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Global economist and chairman of the Open Society Institute, George Soros, has criticized the absence of globalized banking regulations during his Jakarta visit on Wednesday, stating that such rules could have helped prevent the controversial Bank Century bailout.

“I think the way banks are regulated needs to be improved and there’s a general need for better regulations that are a worldwide requirement,” he said after meeting with Indonesian Vice President Boediono.

“The problems in the financial system are because banks have become globalized but they operate on the false principle that the (banking) system can regulate itself,” Soros said.

Soros is in Indonesia for a two-day visit to review the work of the Tifa Foundation, which he supports along with the Open Society Institute.

Soros said he paid Boediono a courtesy visit to be informed about the economic and financial conditions in Indonesia.

“As an ex-central banker, I thought he would be the person to give me an overall picture,” Soros said.

When asked about the Bank Century case, Soros said that even though it was appropriate to save the financial system from collapsing, there should be regulations to prevent bank bailouts.

“Generally speaking, it is appropriate to save the financial system from collapsing by lending support to the troubled institutions,” he said.

“However, it is the role of the regulators to regulate the banks that need to be bailed out. (With regulations) there is no need for the bailout, as it is the financial markets that have the air of instability and are prone to create financial crises.”

Soros said Indonesia had managed to pass through a very difficult financial period and experienced relatively little damage compared to other countries.

“When you compare the amount of money that was used in Indonesia (for the bailout), compare it to the tremendous and very large amount used in the United States and Europe, Indonesia had relatively very little damage,” he said.

Boediono’s spokesperson Yopie Hidayat said that Soros was eager to get information on Indonesia’s financial condition because the country has been on the investment radar.