OJK Highlights Important Issues for Draft Bill on Banking

Anne Aprina Priskila, Fathan Qorib
 
Following the issue of the 2015 National Legislation Program (“2105 Prolegnas”), the banking sector will now need to start giving attention the Draft Bill on Banking which is listed on the 2015 Prolegnas.
 
Muliaman Hadad, Chairman of the Board of Commissioners at the Financial Services Authority (OJK), has also recommended six issues that should be incorporated into the Draft Banking Bill.
 
The first issue is the Draft Banking Bill needs to mandate the banking sector give more attention to certain sectors, such as the agriculture, fishing and infrastructure sectors.
 
"Further research on this specific matter is necessary,” said Mr. Hadad during a meeting with Committee IV of the Regional Representative Council (DPD - Dewan Perwakilan Daerah) on Wednesday.
 
The second issue is foreign ownership in the banking industry. This was a much debated issue during discussions of the Draft Banking Bill in recent years and remains contentious. On this issue, Mr. Hadad is of the view that the Draft Banking Bill must formulate proper provisions so that foreign ownership will make significant contributions to the national economy.
 
Third, Mr. Hadad suggests that legislators should also start thinking about banking conglomerates. 
 
"Conglomeration is all about the shape of the holding company and accordingly needs specific and integrated supervision," he said.
 
In terms of banking business services, the Draft Banking Bill should include special provisions for banks that are expanding their business into the eastern part of Indonesia. As an example, provisions that give incentives for banks to open branches in the eastern part of Indonesia could be included.
 
In response to the current global economic situation, Mr. Hadad said that it is necessary to start implementing the ASEAN Banking Integration Framework (ABIF) to strengthen national banks so they can better compete in the ASEAN Economic Community, and also give due consideration to the operation of Qualified ASEAN Banks (QAB) the advent of which will increase competition between ASEAN banks.
 
(hot/kc)
Anne Aprina Priskila, Fathan Qorib
 
Following the issue of the 2015 National Legislation Program (“2105 Prolegnas”), the banking sector will now need to start giving attention the Draft Bill on Banking which is listed on the 2015 Prolegnas.
 
Muliaman Hadad, Chairman of the Board of Commissioners at the Financial Services Authority (OJK), has also recommended six issues that should be incorporated into the Draft Banking Bill.
 
The first issue is the Draft Banking Bill needs to mandate the banking sector give more attention to certain sectors, such as the agriculture, fishing and infrastructure sectors.
 
"Further research on this specific matter is necessary,” said Mr. Hadad during a meeting with Committee IV of the Regional Representative Council (DPD - Dewan Perwakilan Daerah) on Wednesday.
 
The second issue is foreign ownership in the banking industry. This was a much debated issue during discussions of the Draft Banking Bill in recent years and remains contentious. On this issue, Mr. Hadad is of the view that the Draft Banking Bill must formulate proper provisions so that foreign ownership will make significant contributions to the national economy.
 
Third, Mr. Hadad suggests that legislators should also start thinking about banking conglomerates. 
 
"Conglomeration is all about the shape of the holding company and accordingly needs specific and integrated supervision," he said.
 
In terms of banking business services, the Draft Banking Bill should include special provisions for banks that are expanding their business into the eastern part of Indonesia. As an example, provisions that give incentives for banks to open branches in the eastern part of Indonesia could be included.
 
In response to the current global economic situation, Mr. Hadad said that it is necessary to start implementing the ASEAN Banking Integration Framework (ABIF) to strengthen national banks so they can better compete in the ASEAN Economic Community, and also give due consideration to the operation of Qualified ASEAN Banks (QAB) the advent of which will increase competition between ASEAN banks.
 
(hot/kc)
2026 Hak Cipta Milik Hukumonline.com
Cookies Info