TEMPO.CO, Jakarta - The Financial Services Authority (OJK) will soon submit the final draft of the Banking Law that is currently being discussed by the House of Representatives (DPR). Edy Setijawan, OJK's deputy director of research and banking regulations, said that the main principle of the draft bill was to regulate the sustainability of banking industry.
"I can't reveal the detail yet. The point is that it's about an inclusive financial," Edy said on Wednesday, May 6, 2015, in Jakarta.
One of the most heated discussions in relation to the draft bill is foreign ownership. According to Edy, it is currently difficult to rely on domestic banks to boost economic growth. Therefore, foreign ownerships in the banking sector must be supervised.
"We can direct [foreign banks] to help certain sectors, just like the Philippines did," Edy said.
Edy added that the banking draft bill, which is a replacement of Law No. 10/1998 on Banking, cannot regulate everything. Important highlights covered by the draft bill include the financial statement, ownership transparency, environmental and social responsibilities. Edy viewed that the main principles will be included in the bill, while others will be governed by OJK's or Bank Indonesia's regulations.