- The House of Representatives (Dewan Perwakilan Rakyat/DPR) has finally passed the bill on the ratification of the protocol on the implementation of the seventh commitment package on financial services, more commonly referred to as the ASEAN Framework Agreement on Services (“AFAS Bill”), during a seventh plenary meeting which was held on 5 October 2020 in order to address these matters. The AFAS Bill is one of the strategies that is being implemented in order to enhance Indonesia's overall industrial and business competitiveness, specifically within the financial-services sector.
- Indonesia's Minister of Finance, Sri Mulyani, has stated that the ratification of the AFAS Bill should result in several positive outcomes, including: 1) Attracting both conventional- and sharia-insurance businesses operating within the ASEAN region to enter into cooperation with domestic Indonesian businesses in order to enhance capitalization, fair competition and the overall availability of general insurance products; 2) Support for the establishment of the ASEAN Economic Community, which is expected to broaden the market for financial services; 3) Acceleration of sharia-insurance business-unit spin-offs, which should be able to strengthen capitalization through cooperation.
- Furthermore, Mrs. Mulyani has asserted that the move to ratify the AFAS Bill will ultimately create a productive synergy among ASEAN member states against a backdrop of the ongoing Corona Virus 2019 (COVID-19) pandemic. Mrs. Mulyani also sought to offer her assurance that the government, in conjunction with the Financial Services Authority (Otoritas Jasa Keuangan/OJK), would continue to work to maintain public trust in the insurance industry. (KEMENKEU)
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