L

awmakers of the House of Representatives Commission XI on financial affairs have agreed to ratify a protocol to implement the Sixth Package of Commitments on Financial Services under the ASEAN Framework Agreement on Services (AFAS) on Wednesday.

All 10 factions at the commission have agreed to ratify the ASEAN protocol into Indonesian law, pending further confirmation at the House’s plenary session.

The adoption of the protocol into law will subject Indonesia to open its banking industry to other ASEAN member countries, allowing ASEAN banks to operate within Indonesia and vice versa.

The ratification was a follow up from an agreement signed in 2015 by then-finance minister Bambang Brodjonegoro, along with his counterparts from other ASEAN countries, to commit to implementing AFAS.

Finance Minister Sri Mulyani Indrawati said the government hoped the adoption of the sixth protocol into domestic law would bring healthier competition for the Indonesian banking industry, which would therefore benefit the public.

She added that the government would open channels of communication with the governments of ASEAN members to ensure the ASEAN market would be accessible for Indonesian banks.

“The government will communicate with the authorities in partner countries to ensure Indonesian banks have access to the ASEAN market and if there are problems, we could convey it to a country’s highest decision-maker,” she said.

Welcoming the AFAS ratification, Bank Indonesia Governor Agus Martowardojo said Indonesian banks could increase their presence in the ASEAN region.