Stricter Insurance Sector Sanctions: OJK Introduces Higher Fines and Immediate Penalties

Indonesia’s Financial Services Authority (Otoritas Jasa Keuangan – “OJK”) previously harmonized the imposition of administrative sanctions on and the asset blocking of insurance, sharia insurance, reinsurance and sharia reinsurance companies through the issuance of Regulation of the OJK No. 17/POJK.05/2017 (“Regulation 17/2017”). This framework has now been amended through the issuance of Regulation of the OJK No. 34 of 2024 (“Amendment”), which further revises the administrative sanctions regime that applies to financial services and particularly the insurance sector.