Sri Mulyani Indrawati
Encyclopedia
In this Indonesian name, the name "Indrawati" is a given name, not a family name, and the person should be referred to by the given name "Sri" or "Sri Mulyani".
Sri Mulyani Indrawati (born August 26, 1962) is an Indonesia
n economist. She has been recently appointed the Managing Director of the World Bank Group
and resigned as Finance Minister of Indonesia
in the Second United Indonesia Cabinet
.
As Indonesian finance minister from 2005 to 2010, Sri Mulyani is known as a tough reformist and has largely been credited with strengthening Indonesia's economy, increasing investments and steering Southeast Asia
's largest economy through the 2007–2010 financial crisis.
In 2011, she was ranked as the 65th most powerful woman
in the world by Forbes magazine.
) in Lampung
, Sumatra
, on August 26, 1962. She is the seventh child of university lecturers Prof.
Satmoko and Retno Sriningsih.
Her name is of Javanese origin
, with Sanskrit
roots. Sri has the meaning of radiance, or diffusing light, and is common as both honorific and part of female names among Javanese. Mulyani comes from the word mulya which is used to describe the concept value, valuable. Indrawati come from Indra
and feminine suffix -vati.
She obtained her degree from Universitas Indonesia in 1986. Sri Mulyani received her master and doctorate in economics from the University of Illinois at Urbana-Champaign
in 1992.
In 2001, Mulyani left for Atlanta, Georgia
, to serve as a consultant with the US Aid Agency (USAID) for programs to strengthen Indonesia’s autonomy. She also lectured on the Indonesian economy as visiting professor at the Andrew Young School of Policy Studies
at the Georgia State University
. She was an executive director of the International Monetary Fund
representing 12 economies in Southeast Asia from 2002 to 2004.
She is married to economist Tony Sumartono, with whom she has three children. She is a professional economist and has no political affiliation.
.
One of her first acts was to fire corrupt tax and custom officers in the departement. She successfully tackled corruption
and initiated reforms in Indonesia's tax and customs office, and enjoys a reputation for integrity. She also succeeded in increasing direct investment in Indonesia. In 2004, the year President Susilo Bambang Yudhoyono took office, Indonesia received $4.6 billion in foreign direct investment. The next year, it attracted $8.9 billion.
In 2006, just one year after selected, she was named Euromoney Finance Minister of the Year
by Euromoney magazine.
During her tenure in 2007, Indonesia recorded 6.6% economic growth, its highest rate since the 1997 Asian financial crisis. However, growth is down in 2008 to 6% due to the global economic slowdown. In July 2008, Sri Mulyani Indrawati was inaugurated as the Coordinating Minister for the economy, replacing Boediono
, who was to head the central bank
.
In August 2008, Mulyani was ranked by Forbes Magazine as the 23rd most powerful woman in the world and the most powerful woman in Indonesia. During her tenure as Finance Minister, the country's foreign exchange reserves reached an all-time high of $50 billion. She oversaw a reduction in public debt to about 30% of gross domestic product
from 60%, making it easier for Indonesia to sell debt to foreign institutional investors.
She also revised incentive structures for civil servants in her ministry and began paying higher salaries to tax officials deemed to be "clean" so they would have less temptation to accept bribes.
In 2007 and 2008, Emerging Markets newspaper selected Sri Mulyani as Asia
's Finance Minister of The Year for two years in a row.
After Susilo Bambang Yudhoyono was re-elected in 2009
, she was re-appointed in her post of Finance Minister. In 2009 Indonesian economy grew up by 4.5% while many part of the world is in recession. Indonesia is one of just three major emerging economies to grow faster than 4 percent in 2009. The other two are China and India. Under her supervision, government has managed to increase the number of income tax
payers from 4.35 million individuals to nearly 16 million in the last five years, and tax receipts grew by around 20% each year to more than Rp 600 trillion in 2010.
.
She replaces Juan Jose Daboub
, who completed his four-year term June 30, overseeing 74 nations in Latin America
, Caribbean
, East Asia
and Pacific, Middle East
and North Africa
.
