SBY picks four names for top BI positions

JAKARTA. President Susilo Bambang Yudhoyono has nominated four candidates for two deputy governor positions at Bank Indonesia (BI), which will oversee policy making at the banking and monetary authority.

The candidates comprise incumbent deputy governor Muliaman Hadad -- whose term will expire in December, BI directors Perry Warjiyo and Ronald Waas, and Riswinandi, vice president of state-run Bank Mandiri, according to members of the House of Representatives’ Commission XI overseeing banking institutions.

The two senior positions will become vacant in the fourth quarter of this year on the central bank’s board of governors. Other than Muliaman’s term, the term of the late Budi Rochadi, BI’s former deputy governor overseeing payment systems and micro lending, who passed away in July, will expire in November. Budi’s tasks have been taken over by the deputy governor for internal affairs, Ardhayadi Mitroatmodjo.

“We have received a formal letter from the President about BI deputy governor candidates. It’s with the House now,” Commission XI vice chairman Harry Azhar Aziz said on Thursday.

The four candidates have received wide media attention, with Muliaman topping the list as he oversaw important banking research and regulations that could affect thousands of trillions of rupiah of customers’ funds deposited in banks. Muliaman, who holds a doctoral degree in business and economics, began his career at BI in 1986.

Meanwhile, Perry, who heads the central bank’s economic and monetary policy research directorate, and has had experience at the
International Monetary Fund (IMF), currently oversees monetary measures to keep consumer prices on track, and assessing other key macroeconomic indicators, such as economic growth and balance of payments.

Ronald, who has served with the central bank since 1981 — the longest tenure among the internal candidates — has competence in payment systems, particularly non-cash systems, such as credit cards, and the like. Ronald obtained his Masters degree in economic policy management from Columbia University.

The only external nominee, Riswinandi, has worked at Bank Mandiri for eight years, having previously worked for Bank Niaga and Bank Danamon. Riswinandi began his banking career in 1986 after graduating from Trisakti University’s undergraduate school of management.

Commission XI will conduct a fit and proper test for the nominees and select the final two based on their test results. Such tests at the House normally last for several hours and, in some cases, even days, as lawmakers bombard candidates with a series of questions to determine their competence before the final selection.

“They need to know the impact of the global crisis on the economy, especially on Indonesian banks,” Harry from the Golkar faction told The Jakarta Post. “Second and third, are classic issues of bank-lending rates and inflation: namely, how to lower lending rates and keep prices on track to boost economic growth and create jobs.”

Achsanul Qosasi, another Commission XI vice chairman from the Democratic Party faction, said the much-debated issue of foreign ownership of domestic banks would also be among the topics in the test, as well as banking supervision, as the Financial Services Authority (OJK) bill remains in deadlock.

BI previously passed the names of eight candidates for the President’s consideration, before being passed on to the House, spokesman Difi A. Johansyah said. The four eliminated candidates were BI’s monetary management director Hendar; reserves management director TW Suparyono; international director Nelson Tampubolon; and the head of BI’s New York office, Kusumaningtuti. (Esther Samboh/The Jakarta Post)