Indonesia lawmakers picked Mirza Adityaswara for Bank Indonesia’s number two job, approving an outsider as the central bank grapples with accelerating inflation and a sliding currency.
The parliament’s Commission XI, which oversees financial affairs, chose Adityaswara with 32 votes out of 47, Chairman Olly Dondokambey said in Jakarta today after the vote. Adityaswara, chairman of the agency that guarantees bank deposits in Indonesia, beat Anton Gunawan, PT Bank Danamon Indonesia’s chief economist, to the role.
President Susilo Bambang Yudhoyono nominated the two outside candidates after moving his finance minister Agus Martowardojo to head the central bank in May. The monetary authority has since raised its benchmark interest rate by a total 1.50 percentage points as it fights inflation at a four-year high and a rupiah at the weakest since April 2009.
Adityaswara, 48, headed capital markets and was the chief economist at PT Bank Mandiri, the country’s largest lender by assets, before joining the deposit guarantee agency nearly three years ago. He previously was head of equity research at Credit Suisse Securities Indonesia and has a masters in applied finance from Sydney’s Macquarie University.
Bringing in people from outside the central bank will help strengthen Bank Indonesia’s board, said Edimon Ginting, a deputy country director at the Asian Development Bank in Jakarta.
“The composition of the board of governors would be even better if they had more people from the market,” Ginting said before the decision. “BI’s challenge is to get us out from this turbulence.”
The rupiah gained 0.3 percent to 11,378 per U.S. dollar by 5:34 p.m. in Jakarta, prices from local banks show. The currency has fallen about 13 percent this quarter, the worst performer among the 11 most-traded Asian currencies, according to data compiled by Bloomberg.