OJK Finally Sets Criteria for Financial Conglomerates Operating Within the Financial Services Sector

Despite featuring several times under the regulatory framework for the Indonesian financial services sector, the term financial conglomerate has never previously been granted any comprehensive definition based on assets and fixed criteria.[1] In order to remedy this situation, the Financial Services Authority (Otoritas Jasa Keuangan – “OJK”) recently issued Regulation No. 45/POJK.03/2020 on Financial Conglomerates (“Regulation 45/2020”), which sets the criteria and scope of financial conglomerates with the ultimate goal of creating a healthy and competitive financial services industry.[2]