Another central bank director replaced

Another central bank director replaced

JAKARTA (JP): Bank Indonesia Governor Sjahril Sabirin
announced yesterday the replacement of the central bank's
director for international and foreign exchange affairs,
Boediono.

Sjahril said that President Soeharto had appointed former
central bank official Subarjo Joyosumarto, who has been working
for the International Monetary Fund since he retired several
years ago, to replace Boediono.

The inauguration ceremony will take place Monday.

At the ceremony, the central bank will also appoint Achwan to
be the head of the central bank's human resources division,
taking over the post vacated by Sjahril when he was promoted to
the governorship last month, replacing Soedradjad Djiwandono.

Sjahril said that Boediono was replaced because his term had
ended.

Boediono is the fifth central bank director dismissed since
late last year.

Last December, President Soeharto fired four central bank
directors and replaced them with two outsiders and two junior
officials.

Three of the former directors are under police investigation
on suspicion of involvement in irregular activities at the
central bank.

With Budiono's departure, Mukhlis Rasyid, director of credit,
and Haryono, director of human resources, are the last survivors
of Soedradjad's team.

Other sources said that the President had also dismissed the
head of the newly established Indonesian Bank Restructuring
Agency (IBRA) Bambang Subianto and appointed the central bank's
director for foreign-exchange banking supervision Iwan R.
Prawirawinata in his place.

Bambang was replaced because "many people did not like his
approach" to dealing with ailing banks, one of the sources said.

Bambang, who is also the director general of financial
institutions at the Ministry of Finance, only held his position
for about a month.

The government established IBRA on Jan. 28 as a part of its
rehabilitation program for Indonesian banks.

IBRA is an autonomous agency, operating under the auspices of
the Ministry of Finance.

It established to supervise the banks in need of
restructuring, manage the restructuring process and be the
management agency for assets that it acquires in the course of
the banks' restructuring.

Bambang's successor Iwan is a former president of three state-
owned banks, Bank Bumi Daya, Bank Rakyat Indonesia and Bank
Ekspor Impor Indonesia (Bank Exim). He was one of the four new BI
directors appointed last December. (gis/prb)