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FACING MEA, OJK STRENGTHEN THE SAFE GUARD OF FINANCIAL SECTOR

Posted on August 21, 2015 on 15:25:14 WIB

Financial Services Authority (FSA) or OJK, will strengthen the safe guard (security system) the domestic financial sector in order to face the implementation of the Asean Economic Community (AEC). Strengthening safe guard intended that the financial industry in the country is not just a spectator in his own country.

International Director of OJK Triyono explained, implementation of MEAs always associated as liberalism 100%. "In fact, each country still had to maintain its market although MEA enforced," he said recently.

In the banking industry, said Triyono, safe-guard takes the form of an agreement Asean Banking Integration Framework (ABIF). While in the insurance industry in the form of agreements in Asean Insurance Regulatory Meeting (AIRM).

"The agreement was made in the regional forum imposes limits should and should not be done, when it will go into a country," he stated.

Agreement in ABIF bank confirms that want to expand a country must meet the Qualification level Asean Bank (QAB). Banks entering this QAB level will be treated as a local bank, but still refers to the agreements made.

Although there is agreement in ABIF, OJK still make regulations to strengthen the domestic market. For example, about the placement of foreign workers (TKA). Although MEA will be applied, the rules regarding foreign workers will not change. "The placement of foreign workers only to directors or one level below the board of directors," he explained.

Chief Executive of Non-Bank Financial Industry Supervisory OJK Firdaus Djaelani explained, in the early stages of implementation of MEA, there are only three lines of insurance that will be opened first, namely insurance aviation, marine, and across borders.

Because, not all countries are ready to open up for all lines of insurance. In fact, of the three lines of insurance, new domestic insurance industry is ready to open up for cross-border and aviation insurance.

"It will be opened three lines, namely marine, aviation, and cross-border. However, on our readiness to submit to the industry because not everything is easy, "said Firdaus.

He also express, for marine insurance, OJK see insurance companies are not ready to open up. Therefore, the classification of ships between the various ASEAN countries differ from one country to another. "Classification of ships in Indonesia using classification bureau in Indonesia, but not necessarily Malaysia can accept it," he said.

Meanwhile, for the aviation insurance more easily opened at the regional level. The reason is, there is the benefit of the lessor, when they bought the boat did not use the insurance companies here. As for the cross-border insurance no problem.

He added, proper preparation is the key factor of insurance and reinsurance companies in order to compete at the level of ASEAN, gradually not only three lines of insurance to be opened , but will extend to other business lines. Preparations that needs to be done such as getting international rating in order to accommodate the business at the regional level.

Source: Investor Daily dated 14 April 2015


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