Financial Services Authority in The Economy

FINANCIAL SERVICES AUTHORITY IN THE ECONOMY 1. Explain the urgency of the existence of the Financial Services Authority (OJK) a. Why does OJK need to exist? Currently, the growth of the financial services industry in Indonesia is increasingly rapid. This growth does not only occur in the banking sector, but also in other sectors such as the growth of the capital market, insurance services sector, pension funds, financing institutions and other nonbank financial services institutions as well as the growth of technology-based financing services. So that the service industry can grow in a stable, orderly, transparent, accountable manner and be able to protect consumers, it is very important to create an institution that regulates and supervises the financial sector on an ongoing basis. The authority to regulate and supervise the financial sector in Indonesia is carried out by the OJK in accordance with Law No. 23 of 1999. b. What is FSA? The Financial Services Authority (OJK) is an institution that is independent and free from interference from other parties. OJK has the functions, duties and authority to regulate, supervise, examine and investigate all activities in the financial services sector. The financial services authority was formed with the aim of: • Become a trusted financial services industry supervisory institution; • Protecting the interests of consumers and society; • Able to make the financial services industry a pillar of the national economy that is globally competitive; And • Can promote general welfare. 2. Explain the meaning and urgency of the existence of banks a. What is a bank? Bank comes from the Italian word banco. Banco in the past meant bench or table. Tables in bank history were first used to exchange money. b. Why do banks need to exist? Banks are institutions that drive the wheels of the economy. The existence of a bank makes it easier for productive people to get funds for a business. So that people who were initially unemployed can get jobs and reduce poverty levels. Although there are many other factors that influence economic development, banks are one of the important factors in the economy. Bank has a very broad meaning, many figures have given their opinions regarding the definition of a bank. Banks have various forms, namely central banks, commercial banks, sharia banks and people's credit banks. 3. Explain the objectives and tasks of OJK OJK as an independent institution that supervises and regulates the financial services industry in Indonesia has the aim of: • Become a trusted financial services industry supervisory institution; • Protecting the interests of consumers and society; • Able to make the financial services industry a pillar of the national economy that is globally competitive; And • Can promote general welfare. To achieve this goal, of course there are several things that are the duties of the OJK, including: • regulate and supervise financial services activities in the banking sector, • regulate and supervise financial services activities in the capital markets sector • regulate and supervise financial services activities in the insurance sector, pension funds, financing institutions and other financial services institutions. Based on the explanation above, the following is an analysis of the answers included in the OJK's tasks: • maintaining monetary stability is not part of the OJK's duties • carrying out transactions in the capital market is not part of the OJK's duties • banking regulation and supervision is included in the duties of the OJK • regulation and supervision in the capital market is included in the duties of the OJK • regulation and supervision of the Non-Bank Financial industry, including the duties of the OJK 4. explain the authority possessed by the Financial Services Authority (OJK) OJK as an institution whose function is to organize an integrated regulatory and supervisory system for all activities in the financial services sector. As an organizer, of course there are tasks that the OJK must carry out, namely the task of regulating and supervising. To carry out the task of regulating financial services, OJK has the following authorities: • Establish implementing regulations for Republic of Indonesia Law No. 21 of 2011 • Establish laws and regulations in the financial services sector • Establish OJK regulations and decisions • Establish regulations regarding supervision in the financial services sector • Establish policies regarding the implementation of the duties of the financial services authority • Establish regulations regarding procedures for issuing written orders to financial service institutions and certain parties • Establish regulations regarding procedures for appointing statutory managers at financial services institutions • Determine the organizational structure and infrastructure as well as manage, maintain and administer assets and liabilities • Establish regulations regarding procedures for imposing sanctions in accordance with statutory provisions 5. Write down the community services provided by OJK OJK was formed with the aim of ensuring that activities in the financial services sector: • Organized in an orderly, fair, transparent and accountable manner; • Able to realize a financial system that grows sustainably and stably, and; • Able to protect the interests of consumers and society. Based on the explanation above, one of the goals of the OJK was formed to protect the interests of consumers and society. To achieve this goal, OJK provides several services to consumers and the public: a. Services to prevent consumer and community harm: • provide information and education to the public regarding the characteristics of the financial services sector, • services and products require financial services institutions to stop their activities if these activities have the potential to harm society • other actions deemed necessary in accordance with the provisions of laws and regulations in the financial services sector b. Consumer complaint service: • prepare adequate equipment to serve complaints from consumers who have been harmed by perpetrators in Financial Services Institutions; • create a complaint mechanism for consumers who have been harmed by perpetrators in Financial Services Institutions; And • facilitate the resolution of complaints from consumers who have been harmed by perpetrators at Financial Services Institutions in accordance with laws and regulations in the financial services sector. As the party that protects consumers and the public, OJK has the authority to carry out legal defense which includes: • Order or take certain actions to the Financial Services Institution to resolve complaints from consumers who have suffered losses from the Financial Services Institution in question. • file a lawsuit: 1) to recover assets belonging to the injured party from the party who caused the loss, whether under the control of the party who caused the loss or under the control of another party with bad intentions; and or 2) to obtain compensation from parties who cause losses to consumers and/or Financial Services Institutions as a result of violations of laws and regulations in the financial services sector.