Indonesia - Strengthening and Developing Financial Sector


  • SOLICITATION NUMBER: 0002008930
  • INSTITUTION:  IBRD/IDA
  • ASSIGNMENT LOCATION: Indonesia
  • ISSUE DATE AND TIME: May 11,2024 14:31
  • CLOSING DATE AND TIME: May 20,2024 23:59

Ratification of Law Number 4 of 2023 concerning Development and Strengthening of the Financial Sector (P2SK Law) by the President of the Republic of Indonesia; Joko Widodo on January 12; 2023; is a milestone in financial sector reform in Indonesia. This legislation is a cornerstone in the ongoing evolution of the financial sector in Indonesia; setting the stage for enhanced stability and growth. The P2SK Law is envisioned to be a catalyst for comprehensive financial sector reform; aiming to enhance the resilience of the financial system against shocks; improve the sector's competitiveness; and ultimately contribute to the nation's economic stability and development.The Financial System Stability Committee (KSSK); supported by its Secretariat; plays a pivotal role as mandated by the P2SK Law. The KSSK is the linchpin in the architecture of Indonesia's financial stability framework; tasked with the critical functions of monitoring the health of the financial system; maintaining stability; and managing crises should they arise. The Secretariat of KSSK; as the operational arm of the committee; is instrumental in executing these functions effectively.To uphold the commitments of the KSSK as stipulated in the P2SK Law; there is an imperative need to fortify the capacity and knowledge base of the Secretariat. This enhancement is crucial for understanding and implementing the mandates of the P2SK Law. Strengthening the Secretariat's capabilities is expected to bolster the KSSK's policy framework; particularly in areas that are vital for financial stability

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