Four members of the board of commissioners (BoC) of Bank Mandiri, one of Indonesia's largest banks, were ousted in a major shake-up during its extraordinary general shareholder's meeting Wednesday.

The government, which is the majority shareholder of the bank with 60 percent, installed Mahmuddin Yasin as Mandiri's president commissioner, Askolani as commissioner and Aviliani and Anton Hermanto Gunawan as independent commissioners.

Yasin, who currently serves as deputy minister at the State-Owned Enterprises Ministry (SOE), replaced seasoned banker Edwin Gerungan who was appointed president commissioner in 2005.

Yasin, who has degrees in economy, business administration and management was the vice chairman of the Indonesian Bank Restructuring Agency (IBRA) between 2000 to 2001.

Askolani, Aviliani and Anton replaced ex-banker Gunarni Soeworo; former deputy head of the SOE Ministry's restructuring and strategic planning department Wahyu Hidayat; and former acting head of the Finance Ministry's fiscal policy department Agus Suprijanto.

Currently, Askolani is Finance Ministry director general of budgeting and Aviliani is active as an economist and secretary of the National Economic Committee (KEN).

Meanwhile, prior to his appointment as Mandiri commissioner, Anton worked as Bank Danamon chief economist. He resigned from this post last month.

The shake-up within Indonesia's largest bank came before the end of their terms. Gunarni's term was slated to end in 2015, while those of Agus and Wahyu were due to end in the next three to four years.

The BoC shuffle comes less than a month after the bank canceled its plan to take over Bank Tabungan Negara (BTN), another bank controlled by the government. Mandiri announced in late April its plan to acquire BTN, which focuses on the provision of mortgages. But, the government later issued a circular demanding the postponement of the plan following protest from BTN employees.

Gatot Trihargo, the SOE Ministry deputy head for business services as well as the government's representative in the meeting, declined to explain the reshuffle.

'Pak Dahlan [SOE Minister] will explain everything tomorrow [Thursday],' he said.

Commenting on Aviliani, Gatot added that she had officially resigned from her position as commissioner at lender Bank Rakyat Indonesia (BRI), effective Wednesday.

Gunarni received a standing ovation, especially from Mandiri's employees, after her remarks at the meeting.

Tripping over her words, she acknowledged that the government had every right to reshuffle the BoC, but said that she wished the process had been more transparent. Voting results show that 77.7 percent of the shareholders gave their consent, while the rest did not approve the change.

Despite the shake up, Mandiri's shares on the Indonesia Stock Exchange (IDX) climbed 0.5 percent to Rp 10,150 (88 US cents) at the close of the trading on Wednesday.

Separately, Valbury Asia Securities research division head Nico Omer Jonckheere said that he was convinced the change in the BoC would not affect the bank's fundamentals.

'The story would have been different if the change had occurred within Mandiri's board of directors, but with Aviliani and Anton on board, I think the bank will do just fine. They are competent,' he said.

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