Lawmakers test Raden for Bank Indonesia governorship

The Jakarta Post ,  Jakarta   |  Tue, 03/11/2008 1:37 AM  |  Headlines

One of the two candidates running for governor of Bank Indonesia Raden Pardede has promised to create a reliable and credible central bank that would deliver sustainable economic development amid tough global challenges.

Raden was speaking on Monday during a so-called fit and proper test run by the House of Representatives to help lawmakers determine the next governor of BI.

The test saw House members scrutinize Raden over his eligibility, vision and mission for leading the central bank.

Raden said he would implement his vision by completing two missions.

"First, I will improve the competency, professionalism, motivation and accountability of all BI staff members," he told Commission XI lawmakers overseeing financial affairs.

"Second, I will establish a mutual synergy with other authorities to maintain economic development stability."

Raden is currently vice president of Assets Management Company -- the state-sanctioned body tasked to manage assets formerly controlled by the now-defunct Indonesian Bank Restructuring Agency (IBRA).

Raden said the world's financial markets were in turmoil because of fears of a global economic slowdown. He said a sound synergy with relevant authorities was needed now, more than ever.

With the help of other institutions, Raden said the central bank would strive to create a reliable early warning system for economic or financial crises.

Such a system would include the introduction of a specific financial sector protection protocol that could work effectively whenever an economic crisis occurred and convince investors not to panic and exit.

Raden said if he was elected, the central bank would further promote and prioritize the development of the small and medium enterprises (SMEs) sector and the sharia financial industry.

"To enhance the SMEs sector, BI can provide numerous facilities, warranties and assistance to make the national banking industry more willing to help grow SMEs," he said.

"Assistance from the banking industry is essential for the development of SMEs' professionalism."

He said BI could play a more active role in establishing necessary regulations for the sharia banking industry, as well as improving the quality of human resources and infrastructure for the sector.

Among the challenges he mentioned in the banking sector was its huge excess of liquidity.

The House said it would hold the same test Tuesday for candidate number two, Agus Martowardojo, currently a president director of Bank Mandiri, the country's largest lender.

Under existing regulations, the House could reject the two candidates, after which the President could submit a new list of names.

The House can still reject the new nominations, which in this case would either see the existing BI governor or other members of BI's board of governors take on the position. (uwi)

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