Featured Product

    OJK Sets Out Supervisory Priorities for 2021-2025

    January 15, 2021

    OJK launched the "Master Plan for the Indonesian Financial Services Sector (MPSJKI) 2021-2025" at the 2021 Financial Services Industry Annual Meeting. This master plan is expected to help in overcoming the short-term challenges of the COVID-19 pandemic and the structural challenges in realizing a national financial services sector that is competitive, contributive, and inclusive. The key priorities covered in the master plan include strengthening the resilience and competitiveness of the financial services sector, accelerating digital transformation in the financial services sector, and development of the financial services sector ecosystem.

    At the annual meeting, it was highlighted that MPSJKI 2021-2025 will focus on the following five priorities:

    • Supporting National Economic Recovery Program. OJK has extended the restructuring policy applied to debtors affected by the pandemic until March 2022. Incentives offered for "MSMEs," including interest subsidies from the government, will continue to be facilitated, as will the guarantee program for MSME and corporate loans. In 2021, additional stimulus policies to promote national economic recovery will also be rolled out.
    • Strengthening resilience and competitiveness of financial services sector. OJK plans to accelerate consolidation in the financial services industry. It also requests the industry to continue to pay close attention to capital adequacy, including by establishing additional Allowance for Impairment Losses (CKPN) to anticipate deteriorating credit quality. OJK plans to strengthen the implementation of governance and risk management through several policies, which include Investment Limitation and Large Fund Provision, Improvement of Capital Regulations, and Determining Status and Supervisory Follow-Up (Exit Policy). 
    • Developing financial services sector ecosystem. OJK plans to continue its efforts to deepen financial markets, maintain market integrity, and increase capital market inclusion by including retail businesses as investors and issuers to support development financing. This will be done by facilitating the issuance of various securities, including regional bonds, development of derivative instruments, and market infrastructure. OJK will also work toward implementation of the Sustainable Finance Roadmap Phase II for 2021-2025.
    • Accelerating digital transformation in the financial services sector. OJK encourages the digitization of products and business processes in the financial services industry, including granting permits for digital banks. OJK will focus on strengthening prudential rules for fintech peer-to-peer lending (P2P lending). OJK also intends to prepare a complete Islamic financial product ecosystem, including digitizing Sharia products, increasing the scale of the Sharia financial business, and expanding public access to Islamic financial products with various policies.
    • Strengthening internal capacity through improvements in supervisory approaches and infrastructure. OJK plans to develop integrated supervision of all financial service products, including digital products, and monitor potential risks originating from outside the financial services sector and corporate companies. OJK plans to improve governance in internal business processes.

     

    Related Links (in Indonesian)

    Keywords: Asia Pacific, Indonesia, Banking, Securities, COVID-19, Digitalization, Sustainable Finance, ESG, Credit Risk, Loan Guarantee, Regulatory Capital, Fintech, Governance, Operational Risk, Workplan, Islamic Banking, Digital Banks, OJK

    Featured Experts
    Related Articles
    News

    APRA Publishes FAQs on Capital Treatment of Overseas Subsidiaries

    The Australian Prudential Regulation Authority (APRA) published a new set of frequently asked questions (FAQs) to clarify the regulatory capital treatment of investments in the overseas deposit-taking and insurance subsidiaries.

    September 15, 2021 WebPage Regulatory News
    News

    HKMA Endorses Industry Guidance to Support LIBOR Transition

    The Hong Kong Monetary Authority (HKMA) issued a circular, for all authorized institutions, to confirm its support of an information note that sets out various options available in the loan market for replacing USD LIBOR with the Secured Overnight Financing Rate (SOFR).

    September 14, 2021 WebPage Regulatory News
    News

    FDIC Announces Winners of Tech Sprint to Reach Unbanked Consumers

    The tech lab of the Federal Deposit Insurance Corporation (FDIC) selected three winning teams in a tech sprint designed to explore new technologies and techniques to help banks meet the needs of unbanked consumers.

    September 13, 2021 WebPage Regulatory News
    News

    MAS Consults on Capital and Reporting Requirements for Market Risk

    The Monetary Authority of Singapore (MAS) launched a consultation on the standards for market risk capital and the associated reporting requirements for banks incorporated in Singapore.

    September 13, 2021 WebPage Regulatory News
    News

    PRA Letter Sets Out Findings on Reliability of Regulatory Reporting

    PRA published a "Dear CEO" letter that sets out findings of a review on the reliability of regulatory reporting and reiterates the supervisory expectations on regulatory reporting.

    September 10, 2021 WebPage Regulatory News
    News

    APRA Connect to Go Live; APRA to Reduce Reliance on CLF

    The Australian Prudential Regulation Authority (APRA) confirmed that its new data collection solution APRA Connect will go live on September 13, 2021.

    September 10, 2021 WebPage Regulatory News
    News

    FED Paper Explores Fintech Partnership Dynamics in Community Banks

    The Federal Reserve System (FED) published a paper describing the landscape of partnerships between community banks and fintech companies.

    September 09, 2021 WebPage Regulatory News
    News

    FDIC Selects Four Vendors for Next Phase of Rapid Prototyping Pilot

    The Federal Deposit Insurance Corporation (FDIC) has chosen four companies—Novantas Inc, Palantir Technologies Inc, PeerIQ, and S&P Global Market Intelligence LLC—to propose a pilot consisting of testing new reporting and analytical tools with a small group of FDIC-supervised institutions on a voluntary basis.

    September 09, 2021 WebPage Regulatory News
    News

    PRA Consults on Requirements to Identify Material Risk-Takers

    The Prudential Regulatory Authority (PRA), via the consultation paper CP18/21, proposed changes to the applicable requirements on the identification of material risk-takers for the purposes of the remuneration regime.

    September 08, 2021 WebPage Regulatory News
    News

    ESA Report Points to Elevated Credit and Cyber Risks in Wake of Crisis

    The Joint Committee of European Supervisory Authorities (ESAs) published its second 2021 joint risk assessment report for the financial sector.

    September 08, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7461