Habibie submits three names for post at BI

Habibie submits three names for post at BI

JAKARTA (JP): President B.J. Habibie has submitted names of
three candidates to the House of Representatives for the position
of senior deputy governor of Bank Indonesia, according to a
legislator.

They are noted economist Anwar Nasution, senior banker Binhadi
and deputy for monetary and fiscal policy at the National
Development Planning Board Sukarno W.

The House is expected to meet on June 24 to decide which of
the candidates will become the second highest executive of the
central bank.

A new central bank law, which was approved by the President
last month, provides independence for Bank Indonesia in deciding
monetary policy.

Under the law, the House is given a say in deciding key
positions at the central bank.

Habibie reappointed Sjahril Sabirin last month to a second
five-year term as governor.

He also reappointed all existing directors as deputy governors
to assist Sjahril.

The central bank governor will head the board of governors,
which includes the senior deputy governor and deputy governors.

The president cannot dismiss the governor and members of the
board of governors.

Under the law, the government is obliged to ask for the advice
of Bank Indonesia or to invite the governor to a Cabinet meeting
on economic and monetary affairs.

The board of governors will provide recommendations to the
government on drafting the state budget or other economic
policies related to Bank Indonesia's authority or function.

The board of governors will arrange monthly meetings, in which
a representative of the government will be invited, to decide
monetary policy.

The board of governors also organizes a weekly internal
meeting to evaluate the monthly monetary policy.

The meeting is only valid if it is attended by at least half
of the members of the board of governors.

The decision-making process is through a vote. In the event of
a hung vote, the governor's decision is final.(rei)