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Posts Tagged ‘Application Fee’

Theory that can explain the application fee by OJK is the theory of clubs. At the beginning of its emergence, the theory is to study the optimal size of a group who consumed the goods or services simultaneously and the optimal provision of goods and services. Consumption of goods or services simultaneously can create economies of scale for providers and business. On the other hand, it raises the cost of consumption are equally shared by the group. Benefits and costs that arise and be shared are a network effects (Lacker, 2006). In the context of the financial sector, the scope of today’s financial institutions is to create economies of scale for OJK in running activities. Costs arising from the financial sector supervision will be borne by financial institutions. However, what benefits can be obtained from the consumer? The question arises because the consumer is likely involved financial institutions bear the burden of contributions to the OJK.

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