Implementation Of The P2SK Law, OJK Prepares The Transformation Process

OJK Chairman Mahendra Siregar (Photo: Doc. Antara)

JAKARTA - The Financial Services Authority (OJK) is preparing a smooth transition process and does not cause shocks to implement the Financial Sector Development and Strengthening Law (P2SK). Especially, in the midst of global financial uncertainty.

OJK Chairman Mahendra Siregar said that the ratification of the P2SK Law demands a large resource allocation. "So internal reform of the OJK institution is needed, through improving policies and transforming the organization and human resources," said Mahendra Siregar quoting Antara, Monday, February 6.

OJK will also organize the landscape of the financial sector to encourage the development of the Islamic financial services sector, especially to support the implementation of the Sharia Business Unit spin off related to the consolidation program of financial services institutions.

Regarding the implementation of the Policy Guarantee Program in 2028, OJK coordinates with industry associations to prepare insurance companies to meet the requirements for the membership of the Policy Guarantee Program by continuing to make efforts to restore the insurance industry.

OJK will also increase efforts to protect financial and public consumers through strengthening market conduct supervision by perfecting the supervisory framework according to international standards and best practices.

Regarding the mandate of the P2SK Law to deepen the financial sector, OJK will gradually expand activities and products in the financial services sector, such as carbon exchanges, bullion business activities, and crypto digital assets, taking into account aspects of benefits, needs, and prudential principles, through the application of same business principles, same risk, same rules.

In 2023, in addition to implementing the P2SK Law, the OJK will also focus on improving services and strengthening capacity, among others by expanding the use of the Financial Information Service System (SLIK) to provide equal level playing field.

"In addition, the OJK will also accelerate the implementation of single window licensing, provide faster and more integrated licensing services, and facilitate the coordination of the financial services industry with other authorities and institutions to avoid duplication of services, equalize standard treatment, and provide legal certainty," he said again.