<![CDATA[The Government and Bank Indonesia developed a framework for the Draft Law on theFinancial System Safety Net. The framework clearly specifi ed the tasks and responsibilities of the relevantinstitutions involved in the operation of the Safety Net. In principle, the Ministry of Finance wasresponsible for drafting legislation for the fi nancial sector and providing funds for crisis resolution.BI, the central bank, was responsible for safeguarding monetary stability, maintaining a sound bankingsystem and ensuring the secure and robust operation of the payment system. The DIC (DepositInsurance Corporation), on the other hand, had responsibility for guaranteeing bank customer depositsand resolution of problem banks. The Financial System Safety Net framework was set out in theDraft Law on the Financial System Safety Net, which was currently undergoing a consultation process.In this way, the Financial System Safety Net Law would provide a strong foundation for the fi nancialsystem stability policies and regulations to be established by the relevant authorities. The Draft Lawspecifi ed all components of the FSSN: (1) effective bank regulation and supervision; (2) lender of lastresort; (3) adequate deposit insurance scheme; and (4) effective mechanism for resolution of crisis.]]>
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