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The House of Representatives has allocated Rp 9.75 billion (US$1 million) from this year’s state budget for the commissioners of the new Financial Services Authority (OJK) — none of whom have been paid since taking office.
The nine commissioners of the financial regulatory superbody have not been paid since their inauguration in August, according to sources.
Finance Ministry secretary-general Kiagus Badaruddin told reporters here on Thursday that lawmakers at the House were still deliberating on the disbursement of the commissioners’ pay. “Realization of the disbursement may be lower than the initial salary allocation,” Kiagus said.
If all of the initial salary allocation is disbursed by the end of 2012, each OJK commissioner would receive back pay topping Rp 800 million, assuming a monthly base pay of Rp 200 million.
However, OJK deputy chairman Rahmat Waluyanto said that commissioners might only receive a monthly salary ranging from Rp 94.25 million to Rp 145 million for 2012, based on the decision of the OJK’s board of commissioners and remuneration standards for officials at other financial industry oversight agencies.
For example, members of Bank Indonesia’s board of governors, which is in the process of transferring its oversight of the nation’s banking industry to the OJK, receive a average monthly salary of Rp 158 million.
The OJK was created to monitor and regulate the nation’s financial sector, which has an estimated value of Rp 7,700 trillion.
Previously, OJK chairman Muliaman Hadad asked the House to allocate Rp 1.69 trillion from the 2013 state budget to finance the authority next year, including Rp 116.74 billion for operations, Rp 1.27 trillion for administration, Rp 219.52 billion for procurements and Rp 83.15 billion for supporting activities.
The establishment of the authority was mandated by the OJK Law that was passed by the House in 2011. The law gave the OJK the oversight responsibilities currently resting with the Capital Market and Financial Services Supervisory Agency (Bapepam LK) and Bank Indonesia.
The law stipulates that the transfer of oversight authority for the nation’s stock market, insurance, and other financial services from Bapepam LK to the OJK must be complete by Dec. 31, 2012.
Bank Indonesia must transfer its oversight authority on the nation’s banking sector to the OJK by Dec. 31, 2013, according to the law.
After that date, Bank Indonesia will only focus on monetary policy.
—JP/ Hans David Tampubolon