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Jakarta Post

OJK needs reform to be more effective and independent

  • Harry Pattikawa

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PREMIUM
Rotterdam   /   Mon, August 10, 2020   /  11:17 am
OJK needs reform to be more effective and independent Someone’s watching: A man walks past the Financial Services Authority (OJK) building in Central Jakarta on May 15, 2013. Critics have mounted on the OJK to improve its oversight of the country’s financial services industry. (Tribunnews/Herudin)

Several mass media reports last month said President Joko “Jokowi” Widodo seemed disappointed with the performance of the Financial Service Authority (OJK) and planned to reinstate the authority to supervise the whole financial service industry in Bank Indonesia (BI) as the central bank. The plan to disband the OJK, which was established in 2011, seemed to have been prompted by the public opinion that the OJK had not been up to its task in effectively supervising the financial service industry. Earlier this year, for example, the Supreme Audit Agency (BPK) revealed weaknesses in seven banks, which the OJK allegedly failed to detect. It should be re-noted that the OJK was established because BI was assessed as incapable of effectively supervising the banking industry, which had collapsed in 1998. BI also was blamed for the failure of Bank Century (now Bank Mutiara) and I...

Disclaimer: The opinions expressed in this article are those of the author and do not reflect the official stance of The Jakarta Post.