Indonesian Political, Business & Finance News

Hernawan Bekti Sasongko Seeks to Streamline OJK Bureaucracy

| Source: CNBC Translated from Indonesian | Regulation
Hernawan Bekti Sasongko Seeks to Streamline OJK Bureaucracy
Image: CNBC

Jakarta — Hernawan Bekti Sasongko, a member of the Supervisory Board of the Financial Services Authority (Otoritas Jasa Keuangan, OJK), has emphasised the importance of accelerating bureaucratic processes in decision-making at the OJK. This was stated during a fit and proper test for the prospective OJK Deputy Commissioner before Commission XI of the Indonesian House of Representatives on Wednesday, 11 March 2026.

Hernawan assessed that clarity regarding collective leadership at the OJK needs to be urgently addressed in accordance with applicable legislation. The OJK’s collective leadership system represents the highest governance structure in which strategic supervisory decisions for the financial services sector are made jointly by Commissioners in a collegial manner.

According to him, the fundamental issue facing the OJK currently is a lengthy and slow decision-making process. Therefore, the decision-making mechanism is considered necessary to be streamlined for greater simplicity and responsiveness.

“The most fundamental issue is that simple decision-making is long and slow, so perhaps it needs to be cut,” Hernawan stated before Commission XI of the Indonesian House of Representatives in Jakarta.

Hernawan also assessed that the OJK possesses strong institutional capital with support from professional human resources. However, this potential is considered not yet optimally utilised, as reflected in various problems still faced by the institution.

He cited that the OJK has approximately 4,700 employees spread across 39 offices throughout Indonesia with diverse expertise backgrounds. Of this number, more than 4,500 employees have tertiary education, comprising approximately 3,100 bachelor’s degree graduates, 1,400 master’s degree graduates, and 44 doctorate holders.

Additionally, approximately 2,700 OJK employees have obtained professional certifications in either supervisory or other professional fields. This demonstrates that the OJK’s human resource capacity is actually adequate to support strengthened oversight of the financial services sector.

On the other hand, legislative support for strengthening the institution’s capacity is also considered substantial, including through increased budget allocations for human resource development and training. Demographically, approximately 76.8% of OJK employees are also from millennial and Generation Z cohorts, who are considered adaptive to digital transformation.

These conditions indicate that the OJK’s primary challenge going forward is optimising existing potential through fundamental internal transformation. This transformation includes strengthening governance, improving human resource quality, and leveraging technology as the backbone of supervisory data systems.

Hernawan added that the OJK is expected not only to function as a rule enforcer but also to strategically guide financial market development. In this context, OJK transformation should be directed towards repositioning the institution as a strategic financial authority.

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