OJK Bans Party Members From Bank Leadership

MARCH 21, 2015

Jakarta. The Financial Services Authority, known as OJK, has announced plans to ban members and affiliates of political parties from being appointed directors and commissioners to banks, in order to prevent possible conflicts of interest.

“Party affiliates should not be on the board of directors or in commissioner positions; [OJK] worries there would be conflicts of interest,” OJK deputy commissioner for banking supervision Mulya Siregar said on Wednesday.

During vetting for bank executives, the OJK will investigate candidates to check for political party ties, he said.

It has become a common practice in Indonesia to have politicians and other influential party members sit in commissioner positions in companies, including banks, as reciprocity or a form of gratitude for political favors.

But for bank executives, lenders rarely pick non-professionals for these roles. Investor Daily