Revealed! The Reason Behind Commission XI's Proposal to Abolish OJK Levies on Banks
Jakarta, CNBC Indonesia - Chairman of the House of Representatives’ Commission XI, Mukhamad Misbakhun, has revealed the reasons behind the legislature’s desire to abolish the provision for levies on the financial services industry by the Financial Services Authority (OJK) through revisions to Law No. 4 of 2023 on the Development and Strengthening of the Financial Sector (UU P2SK).
Misbakhun explained that the main reason for the abolition is to reduce costs in the financial services industry that have hitherto affected profits, such as net interest margin (NIM). NIM is typically used to measure a bank’s ability to manage risks related to interest rates.
“It is currently being discussed and is an interesting topic of debate. The basis of our thinking is to reduce pressures from costs that impact the net interest margin in the banking world,” said Misbakhun in the Menara Bank Mega area, Jakarta, on Tuesday (7/4/2026).
In addition, Deputy Chairman of Commission XI of the House of Representatives, Fauzi Amro, previously stated that another primary reason behind the plan to abolish the financial services industry levies by OJK is to avoid potential conflicts of interest in OJK’s role as the supervisor of the financial services industry.
“We hope that OJK has independence. How can it supervise and also collect levies? There is no independence there, as we see it. It is fraught with vested interests,” said Deputy Chairman of Commission XI of the House of Representatives, Fauzi Amro, in the House of Representatives building area.
To date, levies from the financial services industry have been the primary source of OJK’s revenue.
Referring to the OJK Annual Financial Report for 2024, which has been audited by the Financial Audit Board, the value of levy revenue as of 31 December 2024 reached Rp 8.37 trillion, up from the previous figure of Rp 8.12 trillion as of 31 December 2023.
The realisation of levy revenue in 2024 has exceeded its target of Rp 8.07 trillion. It is no surprise that for 2025, OJK has again raised the levy revenue target to Rp 8.52 trillion, although the realisation has not yet been disclosed due to the absence of the 2025 OJK Annual Report publication.
As a replacement for these levies, the House of Representatives has proposed that OJK’s revenue come from surpluses of Bank Indonesia (BI) and surpluses of the Deposit Insurance Corporation (LPS).
“Well, the idea from colleagues is, for example, how about we propose that the levies be taken from BI surpluses and LPS surpluses. The BI surplus is around Rp 78 trillion, the LPS surplus is around Rp 42 trillion. So if combined, it’s almost Rp 115 to Rp 120 trillion,” he revealed.