OJK to Gain Full Oversight Authority Over Taspen Pending Government Regulation

Enhanced Supervision Mandate Sought

The Financial Services Authority (OJK) is currently awaiting a government regulation that will enable it to exercise full oversight over PT Taspen (Persero), Indonesia's state-owned life insurance company. This development follows OJK's identification of significant governance issues at Taspen, including poor investment management practices that have led to suboptimal returns and potential misappropriation of funds.

Background and Regulatory Context

During a September 2025 meeting with Commission XI of the DPR (House of Representatives), OJK highlighted that Taspen's investment governance failures were a primary concern. In response, OJK has recommended explicit regulatory authority through the proposed P2SK Bill, which aims to strengthen financial sector oversight. Ogi Prastomiyono, Head of OJK's PPDP Executive Office, emphasized that effective investment governance requires enhanced risk management practices, regulatory compliance, and internal capacity building.

Taspen's Response to Potential Oversight

Taspen has expressed its readiness to be fully supervised by OJK, recognizing that strong regulatory oversight is crucial for maintaining public trust. Fary Djemy Francis, Taspen's President Commissioner, stated that the company is prepared to collaborate actively with OJK and other stakeholders to refine the regulatory framework and establish a comprehensive oversight system. This cooperative stance is seen as a positive step toward addressing the governance issues previously identified.

Implications for Corporate Governance

The proposed expansion of OJK's oversight authority to include Taspen reflects a broader effort to strengthen governance in Indonesia's financial sector. By enhancing regulatory supervision, the government aims to prevent future instances of mismanagement and ensure that state-owned enterprises operate with greater transparency and accountability.