Majority of Banks Not Yet Meet Good Corporate Governance Provisions
Wednesday, 27 February, 2008 | 18:04 WIB

TEMPO Interactive, Jakarta: The majority of national banks have not yet met the provisions of good corporate governance (GCG).

Bank Indonesia's evaluation result showed that around 69.3 percent of banks operating in Indonesia have not met GCG provisions.

Emmy Prabawani, BI's senior researcher in Indonesian Banking Architecture (API), said that the GCG provisions most often violated were the existence of independent commissioners and complete banking committees.

“BI's evaluation into 101 banks in September 2007 found that 53.5 of percent banks did not have any independent commissioner and 30.7 of percent banks had not yet established all the required committee,” said Emmy at Bidakara building, Jakarta, Monday (27/2).

GCG, she said, is one of the main impediments to national development, apart from to risk and capital management.

According to her, law enforcement and the application of a code of ethics application was necessary to improve GCG in the banking sector.

“If necessary, give GCG Award for encouraging banks to be role models for other banks,” she said.

EKO Nopiansyah