Sjahril says he has no plans to resign<\/p>\n
SINGAPORE (Agencies): Sjahril Sabirin, governor of Bank
\nIndonesia, said Monday he's not considering resigning and any
\nmoves to force him out would violate the independence of the
\ncentral bank.<\/p>\n
\"I have not been thinking of resigning. It has not come to my
\nmind,\" he told reporters on the sidelines of a conference in
\nSingapore.<\/p>\n
\"Because the current law on the central bank assures my tenure
\nfor four years and during that time, I cannot be asked to resign
\n- unless I volunteer to resign.\"<\/p>\n
Sjahril said he's not volunteering to resign.<\/p>\n
\"If I'm asked to resign by any body now I wouldn't because
\nthat would violate the law...and if I resign on the basis of
\npressure from outside that would mean that I'm making the
\nindependence of the central bank non-existing,\" he said.<\/p>\n
He was speaking at a meeting of central bank governors in
\nSingapore co-hosted by the Monetary Authority of Singapore and
\nthe Bank for International Settlement.<\/p>\n
Sjahril also denied that the central bank was technically
\nbankrupt, defending its policy on helping troubled banks and said
\nit was ready to be investigated.<\/p>\n
\"We are not technically bankrupt,\" Sjahril said.<\/p>\n
A recent government audit shows Bank Indonesia's finances are
\nnow so precarious that it needs an urgent capital injection, and
\nthe finance minister has said the International Monetary Fund has
\nagreed to a government proposal to recapitalize the bank.<\/p>\n
But Sjahril said the bank had sufficient capital to meet its
\nobligations and that any recapitalization would be small.<\/p>\n
The Supreme Audit Agency's (BPK) report said it did not have
\nenough information to reach any final conclusions. But Indonesian
\nPresident Abdurrahman Wahid has called for Sjahril's sacking.<\/p>\n
And economists demand to know more about the bank's finances,
\nwarning that the BPK audit could just be the tip of the iceberg.<\/p>\n
But Sjahril said the bank had acted according to Indonesia's
\nlaw for liquidity credit assistance for troubled banks.<\/p>\n
\"The Supreme Audit has not considered the higher-ranking
\npolicy that no bank should be closed,\" he said, adding that the
\nno-closure policy was extended after the closing of several banks
\nin November 1997, which triggered runs on banks.<\/p>\n
Sjahril said Rp 164 trillion (US$23 billion) had been
\nchanneled to troubled banks under this policy.<\/p>\n
He said that if this had been considered in the audit report
\n-- and added together with government bonds already issued -- the
\ncentral bank's finances would be shown to be solid.<\/p>\n
\"Should there be a need (for recapitalisation), the amount
\nwould be small,\" Sjahril said, adding the bank was ready for
\nfurther investigation.<\/p>\n
By law, the government has to inject funds into the central
\nbank should its capital fall below Rp 2 trillion.<\/p>\n
On speculation about his resignation, Sjahril said: \"It has
\nnot come to my mind at any time.\"<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/sjahril-says-he-has-no-plans-to-resign-1447893297",
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"sponsor": "Okusi Associates",
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