Press Release: Strong and Stable Financial Services Sector to Support Sustainable Economic Growth

Feb 20 2024


​SP 19/GKPB/OJK/II/2024



Jakarta, 20 February 2024. The Financial Services Authority (OJK) assessed that the stability of the national financial services sector was maintained, supported by strong capital, adequate liquidity, and a maintained risk profile, thus, the sector was able to face a potential slowdown in global economic growth.

The OJK policy direction for 2024 was presented at the Annual Financial Services Industry Gathering (PTIJK) that was held in Jakarta on Tuesday (20/02) and was attended by the President of the Republic of Indonesia, Joko Widodo. During the event, OJK also launched the Indonesia Sustainable Finance Taxonomy (TKBI).

At this event, the President of the Republic of Indonesia expressed his gratitude to OJK and for the cooperation among all parties in advancing and realizing resilience in the Indonesian financial services industry. In his speech, the President of the Republic of Indonesia said to continue learning from the financial crisis in the past, remaining vigilant in protecting the financial services industry and economy, and continuing to increase the level of financial literacy and inclusion, as well as supporting MSME financing and sustainable finance.

"I appreciate the refinement of Indonesia's sustainable taxonomy that was launched earlier by the Chairman of OJK, which allows to balance green finance initiatives with the economic, environmental, and inclusion aspects. Thank you for the dedication served by the Ladies/Gentlemen here, and the hard work delivered by OJK in advancing the financial sector," said the President.

OJK assessed that global economic uncertainty recently began to decline, however, divergence in recovery among the countries continued. Economic indicators exhibited a moderation in economic growth in several countries, primarily in the European Union and China. The slowing economic growth pushed inflation down closer to the inflation target, thereby providing room for the central bank to be more accommodating. In the US, the Fed indicated that it would reduce the policy interest rate by 75 bps in 2024, with the market assessing that the US economy was still resilient and was expected to hinder sparking a recession.

Yet, the market was still observing future geopolitical developments, e.g., the escalated tensions in the Red Sea as a result of the Middle East conflict, as well as the holding of general elections throughout 2024 that covered 50 percent of the world's population, mainly in several main countries such as the US, European Union, India, and Taiwan, and also China’s economic recovery.

In general, the sentiments in the global financial market tended to be positive in December 2023, supported by expectations of a declining the Fed Funds Rate (FFR) and the soft-landing estimation in the US, hence encouraging the return of fund inflows to Emerging Markets (EM) and the strengthening of the global financial market, including the Indonesian financial market. It was also observed that the volatility, either in the stock market, debt securities, or exchange rates, was declining.

In the domestic economy, leading indicators of the national economy were still positive, among others, as demonstrated by the trade balance surplus and expansionary PMI in the Manufacturing sector. The inflation rate remained at a low level of 2.61 percent yoy (November 2023: 2.28 percent yoy). However, the development of future domestic demand was necessary to be observed as the core inflation, declining consumer optimism, as well as growth slowdown in retail and motor vehicle sales continued.


Developments in the Capital Market and Carbon Exchange

The Indonesian stock market as of February 16, 2024, continued to grow stronger amidst the global economic slowdown, where the JCI strengthened 0.86 percent (YTD) to the level of 7,335.55 and posted a net buy of IDR 20.05 trillion (YTD). On January 5, 2024, JCI reached its all-time high at the level of 7,403.08. Several sectors in the JCI in February 2024 (until February 16, 2024) were still growing strong, including the health sector and the primary consumption sector. In terms of growth, the value of stock market capitalization as of February 16, 2024, was recorded at IDR11,603 trillion, or slightly decreasing by as much as 0.61 percent (YTD). On January 4, 2024, the market capitalization value touched an all-time high of IDR11,810 trillion. In terms of transaction liquidity, the average stock market transaction value up to February 16, 2024, was recorded at IDR 10.66 trillion (YTD).

In the bond market, the Indonesian Composite Bond Index (ICBI) on 16 February 2024 strengthened by 0.60 percent (YTD) to 376.87. In ytd, (13 February 2024), SBN yields increased by an average of 4.73 bps across all tenors, with non-residents posting a net sell of IDR3.30 trillion ytd. In the corporate bond market, non-resident investors also posted a net sell of IDR1.59 trillion ytd.

In the mutual fund industry, Asset Under Management (AUM) as of 15 February 2024 reached IDR800.30 trillion (declined 2.96 percent ytd), with the Net Asset Value (NAV) of mutual funds of IDR477.28 trillion or decreased 4.82 percent and recorded a net redemption of IDR5.29 trillion.

Fundraising’s interests in the capital market remained substantial, with a Public Offering value recorded at IDR12.34 trillion, with 11 new issuers as of 16 February 2024. 86 Public Offerings were still in the pipeline with an estimated indicative value of IDR50.02 trillion, including 59 IPOs by new issuers.

In the fundraising through Securities Crowdfunding (SCF), as alternative financing for SMEs, since the implementation of the SCF provisions as of 16 February 2024, 16 licensed operators have obtained their licenses from OJK, with 509 issuers, 169,851 investors, and a total raised amount of IDR1,07 trillion.

Since the launch of the Indonesian Carbon Exchange on 26 September 2023 to 16 February 2024, there were 48 licensed users with a total volume of 501,910 tCO2e and an accumulated value of IDR31.36 billion, with details of: 31.39 percent in the Regular Market, 9.69% in the Negotiation Market and 58.92% in the Auction Market. In the future, the potential for the Carbon Exchange was still very large considering 3,418 registrants were registered in the National Registry System for Climate Change Control (SRN PPI) and the high potential of carbon units offered.

In regard to the enforcement of laws in the Capital Market sector as of 13 February 2024, OJK imposed Administrative Sanctions in the form of Monetary Fines on 1 (one) Investment Manager, 1 (one) Securities Company, 3 (three) Custodian Banks, and 11 (eleven) individuals, as well as 6 (six) Written Orders, suspension of 1 (one) Individual License, and Revocation of 1 (one) Individual License. OJK also imposed Administrative Sanctions in the form of Monetary Fines due to the late submission of reports on 119 financial service business providers in the Capital Market and 23 Written Reprimands.

