Archive for May, 2010
The Economic and Political Process in Indonesia
May 30th, 2010 | 
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Indonesia is a country that has economic and political process that slowly grows from other countries. The political issue in Indonesia is different everyday. There still a lot of Indonesian people that not understand or agree about the political think in Indonesia. Apart from the political process, the government in Indonesia should set up financial watchdog agency have four objectives namely: safety and security, prevention of systemic risk, equity and efficiency of markets, protection of consumers and investors. This is based on the crisis that we had in 1997-1998. The first objective is achieved through the implementation of strict regulations and the precautionary principle is put forward approach to persuasion.
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The Establishment of Regulatory Institutions
There can not be denied the economic business and political considerations in the management of financial and regulatory institutions in practice, the establishment of regulatory institutions will be confronted with obstacles such as those identified by Abrams and Taylor (2000) that, firstly, there is the practice of political power that is politicians who have strong political forces tend to assess the formation regulatory agencies as an opportunity to increase its influence in government. Therefore, the politicians were trying to get a job at the watchdog agency. Moreover it is if new institutions are independent institutions. Second, the attraction is of interest because the creation of new regulatory agencies requires new rules. The preparation of new regulations tends colored a relatively long time gap and attract political interest. Not only attract interest among ministries, in the commission of the council representatives will also involve cross-commissions.