OJK Issues Regulation on Foreign Financing Institution Representative Offices in Indonesia

The Indonesian 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 drives increased cross-border financing cooperation,” wrote M. Ismail Riyadi, Head of the OJK’s Department of Financial Literacy, Inclusion and Communication, in a written statement on Thursday (12 March).

Through this regulation, M. Ismail Riyadi continued, the OJK provides legal certainty for the presence of foreign financial institution representative offices in Indonesia whilst ensuring that their activities remain within a prudent, transparent, and accountable supervisory framework.

“The OJK considers that companies or legal entities with headquarters abroad and without branch offices or subsidiary companies in Indonesia require an official channel to conduct marketing, information exchange, and coordination of business activities. The presence of Financing Institution Representative Offices serves as a connecting mechanism between foreign headquarters and business partners and customers in Indonesia,” he explained further.

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 companies, technology-based collective funding service providers, export-import financing institutions, and secondary housing financing companies.

A PVL Representative Office (KPPVL) is defined as an office of a PVL that is a foreign legal entity with headquarters abroad, functioning as a liaison with parties in Indonesia.

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

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

• Assisting headquarters or branch offices abroad in monitoring financing in Indonesia;

• Acting as supervisor of projects financed in whole or in part by headquarters or branch offices abroad;

• Conducting promotional activities to introduce the foreign-based PVL;

• Acting as a proxy in contacting institutions or agencies for the purposes of headquarters or branch offices abroad;

• Providing information regarding Indonesian economic, financial, and/or trade conditions to foreign parties or vice versa;

• Assisting Indonesian exporters in obtaining market access abroad through the international networks of KPPVL or vice versa;

• Encouraging increased foreign capital participation and/or financing in Indonesia to finance projects in priority sectors and regions;

• Facilitating the handling of consumer or customer complaints; and/or

• Other activities determined by the Financial Services Authority.

“KPPVL is expected to encourage increased financing and capital participation from abroad for projects in priority sectors and regions, and assist Indonesian exporters in obtaining access to global markets through the international networks of such institutions. However, in order to maintain financial system stability and create a level playing field for the domestic industry, KPPVL are prohibited from directly conducting financing institution business activities in Indonesia,” M. Ismail Riyadi explained.

To support implementation of this regulation, the OJK will conduct a Socialisation of POJK 41/2025 on 12 March 2026, followed by a PVL Representative Office Licensing Day comprising direct assistance (one-on-one support) to prospective applicants as an effort to accelerate the licensing process and enhance transparency of OJK licensing services.

“With the issuance of POJK 41/2025, the OJK hopes that the presence of foreign financial institution representative offices can make a positive contribution to the national economy, expand access to international financing, and support the development of priority sectors in Indonesia within a framework of strong and integrated supervision,” M. Ismail Riyadi concluded.