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123211
Thu, 05/20/2010 - 13:35
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News Focus: PRESIDENT PRAISED FOR PICKING AGUS MARTOWARDOJO AS MULYANI'S SUCCESSOR
By Eliswan Azly
Jakarta, May 20 (ANTARA) Agus Martowardojo who will be officially installed as outgoing Finance Minister Sri Mulyani`s successor by President Susilo Bambang Yudhoyono is seen as the right person to occupy the ministerial post on account of his outstanding track record.
Dr Sofyan Siregar, a political analyst of the Islamic University of North Sumatra in an emailed message said on Thursday that this time President Yudhoyono had made an acceptable and good decision in appointing Agus Martowardojo as the new finance minister.
The reason why the appointment was seen as the best one was due to the fact that none of the political parties as well as legislators had expressed their resistance or objections against Agus`s appointment as finance minister.
"This is an indication that Agus Martowardojo is an acceptable person who has proven his capability in the banking sector," Sofyan said.
To the press, last night at his Cikeas private residence in Bogor, the president said Agus Martowardojo was the right figure to replace Sri Mulyani who would assume the post of managing director at the World Bank as of June 1, 2010.
In addition, the President also appointed Director General of Budget Affairs at the Finance Ministry Anny Ratnawati as deputy finance minister
Eric Alexander Sugandi, an economist at Standard Chartered Bank in Jakarta, said by phone after Yudhoyono`s announcement last night that Agus Martowardojo was well known to the market. "His experience in improving Bank Mandiri is expected to sustain the reforms and changes that have been championed by Sri Mulyani."
Agus Martowardojo worked at the Jakarta branch of then-Bank of America and several local banks before joining Bank Mandiri in 1999. Asiamoney magazine named him Indonesia?s best executive in 2009, crediting him with turning around the lender and reducing its bad debts.
Agus who graduated from the School of Economics of the University of Indonesia (UI) in 1984 is an experienced banker. He occupied the post of director at Bank of America in 1984 and Bank Niaga from 1986 to 1994.
In 1995 he was appointed president director of Bank Bumiputera for three-year term. He was later appointed president director of Export-Import Bank (Bank Exim) in 1998, president director of Bank Permata from 2002 to 2005 and president director of Bank Mandiri since 2005.
Agus Martowardojo and Ratnawati were chosen because they are `skilled` and `have exposure inside and outside the country,` Yudhoyono said as he announced the appointments at his private residence in Cikeas, about 50 kilometers south of Jakarta.
Yudhoyono`s re-election to a second term last year has helped the rupiah to surge more than 8 percent since July. Inflation slowed to 3.91 percent in April this year from 18.4 percent in November 2005 and economic growth averaged 5.7 percent in the past five years.
Still, investor sentiment is at risk after the president left the central bank chief?s post vacant for a year, Adrianus Mooy, who was governor of Bank Indonesia from 1988 to 1993, said last month.
The finance ministry`s efforts to improve governance and implement tax reforms have also been hampered by an opposition campaign accusing Sri Mulyani and Vice President Boediono of abusing their authority by allowing 6.7 trillion rupiah ($730 million) in state funds to be used to bail out PT Bank Century in 2008.
In addition, some other analysts also expressed their hope that Agus Martowardojo would have good knowledge not only of fiscal and monetary matters but also about the business world so that the real sector could also also develop well.
"Agus as the finance minister is also seen as a figure who masters not only fiscal and monetary matters but also the business world, so that fiscal and monetary policies can be directed to encourage the development of the real sector," Suryo Bambang Sulisto of the Indonesian Chamber of Commerce and Industry (Kadin), said.
The new minister understands how businesses are run globally and how to harmonize macro/micro economic as well as the fiscal/monetary policies with those of the real sector, he said.
"If businesses need incentives in the tax field, for example, a finance minister must be able to make the incentive effective and stimulate the development of the business world. In essence, the government`s policies must be able to create a conducive investment climate," Suryo who is also general chairman of the Association of Indonesian Indigenous Businessmen (HPPI), said.
