The Financial Services Authority (OJK) was established in 2011 through Law No. 21/2011. The OJK is an independent financial institution that seeks to replace the role of the Capital Market and Financial Institution Supervisory Agency (Bapepam-LK). With the establishment of the OJK, the regulation and supervision of the Capital Market and Non-Bank Financial Industry automatically switches to the OJK. The people of Indonesia expect the OJK to be able to oversee the financial and banking sector in Indonesia. Unfortunately, this hope has lately been tarnished after PT Asuransi Jiwasraya failed to pay its customers. As a result of this, a discourse arises whether OJK is still needed to oversee various financial institutions. The discourse about the dissolution of the OJK emerged from the parliament. Deputy Speaker of the Indonesian House of Representatives, Sufmi Dasco Ahmad acknowledged that the OJK discourse was dissolved and that the OJK's duty and authority may be returned to Bank Indonesia (BI). The OJK which has the authority to oversee banks, capital markets and non-bank financial institutions such as insurance companies is deemed to have failed to carry out its supervisory duties. This is proven by PT Asuransi Jiwasraya's failure to pay its customers. But the question arises whether OJK needs to be dissolved (?)
Other countries also have supervisory institutions such as the OJK. Some financial supervision institutions that have been operating successfully until now are the BaFin in Germany and the Japan Financial Services Agency (JFSA) in Japan. However, some were disbanded after failing to carry out their supervisory duties, for example, the Financial Services Authority (FSA) in The United Kingdom. Seeing the experience of other countries such as Britain, the discourse to dissolve the OJK could be a reality. However, even though there is a possibility of dissolving, it is expected that the OJK will not be dissolved.
There are two main reasons why OJK may not be dissolved. The first reason is that the OJK has been existing for eight years and has some achievements. So far, the regulation and supervision conducted by the OJK in the banking sector has been quite adequate. There are weaknesses in the non-bank financial industry, as recognized by Chairman of the OJK Board of Commissioner, Wimboh Santoso, during a working meeting with the House of Representatives (DPR) at the Parliamentary Complex in Jakarta, Wednesday (1/22/2020). The OJK has admitted that it is carrying out reforms in the non-bank financial industry. These reforms have been carried out by the OJK since 2018. Now, with the problem of PT Asuransi Jiwasraya's failure to pay, the reform efforts in the non-bank financial industry needs to be accelerated. The second reason is that the development of the financial industry in Indonesia is quite rapid and complex. Thus, the presence of an institution such as the OJK is indispensable to the rapid development of the financial industry.