OJK Updates Assessment Procedure for the Soundness Levels of Financing and Sharia Financing Companies

In an attempt to further regulate provisions which address assessments of the soundness levels of financing companies, sharia financing companies and sharia business units (Unit Usaha Syariah – “UUS”) (“Companies”), the OJK has recently issued Circular No. 11/SEOJK.05/2020 on Assessments of the Soundness Levels of Financing Companies and Sharia Financing Companies (“Circular 11/2020”). Circular 11/2020 will now have to be implemented by Companies that are also currently implementing the various provisions set out under Regulation of the Financial Services Authority (Otoritas Jasa Keuangan – “OJK”) No. 35/POJK.05/2018 on the Organization of the Business Activities of Financing Companies, as well as Regulation of the OJK No. 10/POJK.05/2019 on the Organization of Sharia Financing Companies and Sharia Business Units of Financing Companies and Regulation of the OJK No. 28/POJK.05/2020 on Assessments of the Soundness Levels of Nonbank Financial Service Institutions.