OJK Places 8 Insurers and 8 Pension Funds Under Close Supervision — Here's Why

The Financial Services Authority (OJK) is continuing to tighten supervision and enforcement of regulations in the insurance, guarantee and pension fund (PPDP) sector, including placing a number of troubled companies under special supervision.

Ogi Prastomiyono, Chief Executive of Insurance, Guarantee and Pension Fund Supervision at OJK, revealed that as of 24 August 2024, OJK had placed 8 insurance and reinsurance companies as well as 8 pension funds under special supervision.

The move forms part of efforts to resolve problems at financial institutions in the PPDP sector. Ogi stressed that OJK’s supervision is always carried out in accordance with prevailing laws and regulations, while taking into account the interests of policyholders and pension programme participants.

Beyond special supervision, OJK is also encouraging capital increases across the PPDP industry. For the first stage of equity enhancement for insurance and reinsurance companies, only 82.07% of companies had met the required minimum equity level by the end of 2024. Meanwhile, only 75% of guarantee companies had complied with the minimum capital requirements over the same period.

For supporting companies such as insurance brokers, reinsurance brokers and insurance loss assessors, compliance with the first-stage equity requirements is higher, at 85.45%.

Separately, OJK is drafting a regulation (RPOJK) on periodic financial reporting for the guarantee sector, as part of efforts to strengthen governance and transparency in the guarantee industry.

To promote pension fund literacy and inclusion, OJK and stakeholders also launched the 2024 Pension Fund Month on 6 September 2024, a national movement to expand participation and public awareness of preparing pension funds from an early age. More than 100 literacy and inclusion activities will be held across various regions during the programme.