OJK Issues Rule on Islamic Banking; Mandates Sharia Governance Now Mandatory to Industry Actors
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Editor
6 March 2024 20:00 WIB
TEMPO.CO, Jakarta - The Financial Services Authority (OJK) has issued Regulation (POJK) No. 2 of 2024 on the Implementation of Sharia Governance for Sharia Commercial Banks (BUS) and Sharia Business Units (UUS). Effective from February 16, the regulation aims to develop sound, efficient, and competitive Sharia banking that contributes to the national economy while maintaining integrity.
POJK No. 2/2024 complements POJK No. 17/2023 on the Implementation of Corporate Governance for Commercial Banks. It regulates basic and strategic matters to be implemented by BUS and UUS in order to comply with Islamic principles in conducting business. The regulation is also published as an implementation of the 2023-2027 Sharia Banking Development and Reinforcement Roadmap.
OJK executive director for Banking Supervision Dian Ediana Rae said that the regulator's acceleration of Sharia banking development cannot be separated from efforts to improve Sharia banking governance. The goal is to ensure high, healthy, and sustainable growth.
"Loss of confidence in Islamic banks will have a very serious impact on the further development of Islamic banks," Dian said.
By implementing sharia governance, the OJK hopes to increase public confidence and comfort in Islamic banking in Indonesia. In line with this, it can strengthen and develop the presence of the Sharia banking industry in Indonesia.
OJK Board of Commissioners' chief Mahendra Siregar said that the agency will continue to enhance the integrity of the financial system by improving the governance of the entire financial services sector, including Islamic banking.
In an official release quoted on March 6, Mahendra said that all parties in the financial services sector, from controlling shareholders, directors, and commissioners, must demonstrate their top commitment to good governance.
Annisa Febiola
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