Associations Continue the OJK Levies Debate

 
Fathan Qorib, Andin Aditya Rahman
 
The debates continue to rage on over levies to be collected by the Financial Services Authority (OJK) under Government Regulation No. 11 of 2014on Levies by the Financial Services Authority.
 
This time, associations of support professions for financial service providers have expressed their interest in a more “friendly” OJK Regulation to implement the OJK levies.
 
Lily Widjaja, Chairman of the Indonesia Securities Company Association, stated that her organizations would like to see a thorough elaboration on the zero percent levy.
 
“The Government Regulation is final, but the POJK (OJK Regulation) is not. Our input can have an effect on the POJK to be issued especially on Article 17 that provides for a zero percent levy,” Mrs. Widjaja explained during a discussion on Monday.
 
Indra Safitri, Chairman of the Association of Capital Markets Legal Consultants Association (HKHPM), asserted that associations and financial service providers can take at least three actions in response to the PP.
 
The first is to provide suggestions for the forthcoming POJK so that in the end they are not doubly burdened by both the PP and the POJK.
 
“This POJK can neutralize matters that are now causing turmoil,” commented Indra.
 
Another option is to wait for the general election to determine a new President. According to Mr. Safitri, a  President with a different disposition can decide major changes to the PP under continuous pressure from financial service providers and associations alike.
 
The final action that can be taken is to file a judicial reviewof Law No. 21 of 2011on the Financial Services Authority to the Constitutional Court.
 
“It is most probable that if this PP fails to neutralize negative aspects, there will be a judicial review,” he asserted.
 
Representing the banking sector, Sigit Pramono, Chairman of the Indonesian Banks Association (Perbanas), promised that the banking sector will be more cooperative compared to other sectors as the PP is already signed by the President.
 
However, he explained that the OJK levies could potentially cause a domino effect that will in the end burden bank customers and the general public.
 
“Levies will increase the cost of funds, so credit interest rates will also rise. People borrowing from the bank will be subject to expensive interest,” explained Mr. Pramono.
 
Acting as a representative from the OJK, Lucky F. A. Hadibrata, welcomed the criticism from all of the above associations including the possibility of a judicial review. According to Lucky, petitioning a judicial review is the right of all citizens.
 
Mr. Hadibrata also invited all associations and financial service providers to submit their ideas for the upcoming POJK. He asserted that synchronizing all sectors involved by collecting all their suggestions is a must for the OJK.
 
(For more information on the OJK levies, see ILB No. 2348)
 
(For more information on Law No. 21 of 2011on the Financial Services Authority, see: ILD No. 229)
 
(hot/kc)