Likely, the new finance minister would be acceptable to the market. ?Market players will give their response. As long as the successor has capabilities and integrity, market players will respond with positive sentiment," he said.
On Wednesday, when Mulyani announced her resignation, market players gave a negative response. The composite stocks price index at the Indonesian Stocks Exchange (BEI) and the rupiah exchange rate against the US dollar fell significantly.
"But this is a normal thing because market players have not yet had a clear picture of the minister`s successor. But after the announcement by the president last night on the appointment of Agus Martawardojo, the market has now returned to normal,? the HIPPI chairman said.
In the meantime, Destry Damayanti, an economic analyst of the Mandiri Sekuritas Agus? managerial skill was his main strength to continue his predecessor Sri Mulyani Indrawati?s founded bureaucracy reform at the finance ministry.
Agus managed to bring Bank Mandiri as the largest bank by assets from a merger of four ailing state banks -- Bank Dagang Negara, Bank Bumi Daya, Bank Exim and Bank Pembangunan Indonesia -- after the 1997/1998 Asian financial crisis.
"Agus has the credibility. The market knows his capacity in managing the bank, which has scored a good performance. He has the managerial skill to lead the ministry," she said.
Bank Danamon economist Anton Gunawan said the government seemed to stay focused on the ministry`s bureaucracy reform by choosing Agus.
"The focus seems to be institutional improvement. He`s a quite brave person, and has the managerial skill. At least there won`t be a setback of what has been founded at the ministry," he said.
But Agus should be supported by senior officials at the ministry as he is lacking fiscal knowledge, Anton added. "I think the director generals are already strong enough," he said.
Anas Urbaningrum, a legislator of the Democratic Party (PD) said the president had made a good policy by appointing a professional to the post of finance ministry but not a figure from a certain political party.
Agus Martowardojo was seen as a professional who has competence, honesty, and ability to maintain good political communication with parliament and political parties.
"If we are asked to name a candidate, we would say we do not have any particular name to propose because we leave it entirely to the president," Anas said, adding that with the appointment of Agus Martowardojo to replace outgoing Minister Sri Mulyani, the communication will run smoothly in the future.
Jakarta, May 20 (ANTARA) Agus Martowardojo who will be officially installed as outgoing Finance Minister Sri Mulyani`s successor by President Susilo Bambang Yudhoyono is seen as the right person to occupy the ministerial post on account of his outstanding track record.
Dr Sofyan Siregar, a political analyst of the Islamic University of North Sumatra in an emailed message said on Thursday that this time President Yudhoyono had made an acceptable and good decision in appointing Agus Martowardojo as the new finance minister.
The reason why the appointment was seen as the best one was due to the fact that none of the political parties as well as legislators had expressed their resistance or objections against Agus`s appointment as finance minister.
"This is an indication that Agus Martowardojo is an acceptable person who has proven his capability in the banking sector," Sofyan said.
To the press, last night at his Cikeas private residence in Bogor, the president said Agus Martowardojo was the right figure to replace Sri Mulyani who would assume the post of managing director at the World Bank as of June 1, 2010.
In addition, the President also appointed Director General of Budget Affairs at the Finance Ministry Anny Ratnawati as deputy finance minister
Eric Alexander Sugandi, an economist at Standard Chartered Bank in Jakarta, said by phone after Yudhoyono`s announcement last night that Agus Martowardojo was well known to the market. "His experience in improving Bank Mandiri is expected to sustain the reforms and changes that have been championed by Sri Mulyani."
Agus Martowardojo worked at the Jakarta branch of then-Bank of America and several local banks before joining Bank Mandiri in 1999. Asiamoney magazine named him Indonesia?s best executive in 2009, crediting him with turning around the lender and reducing its bad debts.
Agus who graduated from the School of Economics of the University of Indonesia (UI) in 1984 is an experienced banker. He occupied the post of director at Bank of America in 1984 and Bank Niaga from 1986 to 1994.
