JAKARTA (TheInsiderStories) – Constitutional Court is scheduled to make crucial decision on the fate of Financial Service Authority (Otoritas Jasa Keuangan/OJK) today. The judicial review has gone unnoticed by media and public in general.
The question is will Counstitutional Court accept the judicial review and close down OJK, just like BP Migas few years ago? Certainly the fate of OJK is now in the hands of 9 Judges of OJK who will make decision today.
A team called Tim Pembela Kedaulatan Ekonomi Bangsa (Team to Defend the Nation’s Economic Sovereignty) has earlier filed judicial review on the Law No. 21 Year 2011 on Financial Service Authority with the Constitutional Court.
The Judicial Review was filed by a number of individuals, namely Salamuddin Daeng, Ahmad Suryono and Ahmad Irwandi with Azhar Rahim Rivai SH, MH and associates acting as legal attorney. Salamuddin Daeng is also chairman of Association of Political Economy Indonesia and also director of Institute of Global Justice.
The team has sought three demands to the Constitutional Court, first, ending the independence of OJK as a superbody, second contesting the supervisory function of OJK on banking industry, which was previously in the hands of Bank Indonesia and third rejecting levy collected by OJK.
Member of TPKEB Salamuddin Daeng said earlier that the levy has burdened banks, insurance and financial industry as a whole. OJK as a superbody manages National Social Security System as well as supervise banks as well as non-banking industry.
The team argues that the presence of OJK is against the Constitution.
The Constitutional Court has conducted hearing with a number of experts, including Margarito Kamis and Professor Sri Edi Swasono of University of Indonesia. Both represents the plaintiffs. Executive Head for Capital Market of OJK Nurhaida has also given testimony during the trial at the Constitutional Court.
OJK has begun full operation from December 31, 2014 with six regional office and 29 branches. The government and the Parliament have appointed Muliaman Hadad as Head of the OJK’s Board of Commissioners.
Observers and industry players have said if OJK or FSA ceases its operation it could be a major setback for the nation given that the establishment of OJK has gone through a long process and heated debate.
Banking observer Ryan Kiryanto said late last year that the judicial against OJK with a purpose to dismiss OJK will become “a setback”. He also questioned those who filed the judicial review as the establishment of OJK has gone through long process which involves the public. (*)
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