The Minister of Finance presents five pillars for reforming the financial sector

Along with the increasing variety of financial instruments, the fourth pillar has the mandate to strengthen the capacity of the supervisory authority to implement regulation and supervision of the technological method.

Jakarta (ANTARA) – Finance Minister Sri Mulyani has outlined the government’s five strategic pillars in designing Indonesia’s financial sector reform, one of which concerns the expansion of long-term financial sources.

“This pillar specifically becomes a guideline in designing the development of the insurance industry and pension funds that collect long-term finance,” the minister noted at the 2022 International Conference of the Indonesian Finance Group (IFG) here on Monday. .

In addition, strengthening access to financial services has become the second pillar on which the improvement of financial institutions rests.

This is done by providing access to various products and services of financial institutions according to people’s needs, for example by using financial information and technology or fintech.

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The third pillar concerns the strategy for improving the competitiveness and efficiency of the financial sector.

This pillar focuses on creating an efficient business process within the financial sector through innovation to establish healthy competition between industries.

At the same time, the fourth pillar revolves around the development of financial instruments and the strengthening of risk mitigation measures related to financial instruments.

“Along with the increasing variety of financial instruments, the fourth pillar has the mandate to strengthen the ability of the supervisory authority to implement regulation and monitor the technological method,” Mulyani explained.

The fifth pillar is to improve investor and consumer protection, with the aim of building people’s confidence to participate in the Indonesian financial market and ensure its integrity and fairness.

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Public confidence in the financial sector should become an important basis for Indonesia to improve the sector.

It should also ensure that financial services institutions and the financial market continue to innovate and improve their efficiency without eroding the confidence of the public, investors and consumers.

Along with the strategic pillars, the minister pointed out that Indonesia’s financial reform framework is based on three objectives: financial inclusion, greater financial penetration and financial stability.

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“A harmonious arrangement for these three aspects is very fundamental and important in anticipating various developments in Indonesia related to the financial sector in the future,” she added.

Based on these five strategic pillars and three objectives, the financial sector reform plan had been formulated for the entire industry and financial market in the country.

The reform of the financial sector should be able to solve various problems of the sector, which implies the strengthening of the intermediation function and the increase of high quality investment opportunities, in particular in the financial sector.

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