The
Parliament wished that the Bill on Amendment
to Law no, 17 of 2003 on State's Financial Management
could create a financial management which
was effective and efficient in accordance with the
principles of good governance at best toward people’s
prosperity. This Bill was expected ensure efficiency
of state’s finance system especially on the income
side obtained by a protection regulation system as secure as possible and
absolutely corruption free. This was
disclosed by member of the Legislation Board
(Baleg) of House, Abdul Hakim at the meeting of
Working Committee on Bill of Law Amendment no 17
2003 on State Finance at the House of Representatives.
The
meeting which was led by Vice Chairman of the
Board of Legislation of House, Dimyati Natakusumah,
introduced also the Head of the Reporting
Center and Financial Transaction Analysis (PPATK)
Muhammad Yusuf who would give some input
on Regulations related to money laundering. In that
opportunity PPATK was also asked to assist to strengthen
state’s financing system by their authority or
beyond their authority. A regulation was needed to
regulate allocations and clarity between grant fund and other social funds used by many leaders to eternalize their power.
From
the very start PPATK had been handling transactions
which was reported as suspect able and called
for restrictions of cash transactions. However, in
principle PPATK could investigate all transactions through banks.
Supporting
Rupiah Redenomination
The Parliament had given positive
signal in regard to Government’s plan to
exercise Redenomination of the Rupiah by
wiping out three zeros behind the nominal
figure of value. There was no reason in
postponing redenomination of Rupiah. Inflation caused
by redenomination was predicted not to last long, this
was disclosed by Chairman of Commission XI of
House. Emir Moeis to the press at the House of Representatives.
The possible
inflation caused by redenomination might cause
worries, but the effect would only last
for a month or two and might be over in fact inflation
could be overcome quickly because it was only
a psychological effect. Redenomination would not
reduce the value of money because the rate and value was the same. So it was
only a matter of psychological effect and
soon all troubles would be over.
Emir
explained that there were many benefits to redenomination,
among others to make it easy for the
people in doing transactions. Besides, redenomination
might increase quality of Rupiah image in the eyes
of the world. When foreigners wished to visit Indonesia
and know that one USD was worth Rp 10,000 they
would under estimate Rupiah in advance.
The
Bill of Redenomination had entered the national
legislation program and would be dissected in
House this year. If the Bill was passed as Law by 2014 there would be a
transition period when there would be two kinds of Rupiah in circulation. There
after gradually up to 2017 the old Rupiah would disappear
from the market.
Business News - January 25,2013
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