Certain obligations of Indonesian banks participating in a special programme set up in 1999 are guaranteed by the state. Because the progamme will only come to an end when the IBRA terminates it, and so far it has not, the programme will continue until at least July 31 2000.
Bank Indonesia has issued a regulation that establishes a 'fit and proper' test for the banking sector. The test emphasizes the need for banks to be managed by competent, professional bankers with knowledge, experience and moral integrity.
A new law on fiduciary guaranty has been enacted which brings Indonesia's law on secured transactions in line with other countries.
In order to re-establish confidence in the banking sector, the government has enacted a new law giving the central bank more authority to regulate, and another law to deal with foreign exchange rates and the movement of money.