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Jakarta Post

Government plans omnibus bill on financial system amid insurance crises

  • Adrian Wail Akhlas

    The Jakarta Post

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Jakarta   /   Thu, January 23, 2020   /  08:57 am
The Jakarta Post Image
Finance Minister Sri Mulyani Indrawati (right) speaks during a limited Cabinet meeting at the Presidential Office in Jakarta in this undated photo.(Antara/Wahyu Putro A)

The government plans to draft an omnibus bill to tighten surveillance of the financial system as it acknowledges that legal loopholes have limited its authority in the handling of the ongoing cases of mismanagement in state-owned insurance companies. Finance Minister Sri Mulyani Indrawati said the omnibus bill on the financial system would revise regulations related to financial services, including in the Banking Law and the Financial System Crisis Prevention and Mitigation (PPKSK) Law. Sri Mulyani Indrawati said the country still lacked the necessary legal basis to oversee crises in the nonbank financial sectors, adding that the law would be one of the highest priorities. The legal loopholes have complicated the handling of troubled state insurers including Asuransi Jiwasraya. “We do not have the scope to discuss nonbank financial services so we need improvements in the l...