OJK and KPPU to Establish Joint Coordination Forum

 
Fathan Qorib, Robert Sidauruk
 
In an effort to better supervise competition in the financial services sector, the Financial Services Authority (OJK) and the Commission for Supervision of Business Competition (KPPU) have signed a Memorandum of Understanding (MoU) to establish a joint coordination forum.
 
To ensure that the joint coordination forum (Forum) runs smoothly, both institutions have also agreed to appoint liaison officers as persons in-charge to organize cooperation on regulatory and supervisory measures for financial service sectors.
 
“The Head of the Legal Department at the OJK and the Head of Legal, Public Relations and Cooperation at the KPPU will be the liaison officers for the Forum,” said Aloysius Saragih, OJK’s Director of Financial Institution Supervision, in Jakarta on Tuesday.
 
According to Mr. Saragih, the liaison officers will arrange meetings to discuss regulatory issues on a monthly basis, or ad-hoc as necessary. The meeting organized by the liaison officers will discuss further actions that should be taken as follow up to the main points set out in the MoU.
 
The MoU sets out three main points to be followed up. The first is that both institutions will harmonize laws and regulations in the financial services sector and business competition by drafting new regulations that harmonize the two.
 
The second point is joint research and study by both institutions as a preemptive measure to prevent unfair business competition in the financial services sector. To conduct this effectively, the OJK and the KPPU agreed to keeping information exchanged confidential information and not to disclose information without the prior consent of the disclosing parties.
 
Finally, the agreement between the OJK and the KPPU provides for informants and experts to support the implementation of the joint cooperation and assist other institutions. The cooperation also includes an action plan on how to provide for the necessary informants and experts for the purpose of antitrust legal proceedings in the financial sector.
 
Muliaman D Hadad, Chairman of OJK’s Board of Commissioners, insists that the cooperation is crucial so financial services can be conducted in a well organized, fair, transparent, accountable manner that is able to protect the interests of consumers. As follow up, Mr. Hadad emphasized the importance of balancing the regulatory and supervisory measures. Without such and approach, Mr. Hadad believes that the financial services sector will be unstable and vulnerable to turbulence.
 
“Issues in a financial institution may affect other financial institutions. The stability nodes in the financial services sector can be easily separated if one of the financial institutions is in trouble,” added Mr. Hadded.
 
Likewise, M Nawir Messi, KPPU’s Chairman, sees the importance of the cooperation, because the oversight of the financial services is one of the top priorities of the KPPU, along with other sectors, such as the food industry, energy, health and education, and infrastructure.
 
Mr. Messi also emphasized that a primary purpose of the cooperation is to ensure that there are good financial services available to the public. Through the cooperation, the OJK and the KPPU want to realize and efficient on financial service business, which will lead to a strong national economy and improve social welfare.
 
“Efficiency of business in not the only objective, but also to achieve the ultimate out-put in fair manner,” concluded Mr. Messi.
 
(hot/kc)