Her resignation was viewed negatively and caused financial turmoil in Indonesia, with stock exchange closed down 3.8% after the news, amid a broad sell off in Asia, and the Indonesian rupiah
fell nearly 1% against the dollar. Drop in Indonesian stock exchange is the sharpest in 17 months. The move has been called as "Indonesia’s loss, and the World’s gain".
There are widespread speculations that her resignation is due to political pressure, especially from powerful tycoon and chairman of Golkar Party, Aburizal Bakrie
.
Bakrie is known to have enmity toward Mulyani due to her investigation on massive tax fraud in Bakrie Group, her refusal to prop up Bakrie's coal interests with government funds, and her refusal to state that Lapindo mud flow, which was caused by drilling of Bakrie's company, was a "natural disaster".
On May 20, President Susilo Bambang Yudhoyono named as her replacement Agus Martowardojo
, CEO of Bank Mandiri
, the largest bank in Indonesia.
However, criticism about Sri Mulyani's policy also came from ex vice president Jusuf Kalla
. In his harshest comments yet on the controversial PT Bank Century bailout, former Vice President Jusuf Kalla denied claims by former Bank Indonesia officials that if the lender had been allowed to fail it would have had a systemic impact on the country’s banking system and economy.
“The Bank Century scandal is a robbery, anyone who supports Bank Century, supports a robber.” Kalla said.
Furthermore, all of the nine factions on the House of Representatives special committee agreed that there were suspicious and possibly fraudulent transactions during the bailout period beginning in November 2008 and evidence of money laundering. They all then said they lacked the expertise to do more and called on the National Police and Corruption Eradication Commission (KPK) to take over.
Sri Mulyani Indrawati (born August 26, 1962) is an Indonesia
Indonesia
Indonesia , officially the Republic of Indonesia , is a country in Southeast Asia and Oceania. Indonesia is an archipelago comprising approximately 13,000 islands. It has 33 provinces with over 238 million people, and is the world's fourth most populous country. Indonesia is a republic, with an...
n economist. She has been recently appointed the Managing Director of the World Bank Group
World Bank Group
The World Bank Group is a family of five international organizations that makes leveraged loans, generally to poor countries.The Bank came into formal existence on 27 December 1945 following international ratification of the Bretton Woods agreements, which emerged from the United Nations Monetary...
and resigned as Finance Minister of Indonesia
Minister of Finance (Indonesia)
The Finance Minister of Indonesia is the Head of the Ministry of Finance of Indonesia....
in the Second United Indonesia Cabinet
Second United Indonesia Cabinet
The Second United Indonesia Cabinet was inaugurated on 22 October 2009, two days after the inauguration of Susilo Bambang Yudhoyono as President of Indonesia for the second term...
.
As Indonesian finance minister from 2005 to 2010, Sri Mulyani is known as a tough reformist and has largely been credited with strengthening Indonesia's economy, increasing investments and steering Southeast Asia
Southeast Asia
Southeast Asia, South-East Asia, South East Asia or Southeastern Asia is a subregion of Asia, consisting of the countries that are geographically south of China, east of India, west of New Guinea and north of Australia. The region lies on the intersection of geological plates, with heavy seismic...
's largest economy through the 2007–2010 financial crisis.
In 2011, she was ranked as the 65th most powerful woman
Forbes Magazine's List of The World's 100 Most Powerful Women
Starting in 2004, Forbes magazine has made a list of the 100 most powerful women in the world. It is edited by editor Mary Ellen Egan, and based on visibility and economic impact...
in the world by Forbes magazine.
Early life
Sri Mulyani was born in Tanjung Karang (now called Bandar LampungBandar Lampung
- External links :*...
) in Lampung
Lampung
Lampung is a province of Indonesia. It is located on the southern tip of the island of Sumatra and borders the provinces of Bengkulu and South Sumatra. Lampung is the original home of the Lampung people, who speak a distinct language from other people in Sumatra and have their own alphabet. Its...
, Sumatra
Sumatra
Sumatra is an island in western Indonesia, westernmost of the Sunda Islands. It is the largest island entirely in Indonesia , and the sixth largest island in the world at 473,481 km2 with a population of 50,365,538...
, on August 26, 1962. She is the seventh child of university lecturers Prof.
