TEMPO.CO, Jakarta - A decision by the Board of Commissioners of the Selection Committee for the Financial Services Authority (OJK) to strike off the names of several lawmakers from its list of candidates for banking supervision, must be strongly supported. Its Board of Commissioners must not be made up of political party members. As the institution overseeing all financial business activities, it must be completely sterile from any other conflicting interests. In the committee's initial selection, the names of Golkar Party politician Marcus Melchias Mekeng and that of Indonesian Democratic Party of Stuggle (PDI-P) parliamentarian, Edy Andreas Susetyo, were both missing from the list.
The OJK Commissioners' duties are crucial. Last year, the value of the banking assets they supervised amounted to Rp6,730 trillion. The institution also regulates and scrutinizes the capital market, insurance, pension funds, and funding institutions. The funds now circulating in the non-banking financial industry total Rp1,907 trillion.
Given the massive value of the assets to be supervised, the selection committee must examine each candidate's track record, competence, professionalism and integrity. This Monday, the committee will hand over 21 names to President Joko Widodo to be later short-listed to just 14. This list will then be submitted to the House of Representatives (DPR) prior to the candidates' fit-and-proper tests.
Formed in mid-January, the selection committee involved several other institutions in its task. Finance Minister Sri Mulyani Indrawati, as its chair, for instance, brought in the Corruption Eradication Commission (KPK) and the Financial Transaction Reports and Analysis Centre (PPATK) to look into candidates' track records. Apart from the ministers of finance and industry, academics were also involved.
It is imperative that the selection process be carried out transparently. So far, the committee has openly presented the results of its work at every stage, both on its website and through press conferences. The committee must follow all good governance procedures so its decisions will not be subjected to public query later on. Its grounds for striking off some names, for instance, could be presented to the public in broad outlines. As long as this does not shame anyone, for instance regarding a banking secret or a particular crime, such an explanation would make the committee's credibility even greater. Rumors that the selection team wants to clean the OJK of its old management ought to be properly clarified. Current OJK Chairman Muliaman Hadad, together with several other commissioners, are all off the list.
The President must ensure that this selection of OJK commissioners proceeds accordingly. Threats by Melchias Mekeng and other members of the DPR Finance Commission to reject the results of the selection committee's work should be anticipated. This week, the DPR intends to summon the selection committee to query its performance. As the person giving the selection committee its mandate through Presidential Decree No. 5/P/2017, the President must be ready to face this threat. Efforts by politicians to undermine the selection committee seeking new leaders of the KPK in 2015, must not be repeated.
Proposing the best candidates will make it difficult for the DPR to play dirty. The public must be be given as much access as possible to supervise the selection process. Stories of bribery or political barters, as we often hear in the selection of public officials, must not be ignored but taken into the proper account. We do not want another 1998 banking crisis or a repeat of other banking disputes, such as the sale of Antaboga Delta Sekuritas investment products or the Bumiputera insurance case, just because the OJK is controlled by people lacking in quality.
