OJK: Political Party Members May Be Elected as Bank Commissioners


Christina Desy, Fathan Qorib
 
As part of general meeting procedures, several state-owned banks will need to reorganize their board members. For this purpose, these banks have already draw up lists of candidates including several names from political parties.
 
For instance, Bank Mandiri elected Cahaya Dwi Rembulan Sinaga as one of its commissioners. Meanwhile, Bank Negara Indonesia (BNI) chosed Pataniari Siahaan. Both of these individuals are members of the Indonesian Democratic Party of Struggle (PDI-P).
 
Theseproposed appointments, however, have raised some dissenting opinions amongst the public. Many are concernedthat the appointment of political party members to the board of state-owned banks may result in conflicts of interest.
 
Muliaman D. Hadad, Chairman of Board of Commissioners of the Financial Service Authority (OJK), has acknowledged this possibility. Mr. Hadad, however, also asserts that everyone should have equal opportunity to become a director or commissioner of a state-owned bank, including political figures.
 
“Anyone can be elected as a director or commissioner in a bank, as long as they pass the required fit and proper test,” said Mr. Hadad last Thursday,
 
Mr. Hadad further explained that the fit and proper test already is covered byBank Indonesia Regulation No. 12/23/PBI/2010(“Regulation”). Pursuanttothe Regulation, every director and commissioner of a bank is required to have integrity, competence, and the required financial reputation.
 
A candidate is deemed to have integrity if he has never been convicted of a criminal act in the last 20 years nor blacklisted by any relevant authority. In addition, the candidate must also be committed to developing the bank’s compliance with prevailing laws and regulations.
 
As for the competence, the candidate must have sufficient relevant knowledge on banking for the proposedposition in the bank. Specific to directors, this competency will also be measured based on the candidate’s experience in the field of banking and finance and his ability in implement strategic management for the bank’s sound development.
 
“Even so, a non-banker candidate can still be considered to be appointed to the position if his former experiences are deemed relevant to bank management,” said Mr. Hadad explaining this requirement further.
 
Finally, the candidate must have a credible financial reputation meaning the candidate has never had a non-performing loan and has never been declared bankrupt or convicted as a director or commissioner who caused a company’s bankruptcy within the previous five years.
 
(hot/kc)

Christina Desy, Fathan Qorib
 
As part of general meeting procedures, several state-owned banks will need to reorganize their board members. For this purpose, these banks have already draw up lists of candidates including several names from political parties.
 
For instance, Bank Mandiri elected Cahaya Dwi Rembulan Sinaga as one of its commissioners. Meanwhile, Bank Negara Indonesia (BNI) chosed Pataniari Siahaan. Both of these individuals are members of the Indonesian Democratic Party of Struggle (PDI-P).
 
Theseproposed appointments, however, have raised some dissenting opinions amongst the public. Many are concernedthat the appointment of political party members to the board of state-owned banks may result in conflicts of interest.
 
Muliaman D. Hadad, Chairman of Board of Commissioners of the Financial Service Authority (OJK), has acknowledged this possibility. Mr. Hadad, however, also asserts that everyone should have equal opportunity to become a director or commissioner of a state-owned bank, including political figures.
 
“Anyone can be elected as a director or commissioner in a bank, as long as they pass the required fit and proper test,” said Mr. Hadad last Thursday,
 
Mr. Hadad further explained that the fit and proper test already is covered byBank Indonesia Regulation No. 12/23/PBI/2010(“Regulation”). Pursuanttothe Regulation, every director and commissioner of a bank is required to have integrity, competence, and the required financial reputation.
 
A candidate is deemed to have integrity if he has never been convicted of a criminal act in the last 20 years nor blacklisted by any relevant authority. In addition, the candidate must also be committed to developing the bank’s compliance with prevailing laws and regulations.
 
As for the competence, the candidate must have sufficient relevant knowledge on banking for the proposedposition in the bank. Specific to directors, this competency will also be measured based on the candidate’s experience in the field of banking and finance and his ability in implement strategic management for the bank’s sound development.
 
“Even so, a non-banker candidate can still be considered to be appointed to the position if his former experiences are deemed relevant to bank management,” said Mr. Hadad explaining this requirement further.
 
Finally, the candidate must have a credible financial reputation meaning the candidate has never had a non-performing loan and has never been declared bankrupt or convicted as a director or commissioner who caused a company’s bankruptcy within the previous five years.
 
(hot/kc)
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