Abdurrahman insists that Sjahril resign

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)