"We have said to the president that this (law) is his legacy. In 10 years, many new foundations have been built," Minister Mulyani said during the P2SK Law dissemination activity organized by the Indonesian Chamber of Commerce (Kadin) in Jakarta on Tuesday.
According to the minister, the P2SK Law formulation was highly influenced by the country's historical background. Prior to the law's existence, Indonesia's legislation progress in the financial sector was governed by separate laws.
In fact, several financial industry actors, including Bank Indonesia (BI), the Financial Services Authority (OJK), Finance Ministry, and Deposit Insurance Corporation (LPS), consider the earlier regulations as being obsolete.
This is because several financial sector laws were formulated during President Soeharto's administration. On the other hand, the urgency to formulate new more relevant laws is increasing as a result of the world facing a spate of crises.
For instance, during the 1998 crisis, which was considered as being the biggest, Indonesia had issued a banking law that drove the country's banking system to become independent.
In addition, in the midst of the global financial crisis in 2008, the government issued a law that granted independence to the OJK.
"Hence, we responded to various crises," Mulyani noted.
The most recent serious crisis that hit the world was the COVID-19 pandemic that resulted in a boost to the role of technology in the financial sector.
During the crisis, President Jokowi had provided various new foundations, such as the Tax Regulation Harmonization (HPP) Law and the Regional and Central Government Finance Relations (HKPD) Law at the Finance Ministry.
"This (P2SK Law) constitutes one of the biggest foundations laid down by the president in the efforts to realize the vision of Golden Indonesia 2045. That (the vision) was the initial thought in the formulation of the P2SK Law," the minister stressed.
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Translator: Imamatul Silfia, Tegar Nurfitra
Editor: Sri Haryati
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