Bank Indonesia Ready to Draft Implementing Regulations for P2SK Law Revision

Bank Indonesia (BI) supports the entire deliberation process conducted by the Indonesian House of Representatives (DPR RI) and the Government regarding the Draft Law on the Amendment to Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (UU P2SK), in accordance with BI’s authority as mandated by the Law. This was affirmed by Head of the BI Communication Department, Ramdan Denny Prakoso. According to him, during the formulation process of the UU P2SK Revision, BI continues to coordinate and provide input to the Government. “Furthermore, BI will prepare the necessary implementing provisions in accordance with the regulatory mandate given to BI after the UU P2SK Revision is officially promulgated in accordance with applicable regulations,” he explained in an official statement. Denny also emphasised that BI continues to strengthen its policy mix and consistently synergises with the Government, the DPR RI, and various stakeholders in the national policy mix to strengthen national economic stability and encourage sustainable economic growth. The UU P2SK mandates the strengthening of legal protection for members of the board of governors, officials, and employees of Bank Indonesia who carry out their duties in accordance with statutory provisions and good ethics. This legislation also emphasises provisions related to the authority of the BI board of governors to represent Bank Indonesia inside and outside of court, which can be delegated to members of the Board of Governors and/or Bank Indonesia officials. The institutional refinement of BI in the UU P2SK also includes arrangements regarding Board of Governors’ meetings, the mechanism for the dismissal of Board of Governors members, the appointment of replacement Board of Governors members, as well as the addition of Bank Indonesia’s duties in implementing educational programmes and community and environmental empowerment. In the field of protocol and accountability, the government and the DPR agreed on arrangements regarding the annual budget of Bank Indonesia and its amendments requiring DPR approval, including arrangements regarding annual budget standards for Bank Indonesia’s operational activities.