Thomas Djiwandono Listed as a Candidate for Deputy Governor of the BI, Celios Economist: It should be the one who understands monetary policy.

JAKARTA - Celios Bhima Yudhistira Executive Director called the nomination of Deputy Minister of Finance (Wamenkeu) Thomas Djiwandono as Deputy Governor of the Bank Indonesia (BI) as a step backwards after the 1998 reform.

For information, Thomas Djiwandono, commonly called Tommy, is the first child of Soedradjad Djiwandono and Biantiningsih Miderawati, where his father is a former Governor of Bank Indonesia who now teaches at Nanyang Technological University, Singapore, while his mother is the older sister of Prabowo Subianto.

According to Bhima, the position of Deputy Governor of BI should be filled by BI's internal talents who are qualified and understand monetary policy.

"Tommy's nomination as deputy governor of the BI is a setback after the 1998 reform. The deputy governor of the BI should be a talent from the internal BI who is competent and understands monetary policy," he told VOI, Monday, January 19.

The three names proposed are Deputy Minister of Finance Thomas Djiwandono, Head of the BI Payment System Policy Department Dicky Kartikoyono, Assistant Governor Head of the BI Macroprudential Policy Department, Solikin M. Juhro.

He added that Tommy's nomination was considered a form of fiscal intervention into the monetary sector, although previously in the BI Governor's Council Meeting (RDG) there were representatives from the Ministry of Finance.

"This is Tommy's entry as a fiscal intervention into the monetary sector, although previously the RDG BI had the Ministry of Finance present," he explained.

According to him, the entry of Thomas into BI is feared to worsen the image of the independence of the monetary authority, and has the potential to weaken the rupiah due to the loss of legitimacy in the eyes of investors.

"Tommy's entry into BI has further worsened the image of the independence of the monetary authority. The rupiah could weaken further, because it loses legitimacy in the eyes of investors," he said.

Meanwhile, Finance Minister Purbaya Yudhi Sadewa responded to public concerns regarding BI's independence, following the nomination of Deputy Minister of Finance Thomas Djiwandono as Deputy Governor of BI, who is said to have a family relationship with President Prabowo Subianto.

Purbaya explained that the transfer of officials from the government to Bank Indonesia is a natural thing and does not necessarily interfere with the independence of BI.

According to him, the exchange of positions between the government and BI can be seen as a balanced and unproblematic mechanism, as long as there is no direct intervention from the government in monetary decision-making.

"Because the BI exchange is also the government, that's why I'm confused. If Juda Agung comes to me, maybe Mr. Perry wants to suppress me inside. That's one exchange, an exchange that I think is balanced. There is nothing strange, if independence has nothing to do with it, unless later when making decisions there is direct intervention from the government," he told the media, Monday, January 19.

In addition, he also did not rule out the possibility that the position of the Deputy Minister of Finance left by Thomas would be filled by Juda Agung, who was previously rumored to have resigned from the position of Deputy Governor of the BI and to ensure this, as well as plans to meet directly with Juda Agung to ensure his readiness.

"It looks like that, I heard that too. Later I want to meet with Mr. Juda tomorrow. I want to see what his intentions are," he said.

When asked if the change resembled a job change, Purbaya answered in a relaxed tone while strengthening the rumors circulating. "It looks like a switch-switch. If the rumor is like that, it looks like that, it looks like a switch," he explained.

He emphasized that until now there has never been any intervention in the Bank Indonesia or other policies, because the Government, continues to implement fiscal policy, while BI carries out monetary policy independently.

"So far there is none, so we run the independent BI fiscally, they run the monetary, we coordinate in the Financial System Stability Committee (KSSK) to ensure the policy is independent even though they are independent," he explained.

Purbaya emphasized that the two only coordinated in the KSSK forum to ensure that the policies taken were still in line with encouraging economic growth.

Purbaya also emphasized that officials who enter the BI are no longer part of the government.

"No, it should be that way when he enters BI, he is independent. It is not a government element if the government element is that I will send people every time there is a meeting of the Board of Governors related to Bunga. Can it be in the law? It is a government element. If this is not independent, it looks like it will be," he said.

Regarding the reason for the exchange or transfer of the position, Purbaya emphasized that the decision did not come from him.

Meanwhile, the Chairman of Commission XI of the Indonesian House of Representatives, Mukhamad Misbakhun, spoke out regarding public concerns regarding the independence of the Bank Indonesia, especially regarding one of the candidates who has a family relationship with President Prabowo Subianto.

Misbakhun assessed that the issue was insinuative and irrelevant. "What does it have to do with independence? According to you, what is related to independence. Don't let it be insinuative issues like that, then it will be an issue to degrade Mr. Tommy's own ability," he told the media, Monday, January 19.

According to him, Thomas has adequate competence, both in terms of education, bureaucratic experience, and professional track record.

In addition, he also assessed that Thomas' reputation and personal capacity were worthy of consideration.

"Mr. Tommy is a person who has competence, his educational background is adequate, then he has experience that is also adequate having been Deputy Minister of Finance and has a good reputation background in the fields that he handles as an entrepreneur," he said.

"His parents have also been Governor of Bank Indonesia and so on. If there is doubt about the relationship with the President, then it should not be used as an excuse," he added.

Misbakhun emphasized that the fit and proper test would be carried out in public so that the public could directly assess the ability and capacity of the candidates.

"Personally, he is a very humble person and in my opinion, he is also a figure who deserves to be deputy governor of Bank Indonesia," he explained.

He said that the three candidates were known to him personally and the final decision would be determined through a meeting of Commission XI as a political decision.

"Later we will meet in Commission XI, the political decision, because it is a political post, then the political agreement," he explained.

"Just try to see what the actual condition will be because we have to check the condition of each person, where is his position today, is he carrying out his duties or not," he added.

Regarding the decision-making mechanism, Misbakhun stated that Commission XI would prioritize deliberation for consensus in determining the final result of the process.