Jakarta – The House of Representatives on Thursday finally endorsed the Law on Financial Service Authority (OJK), which rules on the establishment of a new authority tasked with regulating and monitoring all financial services.

The new law thus strips Bank Indonesia (BI) of its bank-oversight mandate, allowing the central bank to focus on its core function of monetary policy.

"We have monitored the day-to-day developments of the [OJK] bill. We admit that the OJK bill is among the bills that have drawn the most attention and caused the most deadlocks, distress and other controversies.

"However, finally, for the sake of public interest, we've managed to approve the bill today," House deputy speaker Budi Santoso said as quoted by kontan.co.id on Thursday in Jakarta during a House plenary session in which the new law was endorsed.

Finance Minister Agus Martowardodjo similarly welcomed the new law, saying the new financial authority would aid consumers.

He added that the new authority would be an independent institution, with nine collegial members of its board of commissioners, including two ex-officio members representing the Finance Ministry and BI.