Insurance Customers Please Be Patient, Policy Guarantee Institutions Formed 5 Years More

Illustration (Photo: Doc. Antara)

JAKARTA - The government through the Minister of Finance (Menkeu) Sri Mulyani confirmed that there would be the establishment of a Policy Guarantee Institution as part of a strategy to strengthen the financial services sector in Indonesia.

According to the Minister of Finance, this effort is an agreement between the government and parliament as stated in the Draft Law on the Development and Strengthening of the Financial Sector (RUU P2SK) which was just passed today into law in the plenary session of the DPR.

"For the insurance industry, the government appreciates the DPR's view in terms of strengthening public protection in activities in this industry through the establishment of a policy guarantee program," he said at the Senayan Parliament Complex, Jakarta, on Thursday, December 15.

However, the ratification of the P2SK Bill into law does not necessarily mean that the establishment of a Policy Guarantee Institution can be carried out directly. This is because there are many considerations that must be reviewed by the government, especially in terms of market balance and the financial industry as a whole.

"This law states that LPS (as an institution that carries out policy guarantees) still has five years to prepare," he said.

There are two important things that must be prepared, namely the LPS itself and its industry as well. So that later in Government Regulations (PP) as derivative regulations (from the P2SK Law) will capture the process from what LPS does," continued the Minister of Finance.

Sri Mulyani added that her party is trying to continue to maintain the equilibrium between public protection as consumers of financial services, certainty for business actors, and prevent moral hazard actions.

"Therefore, in the past five years we will use it in making preparations," closed the Minister of Finance Sri Mulyani.