Sophia Wattimena, the Chairperson of the Financial Services Authority (OJK) of Indonesia, has delivered a lecture aiming to bolster governance within the financial service sector, addressing hundreds of Batam students.
The talk, part of the “OJK Goes To Campus” series, took place at the Auditorium of Batam State Polytechnic. It represents a broader effort by OJK to engage the academic community and foster a more transparent financial ecosystem in Indonesia.
Throughout these initiatives, Wattimena hopes that various stakeholders can understand and appreciate the efforts made by OJK, thereby promoting and supporting its nationwide mission to enhance the integrity of its personnel.
Wattimena emphasized the aspiration that this drive can radiate out to the general populace, fostering an environment of transparency and health in the financial sector.
The OJK has advised the financial service industry to solidify its governance using a three-line model. The first focuses on the implementation of regulations by businesses, which includes improving human resources and functions of Governance, Risk, and Compliance.
The second tier centers around regulatory compliance by auxiliary financial service institutions, predominantly strengthening quality assurance processes. The third and final line involves the issuance and assessment of regulations by regulators and supervisors, leveraging technology for enhanced oversight.
Wattimena underscores that risk management in the sector should evolve from being solely compliance-driven to being organically integrated into an organization’s business processes. Such an approach not only addresses potential threats but also identifies and capitalizes on opportunities, influencing decision-making, fostering innovation, and aiding in achieving organizational objectives.
For Singaporeans and international visitors, a more transparent and robust financial system in Indonesia means safer investments, increased trust in financial dealings, and the potential for heightened economic collaborations. This aligns with the broader ASEAN goal of fostering integrated economic growth.
Sophia Wattimena of OJK has addressed Batam students to champion the strengthening of governance in the financial sector. Through a three-line model and a revamped approach to risk management, the OJK aims to foster a transparent, efficient, and resilient financial ecosystem. For Singapore and international stakeholders, this signifies a more trustworthy and collaborative financial landscape in Indonesia.
Source: GoKepri (2023)
