OJK Strengthens PVML Industry Through Adaptive and Measured Policies
The Financial Services Authority (OJK) continues to strengthen its regulatory and supervisory functions in the financial services sector through policies responsive to industry dynamics and national economic developments. One such effort involves granting differentiated policies for certain provisions in the areas of Financing Institutions, Venture Capital Companies, Microfinance Institutions, and Other Financial Services Institutions (PVML) to support industry needs and maintain financial sector stability.
Kepala Departemen Surveillance dan Kebijakan Sektor Jasa Keuangan Terintegrasi OJK Agus Firmansyah stated in a written release on Wednesday (17/6) that the granting of these differentiated policies is carried out within the framework of OJK’s authority, guided by the General Principles of Good Governance (AUPB) in accordance with statutory regulations, and implemented by prioritising prudential principles and good governance.
The policy is expected to encourage PVML industry players to continue conducting business activities in a sound, prudent, and sustainable manner amidst evolving industry needs and increasing business challenges. The differentiated policies do not apply generally and can only be granted based on an application from the relevant company, considering OJK’s assessment of the company’s condition and compliance with applicable laws and regulations.
Several differentiated policies for PVML regulatory provisions have been established through OJK Board of Commissioners Decisions (KADK), granting approvals or differentiated policies to POJK regulations governing Financing Companies, Infrastructure Financing Companies, Venture Capital Companies, and Information Technology-Based Joint Funding Services. These include:
Foreign Ownership Limits, aimed at strengthening capital, easing business operations, and maintaining industry growth. This policy seeks to bolster the capital of companies that cannot yet be fulfilled by local shareholders. Companies remain obliged to adjust foreign ownership to the stipulated 85 percent limit no later than three years from the date of reporting the ownership change implementation to OJK.
Minimum Operating Period for Controlling Shareholders and/or Ultimate Controlling Shareholders in Legal Entity Form Before Making Investments, aimed at easing business operations, maintaining industry growth, and complying with applicable regulations. This policy supports capital strengthening from shareholders operating for less than two years but demonstrating good commitment in investing in the company.
Adjustment of Minimum Paid-Up Capital Due to Ownership Changes via Acquisition, aimed at easing business operations, maintaining industry growth, and complying with applicable regulations. This policy is granted to support capital strengthening by shareholders with still-developing financial conditions.
Implementation of Buy Now Pay Later (BNPL), providing a transition period for financial service businesses other than commercial banks and financing companies to transfer portfolios and cease BNPL operations in order to provide legal certainty. Through this policy, financial service institutions other than commercial banks and financing companies are given until 31 December 2027 at the latest to transfer portfolios and cease BNPL operations.
Certification Relevant to Position and Formal Educational Background Requirements in the Fit and Proper Test Process for Key Officials of Pawnshop Companies applying for business licences under POJK 29 of 2025 concerning Amendments to OJK Regulation Number 39 of 2024 on Pawnshops, aimed at easing business operations and maintaining industry growth. This policy aims to simplify initial business licence application requirements by exempting the formal educational background requirement and providing time to fulfil certification requirements no later than one year after the business licence is granted.
Reporting on the Ratification, Approval, or Receipt of Notification from Authorised Agencies regarding General Meeting of Shareholders Resolutions on Company Dissolution for the Business Licence Revocation Process, aimed at providing legal certainty and administrative ease for company dissolution, particularly concerning processes conducted at authorised agencies.
The granting of these differentiated policies is conducted selectively and measurably, considering the conditions of each company, industry development needs, while maintaining attention to consumer protection aspects, application of prudential principles, and financial sector stability. OJK will continue to strengthen PVML sector regulation and supervision in an adaptive and measured manner to maintain a balance between industry development, prudential principles, consumer protection, and national financial system stability.