Jakarta. The Financial Services Authority, or OJK, has launched on Tuesday (20/06) an online licensing and registration system, which will significantly reduce the time needed by local lenders to secure approval for their bonds issuance, paving way for more streamline licensing within the country's financial industry.
The system, called the Integrated Licensing and Registration Information System, or Sprint, cuts the time needed for lenders issuing bonds to just 22 days from 105 days. It can do so by integrating paperwork in OJK's departments that handle banking with the one handling capital market.
"With this step, the OJK can significantly cut the processing time of the proposals, while still uphold the prudential aspects," OJK deputy commissioner Rahmat Waluyanto said.
Local banks have been eager to issue bonds this year to support their business expansion as they expect a rebound in loan demand.
Lenders like Bank Mandiri or Bank Rakyat Indonesia are among the biggest drivers for bonds issuance in the first half of this year, which is set to reach Rp 57.8 trillion ($4.34 billion), 124 percent higher than in the same period last year, OJK data showed.
Rahmat said that Sprint will help reduce risk of policy differences between OJK's banking and capital market department, which in the past have often delayed licencing processes.
An applying bank will also be able to track the progress of its application, improving transparency and accountability of the whole licensing process, Rahmat said.
OJK aims to expand the licensing system, so it can serve as a single window for all licensing processes in the county's financial industry, Rahmat said.