The Economist For The Value Of The P2SK Bill With A Potential Gerus For Independence Of Bank Indonesia And OJK

Illustration (Photo: Capture the DPR Youtube screen)

The discussion of the Draft Law on the Development and Strengthening of the Financial Sector (RUU P2SK) which is currently still rolling in parliament has received its own spotlight from the Economist Center of Reform on Economics (CORE) Piter Abdullah.

According to him, there are two important things that need public attention. First, regarding the requirements of members of the BI Board of Governors, it has been stated in Law Number 3 of 2004 concerning Amendments to Law of the Republic of Indonesia Number 23 of 1999.

"Here it is clearly emphasized that BI's independence as a central bank is free from interference from the government or other parties in carrying out its duties and authorities," he said in a written statement on Tuesday, December 6.

Second, continued Piter, related to the selection mechanism for members of the OJK Board of Commissioners by the DPR through the selection committee (pansel).

"I don't agree with that. OJK should be the same as BI, where the leader is appointed, there is no need to use a pansel. For the Chairperson and Deputy Chairman of the OJK Commissioner, it is enough for the president to submit a name to the DPR," he said.

On that occasion Piter explained that the P2SK Bill plans to abolish the ban on BI Governors Council members from becoming administrators of political parties.

Second, the addition of BI's mandate to maintain sustainable economic growth that has the potential to make it difficult for BI to maintain inflation and exchange rate stability, given that economic growth is often followed by rising inflation.

"Third, article 11 of the P2SK Bill states that members of the OJK Board of Commissioners were selected and elected by the DPR through the selection committee (pansel) which was also elected by the DPR. This mechanism is considered not ideal because there is no check & balance principle between the executive and the legislature," concluded Piter.