Clear regulations regarding the authority of the investigation

Oct 13, 2025 by wbrum.org 126 views

Juridical Analysis The position of the Capital Market Supervisory Agency (Bapepam) after the enactment of Law No. 21 of 2011 concerning Financial Services Authority

Introduction

The Capital Market Supervisory Agency (Bapepam) has played a crucial role in providing guidance, regulation, and supervision of activities in the capital market in Indonesia. However, with the enactment of Law No. 21 of 2011 concerning the Financial Services Authority (OJK), the authority previously owned by Bapepam has been taken over by the OJK. This significant change has raised questions about the current status and role of Bapepam in the supervision of the capital market. In this article, we will delve into the background of the establishment of OJK, the authority of Bapepam before OJK, and the transformation of Bapepam's authority after OJK.

Background of the birth of the Financial Services Authority

The Financial Services Authority was formed based on the mandate of Article 34 of the Bank Indonesia Law, with the aim of creating an independent regulatory and supervisory institution. The existence of OJK is expected to overcome many problems that arise due to lack of coordination and overlapping authority in the financial sector, including the capital market sector. It is hoped that with the OJK, supervision of the financial services sector can be carried out more integrated, through the application of the Integrated Supervisory Model that separates the regulatory and supervision functions.

The establishment of OJK is a response to the need for a more effective and efficient regulatory and supervisory body in the financial sector. The OJK is expected to provide a more comprehensive and integrated approach to supervision, which will ultimately benefit the capital market and the economy as a whole. The OJK's independence from the Ministry of Finance is also expected to reduce the risk of political interference and ensure that the regulatory and supervisory functions are carried out in a more impartial manner.

Bapepam's authority before OJK

Before the OJK was established, supervision of the capital market was fully carried out by Bapepam, which was structurally under the Ministry of Finance. The authority of Bapepam at that time included guidance, regulation, and supervision of all activities related to the capital market. However, because Bapepam is under the Ministry of Finance, its authority is limited and many cases that arise in the capital market cannot be resolved effectively. This contributes to various problems that are detrimental to investors and interfere with public confidence in the capital market.

The limited authority of Bapepam has been a major concern in the capital market, as it has hindered the effective supervision of the market. The lack of coordination and overlapping authority between Bapepam and other institutions, such as the Deposit Insurance Corporation (LPS) and the banking sector, has also contributed to the problems in the capital market. The establishment of OJK is expected to address these issues and provide a more effective and efficient regulatory and supervisory framework for the capital market.

Transformation of Bapepam's authority after OJK

With the enactment of Law No. 21 of 2011, Bapepam has officially transformed into part of the OJK. Although OJK takes over the authority of Bapepam, the process of harmonization between existing regulations is a challenge. Therefore, it is important to immediately approve the Draft Law on the Capital Market (UUPM) so that there is no overlapping authority between OJK and other institutions.

The transformation of Bapepam's authority has significant implications for the capital market in Indonesia. The OJK's takeover of Bapepam's authority is expected to provide a more effective and efficient regulatory and supervisory framework for the capital market. However, the process of harmonization between existing regulations is a challenge that needs to be addressed. The OJK needs to immediately issue clear regulations regarding the authority of the investigation in order to handle cases in the capital market more efficiently.

Conclusion

Changes that occur due to the birth of the OJK have a significant impact on the structure of capital market supervision in Indonesia. Although there are challenges in the harmonization and adjustment of regulations, the existence of OJK is expected to increase the effectiveness of supervision and provide more confidence to the community and investors. In the future, coordination between supervisory agencies and clear regulations will be the key in creating a healthy and sustainable capital market.

The OJK's takeover of Bapepam's authority is a significant step towards creating a more effective and efficient regulatory and supervisory framework for the capital market. However, the process of harmonization between existing regulations is a challenge that needs to be addressed. The OJK needs to issue clear regulations regarding the authority of the investigation in order to handle cases in the capital market more efficiently. Ultimately, the success of the OJK in providing a more effective and efficient regulatory and supervisory framework for the capital market will depend on its ability to address the challenges of harmonization and coordination between supervisory agencies.

