Jakarta, April 27, 2017 — The Financial Services Authority (OJK) launched the Financial Information Services System (SLIK) on Thursday (Apr. 27) in Jakarta. The system is an upgrade of the Debtor Information System (SID) and it was built as a tool for exchanging financing or credit information among institutions in the financial field.
Financial Services Authority Chairman Muliaman D Hadad in his opening remarks said that the birth of the SLIK was expected to help increase the amount of funds provided and curb the growth of non-performing loans.
"The SLIK is a type of financial infrastructure that plays a vital role in extending access to credit or financing and in providing creditors with information that may help lower the risk level of non-performing loans," Muliaman said.
The system was developed to accommodate the needs of the industry, the OJK and other institutions. The OJK always produce innovations in line with developments in the financial services industry.
Institutions in the financial field will submit complete, accurate, updated, full and timely reports about debtors through the SLIK. This method is expected to keep the quality of debtor information well maintained.
The SLIK will receive reporting about debtor data, fund provision facilities, collateral data and other related data from various kinds of financial institutions and offer debtor information services needed by financial institutions, the public, the Credit Information Management Bureau (LPIP), and other parties.
The debtor information is accessible for the purpose of providing credit facilities, risk management and complying with OJK regulations.
Reporting process through the SLIK will run parallel to reporting through the SID for data recorded between March and November 2017 period. From January 1, 2018, onwards, the SLIK will fully replace the role of the SID, which is managed by Bank Indonesia.
There are 96.4 million debtors to be entered into the SLIK. The figure is growing, in line with the increasing number of companies that file reports to the system.
There will be 1,626 financial institutions that will submit reports to the SLIK in April 2017. They include commercial banks, rural banks (BPR) with assets more than IDR 10 billion, non-bank credit card issuers, and companies that voluntarily send reports to the SID.
The number of reporting companies will rise following a wider range of enterprises required to submit reports to the SLIK, with the inclusion of financial institutions such as rural banks and financing companies—whose assets are less than IDR 10 billion—and pawnshops.
The number of reporting companies is projected to have climbed to 2,142 by December 31, 2018, from 1,672 in 2017.
In 2022, the figure is predicted to increase further along with the requirement imposed on pawnshops, venture capital firms, and infrastructure financing companies, to submit reports to the SLIK.
Microfinance institutions, peer-to-peer lenders, and firms other than financial institutions—such as savings and loan cooperatives—can become SLIK's reporting companies if they are qualified and have received approvals from the OJK.
Before building the SLIK, the OJK had conducted exhaustive analysis and gone through a comprehensive design process. It also tested the applications by involving financial industry players to make sure of the system's quality.
Next, to ensure that potential reporting companies are ready when the SLIK operates, the OJK has coordinated intensively with financial industry players through various activities, including information dissemination and nationwide training for those companies.
In January and February 2017, financial industry players—who are also potential SLIK's reporting companies—did some tests of reporting and requesting debtor information. The aim was to make sure that they would be ready when the SLIK is implemented.
Concerning legal umbrella for reporting and requesting debtor information to the SLIK, the OJK had drawn up a Draft of OJK Regulation, which was signed by OJK Chairman in April 2017.
Composition of the draft had gone through several stages—in compliance with the provisions set by the OJK—and its contents were produced by taking into account feedback or input from related working units, financial services industry players, and the public.
The technical requirements will be put into an OJK Circular, which has been revised following feedback/input from related parties.
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For more information:
Sukarela Batunanggar, Deputy Commissioner for Banking Supervision I
Tel +62 21 2960 0000 E-mail: batunanggar@ojk.go.id www.OJK.go.id
