The Virus Named Jiwasraya Makes OJK Reform The Non-Bank Financial Industry

Chairman of the OJK Board of Commissioners, Wimboh Santoso. (Photo: OJK)

JAKARTA - Chairman of the Financial Services Authority Board (OJK) Wimboh Santoso, Jiwasraya's default case is now a 'virus' for the national financial market ecosystem. Although Jiwasraya's contribution from investment assets in the financial sector is only 1 percent, OJK must immediately reform the non-bank financial industry (IKNB) sector.

"There is the Jiwasraya virus, where it has an impact on the financial ecosystem that we care about and how the solutions go forward. Jiwasraya's contribution is only 1 percent small, but this creates confusion among the people," he said at the Ritz-Carlton Hotel, SCBD, Jakarta, Wednesday, February 26th.

For this reason, OJK is currently reviewing investment products. One of them is mutual funds that banks can sell.

This study is a follow-up to OJK's commitment to reform in the country's non-bank financial industry sector In fact, this reform has also received support from President Joko Widodo (Jokowi).

Chairman of the OJK Board of Commissioners Wimboh Santoso emphasized the need for a solution to the Jiwasraya problem so that people can trust and put hope in the financial sector. Wimboh admitted that the IKNB reforms had begun to be coordinated with Bank Indonesia (BI).

"In the future, which instruments are allowed to be sold through banks and which are not allowed to be straightened out. This was discussed with Bank Indonesia and generated debate," he said,

Wimboh said that a study needs to be done because mutual fund products cannot guarantee fixed interest rates, so the benefits offered are not constant. This is because mutual fund products are a collection of stocks whose movements are influenced by many sentiments.

However, Wimboh said that problems in the financial sector would soon be resolved through reforms, including the one that happened to Jiwasraya.

"So don't worry, we will finish this soon, not only Jiwasraya but also in the capital market, we will fix the ecosystem," he said.