Agus, Raden nominated for BI governor

Abdul Khalik , The Jakarta Post , Jakarta | Sat, 02/16/2008 12:42 PM | Headlines

President Susilo Bambang Yudhoyono nominated Bank Mandiri president director Agus Martowardojo and Assets Management Company (PPA) deputy director Raden Pardede as candidates for Bank Indonesia (BI) governor.

"We have received the President's letter of nomination. He nominated Agus and Raden for BI governor," a member of the House of Representatives Commission XI overseeing financial affairs told The Jakarta Post late Friday.

The nomination took several factions by surprise as none of the candidates come from inside BI.

Hari Azhar Azis of the Golkar Party said that the nomination showed that Yudhoyono did not trust any bankers from inside the central bank.

"It's really out of expectations. I think the President wants a governor that will be free from the recent BI scandal so that the governor can clean up the institution, which is good," he told the Post.

BI has been hit by a corruption scandal, with governor Burhanuddin Abdullah being declared last month as a suspect in a graft case involving lawmakers.

Burhanuddin, whose term will end in May, said Tuesday he did not want to be a candidate in the next BI gubernatorial election.

Burhanuddin, along with BI legal affairs director Oey Hoey Tiong and former BI communication bureau head Rusli Simanjuntak, have been named suspects by the Corruption Eradication Commission (KPK) in the case surrounding the misappropriation of BI funds worth Rp 31.5 billion (about US$3.4 million).

Drajat, who represents the National Mandate Party (PAN), said that he had received confirmation that Agus Martowardojo was the President's favorite choice.

"Both of them are good. Agus is an experienced banker and Raden a noted economist," he said.

Ganjar Pranowo of the Indonesian Democratic Party of Struggle (PDI-P) said that his parties had several reservations about both candidates.

"We will examine them carefully, and will ask for explanations on several issues that give us doubts," he said.

Both Drajat and Hari agreed with Ganjar on the need to further examine both candidates.

Many analysts consider Agus, who took over as Mandiri president in 2005, as having been successful in his handling of the state-own bank. Last August, Business Review magazine named the Bank Mandiri president director Best CEO of 2007.

In 2006, the Asiamoney journal named him Indonesian Executive of the year and The Asian Banker presented him with its Leadership Achievement Award.

Many said that he deserved these awards because he had successfully rebuilt the image of Bank Mandiri, which once had a bad reputation but is now recognized as Indonesia's largest and most trustworthy bank.

Within just a year of assuming the position of president director, he raised the operating profit of Bank Mandiri from Rp 1.5 trillion in 2005 to Rp 1.61 trillion in the third quarter of 2006.

Raden is lesser known but is considered by observers as having been quite successful in handling recovered state assets at the PPA.

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