Challenges For Increasing Dynamics, The Government CONTINUES To VoluntRATE Financial Sector Reform Through The P2SK Bill

Illustration (Photo: Doc. Ministry of Finance)

JAKARTA - The government through the Ministry of Finance (Kemenkeu) stated that the dynamics of geopolitical development, global economy, and world finances as well as the development of increasingly complex financial instruments and transactions require responsive steps.

Special Staff to the Minister of Finance for Strategic Communication Yustinus Prastowo said the government wanted to optimize this momentum to reform the financial sector.

"Indonesia continues to learn from the crisis experience and pressure on the financial market to continue to strengthen this sector," he said in a written statement, quoted on Tuesday, October 25.

Yustinus explained, in the 1997-1998 Asian financial crisis, a response was given through the revision of several laws (UU) including the Banking Law, Bank Indonesia Law, the Deposit Insurance Corporation Law, and the Sharia Banking Law.

Then, against the global financial crisis in 2008-2009, the government responded through the birth of the Financial Services Authority (OJK) Law and the Financial System Crisis Prevention and Handling Law.

Finally, during the pandemic that took place in early 2020, the government and the DPR gave birth to Law Number 2 of 2020 as a legal basis to overcome the impact of the pandemic, both economy, health, and humanity.

In the future, the financial sector will be increasingly important, challenging, and dynamic. For that, we need to pay close attention to the conditions or characteristics of each different crisis, including the crisis due to the COVID-19 pandemic," he said.

Yustinus added, Indonesia needs to strengthen industrial governance, strengthen coordination between financial sector authorities, and also strengthen the financial system safety net.

"This is a context behind the current reform of the financial sector," he stressed.

For information, the House of Representatives (DPR) has stipulated a Draft Law on the Development and Strengthening of the Financial Sector (RUU P2SK) in the 2022 Priority National Legislation Program Bill. This P2SK Bill is a DPR initiative bill which will then be discussed with the government into law.