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Finance omnibus bill: Govt, House reinstate ban on party 'cadres' running for BI posts
The government and the House of Representatives have reinstated a ban on party politicians running for executive posts at the country's monetary or financial institutions, which was eliminated in the 2004 revision of the Bank of Indonesia Law.
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Finance Minister Sri Mulyani Indrawati (Finance Ministry/-)
T
he government and the House of Representatives have agreed to uphold the independence of the central bank and financial authorities to maintain investors’ trust, by reinstating the ban on appointing party politicians to the country’s top monetary and financial institutions.
The agreement marks the end of a roughly monthlong deliberation between the government and the House over the omnibus bill on developing and strengthening the financial sector (PPSK), which lawmakers will presumably pass into law on Tuesday.
The latest draft, obtained by The Jakarta Post on Dec. 8, contains a revision to Article 47 of the Bank Indonesia (BI) Law so it once again bars members of political party from sitting on the BI board of governors, undoing a 2004 revision that abolished the ban.
Furthermore, the draft law incorporates a new ban under BI Law Article 40, stipulating that BI governorship candidates “may not be administrators and/or members of political parties at the time of [their] nomination”.
“We are maintaining the independence of BI, the OJK [Financial Services Authority] and the LPS [Deposit Insurance Corporation].
“Candidates for commissioners or governors [on the boards] of these institutions cannot be from political parties,” Finance Minister Sri Mulyani Indrawati told reporters after a meeting with House Commission XI, which had proposed the bill.
Read also: House, politicians tighten grip on financial sector in new omnibus bill
