House members set to decide on Boediono candidacy next week

Aditya Suharmoko ,  The Jakarta Post ,  Jakarta   |  Thu, 04/03/2008 1:36 AM  |  Headlines

The House of Representatives hopes to make a final decision on the candidacy of Boediono for Bank Indonesia governor by the end of next week.

"We will hold a fit-and-proper test on April 7, and submit the results to the House's consultative body on April 8," the chairman of House Commission XI overseeing financial affairs, Awal Kusumah, said Wednesday.

Awal said a House plenary session on April 10 would determine whether all the House factions endorsed the results of the so-called fit-and-proper test. The House goes into recess April 11.

President Susilo Bambang Yudhoyono has nominated Coordinating Minister for the Economy Boediono as the sole candidate to be the next central bank governor, replacing Burhanuddin Abdullah, whose term ends May 17.

Several House members have already come out in support of Boediono, saying he is a strong candidate with extensive experience in dealing with macroeconomic affairs. He is also a former deputy governor -- then it was called a director -- of Bank Indonesia, from 1993 to 1998.

Some House factions initially criticized the decision to nominate just one candidate. However, the factions have retreated from their criticism, including the Indonesian Democratic Party of Struggle (PDI-P), which was the loudest in calling for more candidates.

"Boediono is a less controversial candidate compared to the previous candidates. Despite some weaknesses, he is more than capable to lead BI," said the PDI-P's Emir Moeis, who is vice chairman of the House budget committee.

Earlier, the government nominated Bank Mandiri president director Agus Martowardojo and PT Perusahaan Pengelola Aset vice president Raden Pardede to head the central bank. Both candidates were rejected by the House.

Rama Pratama of the Prosperous Peace Party (PKS) said the country needed a BI governor with the flexibility and experience to manage the country's monetary policy, considering the current unfavorable economic conditions.

Dradjad H. Wibowo of the National Mandate Party (PAN) said Boediono had the requisite experience in dealing with monetary policy. However, he warned the government that Boediono was involved in the BI liquidity funds case, which might eventually land him in court.

Boediono, as a BI director, signed off on the disbursement of central bank liquidity funds to help ailing banks during the 1997 financial crisis.

Boediono's candidacy for BI governor has also raised concern over who would replace him as the coordinating minister for the economy.

According to circulated speculation, Finance Minister Sri Mulyani could take over Boediono's position, with the director general of taxation, Darmin Nasution, being appointed finance minister.

An alternative scenario that has been discussed would be Vice President Jusuf Kalla taking over de facto control of Boediono's former duties. Mulyani, who is needed by the government to help stabilize fiscal sustainability, would remain as finance minister.

Energy and Mineral Resources Minister Purnomo Yusgiantoro is reportedly also being considered for Boediono's position.

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