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

    EBA Proposes Standards for IRRBB Reporting Under Basel Framework

    The European Banking Authority (EBA) proposed implementing technical standards on the interest rate risk in the banking book (IRRBB) reporting requirements, with the comment period ending on May 02, 2023.

    January 31, 2023 WebPage Regulatory News

    FED Issues Further Details on Pilot Climate Scenario Analysis Exercise

    The U.S. Federal Reserve Board (FED) set out details of the pilot climate scenario analysis exercise to be conducted among the six largest U.S. bank holding companies.

    January 17, 2023 WebPage Regulatory News

    US Agencies Issue Several Regulatory and Reporting Updates

    The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.

    January 04, 2023 WebPage Regulatory News

    ECB Issues Multiple Reports and Regulatory Updates for Banks

    The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.

    January 01, 2023 WebPage Regulatory News

    HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements

    The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.

    December 30, 2022 WebPage Regulatory News

    EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR

    The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.

    December 29, 2022 WebPage Regulatory News

    CBIRC Revises Measures on Corporate Governance Supervision

    The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.

    December 29, 2022 WebPage Regulatory News

    HKMA Publications Address Sustainability Issues in Financial Sector

    The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.

    December 23, 2022 WebPage Regulatory News

    EBA Updates Address Basel and NPL Requirements for Banks

    The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.

    December 22, 2022 WebPage Regulatory News

    ESMA Publishes 2022 ESEF XBRL Taxonomy and Conformance Suite

    The General Board of the European Systemic Risk Board (ESRB), at its December meeting, issued an updated risk assessment via the quarterly risk dashboard and held discussions on key policy priorities to address the systemic risks in the European Union.

    December 22, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8699