By: Sandy Marung ) *
The government and the DPR have submitted a Draft Bill on the Omnibus Law for the Financial Sector. This regulation will summarize several laws in order to accelerate economic recovery affected by the Covid-19 pandemic .
Teuku Riefky as a macroeconomic and financial market economist at LPEM FEB UI Teuku Riefky welcomes the Financial Sector Omnibus Law Bill which has been designated as the 2021 priority national legislation program (Prolegnas) this week.
Riefky said that by discussing the bill at this time, it could be a provision for the defense of financial sector conditions from the looming risk of uncertainty, especially after the economy has started to recover.
Riefky is optimistic that the Financial Sector Omnibus Law Bill will lead to financial market deepening. He sees that currently the Indonesian financial market is still not deep, as seen from the time when the government sold debt securities, most of which absorbed non-residents.
With the deepening of financial markets, it means that Indonesia can have an efficient financial market and public participation, especially domestic ones, is expected to increase. Moreover, currently there is a concern about the risk of taper tantrums, which could lead to potential government bonds being abandoned by foreigners. Moreover, the yield of Indonesian government securities (SBN) is quite high.
Implications of the Omnibus Law The financial sector is seen as being able to reduce SBN yields so that when the government attracts debt, the burden of the Revenue and Expenditure Budget (APBN) can be cheaper.
Then, Indonesia can be more resilient in facing the possibility of capital outflows both on the bond market and in stocks, because what is sold by foreigners can be captured by the domestic. This is very necessary because if, for example, there is uncertainty in the financial aspect, domestic capacity will be able to absorb it, so that the volatility can be contained.
The banking industry will have a new foreman. The new supervisory candidates for the banking industry are stipulated in the Draft Law (RUU) on Financial Sector Development and Strengthening Reforms.
The candidate for a global sweeping regulation in the financial sector is a proposal from the DPR. This bill will be included in the national legislation program in 2021, and is targeted for completion this year.
In addition, this legislative candidate will also regulate the supervision of problem banks. Candidates for this rule are predicted to be one of the early detectors of the financial crisis, including the consequences of the Covid-19 pandemic.
Chairman of the Legislation Body (Baleg) DPR RI Supratman Andi Agtas said the Bill on Development and Strengthening of the Financial Sector Reform will soon be brought to the plenary meeting of the nearest DPR RI for approval. Only then, the DPR RI Deliberative Body (Bamus) will direct the parties that will discuss the bill.
Secretary General (Sekjen) of the Ministry of Finance, Hadiyanto, said that the government would follow the follow-up set by the DPR RI. According to him, the financial omnibus law can be a solution to various problems in the financial sector now and in the future.
Hadiyanto said there was an urgency for a more comprehensive financial sector regulation, in line with the needs and challenges faced in the financial sector and the capital market.
Based on the draft bill on financial sector development and strengthening reform, the government and the DPR initiated the establishment of the Integrated Banking Supervision Forum. The aim is to strengthen coordination between agencies with authority, supervision and resolution of problems in the financial sector, particularly banking.
The members of the Integrated Banking Supervision Forum are the OJK Board of Commissioners, the BI Board of Governors, the OJK Board of Commissioners, the BI Board of Governors, the LPS Board of Commissioners and the secretary of the Financial System Stability Committee (KSSK).
The forum has the task of formulating and establishing indicators and methodologies for assessing bank conditions using data and information in an integrated financial sector data and information system using a forward looking approach .
It is hoped that the Integrated Banking Supervision Forum will be able to anticipate potential banking problems in an early and coordinated manner. This inter-agency coordination is strengthened by the development and development of an integrated financial sector data and information system, as the single source of truth in the financial sector.
Meanwhile, the arrangement of OJK’s authority in the Bill also reinforces the role of the authority to determine the supervisory status and authority at each stage of the bank’s status.
Omnibus Law The financial sector is of course expected to be able to accelerate the acceleration of economic recovery, where with the Covid-19 pandemic, many financial sectors find it difficult to develop.
) * The author is a contributor to the Cikini Press Circle and Students