Developments in the Banking Sector

Amidst a potential slowdown of global economic growth, the Indonesian banking industry as of December 2023, remained resilient and competitive, supported by a profitability level of ROA of 2.74 percent (November 2023: 2.72 percent) and NIM of 4.81 percent (November 2023: 4 .83 percent). Banking capital (CAR) was relatively high at 27.65 percent (November 2023: 27.86 percent), providing a solid risk mitigation cushion amidst global uncertainty.

In December 2023, banking intermediation performance remained strong, with an increase in credit of IDR666.68 trillion or has grown double-digit on a year-on-year basis by as much as 10.38 percent (November 2023: 9.74 percent yoy) to IDR7,090 trillion. The growth was mainly contributed by Investment Loans and Working Capital Loans which grew by 12.26 percent yoy and 10.05 percent yoy, respectively. By bank ownership, State-Owned Banks were the main contributor to credit growth, i.e., 12.02 percent yoy, with a credit portion of 45.64 percent of total banking credit. The growth in Third Party Funds (DPK) in December 2023 was 3.73 percent yoy (November 2023: 3.04 percent yoy) or increased to IDR8,458 trillion, with demand deposits becoming the largest contributor of growth, i.e., 4.57 percent yoy.

Banking industry liquidity in December 2023 was improved, with liquidity ratios that were well above the level required for supervision. The ratios of Liquid Assets/Non-Core Deposits (LA/NCD) and Liquid Assets/Third Party Funds (LA/DPK) rose to 120.07 percent (November 2023: 115.73 percent) and 28.73 percent (November 2023: 26.04 percent), respectively, and remained well above the regulatory thresholds of 50 percent and 10 percent.

Meanwhile, the credit quality was maintained with banking ratios of net NPL of 0.71 percent (November 2023: 0.75 percent) and gross NPL of 2.19 percent (November 2023: 2.36 percent). As the national economy grew, the loan restructuring related to Covid-19 continued its downward trend to IDR265.78 trillion (November 2023: IDR285.32 trillion) or down by IDR19.53 trillion, with the number of debtors being 1.04 million (November 2023: 1.14 million debtors).

Such a decrease in the number of restructured loans and NPLs had a positive impact, as the Loan at Risk ratio was down to 10.94 percent (November 2023: 11.61 percent). The proportion of Covid-19-related loan restructuring (targeted particular segments, sectors, industries, and regions that require an additional credit/financing restructuring period of one year until 31 March 2024) reached 42.3 percent of the total Covid-19-related loan restructuring.

In terms of market risks, the decline in yields in December affected the decline of banking unrealized losses. The Banking Net Open Position (NOP) was down to 1.44 percent (November 2023: 1.58 percent), far below the 20 percent threshold.

In regard to the enforcement of laws and consumer protection in the banking sector, at the beginning of 2024, OJK revoked the business licenses of BPR Wijaya Kusuma Cooperative, PT BPRS Mojo Artho, PT BPR Usaha Madani Karya Mulia, and PT BPR Pasar Bhakti.

In terms of policy measures, OJK issued 2 (two) OJK Regulations in order to strengthen Rural Bank and Sharia Rural Bank (BPR/S), i.e., POJK Number 28 of 2023 concerning Determination of Status and Follow-up Supervision of Rural Bank and Sharia Rural Bank (POJK for BPR/S Exit Policy), which regulates the refinement of approach for earlier supervision to handle issues in BPR/S, and POJK Number 1 of 2024 concerning Asset Quality of Rural Bank (BPR), which, among others, regulates the alignment of provisions on Foreclosed Collateral as well as the addition of types of productive assets in accordance with the P2SK Law, including securities that are permitted to be owned by BPR and capital participation.


 Developments in the Insurance, Guarantee and Pension Fund (PPDP) Sector

In the PPDP sector, the accumulated premium income in the insurance sector in 2023 reached IDR320.88 trillion, or increased by 3.02 percent yoy (2022: IDR311.48 trillion).

The growth of accumulated premiums in life insurance remained moderated by 7.99 percent yoy to a total value of IDR177.41 trillion as of December 2023. On the other hand, the accumulated premiums of general insurance and reinsurance grew positively by 20.89 percent yoy to IDR143.47 trillion.

In general, capital in the insurance industry grew stronger, as the life insurance and general insurance industries recorded Risk-Based Capital (RBC) above the threshold of 457.98 percent and 363.10 percent, respectively, (November 2023: 464.13 percent and 348, 97 percent), well above their thresholds of 120 percent.

In terms of social insurance, the total assets of BPJS Kesehatan (Healthcare and Social Security Agency) as of December 2023 were recorded at IDR106.80 trillion or contracted by 5.40 percent yoy. Within the same period, the total assets of BPJS Ketenagakerjaan (Indonesia’s National Security Agency for Employment) total assets reached IDR730.29 trillion or grew significantly by 13.21 percent yoy.

In the pension fund industry, the assets of the national pension fund as of December 2023 grew 6.91 percent yoy, with an asset value of IDR368.70 trillion (November 2023: grew 6.19 percent yoy with an asset value of IDR363.03 trillion). As for guarantee companies, the asset value reached IDR 46.41 trillion (November 2023: IDR 47.03 trillion).

In regard to the enforcement of laws and protection of consumers in the PPDP sector, in January 2024, OJK imposed an administrative sanction in the form of Restriction of Business Activities on the insurance broker company PT Dritama Brokerindo. In February 2024, OJK also imposed administrative sanctions in the form of suspension of license registration of the Anderson and Partners Public Accounting Firm, Madelih Kurniawan Public Accountant, and Anderson Subri Public Accountant.

In line with the efforts to develop the PPDP sector, OJK continued to perform various measures to encourage problem resolution at Financial Services Institutions through special supervision of 7 (seven) insurance companies, with the hope that they could improve their financial conditions for the benefit of policyholders, as well as perform special supervision to Pension Funds experiencing problems.


Developments in Financing Companies, Venture Capital Companies, Microfinance Institutions, and Other Financial Institutions (PVML) Sector

In the PVML sector, the growth of financing receivables remained high, although slowed down to 13.23 percent yoy in December 2023 (November 2023: 14.14 percent yoy) to IDR470.86 trillion, supported by financing for working capital and multipurpose that grew by 15.10 percent yoy and 13.85 percent yoy respectively.

