OJK Boss Says Regional Economy Needs To Be Strengthened To Face Global Challenges

Illustration (Photo: Doc. Antara)

JAKARTA - Chairman of the Board of Commissioners of the Financial Services Authority (OJK) Mahendra Siregar said that the economy in every region in Indonesia needs to be strengthened to face the challenges of the global economy.

"Indonesia's strength in dealing with world storms is what is called domestic consumption, which means in its translation it is economic strength in the regions, in all and each region in the province, district, city," said Mahendra Siregar as quoted from Antara, Wednesday, August 24.

According to him, Indonesia's financial sector is quite stable amidst global supply chain bottlenecks caused by geopolitical conflicts between Russia and Ukraine.

Therefore, said Mahendra, Indonesia does not need to follow other countries in tightening monetary policy.

"Our inflation is relatively under control, as well as the capital market and money market, as well as banking conditions, which are healthier than when we were at the peak of the pandemic," he said.

At the same time, the value of bank credit restructuring has also decreased sharply compared to 2021 and 2020 when the COVID-19 pandemic was still spreading, except for several sectors such as accommodation, food and beverages, and transportation in some areas.

"And that doesn't happen as a whole, but only in one or two specific areas. This must be capitalized. The overall strength is getting better at maintaining which sectors are quite vulnerable and strengthening their footing going forward," said Mahendra.

Mahendra said that the supervision of OJK offices in each region would also be transferred to the responsibility of the chairman of the board of commissioners, after previously being under the executive commissioner of banking.

"Because the approach is no longer related to banking supervision alone, but also service supervision, mobilization, and facilitation for the banking sector, capital market, non-bank financial industry, and the community who are not yet bankable so that they are pulled under the chairman to realize an integrated and comprehensive approach. ," he said.