Indonesia, South Korea Strengthen Bilateral Cooperation in Financial Services Supervision
Jakarta, The Gulf Observer: Indonesia’s Financial Services Authority (OJK) held a bilateral meeting with South Korea’s Financial Supervisory Service (FSS) to enhance cooperation and coordination in supervising financial service institutions operating across borders.
The meeting, held on Friday, was led by OJK Chair of the Board of Commissioners Mahendra Siregar and FSS Governor Lee Bokhyun. Discussions centered on the oversight of South Korean financial institutions in Indonesia, cross-border supervisory coordination, and potential future collaborations.
Strengthening Supervision
Mahendra Siregar emphasized the need for comprehensive discussions on the operations and business plans of Korean financial institutions in Indonesia. “This will provide a clearer understanding of the current conditions and facilitate more effective supervisory measures,” he stated in a press release on Saturday.
Governor Lee Bokhyun expressed his appreciation for the meeting, noting that it further strengthens bilateral relations between the two authorities. He highlighted the FSS’s willingness to exchange data and information with the OJK to enhance banking and insurance supervision in both countries.
Current Financial Landscape
South Korea currently has six banks and six insurance companies operating in Indonesia. Conversely, only one Indonesian bank has a branch office in Seoul, and no Indonesian insurance companies are present in South Korea.
The OJK and FSS formalized their cooperation in April 2015 through a Memorandum of Understanding (MoU). Since then, the partnership has included joint activities such as meetings, seminars, study visits, direct inspections, and staff secondments.
Commitment to Future Cooperation
The bilateral meeting reaffirmed the two authorities’ commitment to strengthening their collaboration in financial sector supervision. Both parties agreed to continue building upon their MoU framework to address emerging challenges and ensure robust oversight in the financial services sector.
This enhanced partnership aims to bolster supervisory functions and deepen bilateral relations, contributing to the stability and growth of financial services in both countries.
