The move has prompted speculation that intervention from the Financial Sector Policy Committee FSPC caused the two resignations, though both Ng and Mahmuddin have issued denials. The developments have also led lawmakers to pressure the government to end the powerful FSPC's control over the Indonesian Bank Restructuring Agency IBRA.
At issue, is a contention that far from helping the Indonesian banking reform process, the FSPC has instead hindered the efficiency of IBRA.
IBRA was created in the wake of the 1997 financial crisis to reform the financial sector. IBRA controls some Rp 600 trillion $62.5 billion worth of assets after it took over several banks that have since been merged...
