Financial Services Authority, December 31st, 2013: Bank Indonesia (BI) and Financial Services Authority (OJK) have agreed in the transferring of BIs banking regulatory and supervisory function to OJK, effective as of Tuesday (31/12). Pursuant to Law Number 21 of 2011 on OJK, the duty to regulate and supervise banking sector in Indonesia, particularly over individual banks (micro-prudential supervision), is now on OJKs responsibility. Whereas macro-prudential supervision remains under BIs responsibility but with coordination with OJK.

The transferring process of regulatory and supervisory function from BI to OJK was considered well. Business activities at banks remain as usual. Consumers in particular can still carry out their banking transactions as they had been done when banking supervision was conducted by BI, Chairman of OJK Board of Commissioners Muliaman D. Hadad said.

Muliaman went on saying that with this transfer of regulatory and supervisory function to OJK, the supervision over financial institutions can be performed in a more integrated way in the future. So as to support the realization of a more stable and robust financial system, he added.