Bapepam to be empowered to break banking secrecy

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)