House Approves Boediono as Central Bank Governor
Tuesday, 08 April, 2008 | 14:50 WIB

TEMPO Interactive, Jakarta: The voting for Boediono, current Coordinating Minister for the Economy, for governor of the Central Bank Indonesia (BI) yesterday was close. The majority of 46 members of the House finance commission present, voted for him. The selected governor will replace Burhanuddin Abdullah, the recent governor whose period will end May 17th.

Members of the Indonesian Democratic Party of Struggle (PDIP) who were reluctant for Boediono’s candidacy eventually supported Boediono. The only member rejecting Boediono was Dradjad Hari Wibowo from the National Mandate Party (PAN).

Head of the Finance Commission, Awal Kusumah, said the House originally planned a unanimous acclamation for Boediono but because one person refused, the voting then took place.

Boediono is the only candidate from the President. He replaces two other candidates, Agus Martowardojo and Raden Pardede, rejected by the DPR.

Through a fit and proper test yesterday, Boediono, senior economy lecturer at Gadjah Mada University, was asked 20 questions from 10:00 am to 16:30 pm.

The questions covered Boediono's involvement in Bank Indonesia’s Liquidity Support (BLBI) case, his recommendation for monetary stability, and his commitment to maintain simplicity.

Dradjad Wibowo was the most critical of Boediono. He asked about Boediono's decision to sell the national banks to a foreigner investor.

“In the BLBI case, Boediono was not arrested while three of his colleagues were,” Dradjad said. Based on this consideration, he refused to vote for him.

Regarding the BLBI case, Boediono admitted that he was part of BI when it was decided. He said that he was examined as a witness for the case. He assured the House that he never received any funds from the BLBI case.

Boediono is determined to keep the economy stabile, the institution's independence, and to strengthen good governance at BI.

He will encourage diplomatic coordination and capability with central banks from other countries. For the long term, he plans to arrange a judicial foundation and detailed protocols for crisis situation. “We need to react fast in emergency situation.”

Boediono agrees to keep BI's independence. For him, being independent does not mean that BI cannot coordinate with other institutions or be dominant without considering the good governance principle and regulations in Indonesia.

He promised to immediately recover the employee's work motivation that has been reduced lately. “We will decide a clear job division so BI can make wise decisions that is aligned with the regulation.”

Several members of DPR said Boediono is the right one for BI governor. Hafidz Zawawi, the House member from Golkar said that Boediono is not just prudent but also credible and independent. “We are grateful to have Boediono,” said Tjahjo Kumolo from the PDIP faction.

EKO NOPIANSYAH