BI staff plan to protest against Aulia appointment

JAKARTA (JP): Bank Indonesia employees plan to meet with leaders of the House of Representatives to protest the reappointment of Aulia Pohan as deputy governor of the central bank, according to a senior official at Bank Indonesia.

Bank Indonesia director for banknotes supervision H.Y. Susmanto said on Monday that Aulia Pohan was deemed not suitable for the position because he had created a clique and intimidated other staff at the central bank.

"This is the allegation of Bank Indonesia staff," Susmanto told reporters following a meeting with the central bank board of governors.

"We plan to meet the House leaders tomorrow or the next day depending on the schedule of the legislators," he added.

Sjahril proposed three names for the new position of deputy governor including Bank Indonesia senior officials Burhanuddin Abdullah, Cyrillus Harinowo, and Aulia.

Aulia was supposed to end his term next month, but the legislators reappointed him to fill the position of Iwan R. Prawiranata, who also will end his term in April.

The House Commission IX on banking and state budget last week picked Aulia as deputy governor of the central bank. The final approval of Aulia's reappointment will be made at a House plenary hearing on Thursday.

The House Commission IX also decided to reduce the number of deputy governors from seven to six.

Some 300 Bank Indonesia employees issued a statement on Sunday protesting the reappointment of Aulia.

The protesting staff also urged the House to reduce the number of Bank Indonesia deputies to five instead of six as the role of the new independent central bank has been reduced to supervision of monetary policy only.

They said that six deputies were "too many" and "inefficient".

"Bank Indonesia responsibilities have been significantly reduced. It's no longer involved in channeling credit, a function requiring extensive administrative work," said head of overseas loan division, Lukman Bunyamin.

However, Susmanto said that if the House decided to continue with its choice, Bank Indonesia staff would not continue with the protest and would not strike.

"We're committed to remain at work. But if the House decides to continue with its choice, I'm afraid that the credibility of the board of governors will be diminished," he said.

Susmanto also said that Bank Indonesia Governor Sjahril Sabirin welcomed the peaceful protest held by the staff and the decision not to hold a strike.

"We didn't expect Aulia to win. Even Sjahril himself did not expect Aulia to win," Susmanto said in response to question why they didn't protest when Aulia was named as a candidate.

There have been allegations in the media that "money politics" was involved in the reappointment of Aulia.

The Bank Indonesia staff also protested the backing of Aulia by the Golkar Party, the political machine of former president Soeharto.

They said that the involvement of a political party would threaten the independence of the central bank.(rei)