The risk profile of the Financing Company was maintained, and the net Non-Performing Financing (NPF) ratio was at 0.64 percent (November 2023: 0.72 percent) while the gross NPF was at 2.44 percent (November 2023: 2.54 percent). The gearing ratio of finance companies showed a positive trend and was recorded at 2.26 times (November 2023: 2.21 times), far below the maximum threshold of 10 times.

A moderated growth of venture capital financing in December 2023 was 3.74 percent yoy (November 2023: -2.61 percent yoy), with the financing value recorded at IDR 17.34 trillion (November 2023: IDR 17.39 trillion).

In fintech peer-to-peer (P2P) lending, the growth of outstanding financing in December 2023 continued to increase to 16.67 percent yoy (November 2023: 18.06 percent yoy), with a nominal value of IDR59.64 trillion. The aggregate credit risk level of non-performing loans (TWP90/Loan Repayment Success within 90 days after the maturity date) was maintained at 2.93 percent (November 2023: 2.81 percent).

In regard to the enforcement of laws in the PVML sector:

  1. Based on the supervisory results until the end of January 2024, 6 financing companies (PP) were known as having not met the provisions related to the minimum equity requirements. They were still being monitored to realize the action plan that was submitted by the PP and had received approval from the OJK. The action plan proposed by the 6 PPs was in the form of capital injection from PSP and new strategic investors, either local or foreign, or the relinquishment of business licenses.

  2. OJK revoked the business license of PT Sarana Majukan Ekonomi Finance Indonesia (SMEFI) due to the company’s soundness level was generally considered unhealthy, and PT SMEFI which previously was also subject to administrative sanctions in the form of a Third Warning for violating provisions related to the Financing to Asset Ratio (FAR) value.

  3. Based on the supervisory results until the end of January 2024, 16 P2P Lending Providers were known as having not met the provisions on the minimum equity requirements of IDR2.5 billion. Out of 16 P2P Lending Providers, 9 were in the process of obtaining application approval for the increase in paid-in capital. OJK issued administrative sanctions in the form of written reprimands to the companies that had not complied with these provisions to immediately increase their capital and maintain a minimum equity of IDR2.5 billion.

  4. In January 2024, OJK imposed administrative sanctions on 25 P2P Lending providers for violating the applicable POJKs and/or the follow-up results of the on-site supervision of the Information Technology-Based Lending Service Providers (LPBBTI). The imposition of the administrative sanctions comprised of 31 Written Warnings/Reprimands.

In regard to policy measures, OJK issued POJK Number 25 of 2023 concerning the Business Implementation of Venture Capital Companies (PMV) and Sharia PMV as referred to the mandate of the P2SK Law, and launched a Roadmap for the Development and Strengthening of Venture Capital Companies 2024-2028 as a manifestation to achieve a sound Venture Capital industry with integrity and with an orientation toward financing start-up businesses to support MSMEs development MSMEs and consumer protection, as well as contribute to national economic growth.

Further, in order to strengthen the data-based supervision, OJK issued several circular letters concerning the submission of data and reporting to the P2P Lending fintech industry, BP Tapera, and Housing Secondary Financing Companies through the issuance of SEOJK Number 1/SEOJK.06/2024 concerning Procedures and Mechanisms for Submission of Financing Transaction Data and Reporting of Information Technology-Based Lending Service Providers (SEOJK LPBBTI Reporting), SEOJK Number 2/SEOJK.06/2024 concerning Monthly Reports of the Saving Management for Public Housing Agency (SEOJK Laporan Bulanan BP Tapera), and SEOJK Number 3/SEOJK.06/2024 concerning Monthly Reports of Housing Secondary Financing Companies (SEOJK Laporan Bulanan PPSP).


Developments in the Technology Innovation of the Financial Sector (ITSK), Digital Assets, and Crypto Assets (IAKD)

1.In regard to the developments of the OJK’s Regulatory Sandbox:

  • After the issuance of OJK Regulation (POJK) Number 13 of 2018 concerning Digital Financial Innovation in the Financial Services Sector, OJK received 458 applications from ITSK service providers to be registered in the Regulatory Sandbox. Based on this application, OJK had issued registered status to 155 ITSK service providers. From 2020 to January 2024, OJK stipulated the results of the Regulatory Sandbox whereas 21 ITSK Service Providers consisting of 8 business models, i.e., Online Gold Depository, Social Network and Robo Advisor, Project Financing, Blockchain Based, Insurance Broker Marketplace, Innovative Credit Scoring, Reg-tech E-Sign, and e-KYC.

  • In January 2024, OJK stipulated the results of the Regulatory Sandbox for ITSK Service Providers in 2 (two) business model clusters, i.e.:

Recommended status for 5 (five) ITSK Service Providers in Reg-tech E-Sign cluster.

ITSK service providers in the Reg-tech E-Sign cluster that are affiliated with the Ministry of Communication and Information and are subject to Law Number 1 of 2024 concerning Information and Electronic Transactions and Government Regulation Number 71 of 2019 concerning Implementation of Electronic Systems and Transactions and still serve the financial service sector.

Not recommended status for 6 (six) ITSK Service Providers in the E-KYC cluster.

In stipulating the status, OJK also considered the provisions in Regulation of Minister of Home Affairs Number 17 of 2023 concerning Amendments to Regulation of Minister of Home Affairs Number 102 of 2019 concerning the Grant of Rights to Access and Use Residents’ Data. The regulation eliminates the presence of a common platform in the ecosystem of rights to access and use of residents’ data, thus, verification services that use the Dukcapil database can no longer be conducted through intermediaries. Therefore, the initial role of the E-KYC cluster as an intermediary between users and the Dukcapil database is currently no longer allowed to be performed. However, the implementation of E-KYC can still be conducted as long as it meets the provisions of Regulation of Minister of Home Affairs No. 17 of 2023, as referred to above.

c. As a result, at the end of January 2024, there was a decline in the number of processed ITSK service providers as recorded in the OJK Regulatory Sandbox process into 69 participants categorized into 11 business model clusters.

