Publish Rules, OJK Strengthens Sharia Financial Services System

Deputy Chairman of the OJK Board of Commissioners Mirza Adityaswara. (Photo: Doc. ANTARA)

JAKARTA - The Financial Services Authority (OJK) has issued OJK Regulation (POJK) Number 2 of 2024 concerning the Implementation of Sharia Governance for Sharia Commercial Banks (BUS) and Sharia Business Units (UUS) in the context of developing a sharia financial services system.

Deputy Chairman of the OJK Board of Commissioners Mirza Adityaswara said that POJK Regulation Number 2 of 2024 will take effect on February 16, 2024.

Mirza added that the regulation is a follow-up to the Law on the Development and Strengthening of the Financial Sector (P2SK), which includes regulating the strengthening of authority, structure and function of the sharia supervisory board (DPS).

"Regarding the implementation of sharia compliance functions, sharia risk management functions, and the internal sharia audit function, as well as the obligation to conduct external reviews of the implementation of sharia governance," he said during a press conference on the results of the Board of Commissioners (RDK) Meeting in February 2024, Monday, March 4, 2024.

Mirza added, in terms of strengthening the sharia insurance industry, OJk will continue to oversee the work plan for separating sharia units or the UUS spin off.

According to him, of the 42 sharia business units, there are 32 sharia business units that plan to continue the sharia reinsurance insurance business. While the other 10 UUS decided not to proceed.

"Where one sharia unit has carried out a portfolio transfer in 2023, regarding the implementation of a spin off in 2024 there are 5 sharia units, in 2025 there are 15 sharia units and in 2026 there are 12 sharia units," he explained.

Mirza hopes that in the future the insurance industry will have readiness to carry out the spin off so that the transition process can be carried out no later than 2026.

Mirza added that in order to reduce the gap for literacy and inclusion between Islamic finance and conventional finance, OJK is forming a working group for Islamic financial literacy and inclusion.