Following the arrest of Bank Indonesia Governor Burhanuddin Abdullah, the House of Representatives is urging the immediate inauguration of Boediono, who has been chosen as the next BI governor.
House Speaker Agung Laksono said Friday the inauguration would help comfort the market over the role of BI in safeguarding the country's monetary indicators.
"It will be better if Boediono is inaugurated immediately so BI will have a definite leader following Burhanuddin's arrest," said Agung.
Agung said that as the central bank, BI needed a definite leader to help stabilize the country's macroeconomic condition and rupiah volatility, particularly amid the current unfavorable condition of the global economy.
Coordinating Minister for the Economy Boediono was approved earlier this week as the next BI governor by a House plenary session. He is scheduled to replace Burhanuddin, whose tenure ends May 17.
Burhanuddin was arrested Thursday by the Corruption Eradication Commission (KPK) for allegedly misappropriating Rp 100 billion (US$10.87 million) in funds of the Indonesian Banking Development Foundation (YPPI), a foundation belonging to BI.
The funds were allegedly distributed to some House members between 2003 and 2004 to smoothen the amendment process of the BI Law and to hire lawyers to resolve the BI liquidity funds (BLBI) cases.
In the absence of Burhanuddin, BI deputy governor Hartadi A. Sarwono at present heads the central bank. A BI board of governors regulation calls for the bank's senior deputy governor to step in if the BI governor is away.
However, as BI senior deputy governor Miranda S. Goeltom is now on leave abroad, Hartadi, who will end his term as BI deputy governor in June, has been assigned to take on the duty.
The 56-year-old Hartadi has been a BI deputy governor since June 2003.
"Although the BI governor is away, we are ready to handle the monetary policy and the banking sector, in line with existing procedures," said Hartadi, following his meeting with Boediono at the latter's office.
Hartadi was accompanied by two BI deputy governors, Siti Ch. Fadjrijah and Ardhayadi.
Other BI deputy governors could not attend the meeting. Muliaman S. Hadad and Budi Rochadi were on duty, while Budi Mulya was being questioned by the KPK on the BLBI cases.
Vice President Jusuf Kalla has expressed concern over Burhanuddin's arrest, fearing it could affect the transition of the central bank leadership to Boediono.
"The government, of course, is concerned over the detention, but the KPK is an independent body. The law allows it to (make the arrest), and the government cannot intervene," Kalla told reporters.
"We hope the graft body can speed up the legal process so the detention will not affect the central bank's main tasks."
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