House to select new senior BI official
The Jakarta Post, Jakarta
The House of Representatives' finance commission aims to complete the selection process for the post of Bank Indonesia senior deputy governor before the end of May, according to a senior lawmaker.
"We'll try to complete the selection hearings before the end of May. We must not miss this (deadline)," commission chairman Emir Moeis told reporters on Thursday.
The current senior deputy governor, Anwar Nasution, will come to the end of his term on May 17.
President Megawati Soekarnoputri had previously proposed three candidates for the second most senior post in the central bank, including Miranda Goeltom (a former deputy governor of Bank Indonesia), Budi Rochadi (the head of Bank Indonesia's office in Tokyo), and Hartadi A. Sarwono (currently a deputy governor).
According to the Central Bank Law, the House must decide in three weeks whether to select the winning candidate based on public hearings, or reject all the nominations proposed by the President.
If the House rejects the nominees, the President is required to submit a new list of names.
The senior deputy governor will have a crucial role to play in helping the country's banking sector gear up for major changes ahead.
The key programs to be implemented include the restructuring of the country's banking sector based on the newly released Indonesian Banking Landscape document, and the planned establishment of a Deposit Insurance Agency (LPS) and Financial Services Authority (LOJK).
The Landscape is a blueprint for the banking sector to be implemented in stages over the next 10 years, with the main aim being to build a sound, strong and efficient banking system. It is based on the assumption that a resilient banking system is a key element in promoting economic growth and supporting the stability of the financial system.
The program envisages the raising of banks' minimum capital requirements in the next seven years from the current Rp 10 billion (about US$1.2 million) to Rp 100 billion.
Elsewhere. Emir said that his commission planned to submit a list of 21 candidates for the top post at the Supreme Audit Agency (BPK) at an upcoming House plenary session on May 24.
The 21 nominees had been selected from among some 80 names that had been suggested, he added.
Emir said that the House would rank the 21 names in order of suitability and submit them to the President for selection.