Bapepam to be empowered to break banking secrecy

JAKARTA (JP): The Stock Market Supervisory Agency (Bapepam) is set to receive authority to examine the files of publicly-listed banks in the course of investigations of stock market related crime.

Article 100 of the proposed stock market bill, deliberated yesterday by the drafting team, would empower Bapepam to investigate listed banks suspected of involvement in stock market-related crime. The agency would only be able to carry out such investigations with the consent of the finance minister.

However, yesterday's meeting, which was chaired by legislator Abdurrahman Rangkuti and attended by Minister of Finance Mar'ie Muhammad, was unable to reach a consensus regarding the procedure to be set down by the proposed article.

Thomas Suyatno of the ruling Golkar faction proposed that, apart from the finance minister's consent, Bapepam should also be required to gain approval for an investigation of a bank from the National Police and the Attorney General's Office, in accordance with the 1992 banking law.

"Organizationally, there would be no problem about Bapepam getting the finance minister's consent. However, in carrying out such operations, Bapepam should seek permission from the police and the prosecutor's office as well," Thomas said.

Supporting the Golkar faction's position, the Armed Forces faction said the stock market bill should be consistent with the 1992 banking law because, he said, the two instruments are fundamentally interrelated.

The Indonesian Democratic Party faction disagreed with the Golkar and the Armed Forces factions. It argued that requiring Bapepam to acquire approval from three institutions would slow down the investigation process.

The meeting agreed to delegate further deliberation of the proposed article to a working team. (rid)