Financial Industry Reforms Focus on Regulation, Supervision, Capital: President Jokowi

President Jokowi and Jakarta Governor during the 2020 Financial Services Industry Annual Meeting, at The Ritz Carlton, Pacific Place Sudirman, Jakarta, Thursday (16/1). (Photo by: Jay /PR).

Reforms in financial services industry will focus on regulation, supervision and capital to make it better in the future, President Joko “Jokowi” Widodo has said.

“Financial industries both insurance and pension funds, I have to say, require reforms in terms of regulation, supervision, and capital, just as banking reform between 2000 and 2005,” the President told reporters on the occasion of the 2020 Financial Services Industry Annual Meeting, at The Ritz Carlton, Pacific Place Sudirman, Jakarta, Thursday (16/1).

In the meantime, when asked about the connection between state-owned insurers Asuransi Jiwasraya and Asuransi Sosial Angkatan Bersenjata Republik Indonesia (Asabri) cases, the President explained that this is just a coincidence. Furthermore, the President emphasized that non-bank financial institutions also require reform.

“This non-bank financial institution does require reform to be carried out by the Financial Services Authority (OJK) or later it will be continuously monitored by the Government,” said the President, adding that he already received reports on Asuransi Jiwasraya and Asabri issues.

On that occasion, the President said that he has instructed Minister of State-owned Enterprises (SOEs), Minister of Finance, and the OJK Chairman to resolve their economic business problems.

“Most importantly Minister of SOEs, the OJK Chairman, and Minister of Finance will later resolve their economic business problems. Then, Attorney General Office will deal with legal matters. I think it important that it be resolved,” said the President.

When it comes to capital relocation, the President went on to say that one of the ways to build trust is to involve experienced people in development activities, one of which is involvement in the construction of a new capital.

“Those figures have good experience and high reputation in urban development such as Sheikh Mohammed bin Zayed al Nahyan has experiences in completely overhauling Abu Dhabi in building a new city called Masdar City,” said the President, adding that Masayoshi Son also has a good reputation in the field of technology and finance.

Likewise, former UK Prime Minister Tony Blair has a good reputation in the government. What we want to build is an international trust in what we want to do, the President concluded. (FID/EN)

Translated by: Muhardi                                                                                                                                                                Reviewed by: Yuyu Mulyani