OJK Issues Provision on Mandatory Corporate Actions Undertaken by Non-Bank Financial Institutions

As a part of efforts to maintain the overall stability of the financial system during the ongoing Corona Virus Disease (COVID-19) pandemic, the Financial Services Authority (Otoritas Jasa Keuangan – “OJK”) is now authorized to issue written orders to financial services institutions demanding that they implement corporate actions such as mergers, consolidations, acquisitions, integrations and/or conversions.[1] This authority was initially addressed under Regulation of the Government in Lieu of Law No. 1 of 2020 on State Financial Policies and the Stability of the Financial System in Relation to the Handling of the Coronavirus 2019 (COVID-19) Pandemic and/or Threats That Are Potentially Harmful to the National Economy and/or Stability of the Financial System (“Regulation 1/2020”), which was ultimately signed into law through the issuance of Law No. 2 of 2020.[2]