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Government Regulation in Lieu of Law Number 1 of 2020, Financial Sector Stability Committee Legal Umbrella to Mitigating and Maintaining Indonesia's Economic Confidence in COVID-19 Pandemic Situation

Jakarta, 03/04/2020 Ministry of Finance - Extraordinary conditions COVID-19 requires handling, prevention and mitigation from an unusual financial perspective.

Therefore, Minister of Finance Sri Mulyani Indrawati stated that the Financial Sector Stability Committee (KSSK) in mitigating financial risks, could not be criminally and civilly sentenced in carrying out their duties in accordance with Government Regulation in Lieu of Law (Perppu) Number 1 of 2020 on State Financial Policy and Financial System Stability.

"Costs that incurred by the government in saving the economy do not constitute a state loss. The KSSK members and all of those involved cannot be prosecuted either by civil or criminal sentence if they perform their duties in good will and in accordance with statutory provisions. That is to provide a protection that is supposed to exist," emphasized the Minister in the video conference discussing the Perppu in Jakarta on Wednesday (01/04).

In the financial sector, the coordination of the KSSK gives the authority to prevent crises through forward looking assessments, not only based on historical basis because the KSSK has made projections of worst case scenario (worsening). This was done so that the KSSK could create and maintain confidence in the financial sector.

However, the Minister emphasized the KSSK must not abuse its authority under the Perppu's legal umbrella.

"It does not mean that we can abuse this protection. Therefore, all procedures in implementing this Perppu law will be carried out with accountability and good governance," said the Minister.

She emphasized, a detailed documentation will be reported in the Central Government Financial Report (LKPP).

"(In order) to be a responsibility for public, what is done is not an act that has a conflict of interest, or even the intention of corruption to enrich oneself and others. This is a maximum step to avoid moral hazard," she concluded. (nr/aw)