BI pursues openness: Governor
BI pursues openness: Governor
JAKARTA (JP): The new team of Bank Indonesia directors will
inject fresh blood into the central bank and promote open
management, governor of the central bank J. Soedradjad Djiwandono
said yesterday.
Soedradjad was quoted by an executive of the Federation of
Private Domestic Banks (Perbanas) as saying that the monetary
authorities needed new thoughts and ideas to cope with the
monetary crisis and banking problems.
"The new team of directors should facilitate the
implementation of new monetary policies," Soedradjad was quoted
by Perbanas secretary-general Leonard Tanubrata as saying when he
installed the new directors at a ceremony closed to the press.
"This team should be able to work together with the Bank
Indonesia governor who, during his tenure, has always been
working to promote open management," Leonard quoted Soedradjad as
telling the new directors.
Leonard was among those invited to attend the inauguration of
the new directors by Soedradjad at the central bank's office on
Jl. MH Thamrin.
Last week President Soeharto, through a presidential decree,
dismissed Hendrobudiyanto, Heru Soepraptomo, Paul Soetopo
Tjokronegoro and Mansjurdin Nurdin from their positions as Bank
Indonesia directors.
Soeharto replaced them with Iwan R. Prawiranata, the president
of state-owned Bank Bumi Daya (BBD), Miranda S. Gultom, deputy
assistant to the coordinating minister for economy and finance,
Sjahrir Sabirin, a former Bank Indonesia director, and Aulia
Pohan, head of the central bank's internal resources research and
development department.
The President kept the three remaining central bank directors:
Boediono, Haryono and Mukhlis Rasjid.
Some analysts speculated that the sudden change in the central
bank's directors was driven by the central bank's inability to
cope with the currency crisis and banking problems.
They cited the fact that the President dismissed the four
directors based on a letter from the minister of finance, not
from the central bank governor, as the evidence of disappointment
with their performance.
But Bank Indonesia director Haryono disagreed, arguing that
"Bank Indonesia never proposes names for members of the board of
directors. Such changes are usually recommended by the minister
of finance as the chairman of the Monetary Council."
Nevertheless, Haryono acknowledged that he himself was
surprised by the sudden change.
"But I finally understood the measure as the President's
prerogative to do right," he added.
Bank Indonesia director Mukhlis Rasjid was quoted by Antara as
saying the appointment of the new directors should be seen as an
effort to strengthen the team to face the complex challenges in
the monetary sector and banking industry now and in the future.
Leonard said the banking community was now waiting for
tactical programs from the new board of directors to tackle the
crisis.
"This change in course serves as a breath of fresh air, and we
hope they (new directors) will come up with new thoughts and
ideas in handling the current crisis," Leonard said.
He said Perbanas was confident the central bank would be able
to handle the crisis as the new directors had enough experience
in both banking and monetary management.
Iwan R. Prawiranata, for instance, has extensive experience in
the day-to-day operations of commercial banks. He has been the
head of three state-banks: Bank Bumi Daya, Bank Rakyat Indonesia
and Bank Ekspor Impor Indonesia.
Meanwhile, Miranda S. Gultom has been involved in
macroeconomic policy-making since she assumed her position as
deputy assistant to the coordinating minister for economy and
finance in 1993.
"Miranda could serve as a bridge between Bank Indonesia and
the Ministry of Finance. Sjahril Sabirin, a former director at
the central bank, could ensure consistency in effective
supervision of the banking industry," Leonard said.
Businessman Jusuf Kalla said the reshuffle of the central
bank's board of directors would not be enough to empower the
monetary authorities to restore the health of the banking sector
and overall economy.
"But this is a good start," he said. (rid)