Siti Fadjrijah named new BI deputy governor

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.