CENTRAL BANK TO HAND OVER BANK SUPERVISION TO OJK

By Andi Abdussalam

Jakarta, Dec 23 (Antara) - Beginning January, the Indonesian central bank, Bank Indonesia (BI) will hand over the bank supervision task to the Financial Service Authority (OJK) based on Law No. 23 /2011.          "The transfer of the supervision authority from the central bank to the OJK will be implemented on December 31, 2013," stated Ari Lajiji, group supervision head of the OJK for Sulawesi, Maluku, North Maluku, Papua and West Papua (Sulampua), in Ambon, Maluku, on Thursday last week.          He noted that the OJK, which was set up in accordance with the Law No. 23/2011, has been operational since January 1, 2013. But, Bank Indonesia has not yet handed over the banking supervision task to the OJK.          However, the supervision of financial services, such as the capital market, insurance firms, and other financial services, has been handed over to the OJK.          The OJK aims to guide all activities in the financial services sector to ensure that they develop in a fair, orderly, stable, and accountable manner to protect the interests of consumers and the public, in general.          "Therefore, beginning January 1, 2014, the OJK will begin supervision of all financial service providers, including banks," Lajiji remarked.

NEW FINANCIAL SERVICE AUTHORITY TO OPERATE NEXT MONTH

By Andi Abdussalam

Jakarta, Dec 28 (ANTARA)  - The newly established Financial Service Authority (OJK), which will take over the task of the Capital Market and Financial Institutions Supervisory Agency (Bapepam-LK) will begin operations in January 2013.          Established based on Law No. 21/2011, the OJK --whose board of commissioners was installed last July-- will become an independent body and report to the House of Representatives. It will oversee banks, capital markets and non-banking financial institutions.          "Human resources, organization structure and governing rules have all been prepared. We hope the launch of the OJK operation early next year would be smooth," Muliaman D Hadad, the OJK chief commissioner, said on Tuesday.          In carrying out its duties, the board of commissioners of the OJK will be assisted by 13 deputies. Each commissioner will be assisted by several deputies and a working unit. The OJK has appointed 1,018 employees of whom 82 from Bank Indonesia (BI/the central banks) and 936 from the ministry of finance.