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

    ESAs Issue Multiple Regulatory Updates for Financial Sector Entities

    The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.

    November 15, 2022 WebPage Regulatory News
    News

    ISSB Makes Announcements at COP27; IASB to Propose IFRS 9 Amendments

    The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.

    November 10, 2022 WebPage Regulatory News
    News

    IOSCO Prioritizes Green Disclosures, Greenwashing, and Carbon Markets

    The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.

    November 09, 2022 WebPage Regulatory News
    News

    EBA Finalizes Methodology for Stress Tests, Issues Other Updates

    The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups

    November 09, 2022 WebPage Regulatory News
    News

    OSFI Sets Out Work Priorities and Reporting Updates for Banks

    The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.

    November 07, 2022 WebPage Regulatory News
    News

    APRA Finalizes Changes to Capital Framework, Issues Other Updates

    The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.

    November 03, 2022 WebPage Regulatory News
    News

    BIS Hub and Central Banks Conduct CBDC and DeFI Pilots

    The Bank for International Settlements (BIS) Innovation Hubs and several central banks are working together on various central bank digital currency (CBDC) pilots.

    November 03, 2022 WebPage Regulatory News
    News

    ECB Sets Deadline for Banks to Meet Its Climate Risk Expectations

    The European Central Bank (ECB) published the results of its thematic review, which shows that banks are still far from adequately managing climate and environmental risks.

    November 02, 2022 WebPage Regulatory News
    News

    ESAs, ECB, & EC Issue Multiple Regulatory Updates for Financial Sector

    Among its recent publications, the European Banking Authority (EBA) published the final standards and guidelines on interest rate risk arising from non-trading book activities (IRRBB)

    October 31, 2022 WebPage Regulatory News
    News

    EC Adopts Final Rules Under CRR, BRRD, and Crowdfunding Regulation

    The European Commission (EC) recently adopted regulations with respect to the calculation of own funds requirements for market risk, the prudential treatment of global systemically important institutions (G-SIIs)

    October 26, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8582