Lawmakers undecided on BI candidates

The Jakarta Post ,  Jakarta   |  Tue, 02/19/2008 11:40 AM  |  Headlines

President Susilo Bambang Yudhoyono's nomination of Bank Mandiri president Agus Martowardojo and asset management firm PT PPA vice president Raden Pardede as candidates for Bank Indonesia governor has received a mixed reaction from legislators.

The Indonesian Democratic Party of Struggle (PDI-P), the second largest faction at the House of Representatives, is expected to reject the candidates, according to senior PDI-P legislator Max Moein.

Max said Monday the President should have chosen his candidates from within the central bank as neither Agus nor Raden have any experience with it.

Max referred to both candidates as "the government's people". Agus currently runs a state-owned bank, while Raden worked as an advisor for the Finance Ministry and now heads a government-sanctioned forum tasked with synchronizing monetary and fiscal polices.

"If we allow them to lead Bank Indonesia, it would be so easy for it to be meddled with," said Max, who is also a member of House Commission XI overseeing financial affairs, on Monday.

"A candidate from within BI is needed to maintain internal solidity," said Max.

Before Friday, when the President announced his selection, individuals such as Miranda S. Goeltom (current BI senior deputy governor) were circulating as strong candidates for job.

Many of the PDI-P's legislators supported Miranda when she was beaten by current governor Burhanuddin in 2003 to head the central bank.

According to Max, the PDI-P's House members will soon hold an internal meeting to determine their final stance on the issue.

The Golkar Party, which holds the most seats in the House, is yet to determine its stance, said Golkar legislator Harry Azhar Azis.

"Debates among Golkar's legislators show the possibility of people having different opinions about this," said Harry.

Personally, Harry said he did not see a strong argument for rejecting the President's nominees, dismissing as "baseless" suggestions that figures from within the BI would be better.

"What often happens is a lack of coordination between BI and fiscal authorities. So, maybe having a BI governor from outside the central bank may help bridge this gap."

The National Awakening Party (PAN) is also yet to make a decision.

"The faction has not decided whether to accept or reject the candidates," said PAN legislator Dradjad Hari Wibowo.

Under existing regulations, the House must accept or reject the nominees by March 15 at the latest. If they reject both candidates, the President must submit a new list of potential governors. (alf)

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