BI governor candidates are good: Economists
Dadan Wijaksana and Kurniawan Hari, The Jakarta Post, Jakarta
Economists warmly welcomed on Monday the government's nomination of three professionals, rather than politicians, to be the new governor of Bank Indonesia, saying it signaled an intention to protect the central bank from political interference.
Gadjah Mada University economist Sri Adiningsih said the central bank, as the top authority in the country's financial market, should be free from politicking.
"By selecting three professionals with a relatively good track record in monetary policy, rather than politicians, the government has sent a signal to the market that it is committed to selecting the best possible candidate, while at the same time limiting chances for politicking in the bank," Sri told The Jakarta Post on Monday.
President Megawati Soekarnoputri nominated current or former Bank Indonesia staffers Miranda S. Goeltom, Cyrilius Harinowo and Burhanuddin Abdullah. A letter was sent to the House of Representatives on Friday.
One of the three will replace the controversial Sjahril Sabirin, whose tenure ends on May 17.
Sjahril has held the post since 1998 after replacing Sudradjat Djiwandono. Born in 1943, Sjahril started his career at the central bank in 1969. He earned his doctoral degree on monetary and international economics from Vanderbilt University in the U.S.
Earlier, several names, including members of political parties, were tipped as likely candidates for the position.
StanChart economist Fauzi Ichsan agreed with Sri, saying the three candidates were all acceptable to the market in view of their monetary management skills.
"Besides, what the market hopes to see also is someone who has the capability of working together with other state institutions like the government and the House. I think the proposed names have the capability," Fauzi told the Post.
The three candidates were not only known as senior officials at the central bank, but were also highly respected professionals, Fauzi said.
However, House of Representatives Speaker Akbar Tandjung said that based on existing mechanisms, the House's Commission IX for banking and financial affairs would conduct a series of tests for each candidate.
According to Law no 23/1999 on Bank Indonesia, a fit and proper test would be conducted for each candidate, and the House had the right to reject any candidate.
"Theoretically, it is possible for the House to reject those candidates. If that happens, the term (of Sjahril) will be extended," Akbar said.
Deputy chairman of commission IX, Paskah Suzetta, meanwhile pledged that his commission would carry out the test "as soon as possible".
"The most important thing is that we will invite the public to give input concerning the three candidates," Paskah said after a meeting with Akbar.