The role of the Financial Services Authority (OJK) in maintaining financial system stability is to safeguard financial prudence, the financial ecosystem, and support the coordination between institutions.
The financial crisis that have occurred provide valuable lessons on the importance of synergy and the proper coordination mechanisms to create financial system stability. Therefore, an effective and comprehensive Crisis Management Protocol (CMP) framework has become essential. In a broad sense, the CMP is a regulatory system that includes mechanisms and procedures for identifying and mitigating pressures and/or problems effectively in order to maintain financial system stability, particularly during conditions that could potentially cause stress to the financial system.
With the existence of the CMP, each institution has guidelines and procedures for implementing prevention and/or resolution for Financial System Crisis, in accordance with their respective authorities.
The enactment of the PPKSK Law also mandates the establishment of a CMP in each of the KSSK member institutions (Ministry of Finance, Bank Indonesia, OJK, and LPS) to carry out the monitoring and maintenance of financial system stability, in line with the responsibilities and authority of each member to prevention and resolution Financial System Crisis.
OJK always carries out integrated supervision of all financial service institutions in the banking sector, capital markets, derivative finance, carbon exchanges, insurance, guarantees, pension funds, financing institutions, venture capital companies, microfinance institutions, anddigital financial assets and crypto assets. If there is pressure that has the potential to disrupt the stability of the financial system, then cross-sectoral coordination and synergy are carried out responsively and comprehensively between the OJK CMP Secretariat and the Sectoral Monitoring Coordinators, in identifying potential risks, recommending pressure status and policies in order to prevent and/or resolution the Financial System Crisis, to the mechanism of the decision-making process and determination of policy instruments.