Professor
A professor is a scholarly teacher; the precise meaning of the term varies by country. Literally, professor derives from Latin as a "person who professes" being usually an expert in arts or sciences; a teacher of high rank...
Satmoko and Retno Sriningsih.
Her name is of Javanese origin
Javanese language
Javanese language is the language of the Javanese people from the central and eastern parts of the island of Java, in Indonesia. In addition, there are also some pockets of Javanese speakers in the northern coast of western Java...
, with Sanskrit
Sanskrit
Sanskrit , is a historical Indo-Aryan language and the primary liturgical language of Hinduism, Jainism and Buddhism.Buddhism: besides Pali, see Buddhist Hybrid Sanskrit Today, it is listed as one of the 22 scheduled languages of India and is an official language of the state of Uttarakhand...
roots. Sri has the meaning of radiance, or diffusing light, and is common as both honorific and part of female names among Javanese. Mulyani comes from the word mulya which is used to describe the concept value, valuable. Indrawati come from Indra
Indra
' or is the King of the demi-gods or Devas and Lord of Heaven or Svargaloka in Hindu mythology. He is also the God of War, Storms, and Rainfall.Indra is one of the chief deities in the Rigveda...
and feminine suffix -vati.
She obtained her degree from Universitas Indonesia in 1986. Sri Mulyani received her master and doctorate in economics from the University of Illinois at Urbana-Champaign
University of Illinois at Urbana-Champaign
The University of Illinois at Urbana–Champaign is a large public research-intensive university in the state of Illinois, United States. It is the flagship campus of the University of Illinois system...
in 1992.
In 2001, Mulyani left for Atlanta, Georgia
Atlanta, Georgia
Atlanta is the capital and most populous city in the U.S. state of Georgia. According to the 2010 census, Atlanta's population is 420,003. Atlanta is the cultural and economic center of the Atlanta metropolitan area, which is home to 5,268,860 people and is the ninth largest metropolitan area in...
, to serve as a consultant with the US Aid Agency (USAID) for programs to strengthen Indonesia’s autonomy. She also lectured on the Indonesian economy as visiting professor at the Andrew Young School of Policy Studies
Andrew Young School of Policy Studies
The Andrew Young School of Policy Studies is located within Georgia State University. The school houses the Criminal Justice, Economics, Social Work and Public Management and Policy divisions of the second largest school in the state of Georgia.In 2008, U.S...
at the Georgia State University
Georgia State University
Georgia State University is a research university in downtown Atlanta, Georgia, USA. Founded in 1913, it serves about 30,000 students and is one of the University System of Georgia's four research universities...
. She was an executive director of the International Monetary Fund
International Monetary Fund
The International Monetary Fund is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world...
representing 12 economies in Southeast Asia from 2002 to 2004.
She is married to economist Tony Sumartono, with whom she has three children. She is a professional economist and has no political affiliation.
As Finance Minister
Sri Mulyani was selected as Indonesian Finance Minister in 2005 by President Susilo Bambang YudhoyonoSusilo Bambang Yudhoyono
Susilo Bambang Yudhoyono AC , is an Indonesian politician and retired Army general officer who has been President of Indonesia since 2004....
.
One of her first acts was to fire corrupt tax and custom officers in the departement. She successfully tackled corruption
Political corruption
Political corruption is the use of legislated powers by government officials for illegitimate private gain. Misuse of government power for other purposes, such as repression of political opponents and general police brutality, is not considered political corruption. Neither are illegal acts by...
and initiated reforms in Indonesia's tax and customs office, and enjoys a reputation for integrity. She also succeeded in increasing direct investment in Indonesia. In 2004, the year President Susilo Bambang Yudhoyono took office, Indonesia received $4.6 billion in foreign direct investment. The next year, it attracted $8.9 billion.
In 2006, just one year after selected, she was named Euromoney Finance Minister of the Year
Euromoney Finance Minister of the Year
Every year, Euromoney magazine awards a Finance Minister of the Year award. Past recipients are listed below.*1982 Hon Sui Sen of Singapore*1983*1984 Paul Keating of Australia*1985 Roger Douglas of New Zealand*1986*1987 Edouard Balladur of France*1988...
by Euromoney magazine.
