Slippery Road New BI governor

Nasution eventually be feasible and proper (fit and proper) by the Commission XI DPR-RI as the Governor of Bank Indonesia. Thus, the position has been vacant for over a year since May 2008 and then when Boediono accompany SBY as Vice President, has now been filled. Now turn to the position of Senior Deputy Governor of BI, which is currently held by Nasution, which was empty.

Properly, Nasution election as Governor of BI's hardly surprising. In addition to being concerned is the sole candidate, was also 'de facto' has served as central bank governor since July 2009. Obviously it is difficult for the Members Commission XI for assessing improper and inappropriate because in fact the functions and responsibilities of the central bank governor was on his shoulder and no errors so far. And no wonder, fit and proper test process more similar to it eventually 'Special Committee' Taxation to believe the credibility and integrity of the candidate. Especially concerned had escaped in a similar test when it became a candidate BI Senior Deputy Governor on May 11, 2009.

Aspects of competence clearly no doubt of the economic doctoral dropout Sonbourne University of Paris, France in 1996. In addition to poor transverse ever occupy strategic positions in the republic, from the Director General of Financial Institutions, Director General of Bapepam-LK and the Director General of Taxation, as well as commissioners of various companies including several banks.

During testing, concerned more bombarded with questions about the tax case. The real issue is more relevant to the position that carried previously as Director General of Taxation. In fact, for tax cases which had occurred several years ago. It is actually not too much thrown at the relevant undergo the same test as Senior Deputy Governor.

Fit and proper test process towards Nasution this time spelled out 'tough' and memecehkan record of the duration of the tests were performed. Even the implementation of its examination, it was suspended several times.

Total testing time for more than 12 hours and lasted two days. This has never happened in the history of BI governor elections in the republic. Also with the process of decision-making meeting which is open at the Commission XI last night. Although eventually agreed to the terms agreed in aklamsi. Some media referred to it as aklamsi with notes, similar opinions public accountants 'fair with the exception'.

Now, some notes from each faction that accompany the approval of the Commission XI Nasution as Governor of BI that can be a slippery path to the new governor. The Governor should really be careful not to slip. Furthermore according to the history of the fate of the republic's central bank governor was a bleak post-1998 monetary crisis then (see: Being a central bank governor, who is brave?).

The records had been demanding the governor for innovative and creative in meeting the expectations of the people's representatives. Although some records can be understood that the people's representatives had been in the realm of political communication, but can berserempetan with complex legal interpretation.

Why? Because true what should be achieved and the central bank governor, the scope of duties and scope of its authority already provided for in the Act, namely Act No. BI. Last 23 years in 1999 which amended the Law. 6 years in 2009 and, in particular lead in Articles 7, 8 and 10 along with an explanation. There was even a threat firmly against all forms of interference of other parties (intervention) against the performance of its duties as a criminal offense (art. 9 and 67).

Like a company, BI Law is the basic budget and household budget (AD / ART), thus limiting the scope of its duties and its movement. When required to move beyond existing boundaries, surely there must be an amendment to existing law.

Political and legal language are often able to mesh with the complicated, intricate and sophisticated, so very, very tiring mengurainya. Still, it must also realize that the link was to have strengthened the political and institutional mengganas for central banks around the world after the global crisis spread to ganasnya since the collapse of the financial industry in the United States mid-year 2008. Things that have long sniff by Richard Baldwin in the Economist last June 30, 2008 edition, which proved correct spreading everywhere, from South Korea, Japan to Argentina, Europe and the United States. General pressure on the base of the central bank independency status. The status was originally based on the opinion that the central bank remains free from politicization, so there is one institution that remains the focus of sustaining the economy of a country and of public interest in the strengthening of democracy. Things that often make the mainstream populist policies ahead of short-term struggle for power in elections.

