Jakarta – Executive Head of the Financial Services Authority’s (OJK’s) Capital Market Supervisor Inarno Djajadi outlined various efforts to push the domestic capital market industry in 2023.

During the Financial Service Industry Annual Meeting (PTIJK) streamed on Monday, he explained that the OJK will conduct coordination with various ministries and institutions.

This step is taken as a follow up to the ratification of Law No. 4 of 2023 on Financial Sector Development and Strengthening (P2SK).

“Specifically, in the capital market field, to support the effectiveness of development, regulation, and monitoring,” he explained.

The OJK will also coordinate with the Coordinating Ministry for Maritime Affairs and Investment as well as the Ministry of Environment and Forestry to prepare for carbon exchange in Indonesia, he noted

Subsequently, the OJK will conduct coordination with the Trade Ministry’s Commodity Futures Trading Regulatory Agency (Bappebti) in a bid to regulate and monitor the derivative financial instrument in the capital market.

Moreover, the OJK will collaborate with Bank Indonesia (BI) to regulate and monitor the money market and the collective utilization of financial market infrastructure.

This coordination will later be undertaken with other related ministries and institutions to regulate and monitor the market as well as to enforce the law, Djajadi stated.

Moreover, the OJK will optimize the adoption of technology as an effort to support business efficiency and sustainable finance development in Indonesia’s capital market industry in 2023.

“Financial market is still shallow, fragmented, and not yet consolidated,” he remarked.

Moreover, the OJK will strengthen the legal framework to support the effectiveness of law enforcement and investor protection.

This is carried out through management quality and market actor integrity strengthening as well as improvement of financial literacy.

He noted that these efforts have been described within Indonesia’s capital market roadmap 2023-2027 that was unveiled on January 30, 2023, as a strategic program that refers to the five pillars of development.

The roadmap contains various strategic initiatives that support the implementation of the P2SK Law, including formulation of the law’s derivative regulations this year.

One of the initiatives includes carbon exchange regulation issuance and infrastructure preparation, Djajadi remarked.

Source: Antara News