2. Furthermore, OJK will continue to accelerate the evaluation and provision of recommendations for the Regulatory Sandbox process, especially in relation to business model clusters that have similar business model characteristics and activities, e.g., Insur-tech and Insur-hub as well as Reg-tech PEP and Transaction Authentication.

3. OJK issued POJK Number 3 of 2024 concerning the Implementation of Technology Innovation in the Financial Sector as the implementation for ITSK regulation and supervision as mandated in the P2SK Law. This POJK refines the framework of Regulatory Sandbox in the financial services sector by adopting increasingly robust mechanisms in performing the ITSK trials and development while strengthening the legal basis further for ITSK Service Providers in carrying out their operations in the financial services sector through registration and licensing mechanisms with OJK. In regulating and supervising the implementation of ITSK, OJK continued to prioritize the development function through OJK's role as an ITSK innovation center to advance use cases and innovations that are beneficial to the public and contribute to the strengthening of Indonesia's digital financial ecosystem and national economic growth. Furthermore, this regulation is expected to become a milestone in reforming the performance of ITSK, which can further contribute to increased digital economic activity in Indonesia and support strong, competitive, and inclusive national economic growth.

4. In regard to crypto asset activities in Indonesia, the number of domestic crypto asset investors and transactions continued its uptrend, and recently, Indonesia was ranked seventh as the country with the largest number of crypto asset investors in the world. As of December 2023, the total number of crypto asset investors was 18.51 million investors, or an increase of 260 thousand investors compared to the previous month. Meanwhile, the value of crypto asset transactions throughout December 2023 was recorded at IDR27.25 trillion or had increased 179.77% yoy.

5. OJK continued to encourage advancing digital financial literacy and inclusion, strengthening a sustainable digital financial ecosystem, as well as ethical and responsible business practices, especially related to the application of Artificial Intelligence in the ITSK sector. OJK will collaborate with relevant Ministries/Agencies and associations in the ITSK sector (AFTECH, AFSI, ASPAKRINDO) to optimize innovation to support national economic growth


Development in Financial Services Business Conduct Supervision, Education and Consumer Protection (PEPK)

In 2023, OJK, in collaboration with Financial Services Business Providers and related stakeholders had conducted 3,065 financial education activities participated in by 2,565,443 individuals across the nation. Sikapi Uangmu, a digital communication media channel providing information on financial education content to the public through minisite and application, had published 430 financial education contents, with a total of 2,003,462 viewers. The OJK’s Financial Education Learning Management System (LMSKU) had been accessed 48,934 times with 39,291 certificates of module completion issued as of 31 December 2023. In the future, OJK will increase online financial education programs in order to increase massive and just financial literacy, including through cooperation with the Acting Management of the Pre-Employment Card Program. Thus, LMSKU may be accessed by Pre-Employment Card users, with its current user base of 17 million cardholders, and may reach up to 50 million Pre-Employment Card holders.

Financial literacy initiatives were accompanied by the strengthening of the financial inclusion program, which is supported by various parties, among others, through synergy with the Team for Acceleration of Regional Financial Access (TPAKD) that involves Ministries/Agencies, Financial Services Business Providers (PUJK), academics, and other stakeholders. As of 31 December 2023, 515 TPAKDs were established in 34 provinces and 481 districts/municipalities (93.58 percent of districts/municipalities in Indonesia) that had carried out 1,152 work programs in 2023, including:

  • Credit/Financing Against Loan Sharks Program (K/PMR) reached 1.35 million debtors with a disbursement value of IDR38.7 trillion.

  • Agricultural Priority Sector Credit/Financing Program (K/PSP) reached 74,670 individual debtors and 486 group debtors, with a total nominal value of IDR3.63 trillion;

  • One Student One Account Program (KEJAR) reached 53.9 million student accounts, with a total nominal value of IDR30.65 trillion;

  • Student and Youth Savings Program (SIMUDA), with a total of 1,278,848 accounts with a nominal value of IDR4.86 trillion;

  • Inclusive Financial Ecosystem Program (EKI) was a pilot project that had reached 36 villages and 9,285 participants.

  • The Financial Inclusion Month Program (BIK) totals 2,851 activities, which had reached 1.8 million participants and 7.9 million financial products/service accounts (an increase of 13.34% compared to 2022).

From 2023 to 31 January 2024, OJK received 355,637 inquiries from the Consumer Protection Portal Application (APPK), including 25,531 complaints. As many as 11,814 complaints were related to the banking sector, 6,524 were related to the financial technology industry, 5,026 were related to the financing company industry, 1,744 were related to the insurance industry and the remaining were related to the capital markets sector and other non-bank financial industry sectors.

In addition to APPK, OJK continued to encourage the resolution of consumer complaints lodged through the Alternative Dispute Resolution Institution for Financial Services Sector (LAPS-SJK) had received 2,698 incoming submissions, with 813 completed submissions and 1,460 submissions in process, while 425 submissions had not met the requirements. The disputes submitted to LAPS-SJK were dominated by the banking sector, with as many as 1,257 disputes, and the fintech sector, with as many as 644 disputes.

In regard to the eradication of illegal financial activities, OJK, together with all members of the Task Force for Eradicating Illegal Financial Activities (Satgas PASTI) continued to enhance coordination in handling illegal online investments and lending. From 1 January to 31 December 2023, the Task Force closed 2,288 illegal financial entities consisting of 40 illegal investments and 2,248 illegal online lending. The number of complaints on illegal entity received reached 13,064, including 12,528 illegal lending complaints, and 536 illegal investment complaints, with the development of the number of illegal entities that had been closed down/suspended were as follows:


201720182019202020212022until Dec 2023Total
Illegal Investment7910644234798106401,218
Illegal Online Lending04041,4931,0268116982,2486,680
Illegal Pawn-Brokerage00687517910251

To improve OJK's services to extend information and handle complaints to the public, OJK issued a guideline on an Integrated Consumer and Community Service System in the Financial Services Sector.


OJK Policy Direction in 2024

OJK has established a series of policy priorities for 2024 in maintaining the financial services sector to remain resilient, thus providing greater leverage for economic growth, i.e.:

  1. The first policypriority is financial services sector strengthening within a more integrated regulatory, supervisory, and licensing framework. OJK is committed to strengthening integrated regulatory and supervisory infrastructure, including for financial conglomerates thus enable mitigation of cross-sectoral risk transmission. As a result, this integration will narrow down the regulatory gaps and overlap and provide a level playing field level for all Financial Services Sectors.