During her tenure in 2007, Indonesia recorded 6.6% economic growth, its highest rate since the 1997 Asian financial crisis. However, growth is down in 2008 to 6% due to the global economic slowdown. In July 2008, Sri Mulyani Indrawati was inaugurated as the Coordinating Minister for the economy, replacing Boediono
Boediono
Boediono is the Vice President of Indonesia, after winning the 2009 presidential election together with incumbent President Susilo Bambang Yudhoyono.-Education:Boediono received his early education in primary school in Blitar, East Java...
, who was to head the central bank
Bank Indonesia
Bank Indonesia is the central bank of The Republic of Indonesia. Bank Indonesia is currently governed by Darmin Nasution, former interim governor. The last governor before the interim phase, Boediono, resigned due to his vice presidential candidacy in the Indonesian presidential election...
.
In August 2008, Mulyani was ranked by Forbes Magazine as the 23rd most powerful woman in the world and the most powerful woman in Indonesia. During her tenure as Finance Minister, the country's foreign exchange reserves reached an all-time high of $50 billion. She oversaw a reduction in public debt to about 30% of gross domestic product
Gross domestic product
Gross domestic product refers to the market value of all final goods and services produced within a country in a given period. GDP per capita is often considered an indicator of a country's standard of living....
from 60%, making it easier for Indonesia to sell debt to foreign institutional investors.
She also revised incentive structures for civil servants in her ministry and began paying higher salaries to tax officials deemed to be "clean" so they would have less temptation to accept bribes.
In 2007 and 2008, Emerging Markets newspaper selected Sri Mulyani as Asia
Asia
Asia is the world's largest and most populous continent, located primarily in the eastern and northern hemispheres. It covers 8.7% of the Earth's total surface area and with approximately 3.879 billion people, it hosts 60% of the world's current human population...
's Finance Minister of The Year for two years in a row.
After Susilo Bambang Yudhoyono was re-elected in 2009
Indonesian presidential election, 2009
Presidential elections were held in Indonesia on 8 July 2009. The elections returned a president and vice president for the 2009–2014 period. A run-off election was scheduled to be held on 8 September if needed, but President Susilo Bambang Yudhoyono won more than 60% of the vote in the first...
, she was re-appointed in her post of Finance Minister. In 2009 Indonesian economy grew up by 4.5% while many part of the world is in recession. Indonesia is one of just three major emerging economies to grow faster than 4 percent in 2009. The other two are China and India. Under her supervision, government has managed to increase the number of income tax
Income tax
An income tax is a tax levied on the income of individuals or businesses . Various income tax systems exist, with varying degrees of tax incidence. Income taxation can be progressive, proportional, or regressive. When the tax is levied on the income of companies, it is often called a corporate...
payers from 4.35 million individuals to nearly 16 million in the last five years, and tax receipts grew by around 20% each year to more than Rp 600 trillion in 2010.
Move to World Bank
On May 5, 2010 Mulyani was appointed as one of three Managing Directors of the World Bank GroupWorld Bank Group
The World Bank Group is a family of five international organizations that makes leveraged loans, generally to poor countries.The Bank came into formal existence on 27 December 1945 following international ratification of the Bretton Woods agreements, which emerged from the United Nations Monetary...
.
She replaces Juan Jose Daboub
Juan José Daboub
Juan Jose Daboub, Ph.D. is the Founding Chief Executive Officer of the Global Adaptation Institute and former Managing Director of the World Bank . He has taught at Princeton University and is a member of several Boards of Directors....
, who completed his four-year term June 30, overseeing 74 nations in Latin America
Latin America
Latin America is a region of the Americas where Romance languages – particularly Spanish and Portuguese, and variably French – are primarily spoken. Latin America has an area of approximately 21,069,500 km² , almost 3.9% of the Earth's surface or 14.1% of its land surface area...
, Caribbean
Caribbean
The Caribbean is a crescent-shaped group of islands more than 2,000 miles long separating the Gulf of Mexico and the Caribbean Sea, to the west and south, from the Atlantic Ocean, to the east and north...
