Joint Press Release: Memorandum of Understanding between Financial Services Authority and Business Competition Supervisory Commission

Jul 16 2014
 
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Financial Services Authority, Jakarta, July 13, 2014: Financial Services Authority (OJK) and Business Competition Supervisory Commission (KPPU) agreed to build cooperation in regulation and supervision over monopoly practices and unhealthy business competition in financial services sector. The signing of memorandum of understanding (MoU) was conducted by Chairman of OJK Board of Commissioners Muliaman D. Hadad and Chairman of KPPU M. Nawir Messi in Jakarta on Tuesday (July 13).

This MoU is initiated from a number of matters that KPPU and OJK have been focusing on. The matters include, among others, problems and potential problems due to business activities expansion and financial products marketing carried out by financial services institutions. These matters might inflict differences in measures taken by OJK and KPPU in implementing their duties and authorities.

Additionally, both institutions are also responsive regarding the necessity to be on the same level of understanding about provision on prohibition against monopoly practices and unhealthy business competition and activities in financial services sector, and about implementing harmonization of regulations associated with those matters. Generally, the MoU objectives are: first, to implement cooperation and coordination proportionally according to respective duties and authorities in the framework of regulation and supervision over monopoly practices and unhealthy business competition in financial services sector; second, so that overall activities in financial services sector are managed regularly, fairly, transparently and accountably, and also able to realize a sustainable and stable financial system and able to protect the interests of consumers and society.

In order to achieve those objectives, OJK and KPPU agreed to create harmonization of regulations, to arrange joint study and research, to exchange information and data, to help each other in providing resource persons and experts, and to coordinate with each other in socialization, education and trainings. Harmonization of regulation between OJK and KPPU will be conducted by synchronizing regulations in financial services sector as well as law and policy on business competition.

Apart from that, both institutions can also build coordination in formulating regulation drafts in financial services sector or regulations on prohibition against monopoly practices and unhealthy business competition in order to support the implementation of duties of respective institutions. Furthermore, in arranging joint study and research, both independent institutions will conduct study and research that can develop financial services sector and prevent monopoly practices and unhealthy business competition in financial services sector.

As for cooperation in exchange of information and data, OJK and KPPU agreed to share information on companies, industry (business fields), and market domination in certain industry in order to prevent monopoly practices and unhealthy business competition in financial services sector. Certainly, in the framework of exchanging information and data, confidential information and data will be given pursuant to the prevailing regulations and cannot be exposed to other parties without prior permission from the institution that gives the information. In providing resource persons and experts, both institutions will help each other by providing resource persons for joint or individual events.


Moreover, in handling the cases associated with business competition, regulation and supervision over financial services sector, both institutions will provide support for each other as specialist authorities. Whereas in the fields of socialization, education and trainings, OJK and KPPU will cooperate in arranging socialization events for external stakeholders in order to improve their knowledge and understanding about the functions, duties, and authorities of both institutions, and also to enhance their literacy on the prevailing regulations.

As for internal stakeholders, both institutions can arrange joint study and trainings to improve knowledge and capability of human resources in each institution, particularly the knowledge and capability associated with regulation and supervision over financial services sector and monopoly practices and unhealthy business competition.  

For more information: 

1. Deputy Commissioners IB for Strategic Management, OJK,  Lucky F.A Hadibrata (lucky.fathul@ojk.go.id-0213858001) 
2. Head of Public Relation and Cooperation Bureau, KPPU, Mohammad Reza (reza@kppu.go.id-02134831563) 
 

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