Indonesia approves new regulator to oversee banks
Indonesia's parliament authorized a long-delayed bill designing a new regulator to oversee a growing financial industry in Southeast Asia's largest economy but faced general skepticism on how effective the watchdog would be.
The new regulator, OJK or Otoritas Jasa Keuangan, will take over the supervision of banks, brokerages and insurance firms from the central bank and capital market watchdog Bapepam-LK begining with 2013.
The move to create the body came about to escape a repeat of the 1997/98 financial crisis, during which many Indonesians banks collapsed or were shut.
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