The Finance Law Is Outdated, The Government Continues To Discuss The P2SK Bill With The DPR

Illustration (Photo: Doc. Ministry of Finance)

JAKARTA – The government through the Deputy Minister of Finance (Wamenkeu) Suahasil Nazara continues the process of discussing the Draft Law (RUU) on the Development and Strengthening of the Financial Sector (P2SK) with the DPR.

This time, the government's explanation was conveyed to the Legislative Body (Baleg) of the DPR in a working meeting held at the Senayan Parliament Complex, Jakarta today.

In his presentation, the Deputy Minister of Finance said that some of the current regulatory umbrellas were old products that were considered inadequate to the latest needs. The reason is that the financial industry sector is closely related to technological developments that have fast-growing characteristics.

The representative from Sri Mulyani gave an example for the banking sector, most of the regulations were born in 1998 when Indonesia was hit by the financial crisis.

"At that time, we thought that the banking sector had a strong influence on the economy, so we really focused on that," he said on Thursday, August 18.

According to the Deputy Minister of Finance, the conditions and characteristics of each crisis present different solutions and things. Another piece of evidence he showed was the COVID-19 pandemic which created a risk of a scarring effect for the economy.

“Now we are also faced with geopolitical developments, economic dynamics and global financial conditions. Not to mention the development of increasingly complex and interconnected financial instruments and transactions. These are all factors that will affect the financial sector going forward,” he explained.

In a VOI note, the Chairman of the OJK Board of Commissioners for the 2017-2022 period, Wimboh Santoso, once mentioned the urgent need for a financial sector law that can accommodate the needs of the times.

"We know that all banking laws were issued in 1992, especially if we look closely at the capital market law, it could take much longer and the insurance law as well," he said in a seminar held online on Friday, February 11.

Specifically, Wimboh even said that the presence of fintech or online loans (pinjol) and crypto has not been specifically included in the current legislation.

"We must not be careless, especially our law, how are we going to perfect this. And OJK welcomes this process to carry out reforms in the financial sector and has become an initiative of the DPR and the government," he said.