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)