TEMPO. CO, Jakarta – President Joko “Jokowi” Widodo enacted the Draft Bill on the Development and Strengthening of the Financial Sector (PPSK) as Law No.4/2023 (PPSK Law).
Finance Minister Sri Mulyani Indrawati explained that the government and House legislators managed to reach an agreement on five major points regulated in the PPSK Law.
“The first is the improvement of financial sector authorities with a main focus on institutional; independence,” minister Sri mentioned in a written statement on Friday, January 13, 2023.
The second and third aspect, Sri continued, is the improvement of governance and increasing public trust, and encouraging the accumulation of long-term financial sector funds to support welfare and sustainable development financing, respectively. Meanwhile, the fourth and fifth sectors, as Sri Mulyani explained, are consumer protection, and literacy, inclusion, and innovation in the financial sector, respectively.
PPSK Law contains 27 Chapters and 341 Articles and replaces 17 laws that oversees Indonesia’s financial sector for the past three decades.
“This was done to adapt to the dynamics of changing times,” wrote Sri Mulyani.
Urgent need for financial sector reform
A large number of indicators revealed the urgency of Indonesia’s financial sector reform. Minister Sri Mulyani stated that the shallow depth of the financial sector, the inferior intermediary role of the financial sector, and the lack of consumer protection in the financial sector are some of the examples that must be changed.
Following the enactment of the PPSK Law, the government and regulatory agencies in the financial sector will begin drafting the much-needed implementing regulations.
MOH KHORY ALFARIZI
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