Otoritas Jasa Keuangan

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Otoritas Jasa Keuangan (OJK)
INDONESIA FINANCIAL SERVICES AUTHORITY

Gonthor R. Aziz h i
Senior Advisor, Indonesia Capital Market and Financial  Institutions Supervisory Agency Ministry of Finance of Republic of Indonesia

Entity Scope and Powers

Background
OJK is an independent Institution with authority to regulate, supervise, examine, and investigate Financial Services sector in Indonesia • OJK is funded from the State Budget and/or fees (levy) from parties who conduct their businesses in the financial services sector. With the objective to promote and organize a system of regulations and supervisions that is integrated into the overall activities in the financial services sector The Function of OJK are; • To ensure that the overall activities within the financial services sector are iimplemented in an organized fair organized, fair, transparent and accountable manner • Promotes a financial system that grows in a sustainable and stable manner; and • Protect the interest of Consumer in the Financial Market

BEFORE
Bapepam‐LK  under MOF Bank Indonesia  reporting to  Parliament Banking  Regulation and  Supervision

Capital Market 

Massive Gaps in Cross Sectoral

NBFI

Monetary,  Payment Systems  and Foreign  Exchange

AFTER
OJK as an  Independent Entity  Reporting to  Parliament Bank Indonesia  reporting to  Parliament

Capital Market 

Macro Prudential  Regulation

NBFI*

Monetary,  Payment Systems  and Foreign  Exchange

Banking  Regulation and  Supervision

* NBFI includes Pension, Insurance, Finance Companies, Venture Capital, Guarantee Companies

1

Authority and Mandate
Regulatory Mandate • Implement OJK Law and harmonize 3 sub  sector laws sector laws • Establish rules and regulation • Supervision  • Institutional • Enforcement and Sanctions  Supervisory Mandate • Institutional and Market Oversight Policy  and Supervisory Activities and Supervisory Activities • Governance and Oversight of CEO’s from  Banking, Capital Market and NBFIs (refer  OJK Commissioners Function) • Conduct supervision, inspection,  investigation, Consumer protection, and  other actions • Impose administrative sanctions on any  party violating the laws and regulations in  the financial services sector the financial services sector • To issue and / or revoke business licenses;  individual licenses; effective registration  statement; registered‐license statement;  approval of business activities; and  validation.

Institutional Governance
• • • OJK is led by the Board of Commissioners. Board of Commissioners is collective and collegial. Board of Commissioners consists of 9 (nine) members and appointed by Presidential Decree. Board of  Commissioners  Composition

Chairman

Vice Chairman

Chief  Executive  Banking

Chief  Executive  Capital Market

Chief  Executive  NBFIs

Commissioner

Commissioner

Ex‐Officio MOF

Ex‐Officio BI

Chairman of  Ethics  E hi Committee

Acting as  Chairman of  Chairman of Board of  Auditors 

Consumer  Protection &  P i & Education 

Esc 1 Level  E 1L l

Member of  Board of  B d f Governors

Operational Heads

2

Institutional Coordination
Domestic Law Enforcements Agencies Eg: Police, Judiciary and Anti Money Laundering Agency

OJK, Bank Indonesia, and the Deposit Insurance Corporation (LPS) shall establish and maintain a means of exchanging information in an integrated way

OJK

Bank Indonesia (BI)

Deposit Insurance Corporation (LPS)

Coordination in formulating Banking Regulation

Bank Indonesia and LPS may conduct a direct examination (in accordance to its powers mandated by law) of bank by submitting prior written notification to OJK

Enhancing Communication and Monitoring Efforts ‐FKSSK Establishing the needed coordination across many agencies could potentially create delays during a time when quick action is needed. Moreover, different regulators can have different supervisory philosophies. These potential...
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