Kamis, November 14, 2024

OJK Currently Preparing Regulatory Framework on Alternative Credit Ratings Providers

The Chief Executive of Financial Sector Technology Innovation, Digital Financial Assets and Crypto Asset Supervision at the Financial Services Authority (Otoritas Jasa Keuangan – “OJK”), Hasan Fawzi (“Chief Executive”), has affirmed that the OJK is currently preparing a Draft Regulation on Alternative Credit Ratings (Pemeringkat Kredit Alternatif – “PKA”) as a follow-up to the results of the regulatory sandbox initiative. The regulatory sandbox was introduced in order to find suitable PKA business models for subsequent OJK supervision. If ultimately enforced, the Chief Executive has explained that the PKA decided upon will have equivalency with other financial services actors, who are also required to secure business permits from the OJK.
The Draft Regulation is set to address a wide range of aspects that specifically relate to the organization of PKA activities, including: 1) Required business permits; 2) Governance and institutional aspects of PKA; 3) Organization of business activities; and so forth. In this regard, the Chief Executive has explained that the PKA is characterized by three main functions, which break down as follows: 1) Presentation of the credit ratings of individuals, as well as micro-, small- and medium-scale enterprises (Usaha Mikro Kecil Menengah – “UMKM”); 2) Broadening of business opportunity access for financial services institutions in terms of credit disbursement; and 3) Improving the credit quality of any financial institutions that offer credit to individuals and UMKM.
Ultimately, through the widespread availability of the various credit scoring services that are provided by the PKA, the Chief Executive ultimately hopes that financial institutions will be encouraged to expand their credit distribution and will be able to better serve the community. One outcome of this development is that individuals are likely to shift to the use of online loan providers that are licensed by the OJK, rather than turning to illegal lending services. _(ANT)

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The Chief Executive of Financial Sector Technology Innovation, Digital Financial Assets and Crypto Asset Supervision at the Financial Services Authority (Otoritas Jasa Keuangan – “OJK”), Hasan Fawzi (“Chief Executive”), has affirmed that the OJK is currently preparing a Draft Regulation on Alternative Credit Ratings (Pemeringkat Kredit Alternatif – “PKA”) as a follow-up to the results of the regulatory sandbox initiative. The regulatory sandbox was introduced in order to find suitable PKA business models for subsequent OJK supervision. If ultimately enforced, the Chief Executive has explained that the PKA decided upon will have equivalency with other financial services actors, who are also required to secure business permits from the OJK.
The Draft Regulation is set to address a wide range of aspects that specifically relate to the organization of PKA activities, including: 1) Required business permits; 2) Governance and institutional aspects of PKA; 3) Organization of business activities; and so forth. In this regard, the Chief Executive has explained that the PKA is characterized by three main functions, which break down as follows: 1) Presentation of the credit ratings of individuals, as well as micro-, small- and medium-scale enterprises (Usaha Mikro Kecil Menengah – “UMKM”); 2) Broadening of business opportunity access for financial services institutions in terms of credit disbursement; and 3) Improving the credit quality of any financial institutions that offer credit to individuals and UMKM.
Ultimately, through the widespread availability of the various credit scoring services that are provided by the PKA, the Chief Executive ultimately hopes that financial institutions will be encouraged to expand their credit distribution and will be able to better serve the community. One outcome of this development is that individuals are likely to shift to the use of online loan providers that are licensed by the OJK, rather than turning to illegal lending services. _(ANT)

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