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Jokowi calls on OJK to 'show fangs' and protect investors, boost confidence
The President has urged the OJK to improve industry supervision amid the government's ongoing efforts to recover the economy and draft a new omnibus law on the financial sector.
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Financial Services Authority (OJK) chairman Wimboh Santoso (far left, at podium) speaks on Jan. 15, 2021 at the OJK's annual meeting for the financial services industry as President Joko Widodo joins via videoconferencing. (Courtesy of the Financial Services Authority (OJK)/-)
P
resident Joko “Jokowi” Widodo has called on the Financial Services Authority (OJK) to step up its supervisory role to maintain market confidence and better protect investors as it comes under scrutiny in relation to several high-profile financial mismanagement cases.
In his remarks delivered on Friday evening at the OJK’s annual financial services industry meeting, Jokowi stressed that there should be no illegal practices and fraud transactions that could inflict financial losses to investors in the future.
“OJK supervision must show its fangs and maintain its credibility and integrity,” the President said. “We must develop an internal system with international standards to boost the confidence of international [investors] in our financial industry.”
Jokowi’s statement comes as investors suffered hefty losses last year due to illegal practices by certain market players, such as PT Jouska Financial Indonesia. The financial advisory firm faces allegations of illegal stock brokerage and investment mismanagement that has caused combined losses of at least Rp 18 billion (US$1.28 million) for dozens of clients.
Earlier in late 2019, state-owned insurer PT Asuransi Jiwasraya became embroiled in an investment mismanagement and corruption scandal over investing a chunk of its premium funds in pump-and-dump stocks that resulted in state losses of Rp 16.81 trillion up to January 2020. The Attorney General’s Office (AGO) named a former OJK official and several businesspeople as suspects in the Asuransi Jiwasraya corruption trial.
In July 2020, Jokowi was reportedly mulling over the idea of returning the banking supervisory role to Bank Indonesia (BI) due to his dissatisfaction with the OJK’s performance during the COVID-19 health emergency.
