TEMPO.CO, Jakarta - The Financial Services Authority's (OJK), together with the Finance Ministry and the SOE Ministry, encourages the reinforcement of good corporate governance or GCG to fast-track economic recovery, as well as strengthen the digital economy and sustainable finance.

Speaking at the G20/OECD Corporate Governance Forum, July 14, OJK chief Wimboh Santoso said that as the global economy gradually recovers from the pandemic, Indonesia needs to ensure companies practice GCG in order to develop new economic sources to accelerate recovery and mitigate risks.

Wimboh said that the Corporate Governance Forum, a side event of the G20 3rd Finance Ministers and Central Bank Governors (FMCBG) Meeting in Bali, marked an important step in the field of governance as it discusses the incorporation of issues—such as sustainability and digital technology—into revised principles of the G20/OECD.

"As an active member of the OECD Corporate Governance Committee, the OJK is also pleased to be a part of this policy-making process and hopes that the better G20/OECD principles will be finalized immediately," Wimboh said in a written statement on Friday, July 15.

He said that as the regulator and supervisor of the Indonesian financial services industry, the OJK is highly committed to providing relevant guidelines or directions to strengthen the corporate framework and standards that meet international standards, including the G20/OECD Principles.

The OJK realizes that the G20/OECD Principles of Corporate Governance (G20/OECD CG Principles) becomes important as financial institutions need to adapt their business model now that people want everything to be fast and digitized—an aftereffect of the pandemic.

Similarly, Finance Minister Sri Mulyani Indrawati said in her opening address that sustainable economic development is needed to deal with crises stemming from the Covid-19 pandemic. One way is to improve the principles of good corporate governance.

Click here to get the latest news updates from Tempo on Google News