The Financial Services Authority (OJK) is transforming its supervisory work in the insurance, guarantee and pension fund sector, by implementing an early intervention system and other changes.
Mr Ogi Prastomiyono, chief executive of the Insurance, Guarantee, and Pension Fund supervision division of OJK said this at a discussion with the media on 8 October.
One focus of the OJK is to support supervision by creating the non-bank financial institution (IKNB) Securities Information and Monitoring Portal (PRIME), which will enable integrated supervision in licensing, special inspections, and control, based on RegTech.
In addition, OJK is in the process of building a database of insurance policyholders and pension fund participants. With this database, OJK can analyse insurance and pension fund data in a more granular manner so that it can strengthen supervision, research and development, and more comprehensive decision-making, he said.
Mr Ogi also said that the OJK will monitor the impact of implementing PSAK 117 (the Indonesian equivalent of IFRS 17) in 2025, as well as the new risk-based capital (RBC) system, which will affect industry players.
The OJK will open up access to SLIK (Financial Information Service System), which it manages, to insurance and guarantee companies, and insurers that have credit insurance products. This step is to help insurance companies mitigate risks.
The OJK will strengthen reporting, as well as delegate supervisory authority to its bureaux in the regions to bring the industry closer to supervisory authorities. This is to encourage the growth of the regional ecosystem.
"Because the economy or business is in the regions, we have to encourage the formation of an ecosystem in those places. For that, we have started delegating supervision to the OJK offices in the regions, especially for insurance companies headquartered there," said Mr Ogi.