Agus Martowardojo
Encyclopedia
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
.
, the Netherlands, on January 24, 1956. After graduating from University of Indonesia
's School of Economics, Jakarta, in 1984, he became an international loan officer at the Indonesian branch of Bank of America
. Agus has a long career as one of top bankers in Indonesia
. Previously he was Chief Executive Officer of Bank Mandiri
, the largest bank in Indonesia, in 2005-2010. He was also former President Director of Bank Bumiputera in 1995-1998 and President Director of Bank Ekspor Impor Indonesia in 1998-1999.
His performance as head of Bank Mandiri was considered as successful, as he slashed non-performing loan
s and raised the bank's profile among international investors. He also increased profits in the banks. In 2008 for example, the bank paid $418m in dividends to the stockholders. He was also instrumental in helping the Finance Ministry in recovering Rp 1.23 trillion (US$133.15 million) of state money from Tommy Soeharto, son of late former president Soeharto.
In 2008, following resignation of Boediono
as Governor of Bank Indonesia
to run as Vice President of Indonesia
as the running mate of Susilo Bambang Yudhoyono
, Agus was nominated as one of candidates for Governor. However his nomination was rejected by the national Legislature, apparently for political reasons.
, Agus was appointed as Finance Minister in the Second United Indonesia Cabinet
. His selection was greeted positively by analysts as he was considered to have the managerial skills to be finance minister. He also has wide international experience and has represented Indonesia in G20 forums.
In March 2011 he announced his first fiscal policies as Finance Minister with a focus on promoting real sector growth and investment intended to spur Indonesia’s economic growth. Highlights of the new regulations included removing the value added tax
(VAT) for the sale of houses worth less than Rp 70 million (US$7,910) compared with the previous Rp 55 million; eliminating taxes on the sales of cooking oil and bulk cooking oil for the poor; and providing in advance 50 percent of the funds needed by the State Logistics Agency (Bulog) for the rice for the poor program.
Minister of Finance (Indonesia)
The Finance Minister of Indonesia is the Head of the Ministry of Finance of Indonesia....
, since May 20, 2010 and former 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 %...
. He succeeded former minister Sri Mulyani Indrawati
Sri Mulyani Indrawati
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 is an Indonesian economist...
, who was resigned from the office and taking position as 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...
.
Early careers
Agus was born in AmsterdamAmsterdam
Amsterdam is the largest city and the capital of the Netherlands. The current position of Amsterdam as capital city of the Kingdom of the Netherlands is governed by the constitution of August 24, 1815 and its successors. Amsterdam has a population of 783,364 within city limits, an urban population...
, the Netherlands, on January 24, 1956. After graduating from University of Indonesia
University of Indonesia
The Universitas Indonesia, is a state, comprehensive world class university located in Depok, West Java and Salemba, Jakarta, Indonesia. Universitas Indonesia is the oldest tertiary-level educational institution in Indonesia...
's School of Economics, Jakarta, in 1984, he became an international loan officer at the Indonesian branch of Bank of America
Bank of America
Bank of America Corporation, an American multinational banking and financial services corporation, is the second largest bank holding company in the United States by assets, and the fourth largest bank in the U.S. by market capitalization. The bank is headquartered in Charlotte, North Carolina...
. Agus has a long career as one of top bankers in 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...
. Previously he was Chief Executive Officer 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, in 2005-2010. He was also former President Director of Bank Bumiputera in 1995-1998 and President Director of Bank Ekspor Impor Indonesia in 1998-1999.
His performance as head of Bank Mandiri was considered as successful, as he slashed non-performing loan
Non-performing loan
A Non-performing loan is a loan that is in default or close to being in default. Many loans become non-performing after being in default for 3 months, but this can depend on the contract terms....
s and raised the bank's profile among international investors. He also increased profits in the banks. In 2008 for example, the bank paid $418m in dividends to the stockholders. He was also instrumental in helping the Finance Ministry in recovering Rp 1.23 trillion (US$133.15 million) of state money from Tommy Soeharto, son of late former president Soeharto.
In 2008, following resignation of 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...
as Governor of Bank Indonesia
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...
to run as Vice President of Indonesia
Vice President of Indonesia
The Vice President of the Republic of Indonesia is the first in the line of succession in the Republic of Indonesia.-History of the office:The Indonesian Vice Presidency was established during the formulation of the 1945 constitution by the Researching Body for the Preparation of the Indonesian...
as the running mate of Susilo Bambang Yudhoyono
Susilo Bambang Yudhoyono
Susilo Bambang Yudhoyono AC , is an Indonesian politician and retired Army general officer who has been President of Indonesia since 2004....
, Agus was nominated as one of candidates for Governor. However his nomination was rejected by the national Legislature, apparently for political reasons.
Finance Ministry
Following the resignation of Sri Mulyani IndrawatiSri Mulyani Indrawati
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 is an Indonesian economist...
, Agus was appointed as Finance Minister 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...
. His selection was greeted positively by analysts as he was considered to have the managerial skills to be finance minister. He also has wide international experience and has represented Indonesia in G20 forums.
In March 2011 he announced his first fiscal policies as Finance Minister with a focus on promoting real sector growth and investment intended to spur Indonesia’s economic growth. Highlights of the new regulations included removing the value added tax
Value added tax
A value added tax or value-added tax is a form of consumption tax. From the perspective of the buyer, it is a tax on the purchase price. From that of the seller, it is a tax only on the "value added" to a product, material or service, from an accounting point of view, by this stage of its...
(VAT) for the sale of houses worth less than Rp 70 million (US$7,910) compared with the previous Rp 55 million; eliminating taxes on the sales of cooking oil and bulk cooking oil for the poor; and providing in advance 50 percent of the funds needed by the State Logistics Agency (Bulog) for the rice for the poor program.