The Financial Services Authority (OJK) is addressing findings from the Supreme Audit Agency (BPK) regarding the oversight of closed financing companies, which has been deemed suboptimal.
The BPK’s report indicates that the OJK has not been effective in ensuring the availability of closing balance sheets for financing companies whose licenses have been revoked.
A closing balance sheet is a financial statement as of the date of license revocation, prepared according to financial accounting standards.
“OJK is currently refining regulations concerning the requirement for closing balance sheets for financing companies that have had their business licenses revoked,” Aman Santosa, Head of OJK’s Department of Financial Literacy, Inclusion, and Communication, said on Thursday, June 6, 2024.
The OJK has also improved the Standard Operating Procedure (SOP) related to the revocation of business licenses for financing companies, which includes ensuring the availability of closing balance sheets.
“We have enhanced the SOP concerning the process of revoking business licenses for financing companies by requiring the availability of a closing balance sheet,” Aman said.
In the banking sector, OJK released the Roadmap for the Development and Strengthening of Indonesian Sharia Banking (RP3SI) 2023 – 2027 on November 27, 2023.
Additionally, OJK issued Regulation No. 17/2023 on the Implementation of Governance for Commercial Banks on September 14, 2023.
This regulation addresses governance aspects applicable to Conventional Commercial Banks, Sharia Commercial Banks, and Sharia Business Units.
Earlier, the BPK reported several findings related to the OJK, published in the Summary of Audit Results for the Second Semester of 2023 (IHPS II).
One of the findings highlighted that the OJK has not been optimal in ensuring the availability of closing balance sheets when financing companies have their licenses revoked.
The audit revealed that there were no closing balance sheets provided for the liquidation of 29 financing companies whose licenses were revoked by OJK.
