SP 16/GKPB/OJK/I/2025
PRESS RELEASE
OJK ISSUES REGULATION ON FINANCIAL CONGLOMERATION AND WRITTEN ORDERS TO STRENGTHEN FINANCIAL SERVICES SECTOR
Jakarta, January 23, 2025. Indonesia Financial Services Authority (“OJK") issued OJK Regulation (“POJK") Number 30 of 2024 on Financial Conglomeration and Financial Conglomeration Parent Company (“KK PIKK") and POJK Number 31 of 2024 on Written Orders to strengthen integrated financial services sector supervision on prudence and market conduct.
POJK Number 30 of 2024
POJK KK PIKK is one of OJK's measure to increase the effectiveness and efficiency of integrated supervision on financial services institution groups held and/or controlled by the same owner.
This regulation is a refinement of POJK Number 45/POJK.03/2020 on Financial Conglomeration, prepared to implement the mandate from Chapter XV: Financial Conglomeration of Law Number 4 of 2023 on the Strengthening and Development of the Financial Sector (“P2SK Law"). Chapter XV of P2SK Law stipulates OJK to regulate Financial Conglomeration and to adjust KK PIKK regulation with the international regulations and benchmarking results from several countries.
The POJK issuance is expected to contribute to the financial sector strengthening and development in Indonesia to become healthier, more independent, and more competitive and more contributory in preserving financial system stability.
Moreover, integrated supervision on Financial Conglomeration and Financial Conglomeration Parent Company is expected to promote inclusive, sustainable, and fair national economic growth in order to realize prosperous, advanced, and dignified society in Indonesia.
POJK KK PIKK transforms the financial conglomeration supervision concept, from the main entity concept to PIKK that controls, consolidate, and is responsible of all the Financial Conglomeration members. POJK KK PIKK generally stipulates KK and PIKK establishment and institutions, including:
- Criteria of KK that are required to establish PIKK, and PIKK establishment procedures;
- PIKK's business activities, duties, and responsibilities;
- Criteria of ownership and control within KK;
- Procedure of ownership and control changes in KK, PIKK management including Fit and Proper Assessment (“PKK") and Main Party Reassessment (“PKPU") for PIKK;
- Prohibition of cross-ownership;
- OJK's authorities to set forth certain regulations; and
- Termination of PIKK and follow up of PIKK establishment.
This POJK became effective on the day of its promulgation on December 23, 2024, annulling POJK Number 45/POJK.03/2020 on Financial Conglomeration.
Other OJK regulations that stipulates Financial Conglomeration (namely Integrated Governance for KK, Integrated Risk Management for KK, Integrated Minimum Capital Provision Obligation for KK, and Supervision of PT Bahana Pembinaan Usaha Indonesia) will prevail as long as they do not contradict the POJK.
POJK Number 31 of 2024
POJK Number 31 of 2024 on Written Orders adjusts the provision on OJK's authority in releasing OJK Wide-level Written Orders, prioritizing principle-based regulation preparation and adjustments and updates based on P2SK Law.
The issuance of Written Order POJK aims to create a stable and sustainable financial system growth, promote consumer and public protection through supervision strengthening for orderly, fair, transparent, and accountable SJK activities both in prudence and market conduct.
The POJK issuance follows up the mandate of Article 8A of Law Number 21 of 2011 on OJK amended by the P2SK Law (“OJK Law"), which stipulates OJK's authorities in issuing Written Orderss to LJK for merger, consolidation, acquisition, integration and/or conversion (“PI3K").
Written Order POJK stipulates the procedures of written order issuance to LJK and other parties, with amended main regulatory points as follows:
- Addition of P3IK order provisions, in accordance with Article 8A of OJK Law;
- Harmonization of market conduct supervision on “issuing certain orders or actions" in accordance with Article 244 of P2SK Law; and
- Annulling three POJKs:
- POJK Number 18 of 2022 on Written Orders;
- POJK Number 18/POJK.03/2020 on Written Orders for Bank Issues Management; and
- POJK Number 40/POJK.05/2020 on Written Orders for Non-Bank Financial Services Institutions Issues Management.
Implementing provisions of the aforementioned three POJK will prevail as long as they do not contradict with the provisions of POJK Number 31 of 2024.
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For more information
Acting Head of Financial Literacy, Inclusion, and Communication – M. Ismail Riyadi
Telp. 021.29600000; Email: humas@ojk.go.id
