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)