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Tuesday, April 8, 2008

Boediono elected BI governor

Jakarta (ANTARA News) - The House of Representatives (DPR) Commission XI for financial affairs decided during its internal meeting on Monday to elect Boediono as the new governor of Bank Indonesia (the central bank/BI) following a closed-door vote.

"Forty-five lawmakers voted for Boediono as new BI governor, and only one rejected him. This is democratic process we have passed through and that the election of BI governor is completed," Chief of the House Commission XI Awal Kusuma said in a press conference following the meeting.

The decision was taken after Boediono, the government`s sole candidate for the top post in the central bank, had undergone a six-hour fit-and-proper test at the Parliament building earlier in the day, he said.

He said the decision reached at the meeting would later be brought to the House plenary session on Thursday for approval.

Drajat A Wibowo, the only member of the House commission who rejected Boediono`s nomination for the post said: "I don`t agree to his policy. Neither have I got a clear answer from him about the misappropriation of BLBI (Bank Indonesia liquidity assistance)."

During the test, Boediono, currently the coordinating minister for economic affairs said if he was elected to the post, he would maintain the current free foreign exchange regime.

According to him, in the turbulent economic climate like now, any change in the regime would not benefit the country.

"Let`s maintain the regime as it is," he said.

The regime would be reviewed only if the world situation had changed, he said.

He expressed hope the regime would be able to attract the inflow of foreign exchange without any force.

As a matter of fact, many exporters were currently placing their money abroad, he said.

He also proposed the formation of a better coordination forum to discuss assumptions in the state budget.

President Susilo Bambang Yudhoyono submitted Boediono`s name to the Parliament last Tuesday. The House had earlier rejected two candidates proposed by the President to succeed the current BI governor, Burhanuddin Abdullah, who will end his 5-year term on May 17, 2008.

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