How To OJK Improve Financial Services Industry Governance

JAKARTA - The Financial Services Authority (OJK) continues to strive to encourage the strengthening of the role of supporting professions as part of the implementation of "three lines model". Where, this is important in improving the governance of the financial services industry." OJK as the regulator has encouraged governance in the financial services industry in the framework of 'three lines model' in the Financial Services Sector, where in the second line of the model is through the role of supporting professions, including the public accounting profession," said OJK Audit Council Chair Sophia Wattimena quoting Antara. This was conveyed by Sophia in the Forum of Firms (FoF) Meetings held on April 22-24 2024 in Singapore.

The meeting was a series of the International Federation of Accountants (IFAC) Asia Pacific Sustainability Exchange and was attended by Senior Partner Global and Regional from the Public Accounting Office of FoF members, as well as regulators and regulators of accounting standards in the Asia Pacific region. Sophia said the OJK had issued OJK Regulation Number 9 of 2023 concerning the Use of Public Accounting Services and the Public Accounting Office in Financial Services Activities (POJK AP KAP) which emphasized the obligation of foreign KAP to carry out quality control and training for affiliated local KAPs.

In addition, the POJK also includes harmonization of restrictions on the use of public accounting audit services (rotation) in accordance with the code of ethics of the public accounting profession and laws and regulations regarding the practice of public accountants.

In the international forum, he also explained steps to strengthen coordination with the Financial Profession Development Center of the Ministry of Finance to follow up on Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector, particularly related to data exchange to support licensing, registration, and supervision of AP and KAP, as well as discussions on the drafting of government regulations related to Financial Report Single Window.FoF is a network association of international accounting offices that carries out audits of financial reports that can be used across borders. Until now, the association consists of 35 public accounting offices around the world and aims to promote consistent quality standards and high financial reporting and audit practices worldwide.