Abdurrahman insists that Sjahril resign

JAKARTA (JP): Another high profile stand-off cast a shadow over President Abdurrahman Wahid's overseas trip as he cautioned Bank Indonesia Governor Sjahril Sabirin on Wednesday to resign because he had abused his position, including in the Bank Bali scandal.

Citing Attorney General Marzuki Darusman's report, the President said Sjahril's resignation would facilitate the investigation into his alleged involvement in the corruption case. Sjahril was named a suspect in the Bank Bali scandal on Monday.

Abdurrahman, also called Gus Dur, said the central bank senior deputy Anwar Nasution would take charge in Sjahril's absence.

"I have asked Marzuki Darusman whether there is enough evidence (to charge Sabirin), and Marzuki said there is," Abdurrahman told a media briefing after presiding over a weekly Cabinet meeting on Wednesday.

His statement came hours before his whirlwind trip overseas which will take him to eight countries. During his February round-the-globe travels the President repeatedly asked then coordinating minister for political affairs and security Wiranto to step down over his alleged role in last year's East Timor debacle.

Wiranto, who resisted the resignation calls, was dismissed shortly after the President's arrival home.

On Monday, the Attorney General's Office alleged Sjahril violated the central bank's prudential principle in its decision to reimburse interbank loans guaranteed by the government.

Despite the market's negative reaction to the feud between him and Sjahril, the President said his dispute with Sjahril would not affect the market or investor confidence.

"I think our society and the market are already mature, so I'm not worried. Moreover, this case is public knowledge," said Abdurrahman.

Sjahril has so far defied the resignation call.

Abdurrahman also blamed Sjahril for his close friend Prijadi Praptosuhardjo's failure to pass a fit and proper test for a chief post at a state bank, saying the examination was conducted unfairly. The test was conducted by the central bank.

According to the President, Prijadi, who currently works as a director at state bank BRI, deserves the top post in the bank. The test result, however, ruined his chances for the promotion, said Abdurrahman.

"I asked Sjahril how it could happen, but Sjahril said he did not know. I asked him how come the BI governor did not know about the test," the President remarked.

The Bank Bali scandal revolves around BI's repayment of Rp 904 billion in loans from Bank Bali to banks which were later liquidated. The scandal allegedly involved former president B.J. Habibie's inner circle.

Sjahril is the second most senior suspect in the scandal, after former state minister of investment and state enterprises development Tanri Abeng.

Separately, all 10 factions of the People Consultative Assembly's ad hoc committee for constitutional amendment suggested on Wednesday that a ruling on the central bank be included in the Constitution in order to create a strong and independent central bank.

The committee's deputy chairman Slamet Effendy Yusuf said the function of the central bank should also be clearly mentioned in Article 8 of the Constitution on state finance.

He said that the amended article would stipulate that the central bank is independent.

"Therefore, a president could be categorized as violating the Constitution, not just the law, if he or she interferes with the central bank," Slamet said.

House of Representatives Speaker Akbar Tandjung suggested that Sjahril take legal action against the government if he thought the President had interfered with central bank affairs.

"Let the court decide whether Sjahril or the government is right. Sjahril could continue in his job," Akbar told reporters on Wednesday.

He said he had met the President on Wednesday to discuss several issues, including that central bank and the issue of intervention.

"The President told me that he just follows legal procedures," he said.

Economist Pande Radja Silalahi said that Abdurrahman's call for Sjahril to resign could be seen both as goodwill on the President's part to save the BI governor from disgrace and as government intervention in the central bank's internal affairs.

"There are two sides to Abdurrahman's offer. On one hand we can see Gus Dur as a humanist, but on the other hand it could be seen as intervention," Pande told The Jakarta Post on Wednesday.

He said Law No. 23/1999 on the central bank could be used as valid legal grounds for Sjahril to sue the government because the law clearly bans other parties from interfering with central bank's internal affairs.

Articles 24, 33, and 48 of the law stipulate that the central bank has the authority to decide every policy and determine the prudence principles in every financial decision it makes.

Article 45 of the law says that all members of the central bank's board of directors are exempt from punishment over any financial decision.

However, for the sake of the market and to regain foreign investor confidence, Pande suggested that Sjahril take unpaid leave until the case is solved.

"This would allow us to both uphold the law and maintain the autonomy of the central bank," he said. (prb/jun/dja)