New OJK Chairman Wimboh Santoso May Lower Fees for Financial Companies

Wimboh Santoso, the new Indonesia's Financial Services Authority (OJK) chairman in a press conference on Friday (09/06). Wimboh promises more efficient budget spending within the authority. (JG Photo/Tabita)

By : Tabita Diela | on 10:43 PM June 09, 2017
Category : Business, Featured, Banking/Finance

Jakarta. Seasoned banker Wimboh Santoso was elected the chairman of the Financial Services Authority, or OJK, for 2017-2022, beating his competitor Sigit Pramono, also a senior banker.

Wimboh won 50 out of 55 votes at House Commission XI, which oversees finance and banking. He will begin his term in July, replacing Muliaman Hadad.

OJK supervises Indonesia's financial sector and is estimated to be worth $1.2 trillion. It collects fees from banks and non-bank financial institutions, including pension funds and insurance companies.

Wimboh, a former president commissioner of state lender Bank Mandiri, hinted that the OJK may lower its fee collection from financial institutions, as he seeks to cut spending, especially for unnecessary business travels and meetings.

"Efficiency is a must. We will save what we can save," Wimboh said in a press conference on Friday (09/06).

He also said the OJK will maximize the use of technology for its educational purposes, surveillance and e-procurement.

Right Man for the Job

Prior to his tenure at Bank Mandiri, Wimboh served as the head of Bank Indonesia's New York representative office and, later, as executive director at the International Monetary Fund.

Yanuar Rizky of research and consultancy company Bejana Investigate Globalindo told Jakarta Globe that the OJK should indeed review its spending to gain respect of the financial services community.

According to a government regulation of 2014, financial services companies are obliged to pay a permit fee and an annual fee to the OJK. Banks and insurance companies, for example, need to pay 0.045 percent of their total assets — with a minimum of Rp 10 million — a year.

OJK targets to collect Rp 4.37 trillion ($328.7 million) this year, 11 percent more than in 2016.

"Mr. Wimboh is the right man for the job with his knowledge, experience and political support," Yanuar said.

However, Yanuar said the domestic financial sector will be affected by uncertain global economic conditions for the next five years. Wimboh and six other new commissioners need to plan how to mitigate potential risks.

The new commissioners at the OJK are Nurhaida, Riswinandi, Heru Kristiyana, Hoesen, Ahmad Hidayat and Bank Indonesia spokesman Tirta Segara.

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