OJK: Levy Scheme for Financial Services Sector to Continue

The Financial Services Authority (OJK) has stated that a funding proposal sourced from the surplus of Bank Indonesia (BI) and the Deposit Insurance Corporation (LPS) was not agreed upon in the final discussion of the revision to the P2SK Law, meaning levies on the financial services industry will remain in effect. Deputy Chairman of the OJK Board of Commissioners Hernawan Bekti Sasongko confirmed in a press conference that the current funding scheme, which relies independently on levies from the financial services sector and state budget support, will continue as stipulated by the existing P2SK Law. Hernawan asserted that OJK will execute the mandate provided through the revision effectively, professionally, and accountably. He noted that infrastructure support, including the budget, is a logical consequence of the new mandate and expressed confidence that it will be a shared concern to ensure quality regulation and supervision supporting public interest.

Regarding the House of Representatives’ authority to evaluate OJK’s performance, Hernawan explained that this mechanism is already regulated under current provisions. OJK is required to submit a written institutional performance report to the President and the House, which is then evaluated as part of the annual assessment. He said that performance evaluation is inherent in OJK’s accountability framework. On the addition of new tasks, including the regulation and supervision of mineral and strategic commodity exchanges, OJK Chairman Friderica Widyasari Dewi said the institution is fully committed to carrying out the mandate and trust given by the government and parliament through the legal changes. She views this as part of efforts to strengthen and maintain the stability of Indonesia’s financial sector, adding that OJK will continue to perform its regulatory, supervisory, and consumer protection functions professionally, prudently, and accountably.

Previously, during a public hearing, Commission XI of the Indonesian House of Representatives had discussed the idea of abolishing OJK levies on the financial industry, suggesting funding could instead come from BI and LPS surpluses rather than from non-tax state revenues. The House’s plenary session subsequently approved the revision of Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector. One of the 15 material changes includes expanding OJK’s duties to supervise and regulate activities in the capital market sector, derivative finance, carbon exchanges, and mineral and strategic commodity exchanges, along with the management of other public funds.