In contrast with banks, insurance companies and financing institutions, the growth of guarantee institutions across Indonesia has been relatively slow of late. Indeed, as of December 2015, only 21 guarantee institutions were registered with the Financial Services Authority (“OJK”), with only two new companies being established during the course of that year. Despite this slow growth in the number of new guarantee institutions, the OJK nevertheless recorded a significant annual increase of 21.5% in the total assets held by guarantee institutions during 2015, which reached a total of IDR 13.6442 billion. Meanwhile, the total increase in investment in guarantee institutions over the same period reached 12.6%, eventually reaching IDR 1,124 billion.[1]
 
In order to boost growth within the guarantee-institution sector, in early 2016, the House of Representatives passed Law No. 1 of 2016[2] on Guarantees (“Guarantees Law”), which became the primary framework for the establishment and organization of such businesses, and which also addressed good corporate governance for guarantee and re-guarantee institutions.
 
A year later, on 11 January 2017, the OJK finally issued three regulations which set out further provisions relating to the Guarantees Law (collectively referred to as “New OJK Regulations”), specifically: