OJK Role Benefits Little to State, Analyst Says
24 June 2014 15:48 WIB
TEMPO.CO, Jakarta - Analysts say that the Financial Services Authority's (OJK) role as an independent agency that regulates and supervises Indonesia's financial services industry is still minimal. Sigit Pramono, chairman of the National Commercial Banks Association (Perbanas), said on Monday said that since OJK was established on January 1 last year, "[it] has not shown direct benefits; the only thing that is apparent is the due that agencies and companies must pay to the OJK."
According to Sigit, with the financial services industry asset value reaching Rp5,000 trillion at the end of 2013, the banking sector paid the biggest amount of dues, namely Rp2.23 trillion. Moreover, the law that regulates the due stipulates that budgets that are not fully absorbed by year-ends must be returned to the state treasury.
"This [rule] could lead to frauds or some sort of moral hazard. It will motivate institutions to deliberately spend the budget so that the remainder will not have to be deposited into the state treasury," he said.
Sigit said the fees paid by industries to the OJK will basically burden the people, since banks' burdens will affect customers.
OJK released Regulation No.3/POJK.02/2014 on the procedures for collection. OJK's levies were officially withdrawn from the financial industry on April 15, 2014.
Rahmat Waluyanto, deputy chairman of OJK's Board of Commissioners, responded by saying that OJK's regulations are in accordance with Government Regulation No.11/2014. Therefore, he said, what OJK is doing conforms to existing mechanisms.
Rahmat ensured that the potential for corruption is very small, because once the budget target is met, collections and charges can be stopped.
Chairman of Indonesian Listed Companies Association (AEI) Franciscus Welirang also complained about OJK's rule to collect dues from financial institutions listed in the Indonesia Stock Exchange (IDX). Franciscus said the rule is unspecified, and the bourse lists other firms—not just financial institutions.
OJK's regulation, said Franciscus, overlaps with the Capital Market Law, which is still valid. Ergo, so the supervision of the capital market should be under the Capital Market Supervisory Agency and Financial Institution (BPPM-LK).
"OJK should only we monitoring issuers from the financial sector, such as banking, insurance, and pension funds," he said.
Rahmat responded to Franciscus' opinion by saying that there is a possibility that the rule will be amended. "The revision of a government regulation should be discussed by the government, the OJK, and other capital market participants," he said.
FAIZ NASHRILLAH
