Better Late than Never

Bank Indonesia is urging that the setting up of an independent agency to supervise the financial services sector be postponed. This suggestion should be disregarded.

June 17, 2003

Independence is never given freely. Bank Indonesia experienced this first hand with the enactment of Law No. 23/1999. In return for freedom from government intervention, the central bank was required to surrender its authority to supervise financial services institutions in Indonesia. Article 34 of the Bank Indonesia Law states as follows: The duty of supervising banks shall be carried out by an independent financial services supervisory agency to

...

More Articles