Public accountants may audit BI<\/p>\n
JAKARTA (JP): Minister of Finance Bambang Subianto gave the
\npreliminary nod on Friday to allowing public accountants to audit
\nBank Indonesia in the effort to create a more transparent banking
\nsystem.<\/p>\n
He cautioned, however, that an audit of the central bank would
\nhave to be conducted based on standards compatible with
\ninternational accounting principles.<\/p>\n
\"The government agrees on the suggestions by the Golkar and
\nUnited Development factions which called for a public audit of
\nthe central bank,\" Bambang told a working session with House
\nCommission VIII for state budget and finance.<\/p>\n
They deliberated a bill on amendments to the Banking Act No.7.
\n1992.<\/p>\n
Proposed amendments include full independence from political
\nintervention for the central bank in executing its monetary
\npolicy and banking supervision.<\/p>\n
Analysts have often blamed the present banking crisis on
\nheavy political interference in Bank Indonesia.<\/p>\n
Bambang said the country's battered banking sector urgently
\nneeded a huge capital injection to strengthen its capital base, a
\nneed that financially distressed domestic investors were unlikely
\nto meet.<\/p>\n
He said this accounted for the proposed amendment for the
\nremoval of restrictions on bank ownership by foreign investors,
\nallowing them controlling ownership of local banks.<\/p>\n
Foreigners are currently allowed to own 49 percent of domestic
\nbanks.<\/p>\n
Speaking to reporters after the session, Bambang dismissed
\nnews reports that the government had appointed Bank Ekspor Impor
\nIndonesia (Bank Exim) as the surviving bank of the four state
\nbanks to be merged later this month.<\/p>\n
\"No, we have not decided yet. The decision (on which bank to
\nbecome the surviving bank) will be announced by the latest on
\nSept. 21.\"<\/p>\n
The government and the International Monetary Fund (IMF) set
\nSept. 30 as the deadline for the completion of legal requirements
\nfor merging the banks.<\/p>\n
The government announced last month that Bank Ekspor Impor
\nIndonesia (Exim), Bank Pembangunan Indonesia (Bapindo), Bank Bumi
\nDaya (BBD) and Bank Dagang Negara (BDN) were to be merged.<\/p>\n
Bambang added that the banks were now under due diligence and
\nthe consolidation process.<\/p>\n
\"The due diligence will be completed before Sept. 21,\" he
\nsaid. (aly)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/public-accountants-may-audit-bi-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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