Tussle Over Indonesian Agency Raises Bank Supervision Risks
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A tussle between lawmakers and the government over Indonesia’s planned financial regulator has raised the risk of political interference in bank supervision, highlighting the nation’s struggle to eliminate corruption.
The Financial Services Authority parliamentary working committee, which is holding meetings this month to debate whether lawmakers can appoint two members to the nine-person board of commissioners for the agency, hadn’t reached a “compromise” as of yesterday, said Andi Rachmat, deputy chairman of the working group. The government’s proposal for the board would exclude members of parliament.