Maintain Independence, Candidates For DK LPS No Longer Need To Be From The Ministry Of Finance, BI, And OJK

Photo: Doc. LPS

JAKARTA The process of selecting members and Chairman of the Board of Commissioners of the Deposit Insurance Corporation (DK LPS) is still reaping the spotlight. This time the issue of LPS independence that must be maintained is a concern.

One of them is not prioritizing candidates for Chairperson and Member of the Board of Commissioners from the background of the Financial Services Authority (OJK), Bank Indonesia (BI) and the Ministry of Finance (Kemenkeu). This is because the three institutions have each been represented by members of the Ex Official Board of Commissioners in the body of DK LPS.

"LPS's job is related to public savings, so it will definitely intersect with BI and OJK's duties, but that doesn't mean the former person who works in BI and OJK can be placed in LPS, even though all this time the practice has been like that," said Indef Executive Director Esther Sri Astuti to reporters, Friday, July 18.

Esther added, in the recruitment and assessment of the LPS body, it is necessary based on competence and integrity. This can be seen from the background of his knowledge and experience.

"Competence can be seen from the background knowledge and experience," added Esther.

As is known, the Selection Committee (Pansel) of the LPS DK on Saturday (12/7) has announced 26 candidates for chairman and members of the LPS DK for the 2025-2030 period who passed the administrative selection, and can follow the next selection stage.

All candidates for chairman and members of the LPS DK who have passed the administrative selection are required to take part in the first period of fit and properness selection, which includes track record research, public input, health checks, and paper assessments.

Of the 26 names who passed the administrative selection, some of them are people who have retired at the Ministry of Finance, BI, and OJK, some are still officials of the three institutions.

Some of these names include Amanlison Sembiring (Purnabakti BI), Anton Daryono (Executive Director of Head of the BI Consumer Payment and Protection Surveillance System Department), Imam Nashirudin (Head of the Tax Service Office Pratama Bandar Lampung Satu Kemenkeu). Then there are Imansyah (Purnabakti OJK), Teguh Supangkat (Deputy Commissioner for Supervision of OJK Financial Conglomeration), and Wahyu Pratomo (Advisor BI).

Economic Researcher Celios Nailul Huda added, in accordance with the Third Part of Point 2, Article 2 paragraph (3) of Law Number 24 of 2004 concerning LPS states that LPS is an independent, transparent, and accountable institution in carrying out its duties and authorities. The LPS Board of Commissioners itself consisting of Ex Official OJK, BI, the Ministry of Finance, has also been listed in Law Number 24, 2004 concerning LPS.

"This means that the independence of LPS should be better," he said.

But unfortunately, Huda continued, currently the appointment of commissioners often has political content.

"As a result, there are quite a lot of government representatives. LPS decisions can be influenced by the government," said Nailul.

Some time ago, the issue of LPS independence was also in the spotlight because many candidates for Chair and Board of Commissioners of LPS who were still active in the industry participated in the constellation. In fact, in Law Number 24 of 2004 concerning LPS Article 67 letter I it reads "Candidate members of the Board of Commissioners must meet the requirements, not as consultants, employees, administrators, and/or owners of Banks or Insurance Companies and Sharia Insurance Companies either directly or indirectly".

However, in the official selection announcement released by the LPS DK Pansel, there are conditions that state that candidates cannot become consultants, employees, administrators, and/or owners of Banks or Sharia Insurance and Insurance Companies either directly or indirectly at the time of stipulation'.

On the other hand, the independence of LPS is also in the spotlight, after for example the Constitutional Court (MK) through Decision No. 85/PUU-XXII/2024 affirms the independence of LPS by canceling the phrase approval of the Minister of Finance' in Article 86 of the P2SK Law and transferring it to the DPR in two years.

This decision ensures that LPS's Annual Work Plan and Budget is free of executive intervention. The Constitutional Court considers absolute independence so that LPS is effective in ensuring savings and maintaining financial stability, in line with IADI principles. The P2SK Law also ordered the establishment of the LPS Supervision Agency to strengthen accountability under the supervision of the DPR.

Similarly, Professor of Forensic Accounting for the Public Sector from the State University of Surabaya (Unesa), as well as Chairman of the Association of Public Sector Accounting Lecturers (APSAE) Dian Anita Nuswantara said that the independence of LPS is an absolute necessity. This is because it involves the trust and credibility of banks in the eyes of customers.

"Credibility of banking is very sensitive to the issue of public trust. Because this is what makes customers believe in entrusting their money," he said.

According to him, if customers smell a vulnerability in guaranteeing their money, it could become an issue that spreads everywhere. In the end, said Dian, banks could shake up and financial stability would be disrupted if there was a rush.

So it is important for all parties to ensure LPS' independence in assessing and making decisions, in its function it guarantees savings and maintains financial system stability. Must be free of intervention, including the government. So that decisions are taken objectively and professionally. Indeed, on the other hand, LPS must be supervised for them to carry out their duties properly, and carry out their duties transparently and accountably," he concluded.