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)