Clean figure needed to replace BI governor

Clean figure needed to replace BI governor

Dadan Wijaksana, The Jakarta Post, Jakarta

As Sjahril Sabirin's term as Bank Indonesia (BI) governor
draws near, calls are mounting for President Megawati
Soekarnoputri to name new faces with integrity and untainted
track records as candidates for the central bank's top post.

Senior lawmakers said independent and uncontroversial figures
for the job would be of high importance to send positive signals
to the market.

"Asides from integrity of high quality, what we need is
figures that are controversy free. This is important because this
position is crucial for market confidence.

"It means that appointing controversial candidates could well
shatter confidence," Paskah Suzetta, deputy chairman of the House
of Representatives' Commission IX on financial affairs, told The
Jakarta Post on Sunday.

Paskah did not elaborate on what he meant by controversial,
but his statement appears to indicate his objections to some, if
not most, of the names already coming to the surface.

While no names are yet to be officially announced, there has
been speculation about who could be in the running.

The names include State Minister for State Enterprises
Laksamana Sukardi, State Minister for National Development
Planning Kwik Kian Gie, Sjahril himself or his deputies Miranda
Goeltom or Aulia Pohan.

Most of are not necessarily free of controversy.

While Laksamana and Kwik are senior members of the ruling
Indonesian Democratic Party of Struggle (PDI Perjuangan) -- a
situation which prohibits them from being elected unless they
drop their party memberships -- the other candidates are also
prone to resistance, partly due to their "troubled" pasts.

Sjahril, for instance, has a problem with the law.

Despite having been acquitted of all criminal charges in the
Jakarta High Court over his involvement in the Bank Bali saga,
his legal battle is set to continue as an appeal process to the
Supreme Court is still underway. Restoring his already tainted
image would be an uphill task.

Similar treatment will also likely impede the chances of
Miranda, who has been accused of alleged wrongdoings when the
central bank injected hundreds of trillions worth of liquidity
support loans to local banks during the crisis. Most of the funds
were later misused.

Paskah did not confirm whether those reasons fitted in with
his idea of a controversial figure, only saying: "I leave it all
to the public to judge."

Fellow lawmaker Max Muin, who chairs the commission, has said
the next governor should be independent and someone that could
guide market confidence.

"It would be rather complicating if it turns out to be
Sjahril. We need someone who is clean, either from inside or
outside the bank," Max said.

The legislators were commenting on the rising public debate
over who should lead the central bank after the end of Sjahril's
term. His tenure will expire by May 17, although he is still
eligible to stay on for another five-year term.

The president has one week left to submit the list of
candidates to the House for approval, because by law, it has to
be submitted three months before the end of the sitting officer's
terms.

Analysts say it is not easy for the President to choose given
the short time left and in view of the importance of the post,
which has the authority to determine the country's monetary
policy.

Given the importance of the post, analysts say, it is almost
impossible to expect the selection process to be free from
political bargaining.

Elsewhere, when asked to comment on his chances, Sjahril only
said on Friday: "I'd leave it all to the president, it's the
president who has the right to name the candidates."

Sjahril took office in 1998, replacing Sudradjat Djiwandono.
Born in 1943, Sjahril earned his doctoral degree on monetary and
international economics from the Vandelbilt University in the
U.S. Sjahril started his career at the central bank in 1969.

Law No.23/1999 on Bank Indonesia, Article 47, Verse 1:

BI's board of governors members are not allowed to:

1. Have both direct and indirect interests in any company.

2. Have two or more jobs in other institutions.

3. Become a member of political party.