- It has been rumored that the Indonesian Government is intending to issue Regulation of the Government in Lieu of Law on the Structuring and Strengthening of the Financial Sector (“Perppu Financial System Reformation”) amidst the ongoing natural disaster caused by the Corona Virus Disease 2019 (“COVID-19”) pandemic.
- The Perppu Financial System Reformation will aim to restructure Indonesia’s existing financial regulatory institutions (i.e. Bank Indonesia [“BI”], the Financial Services Authority [“OJK”] and the Indonesia Deposit Insurance Corporation [Lembaga Penjamin Simpanan – “LPS”]). The government’s plan is to unify BI, the OJK and the LPS under the scope of the executive sector and it is hoped that the supervision of financial services institutions will become more integrated in the process.
- This plan has led to much debate amongst interested parties. Hendrawan Supratikno, a member of Commission IX at the House of Representatives, as well as Anthony Budiawan, the current Managing Director of Political Economy and Policy Studies, have decided to oppose the plan, arguing that the issuance of the Perppu must be based on due consideration and not just on rapidly formulated government plans.
- Meanwhile, Markus Mekeng, a member of Commission XI at the House of Representatives, has expressed his broad support for the government’s plan and has stated that the introduction of the Perppu Financial System Reformation is an extraordinary but necessary measure that is of vital importance in order to tackle the ongoing fallout from the COVID-19 pandemic.
- For more on this story, see Hukumonline: “Menyoal Wacana Penerbitan Perppu Penataan dan Penguatan Sektor Keuangan”.
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