BI needs a transformational leadership
We have been going through a process to find the right person for Governor of Bank Indonesia (central bank). The position is a very prestigious and the person there ought to be someone who has a vision, an excellent track record, integrity and known by the international community. As we all know, BI is now a top heavy institution like an inverted pyramid. But it still lacks the independency. Due to this, a candidate from outside the current BI hierarchy would be more suitable. There has been a lot of political wrangling on the issue. The House of Representatives, DPR, recently conducted a fit and proper test on two candidates proposed by the president who has the prerogative right to nominate. Unfortunately, the DPR rejected them on grounds they didn’t have sufficient qualifications (including political lobby?). The ideal candidate would be someone who is a transformational leader. Unlike a transactional leader which uses power over rewards and punishments to lead, the transformational leader works together with his staff in a way that changes, or transforms the institution and people running it. He uses a partnership approach. The staff will follow a leader who inspires them. He has the vision and passion which can achieve great things by injecting a great deal of enthusiasm and energy. A transformational leader puts passion and energy into everything. He is charismatic but seeking to transform. In the case of BI, the institution needs transforming to become credible and independent. An example of a transformational leader is former central bank governor Rachmat Saleh who ruled BI for more than 10 years. But he had heaps of experience. He served the Federal Reserve Bank of India, worked in the US and the Netherlands . He was successful in transforming the central bank from its dire state in the past. Now, can the president propose such a transformational candidate for the BI leadership (better than Agus or Raden certainly)?