Sjahril says he has no plans to resign
Sjahril says he has no plans to resign
SINGAPORE (Agencies): Sjahril Sabirin, governor of Bank
Indonesia, said Monday he's not considering resigning and any
moves to force him out would violate the independence of the
central bank.
"I have not been thinking of resigning. It has not come to my
mind," he told reporters on the sidelines of a conference in
Singapore.
"Because the current law on the central bank assures my tenure
for four years and during that time, I cannot be asked to resign
- unless I volunteer to resign."
Sjahril said he's not volunteering to resign.
"If I'm asked to resign by any body now I wouldn't because
that would violate the law...and if I resign on the basis of
pressure from outside that would mean that I'm making the
independence of the central bank non-existing," he said.
He was speaking at a meeting of central bank governors in
Singapore co-hosted by the Monetary Authority of Singapore and
the Bank for International Settlement.
Sjahril also denied that the central bank was technically
bankrupt, defending its policy on helping troubled banks and said
it was ready to be investigated.
"We are not technically bankrupt," Sjahril said.
A recent government audit shows Bank Indonesia's finances are
now so precarious that it needs an urgent capital injection, and
the finance minister has said the International Monetary Fund has
agreed to a government proposal to recapitalize the bank.
But Sjahril said the bank had sufficient capital to meet its
obligations and that any recapitalization would be small.
The Supreme Audit Agency's (BPK) report said it did not have
enough information to reach any final conclusions. But Indonesian
President Abdurrahman Wahid has called for Sjahril's sacking.
And economists demand to know more about the bank's finances,
warning that the BPK audit could just be the tip of the iceberg.
But Sjahril said the bank had acted according to Indonesia's
law for liquidity credit assistance for troubled banks.
"The Supreme Audit has not considered the higher-ranking
policy that no bank should be closed," he said, adding that the
no-closure policy was extended after the closing of several banks
in November 1997, which triggered runs on banks.
Sjahril said Rp 164 trillion (US$23 billion) had been
channeled to troubled banks under this policy.
He said that if this had been considered in the audit report
-- and added together with government bonds already issued -- the
central bank's finances would be shown to be solid.
"Should there be a need (for recapitalisation), the amount
would be small," Sjahril said, adding the bank was ready for
further investigation.
By law, the government has to inject funds into the central
bank should its capital fall below Rp 2 trillion.
On speculation about his resignation, Sjahril said: "It has
not come to my mind at any time."