Expert advisor for capital market development hired

JAKARTA (JP): Minister of Finance Mar'ie Muhammad yesterday named Dahlan M. Sutalaksana, chief of the central bank's money and capital market department, as his expert advisor in charge of capital market development.

Mar'ie also appointed Darsjah as the new director general for the state budget, to replace Benyamin Parwoto.

Darsjah was formerly director of the routine government budget.

Mar'ie told reporters that he needs an advisor on capital markets because of the rapidly growing domestic exchanges.

"This advisor will be responsible not only for monitoring the developments in the capital market but also for helping develop links between the money market and the capital market," he explained.

According to Mar'ie, the two are complementary.

"An expert staff is therefore essential to synchronize the technical aspects of policy-making for the two markets, which are both under the supervision of the ministry of finance," he said.

Although the money market is handled by the directorate general of financial institutions, it was considered unnecessary to establish a new directorate general to manage the capital market.

Mar'ie said the appointment of Dahlan, who was formerly the head of the Money and Capital Market Department at Bank Indonesia, had been carefully planned.

Responding to questions on the new credit rating agency, Dahlan, who is also one of the agency's founders, said the agency is now recruiting rating analysts.

The analysts are attending training programs by various foreign agencies, including the Standard & Poor's, the London- based IBCA (International Banking Credit Association) and the Malaysian, Philippine and Thai credit rating agencies.

"The agency's task is to rate debt instruments which will be sold to the public, such as bonds and commercial papers," he explained.(10)