Parties praise Boediono nomination to lead BI

Jakarta Post, April 2, 2008
Parties praise Boediono nomination to lead BI

Most major political parties have praised President Susilo Bambang Yudhoyono's nomination of Coordinating Minister for the Economy Boediono to be the next governor of the troubled central bank.

Judging by the initial reaction, Boediono seems likely to secure approval from the House of Representatives, after the President's previous two candidates were rejected last month.

The head of the Golkar Party faction in the House, Priyo Budi Santoso, said Tuesday Boediono was an ideal candidate to head Bank Indonesia because of his lengthy experience as a technocrat in dealing with macroeconomic affairs.

"Boediono understands monetary issues and macroeconomics in general," said Priyo, adding Boediono had a record of taking the country out of hard times.

Unlike the first two candidates, Priyo said, Boediono's nomination was not likely to face strong opposition from the House.

Golkar, chaired by Vice President Jusuf Kalla, along with other parties, rejected Yudhoyono's previous candidates, Bank Mandiri president director Agus Martowardjojo and the vice chairman of state asset firm PT Perusahaan Pengelola Aset, Raden Pardede.

Golkar is the largest faction in the House.

"There was good two-way communication (between lawmakers and the President) prior to this nomination," Priyo said.

House Deputy Speaker Muhaimin Iskandar said Tuesday the House had received a letter from the President announcing Boediono's nomination.

"The President only submitted one candidate," said Muhaimin, "and that person is Boediono."

Boediono's nomination was confirmed by State Secretary Hatta Radjasa, saying the nomination came after input from many experts.

The head of the United Development Party (PPP) faction, Lukman Hakim Saefuddin, and the head of the Prosperous Justice Party (PKS) faction, Mahfudz Siddiq, also voiced support for Boediono.

Priyo, Lukman and Mahfudz did not consider the single candidate nomination an issue, saying it was not a violation of procedure.

According to the lawmakers, Boediono is likely to undergo the so-called "fit-and-proper test" when the House returns from recess in the first week of May.

Current Bank Indonesia Governor Burhanuddin Abdullah is scheduled to leave office on May 17.

The Indonesian Democratic Party of Struggle (PDI-P), however, plans to reject Boediono's nomination, preferring current BI senior deputy governor Miranda Goeltom.

"I think it would be risky if the President did not provide us with more candidates," said PDI-P executive Max Moein, adding the party's opposition was primarily based on Boediono's alleged involvement in a Bank Indonesia liquidity support (BLBI) scam.

"If there are more than 26 lawmakers who think he was responsible in the BLBI scam, he will lose the vote," said Max.

Yudhoyono prefers an outsider to head the BI. A number of current top BI officials are being scrutinized for allegedly bribing House members during the formulation of a central bank law from 2003 to 2004. (alf)

Full Name: Boediono Place/date of birth: Blitar, East Java/Feb. 25, 1943
Religion: Islam