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New OJK leadership to focus on green economy, bank consolidation
The Financial Services Authority (OJK) has announced its priorities in the banking and nonbanking sector, as well as the capital market, following the inauguration of the regulator’s new leaders.
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A woman walks past the Papua office of the Financial Services Authority (OJK) in Jayapura on Oct. 27, 2021. The OJK has branch offices across the country. (Antara/Indrayadi TH)
T
he Financial Services Authority (OJK) has announced its priorities in the banking and bank sectors, as well as the capital market, a day after the regulator’s new leaders were inaugurated at the Supreme Court.
Dian Ediana Rae, who heads the banking supervision division, said he would push for further consolidation in the industry to make banks more efficient by enforcing rising capital requirements.
A prevailing OJK regulation requires banks to have minimum capital of Rp 3 trillion (US$199.44 trillion) this year, triple the amount that was required in 2020.
“I think size matters,” Dian told reporters during a virtual briefing.
Dian said the OJK would improve supervision with a system that could provide protection for the industry, including protection against cyberattacks, as more banks were digitizing services or turning themselves into digital banks, and against loan defaults, among many other risks.
“We will create a system. This will include [a blacklist of bad actors] in the banking industry; the blacklist could also apply to [the insurance industry] and the capital market,” Dian said.
Read also: House selects new OJK leadership
