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 Penalizes Heritage Bank for Incorrect Reporting of Capital

    The Australian Prudential Regulation Authority (APRA) found that Heritage Bank Limited had incorrectly reported capital because of weaknesses in operational risk and compliance frameworks, although the bank did not breach minimum prudential capital ratios at any point and remains well-capitalized.

    November 29, 2021 WebPage Regulatory News
    News

    OSFI Releases Annual Report 2021-2022

    The Office of the Superintendent of Financial Institutions (OSFI) released the annual report for 2020-2021.

    November 29, 2021 WebPage Regulatory News
    News

    APRA Finalizes Capital Adequacy Standards for Banks

    The Australian Prudential Regulation Authority (APRA) published, along with a summary of its response to the consultation feedback, an information paper that summarizes the finalized capital framework that is in line with the internationally agreed Basel III requirements for banks.

    November 29, 2021 WebPage Regulatory News
    News

    CPMI-IOSCO Seek Comments on Access to Central Clearing and Portability

    The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) issued a consultative report focusing on access to central counterparty (CCP) clearing and client-position portability.

    November 29, 2021 WebPage Regulatory News
    News

    APRA Finalizes Guidance on Management of Climate Change Risks

    The Australian Prudential Regulation Authority (APRA) released the final Prudential Practice Guide on management of climate change financial risks (CPG 229) for banks, insurers, and superannuation trustees.

    November 26, 2021 WebPage Regulatory News
    News

    EBA Publishes Single Rulebook Q&A Updates in November 2021

    The European Banking Authority (EBA) Single Rulebook Question and Answer (Q&A) tool updates for this month include answers to 10 questions.

    November 26, 2021 WebPage Regulatory News
    News

    EC Finalizes Rules on Internal Approaches Benchmarking Exercise

    The European Commission, or EC, finalized the Implementing Regulation 2021/2017 with respect to the benchmark portfolios, reporting templates, and reporting instructions for the supervisory benchmarking of internal approaches for calculating own funds requirements.

    November 26, 2021 WebPage Regulatory News
    News

    EC Proposes New Measures Under Capital Markets Union Package

    The European Commission (EC) has adopted a package of measures related to the Capital Markets Union.

    November 25, 2021 WebPage Regulatory News
    News

    European Council Adopts Position on Digital Finance Package Proposals

    The European Council adopted its position on two proposals that are part of the digital finance package adopted by the European Commission in September 2020, with one of the proposals involving the regulation on markets in crypto-assets (MiCA) and the other involving the Digital Operational Resilience Act (DORA).

    November 25, 2021 WebPage Regulatory News
    News

    PRA Proposes Rulebook Changes; BoE Extends BEEDS Testing Window

    The Prudential Regulation Authority (PRA) is proposing, via the consultation paper CP21/21, to apply group provisions in the Operational Resilience Part of the PRA Rulebook (relevant for the Capital Requirements Regulation or CRR firms) to holding companies.

    November 25, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7740