Indef Suspects Political Intrigue In The Accelerated Delay Of Inauguration Of The OJK DK

Illustration (Photo: Doc. Antara)

JAKARTA - The Institute for Development of Economics and Finance (Indef) assessed that the planned inauguration of the Financial Services Authority (OJK) Board of Commissioners (DK) for the 2022-2027 period which was postponed, after being accelerated earlier, had its own political content.

Indef researcher Nailul Huda said that OJK is actually an independent institution that has a very important task in maintaining, supervising, and protecting the financial industry sector. However, this independence is difficult to achieve because the election of the leaders of this institution is determined through a political process.

“The final decision on the OJK DK is in the DPR after being proposed by the government. Therefore, this delay raises questions and becomes a hot ball about what really happened," he said in a virtual discussion organized by the UI Alumni Association (Iluni UI) earlier this week.

Furthermore, Huda had described the great shock in the insurance industry a few years ago that was triggered by the incident of default on policyholders.

"If we look a few years ago with the existing situation, considerations for (maintaining the management of) OJK did exist," he said.

"It can also be seen from the huge potential of money managed by OJK from banking (contributions), stock market, IKNB (non-bank financial industry), and so on," he continued.

As previously reported by the editors, the news regarding the inauguration of the OJK DK volume III which was accelerated circulated at the end of May 2022.

At that time, the Supreme Court (MA) was supposed to appoint Mahendra Siregar Cs to oversee the OJK 2022-2027 on May 24. The schedule itself is advanced from the previous decision, namely on 20 July.

VOI noted that OJK's dues levy on the financial industry in 2019 was IDR 5.99 trillion. This figure is dominated by banks worth Rp. 4.02 trillion.

This was followed by the capital market at Rp894.38 billion, the non-bank financial industry or IKNB at Rp775.46 billion, and strategic management at Rp299.55 billion. Then, in 2020 the value of contributions withdrawn from business actors was recorded at Rp. 6.2 trillion.