President Jokowi: OJK’s Supervision Should Not Weaken during Pandemic

President Jokowi attends the 2022 Financial Services Industry Meeting and the Launching of the Indonesian Green Taxonomy, virtually from the Bogor Presidential Palace, West Java province, Thursday (01/20). (Source: screenshot)

The prolonged COVID-19 pandemic has deeply affected certain sectors. At the same time, disruption on global supply chain has triggered an increase in global commodity prices which increasing the uncertainty of global inflation.

Therefore, a more specific, detailed and effective treatment strategy is needed, so that it will not interfere the recovery efforts that the Government is currently undertaking.

President Joko “Jokowi” Widodo made the statement at the 2022 Financial Services Industry Meeting and the Launching of the Indonesian Green Taxonomy, virtually from the Bogor Presidential Palace, West Java province, Thursday (01/20).

“In difficult times, supervision must not be slack because weak supervision will open up gaps, open up opportunities for the emergence of various modes of financial crime which will harm the community. This kind of thing should never happen,” said the President.

The President emphasized that the policies and supervisory instruments issued by the Financial Services Authority (OJK) must be able to prevent the spread of the impact of the pandemic, especially on the economy and financial sector. In addition, it must also be able to help the informal sector and Micro, Small and Medium Enterprises (MSMEs) to be able to survive so that they can grow better by carrying out various innovations and breakthroughs.

“I appreciate the ranks of the OJK who can coordinate well with each other. The financial services sector and the real sector must support and strengthen each other in difficult times like this,” he said.

The President added that without a good financial services sector, the national economy will not run well and sustainably. At the same time, the financial services sector also will  not be able to grow strongly if it is not supported by movements in the real sector.

“If the financial services sector only thinks about profit without moving the real sector, there will be potential for ponzi schemes, investment fraud, and other models of fraud that are very detrimental to society. Issues like this are also our task together with the OJK as the motor,” he said.

The meeting with the theme “Strengthening the Financial Services Sector for Accelerating National Economic Recovery and Supporting the New Economic Meeting” was held on a hybrid basis. A number of participants were physically present at the Jakarta Convention Center, while a number of other participants were present virtually.

On the same occasion, President Jokowi also launched Indonesia’s Green Taxonomy. Citing from the OJK’s press release, Green Taxonomy is defined as a sector classification based on business activities that support environmental protection efforts and climate change mitigation and adaptation. This definition is in line with several other countries such as the European Union Green Taxonomy and the China Green Catalog. (TGH/UN) (EST/LW)