    1. Developing integrated regulatory and supervisory infrastructure, including financial conglomerates, to mitigate cross-sectoral risk transmission that is expected to narrow down the regulatory gaps and overlap and provide a level playing field for all Financial Services Sectors.

      1. OJK will be issuing provisions regarding Holding Companies of Financial Conglomerates (PIKK) that cover, among others, new parameters/criteria on the structure and members of Financial Conglomerates (KK), the formation of PIKK, PIKK business activities, exceptions to the formation of PIKK for certain KK, and the process of shares and/or asset transfers related to the formation of PIKK. In addition, provisions for the formation of Financial Groups (non-PIKK KK) and certain supervisory approaches will be regulated.

      2. OJK will be formulating provisions regarding the Determination of Supervision Status and Handling of Commercial Bank Issues that include, among others, updating the determination of a Systemic Bank, refining the Action Plan, and determining an Action Plan for all Commercial Banks, following up on the supervision of Commercial Banks, determining parameters and time periods of supervisory status, and the establishment mechanisms, termination, and management of the Bridge Bank.

      3. In order to provide an integrated legal umbrella for the OJK supervision as well as a follow-up to the supervision of the PVML sector companies, in 2024 OJK will establish a Draft of OJK Regulation concerning supervision as a follow-up to the OJK supervision of PVML to strengthen regulations against determination to the supervision status aspects and an effective and efficient exit policy mechanism for PVML, which will increase PVML consumer protection and consumer confidence in PVML.

      4. OJK will be issuing internal regulations concerning the standardization of Supervisory Quality Control that aim to enhance the effectiveness and quality of Financial Services Sector Business supervision. Such provision emphasizes the importance of each line’s role in the OJK three-line model by strengthening Quality Control and Quality Assurance at every stage of the business process in all areas of Supervision at OJK.

    2. Considering the need to accelerate and simplify business processes, particularly those related to licensing and reporting, OJK cooperates with the relevant authorities to broaden the scope of integrated licensing (single window licensing) and build an integrated reporting architecture and integrated financial services sector database that bring convenience to the public and industry. Our initiatives to offer an easy-to-do business ecosystem in the financial services sector include a faster process for financial product licensing and fit and proper test assessment.

      1. OJK strives to simplify and standardize the licensing business process, as well as encourage all automation through a single one-stop system, for the licensing process to become faster, easier, and more transparent. OJK cooperates with other authorities to realize an integrated licensing process (dual licensing) through policy harmonization, simplification of business processes, and system integration, thus enabling faster licensing services that involve two authorities.

      2. As a basis to improve the service quality for the Indonesian financial services sector stakeholders, especially consumers, OJK is committed to enhancing public access to the information of the financial services sector businesses (PUJK) through the Indonesia Financial Services Registry (IFSR) mini-site portal that presents  integrated PUJK information.

    3. Institutional capacity, capital, early intervention, and governance enhancement are also being strengthened. We continue to support consolidation policies and synergy among financial services institutions to increase the financial services sector’s resilience, which will contribute to economic stability and growth.

      1. OJK strengthens the governance implementation of BPR/S operations with regards to the increasing risks in BPR/S due to developments in product innovation and noncompliance with best practices (fraud), as well as additional governance pillars, i.e., the shareholder aspect.

      2. Monitors the implementation of banking consolidation for both conventional and sharia bank, among others, the fulfilment of minimum core capital, merger/acquisition, and the formation of Bank Business Groups, as well as the provisions of Written Orders to carry out merger, consolidation, acquisition, and integration of the bank.

      3. To strengthen the institutions and capital of a Securities Company, OJK develops the refinement to the licensing arrangements process for a Securities Company that conducts business activities as a Securities Underwriter, a Securities Broker, or an Investment Manager. Strengthening the institutions and capital of a Securities Company in the draft regulations will include provisions regarding capacity improvement, governance, risk management, supervision, and the capital requirement of a Securities Company. With such improvements, it is expected that a Securities Company will emerge that is more competitive, and sound, has good governance and robust risk management, mitigating fraud capability as well as protecting customers’ interests in the Securities Companies.

      4. To strengthen supervision of the Securities offerings through information technology-based crowdfunding services (Securities Crowd Funding/SCF) and provide better protection for SCF investors, OJK will revise provisions related to SCF, including those related to the supervision strengthening of the SCF organizers, strengthening of SCF capital, strengthening of SCF governance and risk management implementation, protecting SCF investors, as well as OJK supervision strengthening for SCF.

      5. Strengthening the capital of the insurance industry will be carried out in two stages, i.e. in 2026 and 2028. In addition, through POJK No 23/2023, the Insurance Companies Category Based on Equity (KPPE) is introduced, it divides insurance companies and reinsurance companies into 2 KPPEs based on their complexity and scope of business activities.

      6. To strengthen the insurance industry in terms of financial reporting and the implementation of international best practices, the industry will implement IFRS 17, which has been adopted as PSAK 117 concerning Insurance Contracts. PSAK 117 will be effective as of 1 January 2025, thus, in 2024, the insurance industry will need to take various measures and strategies, including cooperation with relevant stakeholders, to prepare for the implementation of PSAK 117. OJK has also taken the initiative to form a Steering Committee for the Implementation of PSAK 117 to ensure an effective and optimum preparation for implementation, with the purpose of strengthening and developing the insurance industry.

      7. OJK will draft OJK Regulations concerning good corporate governance and the implementation of risk management for PVML, which will cover revising provisions regarding the minimum number and concurrent positions of the members of the board of directors and members of the board of commissioners, assessment, and reporting on the governance implementation of PVML, as well as assessment and reporting on the risk management implementation of PMVL.

      8. OJK has carried out organizational and human resource transformations to strengthen its role in performing duties and functions. To amplify the transformation process, OJK has made an evaluation and fine-tuned the effectiveness of organizational structure implementation in each sector, especially a must-be-performed efficient work mechanism, and the implementation of the human resources blueprint at OJK.

