• Strategic Policies of the Financial Services Authority in 2020

Strategic Policies of the Financial Services Authority in 2020

12 February 2020

The Financial Services Authority (FSA/Otoritas Jasa Keuangan, OJK) has prepared five strategic policies in 2020 in order to realize a competitive financial services ecosystem. The strategic policies are expected to optimize quality economic growth.

The Chairperson of the Board of Commissioners of FSA, Wimboh Santoso, delivered the five strategic policies in the 2020 Financial Services Industry Annual Meeting in Jakarta. Namely:

1. Increase in economic scale of financial industry

a. Increase minimum capital

b. Acceleration policy with incentive and disincentive policies including exit policies

c. Accelerating the reform of the non-bank financial industry

d. Tightening company business based on capital level

2. Policy to narrow regulatory and supervisory gap among financial services sectors

a. Harmonization of regulations and supervision, as well as law enforcement in the financial services sector

b. To regulate and supervise market makers in the stock market with small market capitalization

c. Prospects for the adoption of the investment bank concept

d. Strengthening the prudential aspects of the non-bank financial industry

3. Digital transformation in financial services sector

a. Building a digital financial ecosystem and fintech start-up

b. Speed up digitalization in the financial services sector

c. Developing technology-based regulation and supervision

d. Develop integrated licensing between industries with the use of technology

4. Accelerate the provision of financial access as well as to encourage the strengthening of the implementation of market conduct and consumer protection

a. Develop financial instruments that support strategic economic sectors and empowerment of Micro, Small and Medium Enterprises (UMKM)

b. Facilitating the development of UMKM through the utilization of KUR cluster scheme, technology and expansion of the Micro Waqf Bank program

c. Facilitating Government programs in improving the welfare of the community

d. Improve education and open access to financial services from an early age

e. Optimizing the role of the Regional Financial Access Acceleration Team (TPAKD) through the use of technology

f. Strengthening consumer protection through increased market conduct supervision

g. Optimizing the role of the Investment Alert Task Force

5. Development of sharia economic and financial ecosystem

a. Encouraging the development of halal industry in Indonesia

b. Encourage Islamic financial institutions to increase business scale and technology adoption

c. Strengthening the synergy between halal industry players and the financial services industry and other stakeholders

Wimboh Santoso said that the five strategic policies are derivative of master plan of Indonesian financial services sector in 2020-2024 that focuses on five areas, namely strengthening of resilience and competitiveness by accelerating consolidation and strengthening the capital of financial service institutions, digital transformation acceleration, acceleration of the development of financial service sector ecosystem, expansion of financial literacy as well as market integrity and financial service institutions, and acceleration of technology-based supervision.