Jakarta (ANTARA) - The Financial Services Authority (OJK) has highlighted the need for collaboration and synergy among stakeholders to strengthen good governance in the financial services sector.

Chief executive for the supervision of financing institutions, venture capital companies, microfinance institutions, and financial services institutions at the OJK, Agusman, said that stakeholder collaboration is important to support the implementation of Law Number 4 of 2023 concerning Financial Sector Development and Strengthening (P2SK Law).

"Articles 266 and 267 of the P2SK Law emphasize that business actors are obliged to apply good governance principles, including openness, accountability, responsibility, independence," he said at the "Forum for Strengthening Internal Audit in the Non-bank Financial Industry Sector" here on Thursday.

In addition, the law requires business actors to implement effective risk management.

Still, there are several challenges, as reflected by the cases of integrity violations in the financial services industry. He said that one of the examples of this is the window dressing of companies' financial reports, an issue faced by internal auditors.

Window dressing is an attempt made by companies to manipulate financial reports to make them look better before they are published.

"OJK is committed to encouraging the implementation of governance, risk management, and compliance, or GRC, in an integrated manner. OJK also has the responsibility to ensure continuous good governance in the financial services sector," Agusman said.

On the same occasion, chair of the audit board and member of the OJK Commissioner, Sophia Wattimena, said that as a form of responsibility, the OJK is currently carrying out several initiatives.

The first initiative is drafting provisions and developing an application that supports technology-based supervision.

Second, setting business processes related to the Financial Sector Technology Innovation (ITSK) industry, including regulation, licensing, supervision, and the development of ITSKs.

Third, improving the community's literacy, especially on illegal investment and illegal online loans.

Fourth, readying an integrated policy framework between the banking sector, capital markets, and non-bank financial industry that is adequate to support the implementation of sustainable finance in the financial services sector.

"OJK has also formulated various provisions as a governance strengthening function that are expected to be followed by the financial services industry," she said.

She also emphasized that good governance can be realized through internal audits that are conducted in a professional manner and uphold integrity.

Related news: OJK, Ombudsman to improve public services in financial sector
Related news: OJK strives for inclusive digital finance with consumer protection
Related news: OJK combines programs for boosting people's financial literacy

Translator: Bayu Saputra, Raka Adji
Editor: Azis Kurmala
Copyright © ANTARA 2023