BI Governor`s Candidate Viewed as Seasoned Monetary Strategist

Senior Deputy Governor of Bank Indonesia (BI) Perry Warjiyo selected by President Joko Widodo (Jokowi) as the sole candidate for the BI governor`s post is being viewed as a seasoned strategist in the monetary sector.

Named as the sole candidate for the BI governor`s post for the 2018-2013 term of office, Warjiyo is believed to have expertise in monetary affairs and skills in the macro-prudential sector.

“He has adequate technical capabilities and longstanding experience in the issuance of important policies of the BI,” House Speaker Bambang Soesatyo had stated in Jakarta on Tuesday (Feb 27).

President Jokowi has nominated Warjiyo for the post of new governor of BI, as he is viewed as a potential candidate for his seniority and experience as the deputy governor of the institution since 2013.

“We have sent it (the candidate`s name) to the House of Representatives (DPR), so just ask them. It is only the name of Perry Warjiyo,” President Jokowi had noted during a visit to the Delta Silicon Industrial Complex in Cikarang, West Java, on Tuesday (Feb 27).

The letter was submitted by the Presidential Secretariat office to the DPR on February 23, 2018. The president remarked that Warjiyo is competent and has the ability to control any issue and handle challenges that BI must address.

“I think he is a senior deputy who understands (how to handle) matters related to monetary, inflation, and policies in BI and has the relevant experience, track record, achievements, and expertise in the field. I do not think there is a need to doubt his capabilities,” President Jokowi pointed out.

According to Soesatyo, the DPR has not followed up on the letter from the president. The House`s leadership will start processing the nomination of the BI governor`s candidate after the president`s letter is officially read out in the plenary session of the DPR on March 5, 2018.

“The letter from the president is still confidential, as it is in the administrative process in the DPR and will be read out in its plenary session,” Soesatyo stated.

The House speaker viewed that Warjiyo is the most senior banker and deputy governor in BI and understands the internal conditions of BI.

“He is personally warm, diligent, professional, and has adequate technical skills and extensive experience,” he emphasized.

The same view was also echoed by Chief Commissioner of the Deposit Insurance Institution Halim Alamsyah on Wednesday (Feb 28).

Alamsyah believes that the candidate for BI governor Warjiyo has expertise in monetary affairs.

“Mr. Perry is a BI person. He is a monetary expert and understands the macro-prudential sector,” Alamsyah remarked after a seminar in Jakarta.

He noted that Perry has experience in working with various agencies, both from within and outside the country.

“Of course, I think, with his integrity and professionalism as well as his approach to prioritize the interests of the nation, he is suitable to lead BI,” Alamsyah emphasized.

Chairman of the National Bank Association (Perbanas) Kartika Wirjoatmodjo also lauded Warjiyo as an experienced banker.

“He has experience and knows how to maintain monetary instruments for stability while having the driving force to transform the real sector,” Wirjoatmodjo stated after the seminar in Jakarta.

Wirjoatmodjo, who is also the president director of state-owned Bank Mandiri, assessed that Warjiyo has the required experience in the monetary and macro-prudential sectors.

According to Wirjoatmodjo, Warjiyo needs to maintain the foundation that has been built by BI Governor Agus Martowardojo. Hence, the Perbanas chairman expects that Warjiyo, if elected, would be able to maintain the balance of monetary instruments.

Wirjoatmodjo opined that outgoing BI governor Martowardojo has managed to keep the inflation low, lower interest rates, and make achievements in the payment system and monetary stability.

“It must be prioritized to avoid risks this year, especially since we know the US Federal Reserve is planning to increase its benchmark interest rate to three to four times higher,” he noted.

However, an economist expressed doubts over Warjiyo`s conviction to make monetary breakthroughs.

Economist Bhima Yudhistira of the Institute for Development of Economics and Finance had remarked last week (Feb 24) that Warjiyo is viewed as an experienced and qualified candidate for the post of BI governor.

“However, doubts prevail over whether he would take bold steps to make a significant monetary policy amid a slowdown in the global economy,” Yudhistira, who is also a member of Commission XI of the DPR, pointed out.

Yudhistira noted that Warjiyo was an inexperienced internal figure of the central bank to strengthen the monetary authority.

However, he is feared to be less proactive in making a breakthrough in response to global challenges that could place BI in a status-quo.

“In 2018, the era of low-cost interest has ended, and various central banks, from the Fed to the European Central Bank, intend to tighten their monetary policies,” Yudhistira remarked.

A member of Commission XI of the DPR in charge of Finance and Banking Muhammad Nur Purnamasidi noted that Warjiyo, if elected, will have to formulate a more dynamic policy, both for strengthening the monetary and macro-prudential policy framework.

“It is necessary to create a dynamic and progressive policy in conjunction with the old BI governor`s policy,” the Golkar Party Faction member noted.

As an insider, Warjiyo will certainly continue BI`s policies that are conducive for managing the monetary sector, Purnamasidi remarked while expressing doubts over Warjiyo`s ability to make a breakthrough for strengthening the Central Bank`s policy in future.

Courtesy : ANTARANEWS.COM, Nawacita

 

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