Banking Draft Bill Adopts Foreign Ownership

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  • Otoritas Jasa Keuangan. TEMPO/Tony Hartawan

    Otoritas Jasa Keuangan. TEMPO/Tony Hartawan

    TEMPO.CO, Jakarta – The Financial Services Authority (OJK) will soon submit the final draft of the Banking Bill that is currently being discussed by the House of Representatives (DPR). Edy Setijawan, OJK’s deputy director of research and banking regulations, said the main principle of the draft bill was to regulate the sustainability of the banking industry. 

    “I can’t reveal the details yet. The point is that it’s about inclusive finance,” Edy said on Wednesday, May 6, 2015 in Jakarta. 

    One of the most heated discussions in relation to the draft bill is about foreign ownership. According to Edy, it is currently difficult to rely on the national banks to boost the economic growth. Therefore, foreign ownership in the national banking sector must be supervised. 

    “We can direct [foreign banks] to help certain sectors, just like the Philippines does,” Edy said. 

    Eddy added that the banking draft bill, which is a replacement of Law Number 10/1998 on banking, cannot regulate everything. Important highlights covered by the draft bill include financial statements, ownership transparency, and 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.