OJK Regulates Microfinance Institutions in Detail

The Financial Services Authority (OJK) has issued Regulation No. 12/POJK.05/2014 on Business Licensing and Organizational Structure of Microfinance Institutions (“Regulation”) to implement Article 7 (2), Article 10, Article 22 (2), Article 23 (3), Article 27, and Article 33 (3) of Law No. 1 of 2013 on Microfinance Institutions.[1]

The Regulation is a guideline for Indonesian individuals, rural enterprises, regional/municipal governments, and/or cooperatives[2] to establish and secure a business license as a financial institution which focuses on empowering low-income members of society and micro businesses (“Microfinance Institutions” or Institution”).