OJK Strengthens Cooperation with the Financial Authorities of Australia and Japan

JAKARTADAILY.ID – The Financial Services Authority (OJK) is strengthening cooperation with The Australian Prudential Regulation Authority (APRA) and the Japan Financial Services Agency (JFSA).

The signing of the OJK Memorandum of Understanding (MoU) with APRA and the Exchange of Letter (EoL) with JFSA was carried out online and offline simultaneously in Bali on Friday, June 3, 2022.

Chairman of the OJK Board of Commissioners, Wimboh Santoso, said that this collaboration was aimed at increasing the regulatory and supervisory capacity as well as the development of the Indonesian financial services industry.

"The financial sector is currently very developed so that consumer demand for products and services is increasing faster. Therefore, it is necessary to adopt innovative technology by financial institutions and cross-border cooperation," said Wimboh Santoso during the signing of the MoU and EoL.

The signing of the MoU with APRA regarding Mutual Co-operation in Banking and Insurance Supervision is a collaboration that includes capacity building, information exchange, cross-border establishment, continuous supervision, and crisis management.

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Meanwhile, the continuation of cooperation with JFSA through the signing of the EoL on Innovation in the Financial Sector is carried out as an effort to optimize digital innovation in the financial services sector which includes a referral mechanism between financial innovators and relevant authorities, potential joint innovation projects, a collaboration between the FinTech industry, and information exchange.

High-Level Roundtable Discussion

In addition to the signing of the MoU and EoL, OJK also held virtual discussions to discuss the latest issues in the financial sector with the theme "Embracing the Inevitable: New Financial Sector's Landscape."

The discussion was attended by several leaders of international institutions, namely Chairman of APRA Wayne Byres, Director General of Strategy Development and Management Bureau JFSA Matsuo Motonobu, Deputy Governor of Korean Financial Supervisory Service Lee Jin-Seok, and Chief Risk Officer of China Banking and Insurance Regulatory Commission LiuFusho.

During the discussion, there was a discussion that the Covid-19 pandemic has changed consumer behavior towards more efficient, sustainable, and digitized channels in all aspects of life. These changes provide opportunities as well as create various types of risks for the financial sector.

In addition, significant global challenges such as climate change, geopolitical tensions, changing demographic trends, and evolving regulations will also have a significant impact on the financial sector in the medium to long term.

These macro trends and developments are important for financial authorities in maintaining financial system stability.

"I believe this is the right time for us to learn from each other's experiences in responding to these changes and dynamics. Therefore, today's discussion serves as a good platform for us to exchange information and to further strengthen our collaboration in achieving global economic recovery," said Wimboh at the opening of the discussion.