Plan To Return OJK Function To BI, Sri Mulyani: Not Yet Discussed By Ministry Of Finance

Minister of Finance, Sri Mulyani. (Photo: Instagram @smindrawati)

JAKARTA - The issue of returning the banking supervision authority from the Financial Services Authority (OJK) to Bank Indonesia (BI) is back in the air, in line with President Joko Widodo (Jokowi) 's plan to dissolve 18 state institutions.

Responding to this, Minister of Finance Sri Mulyani Indrawati explained that until now, his party had not conducted any discussions or even received information regarding this matter. Even so, Sri said, currently the government and the DPR RI are in the process of discussing the architecture of financial and monetary supervision.

"We do not have any substantial information on that. The current government and the DPR will decide how the architecture of the financial and monetary oversight authority will be, and this will depend on the legislation process," he said at the launch of the Indonesia Economic Prospect, Thursday, July 16.

Sri Mulyani emphasized that the government is committed to maintaining financial system stability in the midst of the COVID-19 pandemic situation which is very challenging for the Indonesian economy. His party will be careful in implementing policies in the midst of economic conditions that are currently in a vulnerable condition.

"Many companies are facing pressure from the economic downturn, and policies to support the resilience of financial sector companies and financial institutions, banks, and many say they will not survive," he said.

Not only that, Sri said, to avoid moral hazard or deviations from any policies made, the government will continue to involve law enforcers. In addition, the government will also cooperate with the OJK to maintain financial stability.

The state treasurer said the government would also continue to strive to improve various weaknesses in the regulatory framework. "So that the business community and the private sector will be able to recover from this shock," he said.

Previously, President Jokowi will cut 18 institutions and commissions in the near future. The downsizing plan is already being mapped. He reasoned that this downsizing was intended to save budget.

According to Jokowi, many functions and duties of government agencies and commissions could be returned to the relevant ministries. Jokowi then likened the Indonesian government to a large ship. The head of state wants this ship to move efficiently and quickly in facing various kinds of obstacles.

"I want the ship to be as simple as possible, so that it moves quickly. The organization in the future is something like that. I conveyed back and forth, fast countries can beat slow countries. Not big countries beat small countries. We are sure," said Jokowi, at the Presidential Palace, Jakarta, Monday, July 13.