1. LOGO. INDONESIA FINANCIAL SERVICES AUTHORITY. Otoritas Jasa
Keuangan (OJK) h i. Gonthor R. Aziz. Senior Advisor,. Indonesia Capital Market
and ...
LOGO
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, organized fair, 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
Capital Market
Banking Regulation and Supervision
NBFI
Monetary, Payment Systems and Foreign Exchange
Massive Gaps in Cross Sectoral
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
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Authority and Mandate Regulatory Mandate
Supervisory Mandate
• Implement OJK Law and harmonize 3 sub sector laws sector laws • Establish rules and regulation • Supervision • Institutional • Enforcement and Sanctions
• 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
Chairman of E hi Ethics Committee
Chief Executive NBFIs
Commissioner
Commissioner
Ex‐Officio MOF
Ex‐Officio BI
Acting as Chairman of Chairman of Board of Auditors
Consumer Protection & P i & Education
E 1L l Esc 1 Level
Member of B d f Board of Governors
Operational Heads
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Institutional Coordination OJK, Bank Indonesia, and the Deposit Insurance Corporation (LPS) shall establish and maintain a means of exchanging information in an integrated way
Domestic Law Enforcements Agencies Eg: Police, Judiciary and Anti Money Laundering Agency
OJK
Deposit Insurance Corporation (LPS)
Bank Indonesia (BI)
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 impediments to a timely response suggest that regulators need to be discussing the possibilities associated with financial crisis on an ongoing basis and long before an actual event. These discussions should encompass the possible actions that might be needed and the information that should be on hand to shape those actions in the public interest. This is one of the major goals of our Coordinating Forum for Financial System Stability OJK shall undertake the necessary coordination and building the consolidated informational infrastructure to support its function. OJK will also work hand in hand with the Central Bank, MOF and the Deposit Insurance Corporation via the Coordinating Forum on Financial System Stability (FKSSK) to undertake the consolidated Systemic Risk Monitoring and Crisis Prevention and Management Protocol on a market wide basis.
Forum Level with Minister of Finance as Chairman of Chairman of Forum
Management Level
Operational Level
CEO of LPS
Head of Banking Supervisor
Banking Supervision Market Regulation
MOF, Chairman of OJK, BI f OJK BI Governor, Chairman of LPS
Head of Cap Mkt Supervisor
Mutual Fund
Issuers
Pension
The Forum shall be Chaired by the Minister of Finance, together with the Chairman of OJK, the Central Bank Governor and the Chairman of the Board of Commissioners of the Deposit Insurance Corporation
Head of NBFIs Supervisor
Insurance
Bank Indonesia
Finance Co
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The Transition Period 1st June 2012
31st Dec 2012
31st Dec 2013
Board B d off Commissioners C i i are Appointed
OJK Entity Phase 2 OJK Entity Phase 1
Bapepam -LK LK
Full Authority over Capital Market and NBFI
Bank Indonesia
OJK Entity Phase 1
Full Authority over Capital Market and NBFI
Full Authority Banking Regulation and Supervision
End of Presentation
THANK YOU
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