Further, OJK is committed to strengthening integrity and supervisory governance through,

  1. Optimizing early warning system with Data Analytics to detect early data anomalies.

  2. Issuing internal provisions related to standardization of Quality Control Supervision that aims to increase the effectiveness and supervision quality of PUJK. These provisions emphasize the importance of each line’s role in the OJK three-line model by strengthening Quality Control and Quality Assurance at every stage of the business process in all areas of Supervision at OJK.

  3. Synergy to strengthen governance and integrity of the Financial Services Sector with stakeholders including Ministries/Agencies, regional governments, professional associations, academics, and PUJK by holding communication forums, seminars, workshops, and cooperation for HR capacity improvement.

2. The second policy priority is increasing the competitiveness of the financial services sector and deepening financial markets in order to encourage inclusive and sustainable national economic growth. OJK is optimistic that opportunities for the financial services sector to increase its role as an economic growth driver are still wide open, as it is supported by progressive efforts to transform the financial services sector post-issuance of the P2SK Law. Therefore, OJK supports the development opportunities of the financial services sector through financial market deepening initiatives with an orientation to liquidity and competitiveness improvement.

1). OJK develops the financial services sector through financial market deepening initiatives with an orientation to liquidity and competitiveness improvement.

  1. One of the market-deepening measures in the Capital Market sector is carried out by regulating liquidity providers in the capital market, i.e., a liquidity provider scheme for Securities trading in the Capital Market that is expected to play a role in increasing the liquidity of Securities Transactions in the Capital Market that is measurable and in order. The improvement of these provisions is expected to increase the number of customers who can obtain financing facilities for margin transactions or short-selling transactions by relaxing financing requirements by Securities Companies for their customers while still paying attention to the governance and risk management aspects of the Securities Companies. In addition, OJK will refine provisions related to the financing of Securities transactions by Securities Companies (margin transactions) and short-selling transactions.

  2. OJK will launch a roadmap for the development and strengthening of the pension fund industry and guarantee sector. The framework of pension fund industry development and strengthening will focus on the increase of pension fund penetration and harmonization of pension program administration with a mandatory pension program, while the framework for guarantee industry development and strengthening will focus on the affirmation of the guarantee scope of business.

  3. OJK will issue provisions regarding Pension Fund licensing and institution that allow for the expansion of pension fund business activities, e.g., an opportunity for an Investment Manager as the founder of a Financial Institution Pension Fund and the ability of a Pension Fund to organize pension programs for both defined benefit and defined contribution.

  4. OJK is currently drafting a roadmap for Multi-finance Companies, Microfinance, and bullion business activities by considering the balance between healthy industrial growth and consumer protection in these three sectors. This roadmap is a living document, thus, it is adaptive and can be adjusted to the dynamics of future economic and industrial developments.

  5. OJK will issue a regulation regarding the implementation of LPBBTI business activities, which regulates, among others, an increase in lending limits for productive businesses, provisions for changes in ownership, good corporate governance implementation, risk management implementation, and assessment of a soundness level.

  6. The Law of P2SK regulates the transition of savings and lending cooperatives operating in the financial services sector (open loop cooperatives) to become financial services institutions that are supervised by OJK. OJK will stipulate an OJK Regulation Draft concerning cooperatives in the financial services sector, which regulates the flow of licensing processes and business license application documents, capital, supervision, and the imposition of administrative sanctions for cooperatives operating in the financial services sector. The transition of cooperatives from the Ministry of Cooperatives and Small and Medium Enterprises to financial services institutions under the supervision of OJK will be regulated in a provision concerning the transition phases, where the Ministry of Cooperatives and SMEs will assess cooperatives in the financial services sector that meet the pre-determined criteria and submit a list of open-loop cooperatives to OJK. Further, OJK will proceed to process the cooperative licensing in the financial services sector in accordance with the statutory provisions of laws and regulations in the financial services sector.

  7. In accordance with the mandate of the P2SK Law, BPR/S are permitted to conduct public offerings in the stock exchange, which aim to support the strengthening of the BPR/S capital to be more competitive. BPR/S that may conduct public offerings must meet certain requirements and criteria.

  8. In the near future, OJK will issue provisions concerning the issuance and reporting of regional bonds and/or regional Sukuk that align with the recent laws and regulations, thus improving the quality of information transparency, supervision, and simplification in the issuance of Regional Bonds or Regional Sukuk. It is expected that this initiative can facilitate Regional Governments issuing Regional Bonds or Regional Sukuk to support the development of the region.

2). OJK is preparing the regulatory and supervisory infrastructure foundation for derivative financial instruments and digital financial assets, including crypto assets, with the hope that digital financial innovation continues to grow and develop in harmony within the framework of financial system stability.

  1. OJK is preparing a Roadmap for Technology Innovation of the Financial Sector, Digital Financial Assets, and Crypto Assets for 2024-2028 as a guide for developing and strengthening the Technology Innovation of the Financial Sector, digital financial assets, and crypto assets through strategies and programs that are in line with the technological developments in the financial sector.

  2. As a follow-up to the transfer of authority to regulate and supervise digital financial assets, including crypto assets, from the Commodity Futures Trading Supervisory Agency (CoFTRA/Bappebti) to OJK, OJK is currently preparing an OJK Regulation regarding digital financial assets, including crypto assets. The OJK Regulation is prepared with a focus on developing digital financial assets and crypto assets as a new asset class in the financial sector, enforcing market integrity, enhancing consumer protection, risk mitigation, and maintaining financial stability. The preparations for the transfer of authority to regulate and supervise digital financial assets, including crypto assets, are carried out to ensure the activities in digital financial assets, including crypto assets, run swiftly, thus contributing to a positive impact on industry development in the financial services sector.

  3. As a follow-up to the results of the regulatory sandbox, OJK will regulate and supervise activities related to alternative credit ratings. The regulation draft will focus on increasing the role of alternative credit rating agencies in improving access for the public and MSMEs to formal financial services, primarily through the use of non-financial data in assessing the creditworthiness of prospective customers in the underbanked and unbanked categories.

  4. In the capital markets sector, in relation to the transfer of authority to regulate and supervise derivative financial instruments from CoFTRA to OJK as mandated in the P2SK Law, OJK is currently drafting regulations regarding the transition provisions of regulation and supervision of derivative financial instruments that are transferred from CoFTRA to OJK.

