval, because by law, it has to
\nbe submitted three months before the end of the sitting officer's
\nterms.<\/p>\n
Analysts say it is not easy for the President to choose given
\nthe short time left and in view of the importance of the post,
\nwhich has the authority to determine the country's monetary
\npolicy.<\/p>\n
Given the importance of the post, analysts say, it is almost
\nimpossible to expect the selection process to be free from
\npolitical bargaining.<\/p>\n
Elsewhere, when asked to comment on his chances, Sjahril only
\nsaid on Friday: \"I'd leave it all to the president, it's the
\npresident who has the right to name the candidates.\"<\/p>\n
Sjahril took office in 1998, replacing Sudradjat Djiwandono.
\nBorn in 1943, Sjahril earned his doctoral degree on monetary and
\ninternational economics from the Vandelbilt University in the
\nU.S. Sjahril started his career at the central bank in 1969.<\/p>\n
Law No.23\/1999 on Bank Indonesia, Article 47, Verse 1:<\/p>\n
BI's board of governors members are not allowed to:<\/p>\n
1. Have both direct and indirect interests in any company.<\/p>\n
2. Have two or more jobs in other institutions.<\/p>\n
3. Become a member of political party.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/clean-figure-needed-to-replace-bi-governor-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }