- Two years on from the start of the Corona Virus Disease 2019 (COVID-19) pandemic, the Chairman of the Board of Commissioners of the Financial Services Authority (Otoritas Jasa Keuangan – "OJK"), Wimboh Santoso, has expressed optimism that the financial services industry will be able to survive the current pressures and issues that it is facing. Furthermore, in order to improve the outlook over the coming year, the OJK has set five policies that will be prioritized during the course of 2022 with the ultimate goals of strengthening the overall stability of the financial services sector and effecting a national economic recovery, as well as to continue to make improvements in relation to consumer education and protection.
- The five priority policies in question break down as follows: 1) Provision of joint incentives in order to encourage financing within the commodity sector, including battery-based electric motorized vehicles (both upstream and downstream); 2) Preparation of the financial sector in relation to policy normalization in developed and domestic countries, including by encouraging consolidation within the financial services sector in order to ensure capital and liquidity resilience; 3) Preparation of sustainable financing schemes through green economy development priorities, including the establishment of a carbon market and the issuance of the Indonesia Green Taxonomy; 4) Further opening up of financial access to the general public, particularly to micro-, small- and medium-scale enterprises (Usaha Mikro, Kecil dan Menengah – "UMKM"). The goal here is to achieve a UMKM lending target of 30% by 2024 through a cluster model under one financing ecosystem, marketing by off-takers, development and the optimization of uncultivated land; and 5) Strengthening of digital transformation policies that apply within the financial services sector in order to bring them into line with developments within the digital economy ecosystem with an eye on increasing public access of financial products and services, as well as improving consumer literacy and protection.
- The Indonesia Green Taxonomy initiative was jointly compiled by eight ministries and sets out a list of classifications of various types of economic activities that support environmental protection efforts and climate change mitigation and adaptation. As of the present moment, 2,733 economic sectoral and sub-sectoral classifications have been reviewed in relation to the Indonesia Green Taxonomy, 919 of which have already been confirmed by the relevant ministries.
- Indonesia has become one of the few countries in the world to apply national standards in relation to its green economy sector, alongside China, the European Union and the ASEAN region. Moving forward, the Indonesia Green Taxonomy is set to become a set of guidelines for the formulation of incentivizing and disincentivizing policies by various ministries and institutions, including the OJK.
- For more on this story, see Hukumonline: “Lima Fokus Kebijakan OJK di Tahun Macan Air”.
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