In 1995 he was appointed president director of Bank Bumiputera for three-year term. He was later appointed president director of Export-Import Bank (Bank Exim) in 1998, president director of Bank Permata from 2002 to 2005 and president director of Bank Mandiri since 2005.
Agus Martowardojo and Ratnawati were chosen because they are `skilled` and `have exposure inside and outside the country,` Yudhoyono said as he announced the appointments at his private residence in Cikeas, about 50 kilometers south of Jakarta.
Yudhoyono`s re-election to a second term last year has helped the rupiah to surge more than 8 percent since July. Inflation slowed to 3.91 percent in April this year from 18.4 percent in November 2005 and economic growth averaged 5.7 percent in the past five years.
Still, investor sentiment is at risk after the president left the central bank chief?s post vacant for a year, Adrianus Mooy, who was governor of Bank Indonesia from 1988 to 1993, said last month.
The finance ministry`s efforts to improve governance and implement tax reforms have also been hampered by an opposition campaign accusing Sri Mulyani and Vice President Boediono of abusing their authority by allowing 6.7 trillion rupiah ($730 million) in state funds to be used to bail out PT Bank Century in 2008.
In addition, some other analysts also expressed their hope that Agus Martowardojo would have good knowledge not only of fiscal and monetary matters but also about the business world so that the real sector could also also develop well.
"Agus as the finance minister is also seen as a figure who masters not only fiscal and monetary matters but also the business world, so that fiscal and monetary policies can be directed to encourage the development of the real sector," Suryo Bambang Sulisto of the Indonesian Chamber of Commerce and Industry (Kadin), said.
The new minister understands how businesses are run globally and how to harmonize macro/micro economic as well as the fiscal/monetary policies with those of the real sector, he said.
"If businesses need incentives in the tax field, for example, a finance minister must be able to make the incentive effective and stimulate the development of the business world. In essence, the government`s policies must be able to create a conducive investment climate," Suryo who is also general chairman of the Association of Indonesian Indigenous Businessmen (HPPI), said.
Likely, the new finance minister would be acceptable to the market. ?Market players will give their response. As long as the successor has capabilities and integrity, market players will respond with positive sentiment," he said.
On Wednesday, when Mulyani announced her resignation, market players gave a negative response. The composite stocks price index at the Indonesian Stocks Exchange (BEI) and the rupiah exchange rate against the US dollar fell significantly.
"But this is a normal thing because market players have not yet had a clear picture of the minister`s successor. But after the announcement by the president last night on the appointment of Agus Martawardojo, the market has now returned to normal,? the HIPPI chairman said.
In the meantime, Destry Damayanti, an economic analyst of the Mandiri Sekuritas Agus? managerial skill was his main strength to continue his predecessor Sri Mulyani Indrawati?s founded bureaucracy reform at the finance ministry.
Agus managed to bring Bank Mandiri as the largest bank by assets from a merger of four ailing state banks -- Bank Dagang Negara, Bank Bumi Daya, Bank Exim and Bank Pembangunan Indonesia -- after the 1997/1998 Asian financial crisis.
"Agus has the credibility. The market knows his capacity in managing the bank, which has scored a good performance. He has the managerial skill to lead the ministry," she said.
Bank Danamon economist Anton Gunawan said the government seemed to stay focused on the ministry`s bureaucracy reform by choosing Agus.
"The focus seems to be institutional improvement. He`s a quite brave person, and has the managerial skill. At least there won`t be a setback of what has been founded at the ministry," he said.
But Agus should be supported by senior officials at the ministry as he is lacking fiscal knowledge, Anton added. "I think the director generals are already strong enough," he said.
Anas Urbaningrum, a legislator of the Democratic Party (PD) said the president had made a good policy by appointing a professional to the post of finance ministry but not a figure from a certain political party.
Agus Martowardojo was seen as a professional who has competence, honesty, and ability to maintain good political communication with parliament and political parties.
"If we are asked to name a candidate, we would say we do not have any particular name to propose because we leave it entirely to the president," Anas said, adding that with the appointment of Agus Martowardojo to replace outgoing Minister Sri Mulyani, the communication will run smoothly in the future.
