Wow! The P2SK Bill Will Regulate LPS Under The Ministry Of Finance, Agree?

Meeting of the P2SK Bill (Photo: Capture the Youtube screen of Commission XI DPR)

The decision-making agenda for level I of the Draft Law on the Development and Strengthening of the Financial Sector (RUU P2SK) at the Working Committee (Panja) level of Commission XI of the DPR has put forward a plan to regulate the Deposit Insurance Corporation (LPS) to be under the Ministry of Finance.

This was revealed by a member of Commission XI from the Democratic Party faction, Harmusa Oktaviani, when giving a mini-view of the factions in a working meeting at the Senayan Parliament Complex, Jakarta today.

According to Harmusa, the P2SK Bill should be a momentum to strengthen independence, accountability and the performance of supervisory institutions in the financial sector and not the other way around.

"The Democratic Party faction does not approve that the Deposit Insurance Corporation (LPS) budget is under the Ministry of Finance," he said on Thursday, December 8.

Harmusa added that the misunderstanding was based on the fact that LPS was part of the Financial System Stability Committee (KSSK) which has the same level as the Ministry of Finance as a representative of the government.

"LPS as a member of the KSSK has the same voting rights," he said.

He also believes that LPS officials are the choice of representatives of the people who have gone through a series of processes in parliament, so it is unethical if the strategic aspect of LPS is regulated by the government. In addition, the institution led by Purbaya Yudhi Sadives also intersects directly with the community regarding the financial services sector.

"Members of the LPS Board of Commissioners were elected by the DPR and (LPS) managed very large public funds from the banking and insurance industry," he said.

The disapproval submitted by the Democratic Faction is one of the points conveyed regarding the discussion of the P2SK Bill before it is ratified into a law product.