Dissolution Of 18 Institutions, Moeldoko: OJK Excluded

JAKARTA - The Chief of Presidential Staff, General Purn TNI Moeldoko, gave a statement regarding the disbandment of 18 state institutions that will be dissolved. However, he dismissed that the Financial Services Authority (OJK) is one of the 18 state institutions.

"OJK is not one of the 18 institutions that will be dissolved by the government. This is because OJK as an institution is based on a law," said Moeldoko, Tuesday, July 14.

A total of 18 institutions that will be dissolved are those based on Government Regulations (PP) and Presidential Regulations (Perpres). According to Moeldoko, institutions that are based on laws are not under the authority of the government, while institutions formed on the basis of PP and Perpres are the responsibility of the government.

"OJK is an institution that is under the law. That is definitely not the playing area in the government," said Moeldoko.

However, he did not deny that the plan to disband 18 institutions was often linked to the issue of returning to the function and authority of banking supervision at OJK, returning to the bosom of Bank Indonesia (BI). However, he made sure it didn't seem like it would happen.

Moeldoko explained that the government is currently evaluating 18 institutions to be dissolved. This is so that the government budget will be more efficient in the future.

"The institutions under the Presidential Decree and the PP are currently being reviewed, it is necessary not to have the organization or what was said by the 18 institutions yesterday that it was removed or re-evaluated in order to be truly efficient," said Moeldoko.

He also leaked several institutions that could potentially be dissolved, including the National Commission for Aging, the National Sports Accreditation and Standardization Agency (BSANK), and the Peat Restoration Agency (BRG).

Moeldoko stated that the main duties and functions of the National Elderly Commission are not much different from the Ministry of Women's Empowerment and Child Protection (PPPA). Then, BRG will be considered if it has a similar function as the National Disaster Management Agency (BNPB).

It is known, in recent times there have been issues that say banking authority will be returned to BI. Currently, banking supervision is under the control of OJK.

As is known, on December 31, 2013, the Financial Services Authority (OJK) officially supervised the performance of all banks in Indonesia, taking over the banking duties that had been carried out by Bank Indonesia. This is in accordance with the mandate of Law Number 21 of 2011 concerning the Financial Services Authority (OJK). Meanwhile, the regulation and supervision of banks is carried out by OJK.

Issues are circulating, BI will later re-supervise banks, but the existence of OJK will still exist. Namely, OJK will still be the referee or regulator of the capital market and non-bank financial industry.

In fact, OJK will later gain new authority by regulating financial technology (fintech) which is engaged in peer to peer lending as a whole.