Respected for his record in leading the country’s economy during hard times and his highly admired integrity, Coordinating Minister for the Economy Boediono is regarded by most as the strongest candidate to head the central bank.
In a discussion Monday held by Indonesian Corruption Watch, economists were hopeful President Susilo Bambang Yudhoyono would include Boediono among the list of candidates to head Bank Indonesia submitted to the House of Representatives.
“With his inflation-targeting framework, Boediono is a suitable candidate to lead Bank Indonesia,” said economist Yanuar Rizky, adding the senior “technocrat” already had ample experience in dealing with monetary and fiscal affairs.
When serving as finance minister under the administration of president Megawati Soekarnoputri, Boediono stabilized the country’s macroeconomic indicators, including inflation.
Boediono was persuaded by Yudhoyono to manage the economy as coordinating minister for the economy, replacing Aburizal Bakrie, following a “mini” financial crisis in 2005.
Analysts attributed the 2005 crisis to poor economic management by the economic ministers, including former finance minister Jusuf Anwar, who was later dismissed and replaced by Sri Mulyani.
A. Prasetyantoko, an economist at Atma Jaya University, was optimistic Boediono would win a head-to-head competition against any other candidate during the House selection process, including against Bank Indonesia senior deputy governor Miranda S. Goeltom.
Besides being more senior than Miranda, Prasetyantoko said, Boediono had an advantage due to his integrity and record as an honest official.
“The BI governor must have integrity and credibility. He or she should be able to ‘tame’ the market,” said Prasetyantoko.
According to sources at the Presidential Palace, several steps were envisaged should Yudhoyono nominate Boediono and his nomination was endorsed by the House.
Among the proposed steps, Finance Minister Sri Mulyani could take Boediono’s seat as coordinating minister for the economy, with the director general of taxation, Darmin Nasution, possibly filling Mulyani’s position.
An alternative proposal would be to give Vice President Jusuf Kalla de facto authority to take on the economic minister’s responsibilities. Mulyani, who is needed by the government to help stabilize dwindling fiscal sustainability, would remain as finance minister.
Energy and Mineral Resources Minister Purnomo Yusgiantoro might also be considered for Boediono’s position.
Current Bank Indonesia Governor Burhanuddin Abdullah is set to leave his position May 17.
President Yudhoyono is expected to submit the governor candidates to the House this week before lawmakers recess for a month from April 12.
House Commission XI for financial affairs on March 18 rejected Yudhoyono’s first two candidates, Bank Mandiri president director Agus Martowardojo and PT Perusahaan Pengelola Aset vice president Raden Pardede. (The Jakarta Post)
Indonesia’s President Dr. Susilo Bambang Yudhoyono gives a tough reaction to the Fitna movies made by a right-wing Dutch politician Geert Wilders. He commands to the government and indonesians to ban this movie and prohibits its distribution. The President gives his press conference regarding this matter on Monday (31/3) night with several ministers.
