However, from 2015 onward, all microfinance institutions will be under the OJK."Medan, North Sumatra (ANTARA News) - Indonesia`s Financial Service Authority (OJK) will be in charge of regulating and monitoring microfinance institutions (LKM) from 2015 onward.
"After being founded in 2011, the financial authority has regulated and monitored the capital markets, as well as banking and non-bank financial institutions during the transition period. However, from 2015 onward, all microfinance institutions will be under the OJK," Finance Authority spokesperson Djonieri said here on Wednesday.
He explained that the move was necessary in view of the development of potential risks to the business, including consumers.
As the regulator of integrated financial services institutions, OJK is expected to ensure the smooth operation of capital markets, banking and non-bank financial institutions, as well as micro-finance institutions, so they can better protect their customers.
The OJK is also expected to help raise public awareness about illegal investment products.
Such illegal investment products typically have these characteristics: very high returns are promised; public funds are not recorded in a separate account; there is no clear guarantee of assets, be it corporate or industrial; and they typically originate from outside the country.
Illegal investment products are sold in various ways' one of them being through a system similar to multi-level online marketing and typically in alliance with some securities firms.
"So people must be aware of such illegal investment practices. The public can also reach our customer service department by dialing O21-500 655 at local rates," Djonieri said.
(Uu.INE/KR-BSR/A014)
Editor: Priyambodo RH
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