More time needed to complete BI law, Akbar says

JAKARTA (JP): House of Representatives Speaker Akbar Tandjung said on Wednesday that the House would not be able to quickly complete the amendment of the central bank law as requested by the government.

Akbar said there were many complex issues that needed to be debated by the legislators.

"There are many matters that need to be debated and they're quite complicated. So I think it will take a longer time," he said on the sidelines of a ceremony at the State Palace.

He added that the House special team assigned to deliberate the government-proposed bill on the amendment of the central bank law would only resume its session in the middle of January after legislators ended their month-long recess.

He said the current meeting being conducted by some members of the special team was only convened for lobbying purposes and did not have a mandate to make decisions.

Separately, Coordinating Minister for the Economy Rizal Ramli said on Wednesday that he was optimistic the deliberation of the amendment would be completed soon.

"Looking at today's meeting, which has been very effective and communicative, I think the (upcoming) deliberation will go well," Rizal said following a closed-door meeting with the House special team.

A speedy completion of the amendment of the central bank law is seen as a crucial factor to help revive investor confidence in the ailing economy.

Minister of Finance Prijadi Praptosuhardjo said earlier on Tuesday that the International Monetary Fund (IMF) would only disburse its next loan tranche to the country after the House completed the amendment.

The IMF has delayed the disbursement of about US$400 million to Indonesia until between February and March. The loan was scheduled to be disbursed later this month.

The government proposed the bill last month, which some have said was merely designed to remove the legal obstacle for President Abdurrahman Wahid to oust Bank Indonesia Governor Sjahril Sabirin.

But rumors have it that other large political parties are also interested in installing their people at the helm of the central bank.

Vice President Megawati Soekarnoputri of the Indonesian Democratic Party of Struggle (PDI Perjuangan), and Akbar of the Golkar Party are believed to have a strong interest in having their people at Bank Indonesia.

The government recently agreed to a proposal from PDI Perjuangan to allow senior politicians to become the Bank Indonesia governor.

According to the existing Bank Indonesia law enacted in May 1999, members of the board of governors, including the governor, cannot be told to resign by the House unless it is proven they have committed a crime, they are incapacitated or voluntarily step down.

The government-proposed bill includes a clause allowing the House to dismiss the governor and the deputy governors if they fail to meet the central bank's monetary target or if they have been inactive for at least three months.

Abdurrahman has demanded Sjahril's resignation since February.

Sjahril was first appointed to the central bank during the last period of the administration of former authoritarian president Soeharto. He was reelected in May 1999 during the period of Soeharto's handpicked successor B.J. Habibie, after Bank Indonesia became an independent central bank.

Sjahril has been accused of involvement in last year's high profile Bank Bali scandal. The court process is expected to start soon.

Five of the eight members of Bank Indonesia's board of governors, including senior deputy governor Anwar Nasution, tendered their resignation in November amid calls from the President for a reshuffle at the central bank.

The resignations were made while Sjahril was in the custody of the Attorney General's Office.(rei)