3). Accelerates the expansion and access to finance for MSME businesses, increases access to finance for the productive sector, optimizes economic potential and access to finance for villages, and advances inclusion that is massive, just, and sustainable in the City/Regency area, including Sharia financial skills, by intensifying education and financial literacy programs.

  1. In order to encourage productive sector development, especially the PVML sector, OJK has issued a roadmap for the P2PL industry and Venture Capital Companies, where the productive sector and MSMEs are the main development focus as well as having a priority target to be optimized. Currently, other industries’ roadmaps in the PVML sector are also being drafted while keeping a focus on industrial development as well as optimization of the productive sector and MSMEs. Further, in the PVML sector, OJK is currently also drafting several provisions, including the Draft of OJK Regulation regarding Information Technology-Based Lending Services (RPOJK LPBBTI), RPOJK regarding Pawn Company (RPOJK Pergadaian), RPOJK regarding the Development and Strengthening of Microfinance Institutions (RPOJK Omnibus LKM), and RPOJK regarding the Development and Strengthening of Financing Companies, Sharia Financing Companies, Infrastructure Financing Companies, Venture Capital Companies, and Sharia Venture Capital Companies (RPOJK Omnibus Multi-finance Institutions), where the draft provisions allow more flexibility in financing distribution for the productive sector and MSMEs.

  2. OJK optimizes the economic potential and financial access of villages by intensifying the Inclusive Financial Ecosystem (EKI) program with the involvement of all stakeholders’ roles within the TPAKD framework.

  3. OJK increases the infrastructure supporting capacity and provisions in order to accelerate literacy and financial inclusion for the people with disabilities segment, including by improving operational technical instructions to provide literacy and services for them.

4). Strengthening the role of Sharia financial service institutions in the economy will be continuously improved, i.e., the structure and competitiveness of the Islamic banking industry through consolidation and preparation for the implementation of UUS spin-offs, as well as strengthening the strong characteristics of Islamic finance through the establishment of an Islamic Financial Development Committee (KPKS). Such measures are expected to create an Islamic bank with adequate asset scales, thus complementing the market structure and competition in the Islamic banking industry, which is strong and more competitive within the national banking industry.

  1. Regarding spin-off, OJK continuously evaluates and monitors UUS development plans in each commercial bank holding company and monitors UUS that has met the mandatory spin-off criteria. OJK continues to open communication and coordination so that the spin-off implementation can be carried out on time with the preparation of a thorough corporate plan, thus creating a new large-scale Islamic Commercial Bank (BUS) that can compete fairly in the national banking industry.In the insurance industry, OJK will draft an OJK Circular Letter regarding spin-off guidelines where 2 methods will be elaborated, i.e., the establishment of a new Islamic insurance company or Islamic reinsurance company resulting from the spin-off or the transfer of the Islamic unit portfolio to an Islamic insurance company or Islamic reinsurance company that has obtained a business license.

  2. OJK plans to revise the provisions regarding Sharia Securities List Issuing Parties (PPDES) in order to increase the efficiency and effectiveness of licensing as well as supervision of the PPDES.

  3. Implementing Law Number 4 of 2023, OJK is currently preparing to establish a KPKS. KPKS is formed, among others, to strengthen regulations according to Sharia principles. With its presence, it is expected that governance and compliance with the Sharia principles will be optimal, either in terms of regulation, product development, or supervision of Islamic financial institutions.

  4. The Islamic banking industry also requires prudential regulation alignment that is equivalent to banking in general to prevent arbitrage in the banking industry. OJK will issue an OJK Regulation regarding the Implementation of Sharia Governance for Islamic BPR and an OJK Regulation regarding Asset Quality for Islamic BPR. Further, in line with the leverage ratio provisions that apply to Conventional Commercial Banks, the draft provisions regarding leverage ratio are currently being planned for 2024 for Islamic Commercial Banks. By strengthening the institutional foundations and aligning prudential regulatory requirements, it is expected that Islamic banking will develop within its corridor of uniqueness without neglecting prudential aspects.

  5. The business activity expansion aims to encourage a more competitive banking industry and have competitiveness in providing services to customers that align with increasingly complex and diverse developments in the industry. The business activity expansion includes the capital participation of a Commercial Bank in other companies that support the banking industry and the capital participation of BPR/S in supporting institutions of BPR/S, BUS, and UUS as Nazir Waqf.

  6. According to the Roadmap for the Development and Strengthening of Islamic Banking of 2023-2027, the strengthening of Islamic banking characteristics will also be conducted through the development of Sharia product uniqueness. In line with business activity expansions for Islamic banking, the adjustments to business activity provisions are necessary to provide flexibility for the Islamic banking industry in conducting innovation and developing current products while still considering prudent principles.

5). In sustainable finance, OJK has carried out the following initiatives:

  1. OJK supports the increasing role of the financial sector in the energy transition and sustainable financing through the implementation of the Indonesia Sustainable Finance Taxonomy (TKBI) that was launched on Tuesday (20/02) and will provide incentives for sustainability-based debt securities. TKBI is designed by considering the principles of interoperability and credibility, balanced economic, environmental, and social aspects, and a more inclusive character by encompassing non-MSME and MSME users. Currently, TKBI is focusing on the development of the energy sector, especially the transition towards Net Zero Emissions (NZE). TKBI is the world-first taxonomy that regulates the treatment of critical minerals in order to support clean energy technology and the transition to NZE. With this publication, Indonesia now has high-quality sustainability classification standards that can prevent greenwashing, social washing, and impact washing practices.

  2. In accordance with OJK’s efforts to increase the role of the financial sector in the energy transition and sustainable finance, OJK plans to develop a sustainability/NZE roadmap that outlines OJK's internal sustainability initiatives over the medium to long term (walk the talk) to support Indonesia's NZE target by 2060 or earlier.

  3. Following OJK’s commitment to support the NZE target, OJK plans to issue a Climate Risk Management and Scenario Analysis (CRMS) guide for banking to increase banks' awareness and ability to measure their climate risks and encourage banks to prepare NZE transition plans. CRMS is a tool to assess the bank’s business models and strategies resilience in facing climate change.

