IBRA chief to 'survive politicking'
IBRA chief to 'survive politicking'
Dadan Wijaksana, The Jakarta Post, Jakarta
As the new chief of the Indonesian Bank Restructuring Agency
(IBRA), Syafruddin Temenggung will face the daunting task of
weathering political interference to maintain his professionalism
and independence, but analysts believed the man has substance
given his experiences in the bureaucracy.
"Syafruddin comes from the inside, so he is surely familiar
with how things are done in the agency, including its
politicking. He should know how to handle it," Sri Adingsih, an
economist from Gadjah Mada University, told The Jakarta Post over
the weekend.
Syafruddin was the secretary for the Financial Sector Policy
Committee (FSPC), which groups economic ministers and oversees
IBRA, since April 2000 until his appointment as the new IBRA
chief.
Under the existing rules, assets sales worth over Rp 1
trillion (some US$110 million) by IBRA must be approved by FSPC.
State Minister of State Enterprises Laksamana Sukardi
confirmed on Friday that the government had appointed Syafruddin
to replace I Putu Ary Suta, making him the seventh chief of the
agency since its establishment in 1998.
Controlling assets worth around Rp 645 trillion, IBRA has,
since its birth, become the center of attention not only for the
government, but also for political parties and businessmen.
Political parties, who are in need of cash and see the agency as
potential cash cow, vie to influence the agency.
The fact that there were seven agency chiefs in the space of
four years serves as evidence.
Competition for influence in the agency started not long after
its 1998 establishment. Bambang Subianto, IBRA's first chairman,
was dismissed after only three months for unclear reasons.
Critics believe it is political maneuvering rather than
performance appraisal behind the changes in the agency's
leadership.
Last week's change has renewed this concern, with many raising
doubts whether Syafruddin is strong enough to deal with pressure
from politicians to carry out his duty properly all the way to
2004, when IBRA's existence expires.
Especially when the country is now gearing up for the 2004
election, fears are looming large that political parties would do
whatever it takes to try to make use of the agency as a cash cow.
Economist at the Institute for Development of Economics and
Finance (Indef) Bustanul Arifin is of the opinion that the
politicking surrounding the agency would continue and was
inevitable.
"IBRA has been set up wrongly from the beginning, it's been
allowed to be a vehicle for bureaucrats and politicians. We
cannot change that," Bustanul told the Post over the weekend.
Nevertheless, he went on, efforts can be made to improve the
agency's performance.
"First, let him do his job by giving him enough space and
authority to work in accordance with the agency's main goal,
which is to bring the banking sector back to good health."
Another thing that can be done to minimize political
interference, according to Bustanul, was to redefine the status
and roles of FSPC.
The powerful committee has not only made the decision-making
process longer, but it has also made IBRA a mere government tool.
"That's why interference in the agency has been flourishing,"
he added, adding that Syafruddin should be able to manage to do
it as he served as the committee' secretary for years.
Elsewhere, Sri also stressed the need for the empowerment of
the Oversight Committee (OC), the IBRA watchdog, to prevent
political intervention.
"Tight control is the only way to avoid interference, and now
OC is the only independent control agency we have. So use it,"
she said.
Bustanul concurred by saying OC should be more involved in key
decision-making, and not just be there to put the rubber stamp on
any decision taken by IBRA.