UMM Lecturer Assesses Insurance Industry Crisis in FGD MPR-RI

Author : Humas | Monday, September 13, 2021 10:33 WIB

Rahayu along with other discussants in the FGD MPR-RI. (Photo: Istimewah)

The scientific treasures owned by lecturers at the University of Muhammadiyah Malang (UMM) have been recognized by various groups. One of them is Prof. Dr. Rahayu Hartini, S.H., M.Sc., M.Hum, who was appointed to discuss in the Forum Group Discussion (FGD) last Wednesday (6/9). The FGD was carried out by the Consultative Assembly of the Republic of Indonesia (MPR-RI) in collaboration with the BS Center. In his presentation, he discussed the boom and crisis of the insurance industry from the perspective of the 1945 Constitution and Pancasila.

Rahayu, her nickname, explained that when the insurance industry boomed, the Financial Services Authority (OJK) had to provide various protection schemes. According to him, this shows that the authority of the OJK is too broad. It started from the non-bank financial services industry, including the insurance industry under her supervision.

"We can see the breadth of this authority from the various articles contained in Law Number 21 of 2011 concerning OJK. Who must carry out various regulatory and supervisory tasks on the activities of insurance financial services, pension funds, financing institutions, and other institutions," she said.

She also assessed that OJK does not yet have human resources (HR) with capacities and competencies balanced with industry players. It was coupled with the vast diversity of business and financial models. In addition, according to him, there need to be improvements regarding supervisory staff, both in terms of quantity and quality.

Furthermore, the UMM lecturer also said that the potential of the insurance industry is quite immense. Unfortunately, the government has not paid full attention to it. She also had the opportunity to mention the law, which according to him, is still chaotic. "Especially in the case of requests for postponement of debt payment obligations (PKPU) or bankruptcy," she said.

However, Rahayu also provides several solutions to related problems. The first is to establish a policy guarantee institution as stated in the Insurance Law. Then disband Unit Link for the common good. There is also a third: the OJK must carry out its duties and authorities as a supervisory agency.

Finally, the expert on insurance, bankruptcy, and trade law hope that these problems can be solved not only by the Insurance Act. More than that, you have to look at it from various sides and aspects. In addition, there is a need for maximum legal protection from the government for the community. "Even with the strengthening of the law so that harmful things do not happen again. Likewise, with decisions that have been committed, they must be implemented properly," she concluded. (apg/wil)

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