Miranda new BI senior deputy governor

Miranda new BI senior deputy governor

Tony Hotland, Jakarta

Miranda Swaray Goeltom was named on Tuesday night as the new
senior deputy governor of Bank Indonesia, a key post which will
have a greater role in determining central bank policies.

The decision was made during a closed-door meeting at the
House of Representatives Commission IX on financial affairs.

Commission chairman Emir Moeis said that Miranda won 41 votes,
while her rivals Sunaryo Budi Rochadi (head of the Bank Indonesia
office in Tokyo) got 12 votes and Hartadi Agus Sarwono (currently
a deputy governor at Bank Indonesia) one vote.

"Miranda was chosen because she has been quite clear in
explaining her vision and mission ... She seems to be more
capable," he announced publicly.

The three made presentations at the commission during the day
before the legislators started voting.

Miranda will replace Anwar Nasution, whose five-year term will
expire on July 27.

In her presentation at the House, Miranda said that her top
priority would be to seek ways to help stabilize the embattled
rupiah.

The local unit has dropped sharply against the U.S. dollar
over the past month, due in large part to economic and political
uncertainty at home as well as a possible hike in U.S. interest
rates.

The continual slide is creating new worries about the economy
as it could eventually lead to stronger inflationary pressure and
slower economic growth.

Miranda first took a senior position at the central bank in
1997 as a director, and two years later was elected deputy
governor during a time when Bank Indonesia first became an
independent central bank.

But during her tenure at Bank Indonesia, the central bank's
reputation was at its lowest point, particularly after the way it
handled the massive bank bailout during the late 1990s financial
crisis, which according to the Supreme Audit Agency had been
mostly abused by the banks. The taxpayers now have been asked to
cover those trillions of rupiah in losses.

Meanwhile, three non-governmental organizations; Transparency
International Indonesia, the Institute for Development of
Economics and Finance (Indef) and the Professional Society all
opposed the appointment of Miranda as well as the two other
candidates, saying that none of them had the qualities in terms
of integrity, expertise and experience as required by the central
bank law.

"BI needs a "super" senior deputy governor to handle the
current economic problems, as well as to monitor vulnerable banks
and curb the rise in non-performing loans," Dradjad Wibowo of
Indef told reporters in front of the Commission IX meeting room
while the candidates were making their presentations.

He said that they were demanding that the government cancel
the selection process and come up with more qualified people. By
law, the President proposes a list of candidates for the House to
select.

But Dradjat declined to mention any further details about the
candidates' integrity, which has become a concern amid reports of
bribes being exchanged in the selection process.

Profile:

Miranda Swaray Goeltom

Born in Jakarta, June 19, 1949.

Master's (1990) and Doctoral (1992) degrees in Economics from
Boston University, USA. Bachelor's Degree in Economics from the
University of Indonesia (1975).

1993-1998: Assistant Deputy at the Office of Coordinating
Minister for Economic, Financial, and Developmental Supervision

1997: Director at BI

1998: President of PT Bank Uppindo

A deputy governor of BI (May 1999) for a four-year term.
President Megawati proposed her in 2003 to replace then BI
Governor Sjahril Sabirin, but she lost to Burhanuddin Abdullah.

2004-present: Chief Commissioner at RaboBank