  4. OJK will extend its synergy with the Government to strive in creating the framework/infrastructure that are required to realize carbon trading prospects through the Indonesian Carbon Exchange Market. OJK is currently reviewing guidelines for the accounting treatment of Carbon Units traded on the Indonesian Carbon Exchange, that is expected to become a guide for users in recording Carbon Units in their reports.

  5. To encourage the development of a sustainable finance ecosystem, OJK, together with the Indonesian Stock Exchange, will develop incentives for the development and issuance of Sustainability-Based Debt Securities and Sukuk (EBUS BK). It is expected that this incentive policy may encourage the acceleration of the financial services sector to implement sustainable finance principles in its business activities and encourage increased financing and sustainable investment.


3. The third policy priority is to increase public and investor confidence in the financial services sector. OJK is committed to restoring public confidence both through integrated supervision and market integrity improvement to provide certainty and consumer protection in the financial services industry. Increased public trust is fundamental to a well-functioning financial system to manifest sustainable growth in the financial services sector.

1). OJK accelerates the settlement of a problematic financial services institution, including law enforcement, to uphold market integrity with the hope that, in the future, the establishment of administrative sanctions will increasingly provide a deterrent effect and minimize violations of integrity and regulations.

  1. Prime Lending Rate (SBDK) regulations include the scope, format, and procedures for calculating a prime lending rate as well as reporting and publishing of prime lending rate.

  2. The Anti-Fraud Strategy (SAF) will apply to all financial services institutions. In addition, the SAF regulations will include, the expansion of acts classified as fraud, the obligation to implement risk management for all financial services institutions by fulfilling certain aspects, and the expansion of SAF policy reporting, implementation reports, and significant fraud reports.

  3. OJK strengthens the enforcement of anti-fraud integrity by optimizing the use of an integrated fraudster database that functions as a facility to disseminate data on fraud perpetrators in the Financial Services Sector, which is also connected to the supervision and licensing processes at OJK.

  4. Orders to block certain accounts are conducted based on the OJK’s authority or requests from other parties to OJK. Blocking orders are conducted on accounts suspected of use to receive or hold funds resulting from actions indicated as violations of provisions in the financial services sector.

2). In order to increase investor protection, OJK will expand the scope of investor protection funds to include protection for mutual funds and SCF customers. The expansion was conducted through adjustments to the OJK Regulation concerning the Investor Protection Fund and the OJK Regulation concerning Investor Protection Fund Organizers. These adjustments are also made to improve governance and contribution and claim schemes for the Investor Protection Fund, which responds to the needs of the Capital Markets industry.

3). OJK will also strengthen supervision of share transactions by closely monitoring, especially shares that have just been recently listed on the Stock Exchange.

4).For integration and uniformity of guidelines in the imposition of sanctions within OJK, guidelines for the imposition of sanctions are currently prepared to become an OJK-wide guideline. It is expected that in the future, a uniform handbook or set of guidelines for each supervisory sector within the OJK will emerge for determining sanctions.

5). Acceleration of POJK 22 of 2023 implementation through enforcement of consumer protection provisions to increase compliance by Financial Services Business Providers (PUJK) and accelerate the resolution to consumer complaints, including strengthening institutional aspects and dispute resolution mechanisms in the SJK LAPS, the drafting of Supreme Court Regulations, and collaboration with the Deputy Attorney General Civil and State Administration Sector (Jamdatun) to support the implementation of civil lawsuits, as well as the drafting of effective consumer and community protection regulations.

6). OJK strengthens market conduct supervision of PUJK and increase the role of Task Force for Eradicating Illegal Financial Activities (Satgas PASTI) to eradicate illegal financial activities as well as increase education to deepen community understanding, especially for 3T (Frontier, Outermost and Disadvantaged) communities.

  1. OJK also strengthens Consumer and Community Protection Infrastructure by PUJK through finalizing the draft of Indonesian National Work Competency Standards (SKKNI) related to the Supervision of Market Conduct of Financial Services Business Providers, Education, and Consumer Protection by coordinating with related parties/agencies in order to increase the competence of parties or working units in PUJK responsible for the provisions on the implementation of Consumer and Community Protection.

  2. Pilot project for the preparation of conduct risk rating parameters in Commercial Banks, in cooperation with the World Bank to increase the effectiveness of market conduct supervision by OJK.

  3. OJK strengthens the work and coordination mechanisms of the Satgas PASTI, through the drafting of RPOJK concerning Task Force for Handling Unlicensed Business Activities in the Financial Services Sector.

  4. Massive, equitable, and sustainable intensification of financial education and literacy programs across Indonesia is in accordance with the conditions and necessity of the community in each region, both online and offline, by involving TPAKD and support from PUJK, including by encouraging the implementation of product/business matching by PUJK.

  5. As a form of application of Article 52 number 12 of the P2SK Law and Article 118 POJK 23 of 2023, OJK puts insurance agents into order by obligating them, either individuals or those working in business entities, to be registered with the OJK through collaboration with associations in the insurance sector.

  6. OJK is committed to eradicating and enforcing criminal sanctions against illegal PVML LJKs as mandated by the P2SK Law. The order imposed to these illegal PVML LJK was made by conducting a law enforcement process in the event that the LJK has not complied with the provisions.

  7. OJK published a Guide to the Code of Ethics for Artificial Intelligence in the ITSK Sector. This guide will be implemented as a Code of Ethics for ITSK Organizers in developing innovative digital financial products and services based on Artificial Intelligence.


By observing various challenges and opportunities, as well as the policy measures that will be taken, OJK is optimistic that the positive trend in financial sector performance will be maintained. Banking credit is projected to grow by 9-11 percent, supported by the growth of Third-Party Funds of 6-8 percent. In the capital market, fundraising is targeted to reach IDR200 trillion. Financing companies receivables are projected to grow 10-12 percent in line with the increase in community mobility. Insurance assets are estimated to grow by 4-6 percent amidst the reform program conducted by OJK. Pension Fund assets are also estimated to grow 10-12 percent, while Guarantee assets are estimated to grow 9-11 percent. To achieve this target, positive cooperation, coordination, and synergy with the Government, monetary authorities, financial services industry, business providers, the community, and other stakeholders are highly required.

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