Sri Mulyani: Bill P2SK Strengthening Kredibility, Independence And Coordination Of The Financial Sector

Illustration (Photo: Doc. Antara)

JAKARTA - The government through the Minister of Finance (Menkeu) Sri Mulyani said that the urgency of the Draft Law on the Development and Strengthening of the Financial Sector (RUU P2SK) is very important to support economic development.

According to him, the new regulation can be a motor to realize the deepening and stability of the financial sector and strengthen the legal basis.

"We certainly hope that there will be an agreement to maintain the credibility and independence of each institution because it is one of the conditions for stability and trust in financial institutions," he said at the Senayan Parliament Complex, Jakarta on Thursday, November 10.

The Minister of Finance added that the reforms initiated in the P2SK Bill strongly support strengthening initiatives, both those that have been mandated in laws and regulations and the logical consequences of the development of this industry.

He said strengthening financial sector institutions included strengthening the goals and authorities of Bank Indonesia, the Financial Services Authority, and the Deposit Insurance Corporation.

"Through the P2SK Bill, it is hoped that prevention or handling of banking problems can be more anticipatory, so that there are early mitigation steps to prevent problems, in addition to the necessary handling steps, it can run effectively and efficiently," he said.

Furthermore, the state treasurer revealed that financial system stability needs to be strengthened. He said, strengthening the Financial System Safety Net (JPSK) in the framework of coordination through the Financial System Stability Committee (KSSK) is needed to provide certainty of effectiveness (time and quality) in dealing with banking problems and other financial sectors that have the potential to threaten stability.

"Strengthening coordination and clarity of tasks and functions, as well as synergy mechanisms between institutions within the KSSK are needed to handle bank problems, strengthen coordination between institutions, and strengthen institutional authority in the optimal financial sector to prevent banking failures that can disrupt the financial system," he explained.

Meanwhile, strengthening is carried out by improving the coordination and information exchange mechanism as well as governance, so that decisions on the handling of problems in the financial sector can be made more effectively.

"The government agrees with the DPR that strengthening financial sector institutions, including in the context of the JPSK through the KSSK, has very high urgency to answer the challenges of future developments in the financial sector," he stressed.

The Minister of Finance also revealed that it is not only to maximize coordination and institutional roles, but also to handle problems and consumer protection efforts in the financial sector.

Therefore, he continued, the government welcomes the P2SK Bill which does not rule out the strengthening factor of this institution. It was stated that the government and the DPR emphasized that they would always work together, including in the preparation of the P2SK Bill, ensuring the strengthening of credibility, independence, and coordination of authority in the financial services sector in the context of deepening and JPSK in the KSSK.

"Independence does not mean they are not accountable, so in this case accountability arrangements and supervision will be made, of course we will see how other countries are. So, institutions such as BI, OJK, and LPS can run professionally carrying out their mandate which is very important in the safety net of our financial sector. But on the other hand, each also needs to have good governance, which can be seen and conveyed to the public," closed the Minister of Finance Sri Mulyani.