Sat, 08 Mar 2003

House considering additional BI governor candidates

Dadan Wijaksana, The Jakarta Post, Jakarta

The House of Representatives hinted that it might ask President Megawati Soekarnoputri to add two names to the list of candidates for Bank Indonesia's top post, in a clear sign of a potential political struggle in the selection process.

House Speaker Akbar Tandjung said on Friday the request -- which would bring the total number of candidates to five -- was consistent with existing regulations.

"The House commission on the budget and finances, in the selection of candidates, may request additional names or reject candidates whose names have already been submitted," Akbar said, adding that he preferred the additional candidates to come from outside the central bank.

According to Law No. 23 on Bank Indonesia, the president is allowed to name up to five candidates for the position of governor at the central bank.

Although saying any request that the President consider new candidates would be meant to make the list more diverse, Akbar's remarks appeared to reaffirm earlier opposition to the candidates from members of Akbar's Golkar faction.

Three weeks ago, President Megawati Soekarnoputri submitted to the House a list of three candidates for the governorship of Bank Indonesia. Whoever is elected will replace current Bank Indonesia governor Sjahril Sabirin, whose term must end by May 17.

The three candidates submitted by the President were Miranda Gultom, Cyrillius Harinowo and Burhanuddin Abdullah. Miranda is currently one of the central bank's deputy governors, and the other two candidates have both served in official capacities with the central bank.

None is officially registered as a member of a political party, a fact that had caused some people to hope political wrangling over the election would be kept to a minimum.

However, these hopes appear to have been in vain. Before Akbar's statements on Friday, his fellow Golkar legislators had repeatedly raised objections to the three candidates proposed by the President.

Observers have said this is the faction's way of showing its displeasure with the fact that none of the candidates is seen as a "close ally" of Golkar.

Miranda is said to have been approved by Megawati's Indonesian Democratic Party of Struggle (PDI Perjuangan) while Burhanuddin has long been associated with the United People's Party (PPP).

Rumor has it that, as the country's second largest political party, Golkar feels it deserves to be represented in the selection process for the Bank Indonesia governor. Sources say that Golkar had proposed to Megawati that she include central bank deputy governor Aulia Pohan as one of the candidates.

PDI Perjuangan and PPP are the country's largest and third largest parties, respectively.

Akbar also said that because of the tight schedule, the screening of the candidates for central bank governor might take place during the House's recess, in order to have the results ready to present to a House plenary meeting the following session.

The House entered its recess on Friday, with the next session beginning on April 28.

Sjahril took office in 1998, replacing Sudradjat Djiwandono. He began his career with the central bank in 1969.

Meanwhile, Cyrillius was summoned by the Attorney General's Office as a witness in the alleged misuse of Bank Indonesia liquidity support funds in the wake of the late 1990s financial crisis by central bank officials. There has been speculation that Cyrillius and the other two candidates could be named suspects in the case.