Now, back to the problem of some board members earlier records. One thing that stands out is to be willing to resign when accused of responsibility in the case of Century. This may be reflecting the anger of the people's representatives urged the related difficulty of officials when the officials resign in the process of investigating a case. Apparently, council members take advantage of opportunities in article 48 paragraph (1) letter a Act of BI.

Note that other more general character of the emphasis of Board Members shall focus terhadap tasks seperti central bank must mendorong decline in mortgage interest rates, increase the efficiency of the banking and Islamic banking in order membantu pengembangan menurunkan menciptakan unemployment and jobs and must remain independent. Although several other notes briefly impressed somewhat contradictory, but the real task is already a package according to central bank mandate in the legislation. The term was cool 'goes without saying'.

Once again, strengthening the central bank's mandate from the people's representatives basically it should be. And it is understandable that those messages perklu disclosed to indicate the function the better the people's representatives in the checks and balances. Something that is a bit tarnished in earlier periods by the number of board members who are involved in various cases.

Those things are true is summarized clearly in the articles of the existing BI Act because the tasks of central banks certainly are not isolated and separate from government development programs. This is confirmed in the explanation of Article 7 and 10 of Law BI. Moreover, the authorities assess the performance of the BI is its own board members.

Which can be troublesome later on is if the records had become a kind of contract policy agreement 'with board members. Interpretation can be very flexible, especially if the time line, the order of priority and the timing is not clear libertine and unlike the one in a series of regulations that accompany the Act of BI, which is a product of true representatives of the people as well. Be different if things had been translated sebagiaman UKP4 measure the performance of the ministers. But certainly in line with the mandate of emotion stetap Article 10 of Law BI earlier.

It is a common npraktik, even a compulsion, the central bank governor was bound by a contract by the Government because it is in the realm of the executive, after the Act stipulated by the representatives of the people. Look for example the employment contract for a few years New Zealand's central bank governor with the Government tied in a Policy Targets Agreement (PTA). Or employment contracts for Canada's central bank, just as an example.

What is the record of the members of the board so it needs to be emphasized is actually also been systematically summarized in the vision and mission are presented, including efforts to make culture a central bank as a public servant. In fact, the view that the central bank is judged not care about economic growth and small people also have neatly explained. Namely, that the main task properly, the central bank actually very pro-poor, pro-jobs and pro-growth in real terms. Maintained low and stable inflation will clearly msyarakat protect the purchasing power, especially the poor and ensure continuity of sound economic growth. An achievement indeed need a healthy process that will survive and continue. Something that is clearly not an instant work. An instant process often lasts only briefly. So, the governor has promised a process-raft up river rafting and swimming to shore, as the advice of the elders, with more efficiently.

Of particular concern is that all parties pressed the wrong button because there are constraints which exist in other fields.

Challenges of the new Governor clearly does not light. Policy will always be a dilemma because of all the options that do not contain a mild consequences. Plus the economic situation and global financial markets that are still quite promising. Moreover, the economic landscape and totally changed the global politics of global post the greatest crisis that ever happened. Things that we experienced more than ten knew then. Not to mention the agenda formation and Law JPSK OJK which is in sight.

Under such conditions, policy choices must be done carefully and calculating, but it should be quickly taken. Situations that make it very easy to slip. Especially in the realm of public policy, where fees or costs that arise usually get more attention than the results. Particularly if the result of a policy can not quickly be seen and not easily measured. Something inherent in the task characteristics of an institution's central bank.

For that, it's worth recalling the message of a public official named Ken Henry, Secretary of the Treasury to the Australian Government, which became the inspiration of my first post in Kompasiana entitled 'Three Things to The Candidate Ministers'.

New BI governor, Nasution, will perform tasks in a new era, a more difficult time, dynamic and full of uncertainty. Also a period when more parties are impatient and short-sighted thinking. It's really a very slippery catwalk.

Congratulations on duty Pak Darmin, hopefully the performance of the republic's central bank is increasingly flying to help Indonesia take advantage of all the terrible potential for welfare.