After being prioritzed for several years, the Draft Bill on Banking is finally set to reach itscompletion within this year. Setya Novanto, Speaker of the House has also requested that discussions on the Draft Bill be accelerated, citing its importance to promote increased national income.
Jon Erizal, Deputy Chairman of Commission XI, indicated that the Draft Bill may be concluded by this August. For this purpose,Commission XI is continuing to conduct a series of hearing sessions to obtain inputs about the bill from various parties.
“The target is this year, it will be discussed at the plennary meeting,” said Mr. Erizal after a hearing with the Association of National Banks (Perhimpunan Bank-Bank Nasional – Perbanas) in Jakarta on Thursday.
Mr. Erizal explained that the House received extensive input from Perbanas, including information on the types of bank in Indonesia. Perbanas is recommending that banks be classified under three categories,conventional banks, specialized banks, and rural banks (bank perkreditan rakyat/BPR).
The establishment of specialized banks focuses on particular sector—such as banksfor infrastructure projects—has been echoed by Perbanas for a long time. Sigit Pramono, Perbanas’ Chairman, believes, that specialized banks could be used to spread financing more broadly tovarious sectors all around the country.
Mr Erizal also revealed that specialized banks already exist within the current framework, such as sharia banks, rural banks, and regional development banks (bank pembangunan daerah/BPD). Unfortunately, banking regulations tend to provide greater opportunities for commercial banks, depriving other banks of their individual characteristics.
Mr. Erizal elaborated that the current regulatory framework is no longer suitable to accommodate Indonesia’s complex economy. According to him, specialized banks should optimize Indonesia’s banking industry, as the financing of various sectors contributes to more balanced economic development.
“Banking needs to finance productive sectors instead of consumption,” he emphasized.
Other suggestions relate to foreign ownershipof Indonesian banks. Unfortunately, Mr. Erizal did not go into details on this issue. He admits that this issue is still at the stage of collating input from various parties about the permitted levelsof foreign ownership. According to him, what matters is the benefits generated for the public.
After being prioritzed for several years, the Draft Bill on Banking is finally set to reach itscompletion within this year. Setya Novanto, Speaker of the House has also requested that discussions on the Draft Bill be accelerated, citing its importance to promote increased national income.
Jon Erizal, Deputy Chairman of Commission XI, indicated that the Draft Bill may be concluded by this August. For this purpose,Commission XI is continuing to conduct a series of hearing sessions to obtain inputs about the bill from various parties.
“The target is this year, it will be discussed at the plennary meeting,” said Mr. Erizal after a hearing with the Association of National Banks (Perhimpunan Bank-Bank Nasional – Perbanas) in Jakarta on Thursday.
Mr. Erizal explained that the House received extensive input from Perbanas, including information on the types of bank in Indonesia. Perbanas is recommending that banks be classified under three categories,conventional banks, specialized banks, and rural banks (bank perkreditan rakyat/BPR).
The establishment of specialized banks focuses on particular sector—such as banksfor infrastructure projects—has been echoed by Perbanas for a long time. Sigit Pramono, Perbanas’ Chairman, believes, that specialized banks could be used to spread financing more broadly tovarious sectors all around the country.
Mr Erizal also revealed that specialized banks already exist within the current framework, such as sharia banks, rural banks, and regional development banks (bank pembangunan daerah/BPD). Unfortunately, banking regulations tend to provide greater opportunities for commercial banks, depriving other banks of their individual characteristics.
Mr. Erizal elaborated that the current regulatory framework is no longer suitable to accommodate Indonesia’s complex economy. According to him, specialized banks should optimize Indonesia’s banking industry, as the financing of various sectors contributes to more balanced economic development.
“Banking needs to finance productive sectors instead of consumption,” he emphasized.
Other suggestions relate to foreign ownershipof Indonesian banks. Unfortunately, Mr. Erizal did not go into details on this issue. He admits that this issue is still at the stage of collating input from various parties about the permitted levelsof foreign ownership. According to him, what matters is the benefits generated for the public.