Siti Fadjrijah named new BI deputy governor

Urip Hudiono, The Jakarta Post, Jakarta

The House of Representatives appointed on Monday Siti Chalimah Fadjrijah as the central bank's new deputy governor in charge of bank supervision.

Siti, who currently heads Bank Indonesia's (BI) directorate for bank information and licensing, will replace Aulia Pohan, who has served as the central bank's deputy governor twice and will complete his second term this month.

BI governor Burhanuddin Abdullah is assisted by senior deputy governor Miranda S. Gultom and six deputy governors, each charged with certain responsibilities in covering the central bank's duty of laying out and implementing the country's banking and monetary policies.

Siti edged out another candidate, Krisna Wijaya, a top banker and Bank Rakyat Indonesia (BRI)'s director for micro, retail and syariah financing.

Chairman of the House's Commission XI for financial affairs Paskah Suzetta said that Siti's appointment was done through acclamation by 56 House members representing all the 10 factions in the Commission.

"The Commission has by acclamation chosen Siti as the new deputy governor," he said after the Commission's closed session.

Paskah explained that the Commission finally chose Siti on the basis that she had more experience in the field of bank supervision, apart from other criteria according to Law No. 3/2004 on Bank Indonesia.

Paskah added that the Commission expected Siti, as BI's new deputy governor, would boost the central bank's monitoring and supervision of the country's banking sector.

"Considering the many occurrences of fraudulent banking practices recently, BI must be tougher in giving sanctions against any such violators," he said.

"The central bank must also improve the country's licensing system for banks to prevent any similar violations in the future."

Furthermore, the Commission expects BI to more seriously monitor the flow of funds occurring into the country's banking system, to prevent such crimes as money laundering.

The country's banking industry has recently been marred with the closure of Bank Asiatic and Bank Dagang Bali last year, and Bank Global International earlier this year, mostly for mismanagement.

During last week's "fit-and-proper" examination, Siti said that she would improve BI's performance in increasing the transparency and prudentiality of banks accordingly to international banking principles.