OJK Issues New Regulations on Foreign Financing Institution Representative Offices

The Financial Services Authority (OJK) has issued Financial Services Authority Regulation Number 41 of 2025 concerning Representative Offices of Financing Institutions, Venture Capital Companies, and Other Financial Service Providers Based Abroad (POJK 41/2025) as part of efforts to strengthen cross-border financial cooperation whilst safeguarding the stability of the national financial services sector. The issuance of this regulation represents a response to the increasing integration of global economic and financial activities, which has driven the expansion of cross-border financing cooperation.

Through this regulation, the OJK provides legal certainty for the existence of foreign financial institution representative offices in Indonesia whilst ensuring that their activities remain within a framework of prudent, transparent, and accountable supervision. The OJK recognises that companies or legal entities headquartered abroad without branch offices or subsidiaries in Indonesia require an official channel to conduct marketing, exchange information, and coordinate business activities. The presence of representative offices of financing institutions, venture capital companies, and other financial service providers serves as a liaison between headquarters abroad and business partners and clients in Indonesia.

Under POJK 41/2025, Financing Institutions, Venture Capital Companies, and Other Financial Service Providers (PVL) include financing companies, infrastructure financing companies, venture capital companies, pawn broking companies, technology-based crowdfunding service providers, export-import financing institutions, and secondary housing financing companies. Representative offices of PVL (KPPVL) are defined as offices of PVL entities that are legal entities and headquartered abroad, functioning as liaisons with parties in Indonesia.

Through this regulation, KPPVL may conduct various activities in Indonesia, including:

1. Providing information to third parties regarding the terms and procedures for conducting relations with headquarters or branch offices abroad;

2. Assisting headquarters or branch offices abroad in supervising financing in Indonesia;

3. Acting as supervisors of projects financed wholly or partially by headquarters or branch offices abroad;

4. Conducting promotional activities to introduce PVL entities headquartered abroad;

5. Acting as an authorised representative in contacting institutions or bodies for the purposes of headquarters or branch offices abroad;

6. Providing information regarding Indonesia’s economy, finance, and/or trade to foreign parties or vice versa;

7. Assisting Indonesian exporters to obtain market access abroad through the international networks of KPPVL or vice versa;

8. Promoting increased capital participation and/or financing from abroad in Indonesia to finance projects in priority sectors and regions;

9. Facilitating the handling of consumer or client complaints; and/or

10. Other activities determined by the Financial Services Authority.

KPPVL is expected to promote increased financing and capital participation from abroad for projects in priority sectors and regions, and to assist Indonesian exporters in obtaining access to global markets through the international networks of these institutions. However, to maintain financial system stability and create a healthy level playing field for the domestic industry, KPPVL is prohibited from directly conducting financing institution business activities in Indonesia.

To support implementation of this regulation, the OJK will hold a Socialisation of POJK 41/2025 on 12 March 2026, followed by a Licensing Day for Representative Offices of PVL featuring direct assistance (one-on-one assistance) to prospective applicants as a measure to expedite the licensing process and enhance transparency of OJK’s licensing services.

With the issuance of POJK 41/2025, the OJK hopes that the presence of foreign financial institution representative offices can contribute positively to the national economy, expand access to international financing, and support the development of priority sectors in Indonesia within a framework of strong and integrity-based supervision.