JAKARTA — The Indonesian president’s candidate to replace the chief of the central bank ran into opposition Monday, as one member of a parliamentary panel that has the last word on selection doubted his integrity and another doubted his grasp of macroeconomics.
Late Friday, President Susilo Bambang Yudhoyono unexpectedly nominated Finance Minister Agus Martowardojo to replace Darmin Nasution, whose term as the Bank Indonesia governor ends in May. The president has given no reason for not reappointing Mr. Darmin, who is generally seen as having kept a firm hold on monetary policy, with inflation under control. However, the Indonesian currency, the rupiah, has weakened sharply during his tenure.
“For the B.I. governor nomination, we don’t only look at technical capability. We also look at integrity and national interest,” said Dolfi O.F.P., a member of the parliamentary commission on financial affairs. “Agus Martowardojo’s involvement” in a graft case “makes us doubt his integrity.”
Mr. Dolfi, a member of the opposition Indonesia Democratic Party-Struggle, was referring to a corruption scandal surrounding the construction of the Hambalang sports complex. The controversy has toppled one minister and the chairman of Mr. Yudhoyono’s governing, but increasingly unpopular, Democratic Party.
Mr. Martowardojo was questioned last week by the Indonesian anti-corruption agency as a witness in relation to the case.
The government issued a statement saying Mr. Martowardojo had been selected for the central bank post because of his success as finance minister, including his fiscal management, his banking and finance expertise, and his professionalism and integrity. It made no mention of the departing governor.
Harry Azhar Azis, another member of the financial commission, who belongs to the Golkar Party, which is part of the governing coalition, questioned Mr. Martowardojo’s qualifications.
“Agus’s understanding of macroeconomics is insufficient, which is important for a B.I. governor,” Mr. Azis was quoted as saying by the Kontan daily newspaper. Mr. Azis belongs to the Golkar Party, a member of the governing coalition.
It is the second time Mr. Yudhoyono has nominated Mr. Martowardojo, a career banker, to head the central bank. Mr. Martowardojo was rejected in 2008, along with another candidate proposed by the president, though that was seen more as an attempt by Parliament to flex its political muscle than as a reflection of any particular dislike of Mr. Martowardojo.
Article source: http://www.nytimes.com/2013/02/26/business/global/central-bank-candidate-is-under-fire-in-indonesia.html?partner=rss&emc=rss