Miranda S. Goeltom Officially Takes Over As Senior Deputy Governor From Anwar Nasution
In a ceremony at the Bank Indonesia Head Office in Jakarta, the Governor of Bank Indonesia Burhanuddin Abdullah presided over the formal handover of the Senior Deputy Governor Anwar Nasution position to Miranda Swaray Goeltom. During the ceremony, Burhanuddin described a number of challenges and the strategy to be pursued to strengthen the performance of Bank Indonesia.
The handover ceremony was preceded by the swearing in of Miranda Goeltom by the Chief Justice, Bagir Manan, at the Supreme Court on Tuesday at 10.30 hours local time.
In his written speech presented before unit managers at Bank Indonesia, Burhanuddin Abdullah expressed his gratitude for the dedication and hard work contributed by Anwar during his tenure at Bank Indonesia. Burhanuddin also mentioned a number of challenges confronting Bank Indonesia from within and outside the organization, driven by internal and external developments.
"We continue to face challenges in many different areas. More work is essential to promote investment and exports as the driving force for economic growth. Expectations of rising inflation still cast a shadow in keeping with various external and internal developments. Against this background, the policy goal for the banking industry is to create a robust, sound, and efficient banking industry, as well as to create the underlying financial system stability for improved economic growth," explained Burhanuddin.
Burhanuddin’s message emphasized the importance of the plan to strengthen good governance at Bank Indonesia. Success in applying good government, he explained, depends on the commitment of management.
"The Board of Governors of Bank Indonesia has agreed to develop a guidebook on application of good governance at Bank Indonesia," explained Burhanuddin. The application of good governance will focus more on the roles of the members of the Board of Governors and unit managers. These principles will govern such areas as structures, working mechanisms, responsibilities, and code of conduct.
Burhanuddin expressed his hope that the wealth of experience, thought, and insights that Miranda will bring to her position will provide added support for policies adopted with management consensus, particularly through her input for the development of good governance for Bank Indonesia.
"Our expectation is that through the close teamwork that we will continue to nurture, we will be able work even more effectively to promote national economic recovery," said Burhanuddin.
In her inaugural speech, the first before reporters in her capacity as Deputy Senior Governor, Miranda explained that the most important issue for Bank Indonesia in creating economic stability is stability in prices and the exchange rate. Another major issue, added Miranda, concerns how to stimulate activity in the real sector through the banking system.
Miranda, who holds a doctorate in economics, explained that the role of the banking system in promoting recovery in the real sector could be revitalized through a review of banking regulations. Such review would be aimed at providing greater space for business without neglecting international banking provisions and best practices. In the past, similar reviews had been conducted by Thailand, the Philippines, and Korea to promote the SME sector. This is essential to ensure that domestic interests are not disadvantaged by the application of these regulations.
"The experience of other countries in discretionary policies that make allowances for the condition of domestic business has shown this to be successful," affirmed Miranda.
Concerning monetary policy, Miranda expressed her view that Bank Indonesia has a well-developed policy in place and therefore no significant changes are needed. All that is necessary, she said, is additional information on each model to ensure that policy implementation is well timed and on target.
Jakarta, July 27, 2004
Rizal A. Djaafara
Bureau Chief