Reform in Financial Sector Can Disrupt Market Stability
Economic analysts are worried that the government’s plan to reform the country’s financial system could disrupt the stability of the financial market.
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Financial System Stability Committee (KSSK) members (from left) Financial Services Authority (OJK) commissioner Wimboh Santoso, Finance Minister Sri Mulyani Indrawati, Bank Indonesia Governor Perry Warjiyo, and the Deposit Insurance Corporation Board of Commissioners chairman Halim Alamsyah, pose for a group photo during a press conference on 29 Jan. 2019 at the Finance Ministry in Jakarta. The KSSK announced that the Indonesian financial system in the fourth quarter of 2018 was in a “normal” condition of stability.
JAKARTA, KOMPAS – Economic analysts are worried that the government’s plan to reform the country’s financial system could disrupt the stability of the financial market. Amid the continued increase in Covid-19 cases, and the threat of an economic recession, the government should not raise issues that cause the market to react negatively, they said.
The government is reviewing various laws and legal instruments related to financial system stability in anticipation of a crisis. In the past week, there has been discourse on the need to issue a government regulation in lieu of a law (Perppu) on financial system reform.