REPUBLIKA.CO.ID, JAKARTA – Civil society organizations that are members of the Indonesian ResponsiBank Civil Society Coalition are pushing for a responsible and sustainable Banking Bill (RUU). The Banking Bill will replace Law No. 10 of 1998 concerning the amendment of Law No. 7 of 1992 concerning Banking.

The ResponsiBank Coalition consists of the PRAKARSA Association, YLKI (Indonesian Consumers Foundation), WALHI (Indonesian Forum for the Environment), Indonesian Publish What You Pay (PWYP), ICW (Indonesian Corruption Watch) and INFID (International NGO Forum for Indonesian Development).

Coordinator of the ResponsiBank Coalition Secretariat Akbar Ali said that the Banking Law did not adequately contain four important aspects. The four are environmental and social responsibility, consumer protection, financial inclusion, and aspects of bank governance-transparency.

The ResponsiBank Coalition proposes that the four pillars need to be considered in the discussion of the Banking Bill. He considered the need for confirmation of the completeness of licensing requirements (legality) in addition to the Environmental Impact Assessment (AMDAL) as a material consideration in providing funding for large projects with high risk to the environment. “The Banking Bill needs to include social and environmental risks as part of the risk management of the banking industry,” he explained in a press release on Tuesday (2/6).

In the aspect of consumer protection, regulate the principles of customer protection, such as fairness and honesty, as well as process customer complaints and report the results. In addition, transparency and education to customers regarding products and services (including possible risks and losses).
Provision of information about services and products that are easily accessed by customers. Guarantee customer funds in accordance with the provisions in the Law on Deposit Insurance Institutions (LPS), and protect consumer data from commercial needs of banks.

In the aspect of financial inclusion, the ResponsiBank Coalition proposes that BPRs are not categorized as banks, but as MFIs. He also assessed the need for a Development Bank that specifically handles vital sectors such as energy, infrastructure, and others.

In terms of governance and transparency, the authorities are asked to impose more stringent sanctions on banks that break the rules, not just administrative sanctions. In addition, the public is considered entitled to get a bank supervision report from the Financial Services Authority (OJK). Banks are also asked to be more transparent in setting interest rates, including setting interest rates together with other bank groups, thus avoiding the interest rate cartel.

“The ResponsiBank Coalition believes that a good law is one that can answer the challenges of the times, not only for the current context but at least for the next 10-15 years,” he added.