Politics in Indonesia is a strange animal and even stranger are the motivations of those that play. The latest rumor or perhaps a little more than rumor now that the incumbent president, Susilo Bambang Yudhoyono or SBY to his friends, has said that he is considering it, is the selection of Sri Mulyani Indrawati (photo) as the prospective Governor of Bank Indonesia (Indonesia's Central Bank).
Sri Mulyani is one of SBY's best performing Ministers, if not his best performing Minister. She holds the Finance Portfolio and since the former Coordinating Minister of Economic Affairs, Boediono, was appointed to Bank Indonesia, she has held that portfolio as well.
She is a world class reformer and has made significant inroads into reforming the bureaucracy. She is generally considered to have been successful in her role and been a driving force in cleaning up her department.
Why is it that her appointment to Bank Indonesia is problematic when Bank Indonesia is also an institution that could benefit from her reforming ways? Well, the move reeks of marginalizing the competition and a real shaker and mover on the agenda of reform. A move to Bank Indonesia takes Sri Mulyani out of the majority of the policy areas that she has been so intimate and successful in to date. Almost certainly leading to a waning of her influence in real and broad reforms.
The move is a backward step for those interested in the bureaucratic reform of government. This is not to say that there are not worthy candidates to replace her, there are. This is a backward step because whoever replaces her would have to work twice as hard to develop the gravitas she has acquired during her time in the position. If SBY, and Boediono, are serious then the most sensible move would be, assuming SBY and Boediono win the presidency and vice-presidency, is to make Sri Mulyani the Coordinating Minister of Economic Affairs in the next SBY Government.
There is little doubt that Sri Mulyani would be appointed to the position of Governor of Bank Indonesia if she were proposed as a candidate. Her confirmation through the Indonesian House of Representatives (DPR) would not likely encounter much resistance, if any.
11 comments:
what party is she from again??ol
what party is she from again??
Anonymous and Lawpolly...
Ms. Sri Mulyani Indrawati is unaffiliated, isn't she?
SORRY TO DUMP THIS HERE -- I WAS INTERESTED IN THE FINAL PARAGRAPH ABOUT OVERLAPPING VERDICTS (from Globe today)
PT Bank Permata lawyer Luhut Pangaribuan was considering appealing against Monday’s seizure of Rp 546 billion ($53.5 million) from one of the bank’s accounts by prosecutors acting on orders of the Supreme Court, following a ruling by the nation’s highest tribunal that the money were the proceeds of crime and was to be forfeited to the state.
Permata on Monday agreed to release the Rp 546 billion, which the Supreme Court found had originated from the misuse of Bank Indonesia Liquidity Assistance (BLBI) funds in 1999 by convicted businessman Djoko Candra and former central bank Governor Sjahril Sabirin.
After a protracted legal battle, Djoko and Sjahril, who had earlier been acquitted by the Supreme Court, were both convicted on June 11 and sentenced to two years behind bars by a review panel of the court after new evidence was presented by the Attorney General’s Office.
“The bottom line is that we are not happy with [Monday’s] seizure,” Luhut said. “Because of that, we will look into the matter further with a view to taking legal action in the near future.”
Prior to the seizure, Permata had insisted that the funds belonged to it as the Supreme Court had ruled in a 2004 civil case that the money was owned by Bank Bali, which merged with another five lenders in 2002 to form Permata. However, this decision was also overturned by the Supreme Court review panel.
Luhut argued the Supreme Court’s decision in the civil case involving Permata could not be overturned by the decision in the criminal case against Djoko.
“In a situation like this, the decision in the civil case takes precedence. The courts must not deliver overlapping verdicts in civil and criminal cases,” Luhut said.
Lawclamp (perhaps Lawdump would have been better? :D)...
You want me to respond to the last paragraph?
So, how did the commentary go that I made in one of my posts that you said you were going to look at using in one of your classes?
Sorry I havent got there yet. I got sidetracked on the world's legal systems and whether indeed Customary law is dominant in Mongolia!!
I will use it. At least in this class Prita is known. The issue I will be looking at is the criminality of defamation here and its impact on Democracy a la the Democracy Audit league table
btw I do need your opinion on my dump. I had never come across this "conflict" before - OJ Simpson and all that......
thanks
By the way I confess I have an interest in Bank Permata
Lawclamp + LC for Short...
You bank with Bank Permata?
My opinion will follow in a little while. Maybe later tonight. Have some work things to tidy up first ;)
I knew a lawyer who once worked in Mongolia. An Australian fella, nice bloke, he ended up for a few years in Indonesia.
I'm not sure that this can be done constitutionally, but supposing Boediono takes back the portfolio of Coordinating Minister of Economic Affairs.
Wouldn't that send a strong signal to the relevant ministries as well as B.I. that the govt. remains committed, even more so, to clearing up the mess?
BTW. I too have an account with Bank Permata. I'm trying to dredge through my memories of Bank Bali/Bank Universal and the shenanigans involving the takeover of Bank Bali by the Cendana Clan. I could be wrong about this, but there was something distinctly shady involving the whole affair prior to the injection of BI funds back in 97/8.
J...
If one was seeking to send a strong message about cleaning up corruption and redressing some of the past ills, then the question is why bother selecting Boediono as your vice presidential candidate and why bother, if you are thinking you have a second term in the bag, think about moving your best performing Minister to a place that marginalizes her considerable skills?
This was my argument against SBY selecting SMI as his running mate. It would be a waste of her considerable skills and the cynic in me would have suggested it was a poor attempt at marginalizing her, once again, considerable skills. This is also why I did not join the campaign to talk up an SMI for VP idea.
It was all "shady" and there are still plenty of unresolved issues to be dredged through, so I am told.
Thanks for your article, very useful information.
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