BI wants to oversee unregulated securities

Aditya Suharmoko , The Jakarta Post , Jakarta | Mon, 02/15/2010 1:43 PM

The central bank wants to oversee the "blind spots" where securities are not regulated either by the central bank or the Capital Market and Financial Institutions Supervisory Agency, which have caused customers to suffer losses.

"We want the blind spots to be nonexistent. In this context, it would be better [for authorities] to overlap rather than to have blind spots," Bank Indonesia deputy governor Muliaman D. Hadad said in a seminar Monday.

He cited the case of securities sold by Antaboga Delta Sekuritas through Bank Century, which caused about Rp 2.8 trillion (US$ 300 million) in losses.

Muliaman said BI would ensure banks raise customer awareness of products they sell to avoid unwanted losses.