A Juridical Review of the Role of the Financial Services Authority (OJK) in Supervising Open-Loop Savings and Loan Cooperatives in Indonesia Under Law No. 4 of 2023 on the Development and Strengthening of the Financial Sector

Besar Pujiharto

Abstract: The role of the Financial Services Authority (OJK) in supervising Open-Loop Savings and Loan Cooperatives (KSP) in Indonesia. Open-Loop KSP is one of the important sectors of the Indonesian economy, but it is vulnerable to financial problems such as bad loans and misappropriation of funds. The author will conduct an in-depth assessment of the role of OJK in conducting supervision in Open Loop KSP institutions and to minimize the occurrence of violations that may occur. OJK is responsible for ensuring the security and stability of Indonesia's Financial Sector Services (JSK) industry. OJK will function as a supervisory team and regulate activities in the financial services sector.as regulated in the P2SK Law (Law Number 4 of 2023) which regulates Open-Loop KSP. For Closed-Loop KSP, the supervision remains under the authority of the Ministry of Cooperatives and SMEs, while the OJK for Open-Loop KSP. The writing method in this study is doctrinal legal research that refers to the main secondary data source and additional supporting data. The data source of this research comes from a literature study that uses secondary data.

Keywords: OJK Role, Supervision, Open Saving, Loan Cooperatives

How to Cite?: Besar Pujiharto, "A Juridical Review of the Role of the Financial Services Authority (OJK) in Supervising Open-Loop Savings and Loan Cooperatives in Indonesia Under Law No. 4 of 2023 on the Development and Strengthening of the Financial Sector", Volume 14 Issue 1, January 2025, International Journal of Science and Research (IJSR), Pages: 885-889, https://www.ijsr.net/getabstract.php?paperid=SR25116213355, DOI: https://dx.doi.org/10.21275/SR25116213355