, East Asia
East Asia
East Asia or Eastern Asia is a subregion of Asia that can be defined in either geographical or cultural terms...
and Pacific, Middle East
Middle East
The Middle East is a region that encompasses Western Asia and Northern Africa. It is often used as a synonym for Near East, in opposition to Far East...
and North Africa
North Africa
North Africa or Northern Africa is the northernmost region of the African continent, linked by the Sahara to Sub-Saharan Africa. Geopolitically, the United Nations definition of Northern Africa includes eight countries or territories; Algeria, Egypt, Libya, Morocco, South Sudan, Sudan, Tunisia, and...
.
Her resignation was viewed negatively and caused financial turmoil in Indonesia, with stock exchange closed down 3.8% after the news, amid a broad sell off in Asia, and the Indonesian rupiah
Indonesian rupiah
The rupiah is the official currency of Indonesia. Issued and controlled by the Bank of Indonesia, the ISO 4217 currency code for the Indonesian rupiah is IDR. Informally, Indonesians also use the word "perak" in referring to rupiah...
fell nearly 1% against the dollar. Drop in Indonesian stock exchange is the sharpest in 17 months. The move has been called as "Indonesia’s loss, and the World’s gain".
There are widespread speculations that her resignation is due to political pressure, especially from powerful tycoon and chairman of Golkar Party, Aburizal Bakrie
Aburizal Bakrie
In this Indonesian name, the name "Bakrie" is a family name, and the person should be referred to by the family name "Bakrie".Aburizal Bakrie is an Indonesian entrepreneur and politician.- Family business :...
.
Bakrie is known to have enmity toward Mulyani due to her investigation on massive tax fraud in Bakrie Group, her refusal to prop up Bakrie's coal interests with government funds, and her refusal to state that Lapindo mud flow, which was caused by drilling of Bakrie's company, was a "natural disaster".
On May 20, President Susilo Bambang Yudhoyono named as her replacement Agus Martowardojo
Agus Martowardojo
Agus Dermawan Wintarto Martowardojo is the current Finance Minister of Indonesia, since May 20, 2010 and former CEO of Bank Mandiri. He succeeded former minister Sri Mulyani Indrawati, who was resigned from the office and taking position as Managing Director of the World Bank Group.- Early careers...
, CEO of Bank Mandiri
Bank Mandiri
Bank Mandiri , headquartered in Jakarta, is the largest bank in Indonesia in term of assets, loans and deposits. Total assets as of Q2 2010 were IDR 402.1 trillion . It also has Capital Adequacy Ratio of 23% , Return on Asset of 0.71 %, and Return on Equity of 7.38 %...
, the largest bank in Indonesia.
Bank Century scandal
Right before her resignation, The Legislature, spearheaded by Golkar Party, has been accusing Sri Mulyani with allegation on crime with bailout of medium scale Bank Century in 2008. Critics of the bailout claim it was done without legal authority and without proving a capital injection was needed to prevent a run on other banks, Bank Century bailout cost the state to suffer a financial lost amounting to 6,7 trillions rupiah ($710 million). Sri Mulyani has defended the bailout as necessary given the uncertainties in the global economy at the time and denied any wrongdoing.However, criticism about Sri Mulyani's policy also came from ex vice president Jusuf Kalla
Jusuf Kalla
is an Indonesian politician who was the 10th Vice President of Indonesia from 2004 to 2009 and Chairman of the Golkar Party during the same period. He was an unsuccessful candidate for the 2009 presidential election.-Early life:...
. In his harshest comments yet on the controversial PT Bank Century bailout, former Vice President Jusuf Kalla denied claims by former Bank Indonesia officials that if the lender had been allowed to fail it would have had a systemic impact on the country’s banking system and economy.
“The Bank Century scandal is a robbery, anyone who supports Bank Century, supports a robber.” Kalla said.
Furthermore, all of the nine factions on the House of Representatives special committee agreed that there were suspicious and possibly fraudulent transactions during the bailout period beginning in November 2008 and evidence of money laundering. They all then said they lacked the expertise to do more and called on the National Police and Corruption Eradication Commission (KPK) to take over.