Continuing To Improve, OJK Regulates Digital Governance Of The Financial Services Sector

Illustration (Photo: Doc. Antara)

JAKARTA - The Financial Services Authority (OJK) continues to encourage the implementation and strengthening of digital governance in the financial services industry (IJK) in order to improve performance, service, and supervision so that it has a positive impact on consumer protection.

OJK Audit Board Chair Sophia Wattimena said that the implementation of digital governance in IJK is very important and must be carried out by prioritizing the values ​​of integrity, transparency, and honesty.

"The era of digital transformation requires financial service businesses to make radical changes by encouraging company business activities to enter into sophisticated digital schemes that are integrated with one another," she said in a written statement, as quoted on Thursday, January 19.

According to Sophia, digitalization provides great benefits and advantages for business people, including creating efficient business processes and work mechanisms, encouraging more innovations, and facilitating access for consumers.

"Companies should not experience failure in carrying out digital transformation due to a lack of a sense of urgency and reluctance to adopt digital transformation and the absence of adoption of digital technology in corporate governance," she said.

Therefore, the current authority has issued various regulations, including OJK Regulation (POJK) No. 4/2021 concerning Application of Risk Management in the Use of Information Technology by Non-Bank Financial Services Institutions.

Then, POJK No. 11/2022 concerning Implementation of Information Technology by Commercial Banks, as well as OJK Circular Letter (SEOJK) No. 29/2022 concerning Cyber ​​Security and Resilience for Commercial Banks.

Sophia stated, the POJK and SEOJK regulated the implementation of risk management and information technology governance, efforts to maintain cyber resilience and security, regular reporting to the OJK, and the obligation to protect personal data.

"If business actors violate these provisions, they can be subject to administrative sanctions up to a decrease in the level of soundness," she said.

Sophia added, OJK hopes that by implementing good digital governance and in accordance with applicable regulations in the Financial Services Industry, consumers' digital rights can be fulfilled.

"In the end, investors will respond positively to the company's performance," Sophia concluded.