Universal Banking Not Yet Agreed, Purbaya Says BI and OJK Have Different Views

Minister of Finance Purbaya Yudhi Sadewa. (Teddy Kurniawan VOI)

JAKARTA - Minister of Finance Purbaya Yudhi Sadewa said the idea of implementing universal banking in Indonesia has not been approved. The discussion had been going on, but Bank Indonesia and the Financial Services Authority (OJK) had different views.

Universal banking allows one bank to run commercial banking services as well as investment banking activities.

"At that time it was not broken if I am not mistaken. There was a view from the Governor of the Central Bank that was somewhat different from OJK," said Purbaya at the Presidential Palace Complex, Jakarta, Thursday, July 23.

Purbaya admitted that he did not know whether the term universal banking was specifically included in the framework of the financial sector policy that was being discussed.

He said that a number of services that resemble the concept are actually already available in Indonesia. However, the government has not determined whether the model needs to be officially regulated.

"Apakah perlu diformalkan, saya tidak tahu. Nanti kita lihat lagi seperti apa. Waktu itu sepertinya masih belum disetujui," ujarnya.

Purbaya also has not stated whether he supports or rejects the proposal. He said the government still needed to examine the definition, business form, and rules that would be applied.

OJK is said to have proposed the concept to the Financial System Stability Committee (KSSK). However, Purbaya said that the previous discussion had not resulted in a decision.

The KSSK is composed of the Ministry of Finance, Bank Indonesia, OJK, and the Deposit Insurance Agency. This committee is tasked with maintaining the stability of the financial system and handling risks that can disrupt the sector.