The senior deputy governor<\/p>\n
Miranda Swaray Goeltom, the articulate monetary expert, will
\nsoon reenter Bank Indonesia at a crucial time as the rupiah
\nexchange rate has been weakening and highly volatile due to the
\nstrengthening of the American dollar. The House of
\nRepresentatives approved the appointment of Miranda through a
\nvoting process at a plenary session on Monday.<\/p>\n
One of three candidates proposed by President Megawati
\nSoekarnoputri for the position of senior deputy governor at Bank
\nIndonesia to replace Anwar Nasution, Miranda had earlier defeated
\nthe other two candidates in an elaborate screening process
\nconducted by House Commission IX for the state budget and
\nfinance. Most analysts have agreed that Miranda is indeed the
\nbest of the candidates.<\/p>\n
She will be a worthy deputy to Bank Indonesia's governor
\nBurhanuddin Abdullah, who last June became the first governor of
\nthe central bank that underwent a democratic selection process at
\nthe House after Bank Indonesia became a politically independent
\ninstitution in May, 1999.<\/p>\n
As a former deputy governor of the central bank from December
\n1997 to 2003 and its spokesperson, Miranda, besides being highly
\ntechnical competent and well-experienced in monetary management,
\nalso has an extensive international network of contacts at
\ncentral banks overseas.<\/p>\n
This extensive network, especially in major developed
\ncountries, is vital in helping Bank Indonesia achieve its primary
\nobjective, which, according to the law on the central bank, is to
\nachieve and maintain the stability of the rupiah against goods
\nand services, as well as foreign currencies.<\/p>\n
Even though the country adopts a floating currency system,
\ncooperation and solid contacts with other central bank executives
\nare still crucial, because, when it comes to currencies, their
\nprices (exchange rates) are set not by the market but by the
\ncentral banks. Each central bank still has a monopoly on the
\ncurrency it issues, and uses that monopoly to dictate the price.
\nThe monetary policy decisions by each central bank sets its
\nforeign exchange rate, whether intentionally or not.<\/p>\n
Technical competence is also pivotal for the senior deputy
\ngovernor, as the second top executive, because monetary policy is
\nthe most closely watched indicator of economic policy. Moreover,
\nmonetary policy action tends to have a fairly immediate impact on
\nreal economic activities.<\/p>\n
No wonder that almost all analysts and state bankers, as well
\nas private ones, welcomed the selection of Miranda, pointing out
\nthat her monetary expertise and experiences would help reassure
\nthe market of Bank Indonesia's monetary management.<\/p>\n
However, technical competence is obviously only one of the
\nbasic requirements that have to be met by the new senior deputy
\ngovernor. No less important is integrity and the ability to stand
\nup against political pressures or interference, while, at the
\nsame time, maintaining smooth coordination with the fiscal
\nauthorities (government). It is integrity and leadership that
\ninspire market confidence in an institution, particularly such a
\npolitically independent one as the central bank.<\/p>\n
Several non-governmental organizations, including Transparency
\nInternational Indonesia, have opposed the appointment of Miranda,
\nas well as the two other candidates, arguing that none of them
\nhas the required qualities -- including integrity -- for such an
\nimportant position.<\/p>\n
There have been a wave of rumors, notably pointed at Miranda's
\nintegrity and her alliance with a number of senior politicians,
\nbut none of them has ever been substantiated. Nor has she ever
\nbeen formally charged over any wrongdoing with regards to her
\nformer position at the central bank.<\/p>\n
Miranda should have fully realized the importance of
\nmaintaining integrity to build the credibility of the central
\nbank's monetary policies. Anyway, as policy decisions at Bank
\nIndonesia are adopted through the consensus of the board of
\ngovernors, there is little chance for any member of the board to
\npursue his or her personal agenda.<\/p>\n
On top of that, the amendments to the central bank law that
\nwere enacted early this year stipulate the setting up of a
\nsupervisory board consisting of five banking and monetary experts
\nto help the House of Representatives oversee Bank Indonesia.<\/p>\n
___________<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/the-senior-deputy-governor-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }