JAKARTA (theinsiderstories)- Erwin Riyanto, previously the executive director at Bank Indonesia’s department for surveillance of the financial system, was on Wednesday inaugurated as a deputy governor of the central bank, replacing Halim Alamsyah. The inauguration took place at the Supreme Court, led by Chief Justice Hatta Ali.
Erwin, an economics graduate from Yogyakarta’s Gadjah Mada University, beat out other candidates Budi Waluyo and Hendy Sulistiowati in a vetting by the House of Representatives in April.
In his new job, Erwin will be responsible for dealing with banking legislation, setting the monetary policy of the central bank, and communicating with the public about central bank policies.
The central bank, by law, now supervises only monetary policy after the power of supervision was handed over to the Financial Services Authority (OJK) in January 2014. However, in policy making, Bank Indonesia must collaborate with the OJK to ensure the monetary and banking system can be synchronized.
“Bank Indonesia will continue working closely with the Financial Services Authority,” Erwin told reporters on the sidelines of his inauguration.
“We always have a forum together at every level. At the technical level, we have meetings every two weeks. At the chief level, we have monthly meetings. If necessary, we also cooperate with the Deposit Insurance Corporation [LPS] and the Finance Ministry.”
Erwin’s promotion also puts him on the BI board of governors, which plays an important role in setting monetary policy to bolster economic growth, prop up the rupiah and mitigate capital flight as investors anticipate an interest rate hike by the US Federal Reserve.
A rate hike is expected to see investors dump their assets in emerging markets — such as Indonesia — and park their money in safe-haven assets in the United States.
Bank Indonesia is expected to maintain its own key interest rate steady at 7.5 percent in a policy rate meeting of the board of governors on Thursday, according to a Reuters poll.
Alongside Erwin, the board includes Governor Agus Martowardojo, senior deputy governo Mirza Adityaswara and deputy governors Ronald Waas, Perry Warjiyo and Hendar.
Attending Erwin’s inauguration were current and former high-level BI officials, including Miranda Swaray Goeltom, a former senior deputy governor who was released from prison earlier this month after serving three years for bribing legislators to appoint her to the second-highest post in the central bank.