Responding to OJK Law Judicial Review, Perbanas Suggested Three Solutions

 
Christina Desy, Fathan Qorib
 
Early after functioning effectively, the Financial Services Authority (Otoritas Jasa Keuangan – OJK) has been challenged by activists and civil groups resulting in the submission of judicial review petition over Articles 1 (1), 5, 6, 7, 37, 55, 64, 65, and 66 of the Law No. 21 of 2011 on OJK (“OJK Law”). In general, judicial review challenges the constitutionality of OJK’s independence, functions, and authority in imposing levies.
 
Up to this moment, the judicial review is still undergoing hearing stage at the Constitutional Court. Anticipating the decision, the Indonesian Banks Association (Perhimpunan Bank-Bank Umum Nasional – Perbanas) suggested three solutions before the Court.
 
The first suggestion is to keep OJK’s existence in compliance with OJK Law, while at the same time eradicate the levies obligation imposed upon financial providers. In that sense, Perbanas expects OJK relies only to the state budget. If such scheme is burdening, Perbanas suggested the second solution in which Bank Indonesia (BI) takes over the regulation and oversight function back.
 
Another alternative, OJK may continue to enforce its authorities and impose the levies in accordance with OJK Law. However, Perbanas hopes for certain provisions under OJK Law to be revised.
 
“These suggestions are neutral and impartial,” said Sigit Pramono, Chairman of Perbanas, at the Constitutional Court building on Monday.
 
In regards to levies imposition, Mr. Pramono stated the levies obligation has never been a preferable option for banks. To that end, banks prefer to be regulated and monitored by institution which imposes no levies at any cost. Nonetheless, banks are ready and willing to comply with such obligation as it is mandated not only under OJK Law, but also under Indonesian Constitution 1945.
 
Mr. Pramono’s statement is shared by Rosalia Suci, Director of BI’s Legal Department. To Mrs. Suci’s concern, BI never imposes any levies to banks, although it does require the banks to open an account and deposit some amount of their funds in BI. In return, BI provides interests for the savings which remain legally owned by the banks.
 
Mrs. Suci emphasizes that such system is effective. Not only controlling the market’s liquidity, BI’s system also helps the banks in settling their obligations, such as clearing or Real Time Gross Settlement (RTGS).
 
(hot/kc)