Faisal Basri: Fast Or Slow, The Government Makes BUMN Fall One By One

JAKARTA - Senior Economist of the Institute for Development of Economics and Finance (INDEF) Faisal Basri criticized the planned revisions to the Bank Indonesia Law (RUU BI) and the Perppu on Financial System Reform that emerged amid the COVID-19 pandemic. This is because during the first semester of 2020, the financial sector still grew positively.

Faisal assessed that the Perppu cannot even be used as an alternative solution to the current impact of COVID-19. Meanwhile, according to him, there would be abuse of power in the revision of the Bank Indonesia (BI) Act which is currently being discussed.

Furthermore, Faisal said, the government actually looks like it wants to grab more power with the Ministry of Finance's entry into the monetary council in the revision of the BI Law.

Faisal admitted that he was worried that if the government could "tamper" with the independence of BI, in the future there would be entrusting the government's duties or interests to the central bank.

"If everything is in the government, if SOEs can't pay their debts anymore, BI will be told to channel liquidity credit to BUMN. Soon or later, our SOEs will fall one by one. attend, "he said, in the INDEF discussion, Thursday, October 1.

Faisal said, the current bank problems can be resolved through mutual assistance. For example, a bank with large liquidity, such as a Commercial Bank for Business Activities (BUKU) IV helps small banks. Thus, the Perppu on Financial System Reform and the Revision of the BI Law are urgent.

"The problem is BUKU I and BUKU II, how large liquidity provides loans to small banks, so that it can be expanded and interbanks can be resolved. That's the problem, the key is to overcome this COVID-19," he explained.

On the same occasion, Senior Economist Indef Fadhil Hasan said that BI's functions, such as those related to monetary policy, payment systems, and macro prudentials, should not be limited or intervened.

Since Law Number 2 of 2020 was passed, said Fadhil, BI was no longer independent because the central bank was charged with maintaining national economic growth. BI is also allowed to buy Government Securities (SUN) on the primary market. In fact, that is not allowed in the BI Law itself.

Fadhil admitted that he was worried that the government would want to make the government permanent the authority that is being taken because of the extraordinary situation due to the impact of COVID-19 through the revision of the related law.

"Law Number 2 is 3 years, temporary. But with a revision, BI's non-independence will be permanent. That must be maintained," he said.