Burhanuddin selected as new BI governor

Burhanuddin selected as new BI governor

The Jakarta Post, Jakarta

House of Representatives Commission IX on banking has selected
Burhanuddin Abdullah as the new governor of Bank Indonesia to
replace Sjahril Sabirin, following a "fit-and-proper test" of the
three candidates that lasted until Monday midnight.

Burhanuddin, former coordinating minister for the economy
under president Abdurrahman Wahid, defeated strong candidate
Miranda S. Goeltom, currently deputy governor who was backed by
the largest faction at the House -- the Indonesian Democratic
Party of Struggle -- and low-key candidate Cyrillius Harinowo.

Cyrillius, who has served a senior position at the central
bank, appeared to have had little chance because of a lack of
political support, despite being highly respected as a
professional.

Burhanuddin won 34 of the votes from the 52 Commission IX
members attending late-night voting, while Miranda got 18 votes
and Cyrillius zero.

"We hope the new governor will be able to contain inflation,
maintain the stability of the rupiah and improve the central
bank's performance so that Bank Indonesia will become the best
central bank in Asia," said Max Muin, chairman of House
Commission IX, which conducted the fit and proper tests.

Max said the decision on Burhanuddin would be brought to a
plenary House session on Tuesday for endorsement. He played down
any possibility that the plenary session would contest the
selection of Burhanuddin, contending that "Commission IX has been
tasked to select the new governor."

Burhanuddin won the support of the Golkar Party, the United
Development Party -- respectively the second and third largest
factions in the House -- and Muslim-based parties.

Burhanuddin, who has served in senior positions at the bank,
will replace Sjahril Sabirin, whose tenure ends on May 17.
Sjahril, who replaced Sudradjat Djiwandono, has held the post
since 1998.

After the completion of the selection of the new governor, Max
said the commission would select a new deputy governor to replace
Miranda, whose term is due to expire.

The candidates for the new deputy governor all come from Bank
Indonesia, namely Siti C. Fadjrijah, Hartadi Sarwono and Bambang
Sindumurti. The selection process will start on May 19.