What is Indonesia's Financial Services Authority (OJK)? Indonesia's Financial Services Authority (OJK) Review, Features

The Financial Services Authority of Indonesia (OJK) has regulatory responsibilities for financial services activities in the banking, capital markets and non-bank financial sectors.

About Indonesia’s Financial Services Authority (OJK)

Established on June 1, 2012, as early as 1999, Indonesia passed legislation No. 23/1999, deciding to establish an independent Financial Services Authority OJK (Otoritas Jasa Keuangan in Indonesian) to supervise the banking industry no later than December 31, 2002. However, due to the unprecedented impact of the 1997-1998 financial crisis in Indonesia, the banking industry and regulators were fully focused on monetary policy in the post-crisis era, and the establishment of OJK was repeatedly delayed.

As Indonesia's economy recovered and developed, its sovereign debt rating continued to improve, and the banking industry gradually got rid of the shadow of the Asian financial crisis. At the same time, the lessons of the US subprime mortgage crisis in 2007 also made the Indonesian government examine the importance of innovative financial supervision. Finally, in 2011, the Indonesian Parliament passed Legislation No. 21/2011 to announce the establishment of OJK. On June 1, 2012, the first committee of OJK was appointed and OJK was established.

Overall Activities

1. Implemented in an organized, fair, transparent and accountable manner;

2. Ability to achieve sustained and stable growth of the financial system;

3. And be able to protect the interests of consumers and society.

Functions

The main function of the OJK is to promote and organize a regulatory and supervisory system that is integrated into the overall activities of the financial services sector.