The Dubai Financial Services Authority (DFSA) last week extended its formal ties with its counterparts in South East Asia, by entering into a Memorandum of Understanding (MoU) with its Indonesian counterpart, the Otoritas Jasa Keuangan (OJK).

The MoU was signed by the Chief Executive of the DFSA, Mr Ian Johnston, and the Chairman of the OJK Board of Commissioners, Dr Muliaman D. Hadad.

This signing followed a meeting a few days earlier in Bangkok between Mr Johnston and Khun Tipsuda Thavaramara, Deputy Secretary General of the Securities and Exchange Commission, Thailand (SEC). The SEC was among the first foreign regulators to sign an MoU with the DFSA in 2006 and, since then, the DFSA has forged formal links with its ASEAN counterparts, namely Malaysia's Bank Negara, its Securities Commission and the Monetary Authority of Singapore.

Similarly to the DFSA, the OJK is the independent integrated authority. It regulates and supervises financial services institutions and all financial services sector activities in the Republic of Indonesia.

Mr Ian Johnston, Chief Executive of the DFSA said: “I would like to thank the OJK Chairman, Dr Muliaman D. Hadad, and his fellow Commissioners, for their presence and for their welcome. Both the OJK and the DFSA, as signatories of the Multilateral MoU of the International Organisation of Securities Commissions (IOSCO), have already met the rigorous and respected standards of cooperation between capital market regulators. This enhancement of information sharing and assistance between the OJK and the DFSA to exchanging views on global regulatory reforms and capacity building is a critical step to ensuring confidence in each of our regulatory regimes. The DFSA looks forward to working with the OJK for the benefit of both Indonesia and our Centre in the UAE.”

Mr Johnston added: "In addressing the authorisation and supervision of Islamic Finance, this initiative underscores Indonesia's position as the world’s most populous Islamic market. Indonesia is a founding member of the Islamic Finance Standards Board (IFSB) and the OJK, with the Central Bank of Indonesia, has this week hosted a meeting of the IFSB Council, which I also attended.

Dubai's Islamic Finance Initiative, led by His Highness Sheikh Mohamad Bin Rashid Al Maktoum, in His Highness's capacity as Ruler of Dubai, has inspired the Dubai International Financial Centre (DIFC), to become a centre for excellence in Islamic Finance in the Middle East and, with its tailor-made regulatory system for Islamic Finance. The DFSA looks forward to working with the OJK, under this MoU, to promote and develop this sector.”