We will always strengthen and maintain their independence because (they) are the most primary and important assets to maintain the stability of the financial system.
Jakarta (ANTARA) – The independence of Bank Indonesia (BI), the Financial Services Authority (OJK), and the Deposit Insurance Corporation (LPS) will be preserved by the financial sector development and reinforcement bill (RUU PPSK), the Finance Minister has assured.
The public needs to be assured of the institutions’ independence and credibility so that the confidence in and the stability of the financial sector can always be maintained and become increasingly stronger, Minister Sri Mulyani Indrawati said.
“We will always strengthen and maintain their independence because (they) are the most primary and important assets to maintain the stability of the financial system,” she elaborated during a working meeting with Commission XI of the House of Representatives (DPR), which was followed online from Jakarta on Thursday.
The strengthening of the institutions, as envisaged in the bill, would not mean that their independence would entail no accountability, instead, they would have to continue to show their ability to realize their mandate of maintaining stability, conducting supervision, and making credible and effective regulations, she said.
The bill, if passed into law, will strengthen BI’s role in achieving the objective of stabilizing the rupiah’s exchange rate, maintaining the stability of the payments system, and contributing to maintaining the stability of the financial system to support sustainable economic growth.
To that end, BI has been tasked with issuing and implementing sustainable, consistent, transparent, and credible monetary policies; regulating and maintaining a smooth payment system; and issuing and implementing macro-prudential policies.
The bill will also strengthen the OJK by strengthening the leadership of its board of commissioners. Thus, the chief of the OJK’s board of commissioners will have the authority to make a decision if no agreement is reached during consultations.
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