FINANCIAL SYSTEM STABILITY FORUM
The Financial System Stability Forum (FSSF) is a venue for coordination, cooperation and information exchange among the authorities responsible for safeguarding financial system stability in Indonesia. This forum has a crucial role, particularly in addressing systemic risk that can only be resolved through joint policies and decisions followed by coordinated, effective actions. The FSSF was established on 30 December 2005 under a Joint Decree of the Minister of Finance, Governor of Bank Indonesia (BI) and Chair of the Board of Commissioners of the Indonesia Deposit Insurance Corporation (DIC).
The four key functions of the FSSF are:
- To discuss the various issues confronting government stakeholders in the financial system with potential systemic impact, as informed by the financial institution supervisory authority;
- To coordinate and exchange information for synchronization of laws and regulations concerning the banking system, non-bank financial institutions and the capital market;
- To coordinate the implementation or preparation of specific initiatives in the financial sector.
To facilitate the operation of these four functions, the FSSF is divided into three levels:
- The Steering Forum, which is responsible for providing general guidance to the Executive Forum on the key FSSF functions. This forum has 7 members, 3 at the level of Director-General in the Ministry of Finance, 3 members of the BI Board of Governors and the Chief Executive Officer of DIC.
- The Executive Forum, which carries out the key functions of the FSSF according to the instructions of the Steering Forum. This forum has 14 members: 6 second-level officials from the Ministry of Finance, 6 BI Directors and 2 DIC Directors.
- The Working Team, which supports the work of the Steering Forum and Executive Forum. Team members are officials appointed from the Ministry of Finance, BI and DIC by decision of the Steering Forum after nomination by the respective institutions.