Indonesia to choose new chief financial authority this week
JAKARTA, June 5 (Reuters) – A finance committee in Indonesia’s parliament on Monday questioned two candidates vying to lead the country’s financial regulator ahead of a vote on the powerful post this week.
The finance committee will vote on Thursday for the chairman of the Financial Services Authority (OJK), who will lead an industry estimated at $ 1.2 trillion.
The choice of the committee will still require the approval of the entire parliament, but its approval is generally accepted.
Former central bank official Wimboh Santoso and banker Sigit Pramono appeared before the committee on Monday for five hours.
The two beat hundreds of candidates in a government-led selection process before facing parliamentarians.
Santoso proposed that under his leadership, the OJK could help promote growth outside the big cities and also the densely populated island of Java.
“Policies will be directed towards pockets of the economy that continue to grow slowly and have high poverty rates,” he said, adding that the regulator should seek to promote the use of technology to help expand financial access in the most remote areas of the archipelago. .
Pramono pledged to step up OJK’s supervision over what he called systemically important banks.
He also recommended that Indonesia’s implementation of Basel III be relaxed to allow banks to use more capital to grow, instead of setting aside capital for reserves.
Santoso, who has served as chairman and commissioner of the state-controlled Bank Mandiri since 2015, was previously a career central banker. His last job at Bank Indonesia was heading its New York branch before joining the International Monetary Fund to become executive director of the voting group for Southeast Asia.
Pramono is the president of the non-profit education organization, the Indonesian Institute for Business Leadership. He previously worked with the biggest Indonesian banks including Bank Central Asia as independent commissioner and Bank Negara Indonesia as managing director, while also being chairman of the Indonesian banking association. (Reporting by Hidayat Setiaji; writing by Gayatri Suroyo; editing by Jacqueline Wong)