OJK's Bold Move to Downgrade Soundness Levels of Violating Insurance Companies

In 2017, the Financial Services Authority (Otoritas Jasa Keuangan – “OJK”) introduced Regulation No. 17/POJK.05/2017 (“Regulation 17/2017”) on Procedures for the Imposition of Administrative Sanctions Within the Insurance Sector and the Blocking of the Assets of Insurance Companies, Sharia Insurance Companies, Reinsurance Companies and Sharia Reinsurance Companies (collectively referred to as “Companies”), which is currently serving as the applicable regulatory framework for the imposition of administrative sanctions upon Companies that violate any provisions set out under Law No. 40 of 2014 on Insurance (“Law 40/2014”).