Recommendations

Based on the analysis of the transformation of Bapepam's authority after OJK, the following recommendations can be made:

Immediate approval of the Draft Law on the Capital Market (UUPM): The OJK needs to immediately approve the Draft Law on the Capital Market (UUPM) in order to ensure that there is no overlapping authority between OJK and other institutions.
Clear regulations regarding the authority of the investigation: The OJK needs to issue clear regulations regarding the authority of the investigation in order to handle cases in the capital market more efficiently.
Coordination between supervisory agencies: The OJK needs to coordinate with other supervisory agencies, such as the Deposit Insurance Corporation (LPS) and the banking sector, in order to ensure that there is no overlapping authority and that the regulatory and supervisory functions are carried out in a more effective and efficient manner.
Training and capacity building: The OJK needs to provide training and capacity building for its staff in order to ensure that they have the necessary skills and knowledge to carry out their functions effectively.

By implementing these recommendations, the OJK can ensure that the capital market in Indonesia is supervised in a more effective and efficient manner, and that the interests of investors are protected.
Frequently Asked Questions (FAQs) about the Capital Market Supervisory Agency (Bapepam) and the Financial Services Authority (OJK)

Introduction

The Capital Market Supervisory Agency (Bapepam) and the Financial Services Authority (OJK) are two important institutions in the financial sector of Indonesia. Bapepam was responsible for supervising the capital market before the establishment of OJK, while OJK is now responsible for regulating and supervising the financial services sector, including the capital market. In this article, we will answer some frequently asked questions (FAQs) about Bapepam and OJK.

Q: What is the difference between Bapepam and OJK?

A: Bapepam was a government agency responsible for supervising the capital market, while OJK is an independent regulatory and supervisory institution responsible for regulating and supervising the financial services sector, including the capital market.

Q: What is the role of OJK in the financial services sector?

A: OJK is responsible for regulating and supervising the financial services sector, including the capital market, banking, insurance, and other financial institutions. OJK's role is to ensure that financial institutions operate in a safe and sound manner, and that the interests of investors are protected.

Q: What is the impact of the establishment of OJK on Bapepam?

A: The establishment of OJK has resulted in the transfer of Bapepam's authority to OJK. Bapepam is now part of OJK and is responsible for supervising the capital market under the guidance of OJK.

Q: What are the benefits of the establishment of OJK?

A: The establishment of OJK has several benefits, including:

Improved supervision: OJK has a more comprehensive and integrated approach to supervision, which will ultimately benefit the capital market and the economy as a whole.
Increased independence: OJK is an independent regulatory and supervisory institution, which reduces the risk of political interference and ensures that the regulatory and supervisory functions are carried out in a more impartial manner.
Better coordination: OJK is responsible for coordinating with other supervisory agencies, such as the Deposit Insurance Corporation (LPS) and the banking sector, to ensure that there is no overlapping authority and that the regulatory and supervisory functions are carried out in a more effective and efficient manner.

Q: What are the challenges facing OJK?

A: OJK faces several challenges, including:

Harmonization of regulations: OJK needs to harmonize existing regulations to ensure that there is no overlapping authority between OJK and other institutions.
Coordination with other supervisory agencies: OJK needs to coordinate with other supervisory agencies to ensure that there is no overlapping authority and that the regulatory and supervisory functions are carried out in a more effective and efficient manner.
Training and capacity building: OJK needs to provide training and capacity building for its staff to ensure that they have the necessary skills and knowledge to carry out their functions effectively.

Q: What is the future of Bapepam?

A: Bapepam is now part of OJK and is responsible for supervising the capital market under the guidance of OJK. Bapepam's role is to provide guidance, regulation, and supervision of activities in the capital market, and to ensure that the interests of investors are protected.

Q: How can investors benefit from the establishment of OJK?

A: Investors can benefit from the establishment of OJK in several ways, including:

Improved supervision: OJK has a more comprehensive and integrated approach to supervision, which will ultimately benefit the capital market and the economy as a whole.
Increased confidence: OJK's independence and impartiality will increase confidence in the capital market and the economy as a whole.
Better protection: OJK's role is to protect the interests of investors, and to ensure that financial institutions operate in a safe and sound manner.

By understanding the role of OJK and the impact of its establishment on Bapepam, investors can make informed decisions about their investments and benefit from the improved supervision and protection provided by OJK.