Fit and Proper Test for OJK, Agus Sugiarto Reveals 7 Major Problems in Indonesia's Financial Industry
JAKARTA — Agus Sugiarto, a candidate for the Board of Commissioners (ADK) of the Financial Services Authority (OJK), revealed several major issues still facing Indonesia’s national financial services industry.
He raised these points during his fit and proper test before Commission XI of the Indonesian Parliament on Wednesday, 11 March 2026. In his presentation, Agus assessed that despite rapid development of Indonesia’s financial services industry over the past decade, various structural challenges remain that regulators must address promptly.
He noted that the financial services sector is strategically important to the national economy. This is reflected in significant growth in industry assets over the past 10 years. Total financial services industry assets have reached Rp34.5 trillion, a substantial increase compared to 2014, which stood at only Rp13.2 trillion.
Additionally, the number of financial services institutions has increased from approximately 3,200 entities to approximately 4,000 entities over the same period. This growth has also been marked by the emergence of various new entities in the financial technology sector, digital financial services, and the cryptocurrency industry.
“Currently, financial services industry assets are extraordinarily large, Rp34.5 trillion compared to 2014 which was only Rp13.2 trillion. Extraordinarily large, and the number of financial services institutions has also increased quite significantly from 3,200 financial services institutions to 4,000 entities,” Agus said.
However, public financial literacy levels remain relatively low at approximately 66 per cent.
According to Agus, this situation indicates that approximately one-third of Indonesia’s population still lacks adequate understanding of financial products and services. This low financial literacy has caused numerous cases of investment fraud, scams, and various financial problems in communities.
In his presentation, Agus identified seven main problems now facing the OJK in overseeing Indonesia’s national financial services industry.
The first problem is the lack of equal playing field in financial services industry regulation. The financial services sector comprises various subsectors including banking, capital markets, insurance, pension funds, and financing institutions. However, regulations applicable to each sector often have different standards.
He cited the example of regulations concerning the composition of independent commissioners in listed companies, which only require approximately 30 per cent, whilst in the banking sector the composition of independent commissioners is a minimum of 50 per cent.
“Such matters demonstrate that the regulatory level of playing field is not yet entirely equal,” he explained.
The second problem is weak capitalisation at several financial services institutions, particularly in the insurance and financing company sectors. Based on OJK Regulation Number 23 of 2023, insurance companies are required to have minimum capital of Rp250 trillion for conventional insurance and Rp100 trillion for Islamic insurance. However, to date there remain a number of insurance companies that have not met these capital requirements.