! No. SP 90/DKNS/OJK/9/2016 PRESS RELEASE OJK AND CENTRAL SULAWESI GOVERNMENT INAUGURATE LOCAL FINANCIAL ACCESS ACCELERATION TEAM AND INVESTMENT ALERT TASK FORCE Palu, September 22, 2016 — Chairman of the Board of Commissioners of the Financial Services Authority (OJK) Muliaman D. Hadad together with Central Sulawesi Governor Longki Djanggola inaugurated Central Sulawesi Province’s Team for Regional Financial Access Acceleration (TPAKD), which is expected to raise the financial services sector’s contribution to the province’s economic growth and the equal welfare distribution among the local community there. On the same occasion, the Task Force for Handling Alleged Unlawful Acts involving Public Funds Collection and Investment Management or the Investment Alert Task Force was also established to provide more protection for the financial services sector’s consumers in Central Sulawesi. Regional Financial Access Acceleration Teams (TPAKD) are coordinating forums for government institutions and stakeholders that aim to improve financial access acceleration in regional areas, in order to boost local economic growths and create more prosperous communities. Results of the 2013 OJK survey showed that financial literacy rate in Central Sulawesi only hovered around 15 percent, which means only 15 out of 100 local residents know, understand about, and have skills in using financial products and services. As for the province’s financial inclusion rate, it has just reached 35 percent. This indicates that merely 35 out of 100 local residents have taken advantage of financial products and services, most of which are those of the banking sector. Regional Financial Access Acceleration Teams are established to follow up Home Minister Radiogram No. T-900/634/Keuda dated February 19, 2016 that asks regional chiefs, in this case governors, regents and mayors, to form such teams in their respective provinces/regencies/cities together with the OJK. In his welcome speech, Central Sulawesi Governor Longki Djanggola expressed his appreciation for the establishment of the province’s TPAKD and expected to see real benefits from the coordinating forum’s presence towards promoting economic growth and equal welfare distribution among the local community, especially the MSME sector in the province. OJK Chairman Muliaman D. Hadad said that the objective of the TPAKD was to push further the real sector development that in turn would stimulate the local economy with full support from the financial services industry. He added that the TPAKD’s presence represented his agency’s concrete support to the Central Sulawesi provincial government in dealing with the financial access issue in the province, since immediate, sustainable, and carefully-constructed policies are parts of the essential solution for the problem. The Central Sulawesi TPAKD is expected to accelerate and expand access to loan/financing distribution to the province’s priority sectors, including maritime and fishery, plantation, agricultural, and creative economy sectors. The team is also expected to expand access to financial products and services through Laku Pandai (branchless banking) agents and to financial protection programs, including agricultural and microinsurance products. ! At the inauguration event, directors of Mandiri Bank, Bank Negara Indonesia (BNI), Bank Rakyat Indonesia (BRI) and Bukopin Bank handed loan agreements (SPK) of people’s business loans (KUR) and MSME credits and Laku Pandai agent certificates to debtor and Laku Pandai agent representatives respectively. On the same occasion, directors of the Central Sulawesi Regional Development Bank delivered SPK of agricultural credits to debtor representatives and the loans are covered by the rice farmer insurance (AUTP) from Jasindo Insurance Company. As of August 31, 2016, total loans distributed in Central Sulawesi have amounted to IDR 24.13 trillion, IDR 7.58 trillion of which was channeled to MSMEs. For the same period, the number of Laku Pandai agents in the province has reached 1,186 persons. In terms of agricultural insurance, 218 policies have been issued in Central Sulawesi as of August 31, 2016, with a total of IDR 763.4 million raised in premiums and a total of 4,241.18 hectares insured. The OJK and the financial services industry are committed to ensuring distribution of more MSME loans, which include people’s business loans (KUR), expanding access to farm and micro credits, and raising the number and productivity of Laku Pandai agents in Central Sulawesi. Establishment of Local Investment Alert Task Forces represents a follow-up to the memorandum of understanding between the Financial Services Authority (OJK) and a number of ministries/agencies, including the National Police, the Attorney General’s Office, the Ministry of Trade, the Ministry of Communication and Information Technology, the Ministry of Cooperatives and Small-Medium Enterprises, and the Investment Coordinating Board (BKPM). The agreement was signed on June 21, 2016, in Jakarta. The cooperation aims to prevent and deal with unlawful acts related to public funds collection and investment management that have brought a lot of concern among the public, by means of preventive, curative, and repressive (law enforcement) measures. The Central Sulawesi Investment Alert Task Force was set up following widespread investment offers that promised unusually large profits by irresponsible parties that did not have any permit from authorized agencies. The offers had lured many people to invest their funds but at the end these investors suffered financial losses when swindlers who worked at enterprises that ran Ponzi schemes took away and misused their money. OJK Chairman Muliaman D. Hadad expected the Central Sulawesi Investment Alert Task Force to be proactive in implementing preventive efforts in order to prevent the public from suffering more losses and provide security for investors and people who wish to invest their money. In response to the issue described above, the OJK has launched Investor Alert Portal (IAP), a public facility that people can use to check companies/parties that do not have licenses to offer investments/collect public funds. The portal is accessible from a minisite called http://sikapiuangmu.ojk.go.id! The OJK encourages the public to proactively share any information about suspicious investment offers either by phone at 1 500 655, or by email at [email protected] or at [email protected]. *** For more information: Moh. Syukri A. Yunus, Head of Central Sulawesi’s OJK Office Tel +62 451 482 787 Email: [email protected] www.ojk.go.id .