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| Thursday, 29 October 2015, 21:00 HKT/SGT | |
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Bandung, W Java, Indonesia, Oct 29, 2015 - (ACN Newswire) - The Financial Services Authority (OJK) is drafting a master plan for the Indonesian financial services sector for the 2015-2019 period, which will serve as the basis for supervision of the sector.
"We are in the midst of drafting it. We have set ourselves a target of unveiling it at the end of this year, and it will become a public document to which everybody has access," Chief of the OJK Board of Commissioners Muliaman D. Hadad stated here on Thursday.
The master plan will incorporate the supervision of financial sectors, including the capital market, banking, and insurance in detail, he revealed.
He said the master plan will comprise three pillars: contribution, stability, and financial inclusion.
The pillar of contribution means allowing the OJK to play its optimum role in supporting the acceleration of economic development and the promotion of public welfare.
The pillar of stability means directing efforts towards creating a financial system capable of laying a foundation for the implementation of sustainable development.
The pillar of financial inclusion means channeling efforts to creating financial self-reliance among the public and supporting the even distribution of development benefits.
Hadad said the supervision of financial services conducted by the OJK is different from that carried out by the previous institutions.
"After the OJK was set up, the supervision of holding companies and subsidiaries is conducted in an integrated manner," he pointed out.
He noted that similar individuals or parties tend to control financial institutions.
Citing an example, he said state lender Bank Mandiri, as a holding company, controls companies operating in other sectors, such as Bank Syariah Mandiri, Mandiri Sekuritas, and Axamandiri.
There is also conglomeration in which a holding company is not a bank but a subsidiary in the form of a bank, he remarked.
"The OJK has identified 50 conglomerations, or main entities, which control 80 percent of the overall financial service industry. If that is good, it will be good nationwide," he emphasized.
Supervision covers not only holding companies but also subsidiaries, he said.
"Holding companies must also be responsible for or taking the risk of subsidiaries. This will avoid the possibility of financial service companies entering a gray area, which is not under supervision," he added. --Antara.
Topic: Press release summary
Sectors: Daily Finance, Daily News
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