Legislator questions banking secrecy ruling

Legislator questions banking secrecy ruling

JAKARTA (JP): Outspoken legislator A. A. Baramuli questioned yesterday the legality of the central bank's new regulation on banking secrecy.

Bank Indonesia, the central bank, announced earlier this week that third parties, such as the press and legislators, who leak inter-bank information could face severe penalties in the form of fines and jail terms.

Baramuli, who disclosed a bank scam of over $450 million in the state-owned Bank Pembangunan Indonesia, noted that under the country's constitution legislators have parliamentary immunity in doing their jobs.

Therefore, the central bank's regulation on banking secrecy which does not exempt legislators is totally wrong and contradicts the constitution, Baramuli, a member of Commission VII (on banking and trade affairs) of the House of Representatives, said.

Baramuli, a legislator of the Golkar faction, argued that it is the responsibility of every citizen, including bankers, to supply the House of Representatives with information when the legislators exercise their controlling function.

Hendrobudiyanto of the central bank said on Monday that banks are allowed to exchange information only among themselves on active debtors or the general performance of banks.

Information on commercial banks can only be obtained through the central bank, Hendrobudiyanto said.

Concurring with Baramuli's argument, banking analysts Laksamana Sukardi and Riyanto Sastroatmojo contended that such an application of the regulation on banking secrecy might discourage legislators and the press from exercising their social function.

In addition to banking secrecy, Bank Indonesia also issued three other regulations on a requirement to provide annual working programs, a definition of persons barred from the banking sector and the standardization of accounting systems. (rid)