Sign up | Log in



Home  >>   Daily News  >>   Indonesia News  >>   Finance  >>   Financial safety net bill almost ready
NEWS UPDATES Asean Affairs                       23  August 2011

Financial safety net bill almost ready

Related Stories

August 13, 2011
 Bank Indonesia protects diversity

July 16, 2011
Indo government to investigate US miner

June 10, 2011
Bank Indonesia holds rate -for now

June 6, 2011
Indonesian currency law creates uncertainty

June 4, 2011
Indonesian banks need to step it up

May 27, 2011
Indonesia eyes new rules for overseas banks

The Indonesian government is finalizing the long-awaited financial system safety net (JPSK) bill to protect the economy during financial crises.

At a press briefing on Monday, the finance minister said the bill would soon be submitted to the House of Representatives so it could be deliberated on during the Aug. 16 to Oct. 28 session.

“We are working to get the JPSK bill ready soon, as capital inflows to Indonesia have been huge,” he told reporters at his office in Jakarta.

Billions of dollars from foreign investors have been pumped into the financial market this year thanks to Indonesia’s economic resilience amid the global slowdown. However, international financial agencies have warned that a sudden reversal of the short-term foreign funds would shock the financial system.

The JPSK bill will ensure that people’s money is secure in times of crisis, not only money held in banks but also in pension funds and insurance, Agus said.

Subject to the President’s approval, he added, there may be a financial safety net forum (FSSK) comprising the finance minister, the Bank Indonesia governor, Indonesia Deposit Insurance Corporation (LPS) chairman and the yet-to-be-established Financial Services Authority (OJK) chairman.

“We are proposing for the forum to be given authority to make policy decisions during emergencies in the financial system because we have to move quickly, effectively and appropriately,” Agus said.

According to Agus, the JPSK bill will “complete the existing crisis management protocol”, which has been managed in a memorandum of understanding with the Finance Ministry’s debt management office and capital market watchdog, the central bank and the LPS.

Economists have called for firm fundamentals from the government to secure the financial market, as the recent turmoil global financial market over fears of recession in Europe and the United States showed signs of moving towards global market volatility.

The bill would be a revision of a similar bill submitted to the House in early 2009.

Former finance minister Sri Mulyani Indrawati, now a World Bank managing director, proposed a financial safety net bill to the House in 2009 which was rejected, as House members demanded to be involved in the decision-making processes during a crisis.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
  Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below




1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Today's  Stories    23  August  2011 Subsribe Now !
• Cambodia signs deals with China Subcribe: Asean Affairs Global Magazine
• Financial safety net bill almost ready Asean Affairs Premium
• Investigation into imported wire launched
Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

• Only top scholars for Malaysia’s ETP
• Fund helps Filipino kids’ education
• Philippines accept ex-US warship
• Thailand could raise prime rate again

• Thailand growth rate revised downward

Asean Analysis    23  August  2011

Advertise Your Brand
• Security moves in Asean Sponsor Our Events

Asean Stock Watch   23  August  2011

• Asean Stock Watch-August 23 p

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent

• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore
• Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline
• Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More


Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2017 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand