Legislator questions banking secrecy ruling<\/p>\n
JAKARTA (JP): Outspoken legislator A. A. Baramuli questioned
\nyesterday the legality of the central bank's new regulation on
\nbanking secrecy.<\/p>\n
Bank Indonesia, the central bank, announced earlier this week
\nthat third parties, such as the press and legislators, who leak
\ninter-bank information could face severe penalties in the form of
\nfines and jail terms.<\/p>\n
Baramuli, who disclosed a bank scam of over $450 million in
\nthe state-owned Bank Pembangunan Indonesia, noted that under the
\ncountry's constitution legislators have parliamentary immunity in
\ndoing their jobs.<\/p>\n
Therefore, the central bank's regulation on banking secrecy
\nwhich does not exempt legislators is totally wrong and
\ncontradicts the constitution, Baramuli, a member of Commission
\nVII (on banking and trade affairs) of the House of
\nRepresentatives, said.<\/p>\n
Baramuli, a legislator of the Golkar faction, argued that it
\nis the responsibility of every citizen, including bankers, to
\nsupply the House of Representatives with information when the
\nlegislators exercise their controlling function.<\/p>\n
Hendrobudiyanto of the central bank said on Monday that banks
\nare allowed to exchange information only among themselves on
\nactive debtors or the general performance of banks.<\/p>\n
Information on commercial banks can only be obtained through
\nthe central bank, Hendrobudiyanto said.<\/p>\n
Concurring with Baramuli's argument, banking analysts
\nLaksamana Sukardi and Riyanto Sastroatmojo contended that such an
\napplication of the regulation on banking secrecy might discourage
\nlegislators and the press from exercising their social function.<\/p>\n
In addition to banking secrecy, Bank Indonesia also issued
\nthree other regulations on a requirement to provide annual
\nworking programs, a definition of persons barred from the banking
\nsector and the standardization of accounting systems. (rid)<\/p>",
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