OJK to Watch Dozens of Financial Conglomerates
26 June 2015 17:16 WIB
TEMPO.CO, Jakarta - The Financial Services Authority (OJK) expressed its commitment to watch 50 financial conglomerates controlling Rp 5,142 trillion (US$395.5 billion) worth of assets that account for 70.5 percent of the total assets in the financial industry.
OJK commissioner for banking supervision Nelson Tampublon said a group of conglomerates consisted of 33 financial conglomerates each owning two to three companies. Nelson added that there were 12 financial conglomerates of which each controls four to eight companies.
"There are also five conglomerates with more than eight companies," Nelson revealed at OJK's office on Friday, June 26, 2015.
The financial services industry controls Rp 7,289 trillion (US$560.7 billion) worth of assets. With such a great portion owned by the financial conglomerates, Nelson said that the OJK would consistently and effectively prepare for the supervision infrastructures.
Earlier, OJK released a regulation No.17/POJK.03/2014 stipulating that conglomerates in Indonesia are required to submit reports related to the financial service holding companies and their members.
Nelson explained that within the next three months, the OJK will invite leaders of the financial conglomerates to ensure that the industry is ready to implement OJK's regulation on risk management and integrated governance.
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