Tasks And Functions Of The OJK Supervision Agency Based On The PPSK Law

Tasks And Functions Of The OJK Supervision Agency Based On The PPSK Law (Freepik)

YOGYAKARTA - DPR RI has agreed on nine names of members of the Supervision Agency of the Financial Services Authority (OJK) for the period 2023-2028. The appointment of BS OJK was carried out based on the mandate of the Law on the Development and Strengthening of the Banking System (UU PPSK). So what are the duties and functions of the OJK Supervision Agency?

The series of election activities for prospective members of the OJK Supervision Agency has been carried out by Commission XI of the DPR RI since last September 2023. Members of the DPR approved the number of BS OJK members as many as nine people. The opening of registration for prospective members will take place on November 10-20.

The DPR held a meeting with general opinion in the context of a fit and proper test of 40 prospective members of the OJK BSI on 27-28 November. The election process ended with a decision-making deliberation for consensus agreed upon by nine members of the OJK BP. The duties and functions of the OJK Supervision Agency are also important to watch.

The DPR RI Plenary Meeting agreed to choose the names of nine members of the Supervision Agency of the Financial Services Authority. The following are the names of BS OJK members for the 2023-2028 period:

Eriko Sotarduga, a member of Commission XI of the Indonesian House of Representatives, said that the Supervision Agency has an important role for the authorities of financial institutions. The function of BS OJK is not only an extension, but can also provide reinforcement to the institution.

"Seeing the potentials according to the P2SK Law, there are many things that can be strengthened at the LPS so that we need a Supervision Agency which is also a link between Commission XI and LPS," said Eriko Sotarduga during the Feasibility and Fitness Test for prospective members of BS LPS on Monday (27/11).

The existence of the LPS and OJK supervision body in the PPSK Law is contained in Law Number 24 of 2004 concerning LPS between Article 89 and Article 90, as well as Law Number 21 of 2011 concerning OJK between Chapter IX and Chapter X.

The establishment of the Supervision Agency aims to help the DPR carry out its supervisory functions in certain fields against LPS and OJK. The LPS and OJK Supervision Agency is expected to improve performance, accountability, transparency, independence, and institutional credibility in each financial sector.

The Supervision Agency has the task of assisting the DPR starting from: making LPS and OJK institutional performance evaluation reports, compiling performance reports, to increasing accountability, transparency, independence, and institutional credibility.

Sri Mulyani, Minister of Finance, said that the formation of the Supervision Agency at LPS and OJK through the PPSK Law is believed to be a crucial element as part of the check and balance in an effort to improve the performance of each financial sector authority.

Based on the PPSK Law, members of the Supervision Agency have a term of office of 5 years to carry out their duties. Members of the Supervision Agency can be re-elected for the next 1 term.

The membership of the LPS and OJK Supervision Agencys is at least 5 people, led by 1 chairman based on elections from and by its members. Meanwhile, members of the Supervision Agency were selected and elected by the DPR. One of the requirements to become a member of BS is not including the administrators of political parties during the nomination.

Meanwhile, the budget for the Supervision Agency each comes from the LPS and OJK operational budgets. Provisions related to work procedures, organizations, and budgets for the LPS and OJK supervision agencies are regulated in LPS Regulations and OJK Regulations (POJK) after being consulted with the DPR.

Such is the review of the duties and functions of the OJK Supervision Agency that needs to be known. The Supervision Agency carries out its duties for 5 years to assist the DPR in assisting the institutional performance of LPS and OJK.

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