A country can develop only if it has a strong financial sector, Minister of Finance Sri Mulyani Indrawati observed at the opening of the “2022 Financial Profession Expo,” which was streamed online on Monday.

“The financial sector will be the backbone as well as the blood flow for the economy to be able to reach advancement sustainably,” she said.

To strengthen Indonesia’s financial sector, the government and the House of Representatives (DPR) are currently formulating the Financial Sector Development and Strengthening Bill (RUU PPSK).

The bill will stipulate improvement in financial access data, expansion of long-term financing sources, and improvement in competitiveness and efficiency, as well as instrumental development, she informed.

It will also seek to bolster risk mitigation and improve investor and consumer protection, she added.

The five pillars clearly necessitate good quality human resources, namely financial professionals with competence and integrity.

Moreover, Indrawati deemed that Indonesia should also develop and strengthen financial reporting management as well as financial service sector monitoring.

Hence, the strengthening of the financial sector—which will be discussed in the bill—is expected to help develop an advanced, innovative, efficient, inclusive, stable, and strong financial sector that investors and the public can trust.

There are many aspects that will be stipulated in the bill, the minister informed.

They will include the banking industry, capital markets, pension funds, fintech, sustainable finance, financial sector human resources, financial reporting, and financial access for micro, small, and medium enterprises (MSMEs), she added.

Given the content of the bill, she said she expects all institutions and elements of society to participate in supporting the realization of the Omnibus Law in the financial sector.

The bill is also part of the institutional reformation that is necessary for Indonesia to achieve the high-income country status.

Source: Antara News