JAKARTA (TheInsiderStories) – After a thorough four-day selection process, the House of Representatives (DPR) finally appointed prominent bureaucrat Wimboh Santoso as the new boss of the Financial Services Authority (OJK) for the period of 2017-2022. Wimboh was elected in a nearly unanimous vote last week.
Wimboh, the president commissioner of Bank Mandiri and a former central banker, got 50 votes from lawmakers in the House Commission XI, defeated Sigit Pramono who only got four votes.
In a press briefing on June 9, Wimboh revealed that overall OJK will not only maintain the financial stability but must also take a role in facilitating the intermediation of banking sector and capital market, meaning to triggering the economic growth.
During selection process, Wimboh has explained to DPR about contribution fees OJK will collect from financial institutions. Wimboh also presented his focus on improving the transparancy on collecting the said fees.
Other concerns of Wimboh include early detection for financial system stability, advanced potential sectors with technology usage, one stop integrated service and autonomy for OJK representatives in the regions.
Having Wimboh as new boss of OJK would boost optimism? The InsiderStories has Wimboh’s comments on his view for the financial market development under his regime.
Follow the transcript of Q&A below :
Q: What is main issue that you consider in the capital market now?
B: We have to be able to intermediate market instrument such as insurance, private investment or foreign direct investment into infrastructure financing you know. This could be be made if people know the regulation and opportunity to finance through financial access. We need more experts to have up-to-date issues for all financial sectors as something new always come in this sector. We also need to communicate with market players, so we can produce the right regulations appropriate to market condition. We also want to focus on market deepening because it has been very challenging as our capital market always turns into high volatility. While fixed income market, such as commercial market, remains too shallow. We have almost no said instruments. Then, we would develop hedge instruments and sort of.
Q: is (high) volatility triggered by dominant foreign ownership in capital market?
B: It’s actually nothing to do with foreign investors. The main issue is to manage confidence. When investors both foreign and domestic have no confidence, they will run out their money. So we need to make them feel safe, by creating new instruments with better return.
Q: Any plans to encourage IPO activity and investors base in capital market?
A: At current time, the transparency would not be an issue. So we will create more stimulants and instruments for attracting more issuers.
Q: On banking sector, what are the big challenges in time ahead?
A: Our banking sector is now quite resilient. But I think the massive reform on the financial sector must become the main course.
Q: How is about the lending growth target?
A: It should be measurable. From the capital view, is it strong enough of its space? Is the liquidity enough? Is there enough credit demand? If the liquidity tightened, we do have more foreign investors or accelerate credit expansion. There should be a synchronization.
Q: OJK has its independency. How will you make sure that your institution can stand on your two feet in the future?
A: Of Course, all OJK acts must synchronise with the law and other institutions. We must demonstrate appropriate communication with others institutes, though this is very challenging for me as chairman. We need to become role model and need more criticisms from our team. When we decided to release such regulation, we must do it our way, in our perspective, but also inline with the understanding over the regulation from other institutions, so there will be a synergy. We create such a policy that accommodate market players.
His professional experience began with working at Bank Indonesia (BI) as Bank Auditor Staff in 1990 and has had a brilliant career with important roles, including as the Head of Internal Research Bureau (1993-1994), Chairman of the Banking Transformation Program (2001-2003), Head of Financial System Stability Bureau (2006-2009), Director of Research and Development Banking (DPNP) (2010-2012), Head of BI Representative of New York (2012-2013), Executive Director of the IMF (2013-2015) and the Economic and Finance observer and LPPI consultant (2015-present). He has a degree in Economics from the State University of Surakarta (1983), Master of Science, Business Administration from University of Illinois (1993) and Master of Financial Economics from the University of Loughborough (1999).