Effectiveness of OJK Supervision in Maintaining National Financial System Stability

Abstract

This study evaluates how effectively the Financial Services Authority (OJK) carries out its supervisory role in maintaining national financial system stability through institutional accountability, supervisory capacity, and consumer protection. Several challenges to Indonesia’s financial stability include the dominance of the banking sector, external vulnerabilities, unequal financial access, and limited data regarding the household sector and non-bank financial institutions. Events such as the Jiwasraya and Asabri cases, along with the rise of illegal fintech platforms, illustrate gaps in supervision and law enforcement by OJK. This study employs a qualitative method with a case study approach, supported by document analysis, including regulations, OJK annual reports, court decisions, and financial sector policies, covering the period from 2019 to 2024. The findings indicate that OJK has made improvements in oversight through data integration, risk-based supervision, and the adoption of technological tools. Nonetheless, the effectiveness of these measures continues to face challenges related to data quality, human resource capacity, inter-agency coordination, and limitations in consumer protection mechanisms. The significance of this research lies in the need for more adaptive, transparent, and collaborative supervisory reforms, enabling OJK to function as a reliable and responsive guardian of financial stability. It is hoped that these findings can contribute to the development of supervisory policies that prioritize stability and fairness for the public.