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View all search resultsJPSK bill pushed amid potential legal issues
Deposit Insurance Corporation (LPS) acting executive director Fauzi Ichsan says ongoing efforts to avoid legal conflicts in the long-awaited financial system safety net (JPSK) bill may be pursued, prolonging the billâs deliberation process
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D
eposit Insurance Corporation (LPS) acting executive director Fauzi Ichsan says ongoing efforts to avoid legal conflicts in the long-awaited financial system safety net (JPSK) bill may be pursued, prolonging the bill's deliberation process.
"We just want to make sure that the content of the JPSK bill will not contradict existing laws such as the Financial Services Authority [OJK] Law and the Bank Indonesia Law. That's what has led to such a prolonged deliberation process," he told The Jakarta Post on the sidelines of a JPSK seminar on Tuesday.
Fauzi said even though there was an issue that the JPSK bill might be a specialized law, he was still not sure about how it could be implemented.
Still, he hoped that the House of Representatives would discuss and deliberate the bill this year.
"In one sense, we have to be careful [in deliberating the JPSK bill] as it is related to big institutions. In another sense, the process to pass it into a law should be fast to give a legal basis to a crisis management system," he said.
The chairman of the House's Commission XI overseeing banking, Fadel Muhammad, previously stated that lawmakers would likely discuss the bill next year.
Discussions on the JPSK bill are centered on the need for Indonesian policymakers to possess a strong legal framework in the country's crisis management protocol.
The law is expected to assist policymakers with making decisions during times of crisis, such as bailing out banks or declaring failed banks, as what happened in the Bank Century bailout case in 2008.
The case has seen former vice president Boediono and former finance minister Sri Mulyani Indrawati drawn into the investigation process for their alleged involvement in extending a facility to inject state funds into the ailing bank. (fsu/ebf)(+++)
