Submission of Quarterly Financial Statements No Longer Mandatory Under New OJK Regulations on the Financial Soundness Levels of Conventional Insurance and Reinsurance Companies

In an effort to implement provisions originally set out under Law No. 4 of 2023 on the Development and Strengthening of the Financial Sector (“Law 4/2023”)[1] and to mitigate the risks associated with the placing of investments in related parties and unrelated parties in insurance companies and reinsurance companies, as well as to take account of the ability of insurance companies and reinsurance companies to bear risks,[2] the Financial Services Authority (Otoritas Jasa Keuangan – “OJK”) has issued Regulation No. 5 of 2023 on the Second Amendment to Regulation of the OJK No. 71/POJK.05/2016 (“Regulation 71/2016”)[3] (“Second Amendment”), which has been in force since 6 April 2023.[4]