BI governor candidates are good: Economists

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.