OJK Reregulates Business Activities of Sharia Financing Companies

The Financial Services Authority (OJK) has issued Regulation No. 31/POJK.05/2014 on Organizing Sharia Financing Company Businesses (“Regulation”) to ensure that sharia financing activities comply with Islamic principles. The Regulation also aims to improve the development of sharia financing companies, including sharia business units of financing companies (collectively referred to as “Sharia Companies”).[1]

Prior to the Regulation, the same matter was regulated under the Head of Capital Markets and Financial Institutions Supervisory Agency (“Bapepam-LK”) Regulation No. PER-03/BL/2007, most recently amended by Bapepam-LK Regulation No. PER-06/BL/2012 (“2007 Regulation”).