|
The House of Representatives hosted a public hearing
Wednesday around the government's proposal for two new Bank Indonesia
(BI) governor candidates.
Last month, President Susilo Bambang Yudhoyono nominated bank Mandiri
president director Agus Martowardojo and the vice president of asset
management company Perusahaan Pengelola Aset, Raden Pardede.
The candidates are vying for leadership of the central bank for the
next five years.
PT Credit Suisse Indonesia analyst Mirza Adityaswara said both
candidates had the capacity to lead the central bank and they deserved
to get a so-called fit and proper test.
Another economist, Ichsanudin Noorsy, said the government should have
proposed a different candidate from inside the central bank.
The fit and proper test would see House members scrutinize each
candidate over their vision and mission for leadership of the bank.
Economists said the candidates could give BI a new look after a recent
alleged bribery scandal.
Current BI governor Burhanuddin Abdullah has been named a suspect in an
alleged graft case involving some House members.
"Agus has made significant improvements in Bank Mandiri, while Raden
has some experience in Bank Central Asia (BCA)," Mirza said.
"I suggest that the House approves both candidates and continues to fit
and proper testing."
Agus made Bank Mandiri -- formed by the merger of four state-owned
banks after they fell into disrepute -- one of the most respected banks
in the country.
It is now the largest lender in Indonesia with one of lowest level of
non performing loans (NPLs).
Raden, who was an executive director at state investment firm PT
Danareksa between 2002 and 2004, also heads the Financial System
Stability Forum (FSSK) -- a state-sanctioned agency tasked to
synchronize fiscal and monetary policies and detect early signs of a
crisis.
Mirza said BI governor candidates should completely understand the
country's monetary policy and be able to build a credible and
independent central bank.
He said the new BI governor should continue reform in the banking
sector.
But economist Ichsanudin said the President should have nominated
another internal candidate to continue a career path in BI.
"The President should have been wiser to see career paths in BI, after
all BI's organization system is among the best in the country,"
Ichsanudin said.
"He could have named an internal candidate for that."
Economists have said the President may consider BI needs an injection
of fresh blood following the alleged graft case.
The House commission XI overseeing the banking sector said it would
hold an internal meeting Thursday to review both candidates.
Commission member Dradjad H. Wibowo said the House should give feedback
to the President before March 15.
Under the existing regulation, the President is allowed to submit up to
three names should the House reject the initial nomination.
If the House still rejected it, the current BI governor will be elected.
However, since BI governor Burhanuddin -- who has publicly said he was
not interested in running for a second term -- has been named as a
graft suspect, his senior deputy and deputy governors could replace
him, if approved by the House.
|
