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The Financial Services Authority (OJK) is preparing a smooth transition process amid global financial uncertainty to implement the Financial Sector Development and Strengthening (P2SK) Law, Chairperson of OJK's Board of Commissioners Mahendra Siregar stated.

"P2SK Law's ratification demanded major allocation of resources that necessitates internal reformation of the OJK, through policy improvement and organization as well as human resources' transformation," he noted during the Financial Service Industry Annual Meeting here, Monday.

The OJK will also reform the financial sector's landscape to encourage development of the sharia financial service sector, especially to support the spin-off of the Sharia Business Unit related to the financial service institution consolidation program.

With regard to the Insurance Agreement Letter Guarantee Program by 2028, the OJK coordinates with industry associations, so that insurance companies can meet the membership requirements of the program by continuing efforts to make the insurance industry healthy.

The OJK will also improve public and finance consumers' protection efforts by strengthening market conduct monitoring through improving the monitoring framework in accordance with international standards and best practice.

In connection with the P2SK Law's mandate to deepen the financial sector, the OJK will gradually expand the financial services sector's activities and products, such as carbon exchange, bullion business activities, and crypto digital assets.

This is undertaken by considering aspects related to benefits, need, and carefulness principle, through the implementation of the same business, same risks, same rules principle.

In 2023, beyond implementing the P2SK Law, the OJK will also focus on improving service and strengthening capacity, such as by expanding the utilization of the Financial Information Service System (SLIK) to ensure a level playing field.

Moreover, the OJK will expedite single window licensing as well as provide faster and more integrated licensing service, Siregar stated.

The institution will also facilitate the financial service industry's coordination with authorities and other institutions to avoid service duplication, level the treatment standard, as well as offer legal certainty.  (Antaranews)