Puteri Komarudin, a member of Commission XI of the Indonesian House\nof Representatives from the Golkar Party, urged the Deposit Insurance\nCorporation (LPS) to strengthen coordination with other financial\nauthorities in an effort to develop an AI-based IT system at the Bank\nPerkreditan Rakyat (BPR) to manage data and enable real-time early\ndetection of banking risks.<\/p>\n
The push was disclosed at the Working Meeting (Raker) of Commission\nXI of the DPR-RI with the Chair of the LPS Board of Commissioners in\nJakarta on Tuesday, 19 May.<\/p>\n
\u2018In our view, these plans are very important to clarify the\ncoordination. Because the BPR ecosystem involves not only LPS, but also\nits main supervisor, the Financial Services Authority (OJK). Moreover,\nfrom various visits to the regions related to this issue, there is still\nconfusion about the information system between the powers vested in OJK\nand LPS,\u2019 Puteri said.<\/p>\n
Puteri noted that the ex-officio members of the LPS Board of\nCommissioners from other authorities, such as OJK, Bank Indonesia, and\nthe Ministry of Finance, could be optimised to strengthen inter-agency\ncoordination. \u2018For example, the coordination to resolve the Government\nRegulation Draft (RPP) on the Programme Penjaminan Polis \u2014 which to date\nremains unfinished due to dynamics in its formation \u2014 means there needs\nto be stronger inter-agency coordination, particularly between LPS and\nthe government. This way, what is mandated in the Financial Sector\nDevelopment and Strengthening Act (PPSK) can have its technical\nregulations completed,\u2019 she said.<\/p>\n
Furthermore, Puteri expressed support for strengthening LPS\u2019s\ninstitutional capacity to carry out the risk minimiser function and the\nadditional mandate as organiser of the Insurance Policy Guarantee\nProgramme in line with the PPSK Act.<\/p>\n
\u2018If we look at benchmarks in other countries, such as South Korea and\nMalaysia, the risk minimiser and early intervention functions appear\nmore definite and explicit in their organisational structures. In our\nview this is highly important and could serve as a reference for\nstrengthening LPS\u2019s institutions going forward,\u2019 she added.<\/p>\n
In response to Puteri\u2019s request, Farid Azhar Nasution, Deputy Chair\nof the LPS Board of Commissioners, said LPS would coordinate with other\nregulators and with relevant associations. \u2018We will certainly continue\nto coordinate with OJK, and of course with BPR associations, so that we\ndo not mis-timely design the system and its use will be optimised. In\nthe initial stage, we will first select 100 BPRs that are truly suitable\nand integrated into the system,\u2019 he concluded.<\/p>\n
At the raker, Commission XI of the DPR-RI, together with the Chair of\nthe LPS Board of Commissioners, agreed to strengthen the coordination\nfunction within the remit of the Board, including for ex officio\nmembers. Ex officio members will, going forward, strengthen\ncoordination, policy harmonisation, as well as data and information\nexchange.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/lps-develops-it-for-bpr-puteri-komarudin-urges-stronger-coordination-1779545868", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }