Parliament Proposes Optional Selection Committee for OJK-LPS, Allowing Faster Filling of Commissioner Seats

Plans to change the mechanism for forming the selection committee (pansel) for the Financial Services Authority (OJK) and the Deposit Insurance Corporation (LPS) from mandatory to optional are now being discussed by the DPR, drawing attention to the balance between decision-making speed and financial market certainty.

Commission XI of the DPR RI is currently examining the proposal as part of revisions to Law Number 4 of 2023 on the Development and Strengthening of the Financial Sector (UU P2SK). This change is deemed important to respond to the fast-moving dynamics of the financial sector.

“In principle, we agree with the pansel, but it should be optional,” emphasised Deputy Chairman of Commission XI DPR RI Fauzi Amro when met at the DPR Building in Jakarta on Monday (6/4/2026).

According to Fauzi, the current pansel provisions are considered too rigid because they require a long time in the selection process, ranging from two to six months.

This condition is seen as less than ideal when the financial sector faces pressures or turbulence that require quick certainty, particularly in filling strategic positions at the OJK and LPS.

Fauzi cited the situation when several OJK leaders resigned at the beginning of this year, which temporarily triggered market volatility. In such conditions, leadership certainty is considered an urgent need.

“We don’t know when rapid events in the financial sector will occur. As friends know, the OJK tsunami happened suddenly. If the law is rigid about the pansel, it takes a long time. Meanwhile, the market also needs certainty,” he added.

Under the proposed scheme, the pansel would still be used in normal conditions with all applicable stages. However, in crisis situations, the government is expected to have the flexibility to accelerate the process of filling positions.

“The pansel is optional in nature. The pansel can be needed or not needed, depending on the government. Because that is the government’s domain. As for the DPR, in principle, the process is to approve,” he said.

The discussion of the proposal took place during a General Hearing Meeting (RDPU) on Monday (6/4/2026), involving various financial sector stakeholders.

Some parties present at the RDPU included Bank Indonesia, OJK, LPS, the National Banks Association (Perbanas), the State-Owned Banks Association (Himbara), and academics.