Bill on Financial Services Authority Was Passed

The Bill on the Financial Services Authority (“Bill”) was passed by the House of Representatives on 27 October 2011. The Bill establishes a new independent financial institution called the Financial Services Authority (Otoritas Jasa Keuangan/OJK), which will take over several authorities held by the Central Bank (Bank Indonesia) and the Capital Market and Financial Institution Supervisory Body (Bapepam-LK).

In the broadest sense, OJK establishment serves to regulate and supervise activities in the financial sector including: banking; financial markets, insurance and re-insurance; pension funds; financing institutions; and other types of financial service institutions (Article 6). The Bill consists of 14 chapters and 71 articles.