House considering additional BI governor candidates

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.