JAKARTA: Indonesian lawmakers have named the nation's reformist finance minister as the new central bank chief as Southeast Asia's largest economy looks to curb inflation and stabilise exchange rates.
Agus Martowardojo, confirmed late Tuesday, was a surprise choice to many who had expected the Dutch-born former banker to stay in his ministerial post until President Susilo Bambang Yudhoyono's term ended in October 2014.
The 57-year-old has no direct experience in monetary policy and was rejected by parliament for the Bank Indonesia chief post in 2008.
But parliamentary finance commission deputy chairman Harry Azhar Azis said Martowardojo had convinced lawmakers he could tame soaring prices using several measures, including the strengthening of provincial inflation control teams.
Inflation in February hit a 20-month high of 5.31 percent after government measures to limit commodity imports pushed up consumer prices.
The World Bank forecast the economy to retain 6.2 percent growth in 2013 but pressure is mounting to address the country's burdensome fuel subsidies and boost poverty reduction efforts.
Azis, a lawmaker from the parliament's second-largest party Golkar, said Martowardojo did not, however, have a clear timeframe for strengthening the rupiah, one of Asia's worst performing currency last year.
Martowardojo has often rowed with other parliamentarians, including a dispute with minister Hatta Rajasa over the controversial award of management rights to the $10 billion development of the Sunda Strait bridge.
"I've heard his frequent clashes with several ministers could be the reason for his removal from the finance minister's post," Azis told AFP.
The government said that the new finance minister would be announced before the current central bank governor's term ends on May 22.
Local media has named potential candidates for the vacant finance minister post, including trade minister Gita Wirjawan, investment board chief Chatib Basri, deputy finance minister Anny Ratnawati and current central bank chief Darmin Nasution. (AFP)
