The government has submitted to lawmakers a bill to provide it with extra authority and guidance in preventing possible systemic threats to the financial sector.
In response to the mounting impact of the global financial crisis, the government produced the bill, dubbed the financial system safety net (JPSK), in November in the form of a regulation in-lieu-of-law.
However, lawmakers refused to pass the regulation into law in December, asking the government to revise it.
Raden Pardede, the secretary to the Financial System Stability Committee (KSSK), said Monday the bill had been submitted to the House. He expects it could be passed before the House session ends on March 6.
Raden has explained that the revisions include the scrapping of legal immunity for the Finance Minister, the central bank governor and officials who are involved in crisis management.
Lawmakers fear the responsibility and authority acquired by officials could lead to abuse of power, since the government and the central bank will have immunity from future prosecution over their actions.
Under the bill, a team called the Financial System Stability Committee (KSSK), headed by the finance minister, with the central bank governor as a member, will have full authority to take measures on threats to the financial system.
Under the bill the KSSK is required to report to the House before using taxpayers money from the state budget.
He said the government had yet to receive the House timetable on these parliamentary deliberations.
House speaker Agung Laksono of the Golkar Party said the House had received the bill.
According to the Finance Ministry, developed countries like the US, Australia, the UK, Japan and Singapore have also created KSSK-like agencies to protect their countries against financial crises.
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