Authority to Regulate and Supervise Bank
The regulation and supervision of banks by OJK includes the following authorities:
The authority to establish licensing procedures (right to license) and the establishment of a bank, including granting and revoking bank business licenses, granting licenses to open, close and move bank offices, granting approval for bank ownership and management, granting licenses to banks to carry out certain business activities.
The authority to set regulations (right to regulate) concerning aspects of banking business and activities in order to create healthy banking to fulfill banking services desired by the public.
The authority to supervise includes:
on-site supervision consists of general and special examinations with the aim of obtaining an overview of the bank's financial condition and to monitor the bank's level of compliance with applicable regulations, as well as to determine whether there are unhealthy practices that endanger the bank's business continuity; and
off-site supervision, which is supervision through monitoring tools such as periodic reports submitted by banks, examination reports, and other information.
The right to impose sanctions, which is the authority to impose sanctions in accordance with statutory provisions on banks if a bank is less or does not fulfill the provisions. This action contains an element of guidance so that banks operate in accordance with sound banking principles.
The authority to conduct investigations (right to investigate), namely the authority to conduct investigations in the Financial Services Sector (FSS), including banking. Investigations are carried out by Financial Services Authority Investigators consisting of investigating officials of the Kepolisian Negara Republik Indonesia (POLRI, or Indonesian National Police) and certain Civil Servant officials, and certain employees who are given special authority as investigators as referred to in the Criminal Procedure Code, to investigate criminal acts in the financial services sector. The results of the investigation are submitted to the prosecutor for prosecution.
The authority to conduct consumer protection (right to protect), namely the authority to conduct consumer protection in the form of prevention of consumer and public losses, consumer complaint services, and legal defense.
