Mulyani to head BI, creating new govt vacancy

Aditya Suharmoko ,  THE JAKARTA POST ,  JAKARTA   |  Fri, 06/26/2009 1:09 PM  |  Headlines

The nomination of Finance Minister Sri Mulyani Indrawati as the central bank's governor is seen as positive, but will leave a big hole in the government, experts say.

President Susilo Bambang Yu-dhoyono has said Mulyani, also the coordinating minister for the economy, will be proposed as a candidate for Bank Indonesia's (BI) governor, along with another candidate whose name has not been disclosed.

BI deputy governor Hartadi A. Sarwono is reported to be a strong contender, as well as Bank Mandiri president director Agus Martowardojo and BI deputy governor Budi Rochadi, lawmaker Dradjad H. Wibowo said Thursday.

While Mulyani undoubtedly has the capability to lead BI, her departure from the cabinet may leave a hole in the government, said Bank Danamon chief economist Anton Gunawan and INDEF economist M. Ikhsan Modjo.

"Assuming SBY wins the presidential election, he will need to place his people at crucial posts," Anton said.

"*Tax office chief* Darmin *Nasution* will be at BI. If another one goes, what about the reforms at the Finance Ministry that have yet to be finished?

"Two important figures will be gone from the Finance Ministry," he said.

Anton said the best scenario for a strong government, assuming Yudhoyono wins the election, would be to place Hartadi as BI's governor.

"If the government wants to push *the establishment* of the financial services authority *OJK*, it already has Darmin at BI."

The government and BI are in talks about OJK, which may be established to solve the supervision issues at the banking sector.

Darmin was one of the initiators of OJK.

Asked about the possible replacement of Mulyani as the finance minister and the coordinating minister for the economy, Anton said such a strong figure would not be easy to find.

"There may be some capable people. But there are risks in placing new people."

Dradjad said it would be the President's prerogative to name Mulyani's replacement if she was elected as BI's governor.

"The selection of BI's governor may not go smoothly at the House of Representatives."

Indonesia is having its presidential election on July 8, in which the winning pair will want to have a close figure at BI.

Parties at the House are split in supporting the pairs of Yudhoyono-Boediono, incumbent vice president Jusuf Kalla-Wiranto and Megawati Soekarnoputri-Prabowo Subianto.

Dradjad said he would prefer the next BI governor to have a banking background as BI's main issue had always been in supervising banks.

"There is a lack of good governance and action at BI."

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Suppa (not verified) — Fri, 06/26/2009 - 8:00pm

Ibu Sri is a Gem to this country. Her performance shows, how tactful she is in handling the various departments which are responsible to generate the funds required to meet the budget.
She is shinning in her current position. Given another chance in the next term, it is quite sure that Indonesia's position in Asia will be much higher than now. Ibu Sri, Ibu Marie and Ibu Supari's and their loyal staff had jointly worked hard during this economic downturn and had taken necessary actions to solve problems.
For example, you may walk into any supermarkets, and you can find many products, which are PRODUCE OF INDONESIA. These mothers of the nation should be honoured for their bold decissions. A NO FEAR NO FAVOUR attitude.
Making Ibu Sri as BI chief, will be a waste of good talent.
Please let her stay where she is now.

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