B

ank Indonesia (BI) is welcoming the appointment of Christine Lagarde as the new managing director for the International Monetary Fund (IMF), hoping the new chief will bridge relationships between advanced and emerging economies.

“Lagarde has been more successful in consensus building to bridge relationships between advanced countries and emerging markets,” BI deputy governor Hartadi A. Sarwono said Wednesday.

BI and the Finance Ministry represent Indonesia when corresponding with the international lender.

Economists have called on the new IMF head to reallocate voting rights to give more say to emerging markets.

In her campaign trail tour of Asia, Lagarde showed her acknowledgment that emerging economies such as China and India deserve more IMF voting power as well as top decision-making posts.

“[Lagarde] is more known in Asia compared to the other candidate [Mexico’s central bank governor Agustin Carstens]. Her siding with Asian countries, particularly Indonesia, has been very strong,” Hartadi said.

The 55-year-old Frenchwoman received support from many Asian economies despite the pattern of Europeans holding the top IMF job.

Lagarde was selected the first woman to head the IMF on Tuesday, succeeding her compatriot Dominique Strauss-Kahn, who resigned from the IMF in May to defend himself against charges of sexual assault against a New York hotel maid, which he denied.

Indonesian Finance Minister Agus Martowardojo previously expressed his “personal support” for Lagarde in her bid for the IMF top job, saying the implications of Lagarde’s appointment will heavily impact Indonesia as she has shown support for the country through a visit earlier this year.

“France’s prime minister’s visit to Indonesia in the near future also reflects Lagarde’s work in increasing France’s collaboration, as the G20 chair, with Indonesia as the ASEAN chair,” Hartadi said.

Lagarde led 40 French business delegates to Indonesia in February in a visit the Indonesian government expected would create US$10 billion in investment from France, Coordinating Minister for the Economy Hatta Rajasa said.

BI spokesperson Difi A. Johansyah said before the selection process earlier on Monday that the central bank has sent a letter to John Lipsky, acting managing director at the IMF, expressing its view that the new IMF head represent emerging-market economies.

“Changes in the global economy have increased the roles of emerging markets. Therefore, the selected IMF managing director should be able to facilitate the representation and desires of emerging nations ... [and] to deeply understand the needs and interests of developing countries,” Difi said.

The IMF serves 187 member countries through 2,700 staff members in more than 140 countries.

—JP/ Esther Samboh