Alert! PVML with Assets over Rp. 200 Billion Soon to Be Required to Establish Risk Management Committees and Work Units

In 2020, the Financial Services Authority (Otoritas Jasa Keuangan – “OJK”) introduced Regulation No. 44/POJK.05/2020 (“Regulation 44/2020”) on the Application of Risk Management by Non-Banking Financial Services Institutions (Lembaga Jasa Keuangan Non-Bank – “LJKNB”), which in essence sets out the applicable LJKNB guidelines for the identification, measurement, monitoring and control of any risks that may arise during LJKNB business activities.[1] It should be noted that Hukumonline’s Legal Research and Analysis Team previously summarized these LJKNB risk-management provisions in the following edition of Indonesian Legal Brief (“ILB”): “Implementation of Risk Management for Non-Bank Financial Service Institutions Reregulated by OJK”.