Gov’t Committed to Maintaining Indonesia’s Economic Growth

Head of the OJK Board of Commissioners Mahendra Siregar at PTIJK Year 2023, at the Shangri-La Hotel, Jakarta, Monday (06/02/2023) morning. (Photo by: PR of Presidential Secretariat/Rahmat)

The Financial Services Authority (OJK) Monday (02/06) at Shangri-La Hotel, Jakarta, held the OJK’s 2023 annual financial services industry meeting (PTIJK) adopting the theme “Strengthening the Financial Services Sector to Maintain Economic Growth”.

According to the Head of the OJK Board of Commissioners Mahendra Siregar, domestic economic activities in terms of consumption and investment can drive the country’s current economic growth.

“Indonesia will continue to maintain the ongoing economic recovery. Increased activities in consumption and investment have become the backbone of the growth,” he said.

Mahendra went on to say that the Government’s decision to lift the public activity restrictions (PPKM) can also serve as a strong capital for economic growth this year.

“We believe that most of the widespread risks of a slowdown global economic growth can be mitigated appropriately, including the impact of falling commodity prices, declining export demand, and global liquidity tightening,” he added.

To that end, the OJK has compiled and determined policy priorities in the financial sector this year. They are as follows:

First, strengthening the financial services sector.

Mahendra explained that banking sector will focus on strengthening consolidated capital, strengthening industrial governance, product and service innovation, and increasing banking efficiency.

“The OJK policies will focus on the capital market and non-bank financial industry (IKNB), including a series of efforts to maintain integrity, strengthen accountability, enhance credibility related to investment management. For the insurance industry, the efforts are expected to restore public trust through resolving the issue of problematic insurance and insurance products,” he stressed.

He also conveyed that strengthening the financial services industry will also be complemented by policies in enhancing consumer protection by providing massive education, increasing financial literacy, handling complaints and resolving disputes more effectively and efficiently, and strengthening the function of civil lawsuits by the OJK.

Second, the OJK will maintain economic growth by optimizing the role of the financial sector.

For that reason, the OJK will encourage sources of funding by attracting investor interest in sustainable and green investment instruments and sharia investment in the country.

In addition, the OJK is also committed to constantly accelerate the expansion of financial access for Micro, Small, and Medium-sized Enterprises (MSMEs) to support increased welfare and encourage national development.

Third, the OJK will improve service and capacity building as a response to industry, stakeholder, and community inputs.

On that occasion, Mahendra underscored that the OJK will expand the use of the financial information service system.

“The OJK will expand the utilization of the financial information service system to provide level playing fields, accelerate the implementation of single window licensing, provide faster and more integrated licensing services, facilitate the coordination of the financial services industry with other authorities and institutions to avoid duplication of work, [provide] equal standards and treatment, as well as provide legal certainty. (MAY/AIT/SND) (RIF/RAS/LW)