REPUBLIKA.CO.ID, JAKARTA -- President Joko Widodo (Jokowi) could take a decision, which is different from the recommendation of the Financial System Stability Committee (KSSK) regarding the economic crisis, a Finance Ministry official said.
Fiscal Policy Affairs Head of the Finance Ministry Suahasil Nazara said here on Thursday that the financial crisis condition is not always decided by the four financial authorities under the KSSK, but can also be a political decision that should be considered by the president.
"Is it possible for the president to make a different voice? Yes it is," said Suahasil while inaugurating a meeting to popularize the Law on Prevention and Handling of Financial System Crisis (UU PPKSK).
Suahasil said the recommendation of the KSSK is made based on the consideration of the four financial institutions under the KSSK, namely Bank Indonesia (BI, which is the central bank), Financial Service Authority (OJK), and Finance Ministry and Deposit Insurance Agency (LPS).
"KSSK, with its financial institutions, makes a recommendation on the economic development, based on the four institutions' mandates. BI makes a recommendation, based on monetary assessment, Finance Ministry's take on fiscal issues, OJK's opinion on supervision in the financial sector and LPS's view on banking resolution. So, it is possible for the president to have a different view," he said.
He further said the endorsement of UU PPKSK will require financial authorities to produce implementing regulations as protocols for the prevention and handling of crisis.
"KSSK meets once in three months. We often have different opinions, but we are always in good coordination," he said.
One of the protocols which is being finalized by LPS and OJK is the protocol on banks having problems with systemic impact. Banks declared a systemic impact will be specifically supervised. The list of the banks will also be evaluated periodically.
"After a crisis is declared, the list may not be expanded. We emphasize that the protocol for banks with systemic impact must be clear. Experiences from the past should not be repeated where a bank suddenly declares a problem with systemic impact at midnight," he said.
The popularization of UU PPKSK, which was held for the fourth time, was also attended by the Head of LPS, Fauzi Ichsan, Head of the Finance Ministry's Financial Sector Policy Center, Basuki Purwadi, the Director of the Legal Department of BI, Imam Subarkah, and the Deputy Commissioner 2 for Banking Supervision of the OJK, Budi Armando.
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