Guarantee Institutions Enter New Era: Deadline of November 2025 Set for Mandatory PSP Registrations

In 2017, the Financial Services Authority (Otoritas Jasa Keuangan – “OJK”) introduced Regulation No. 1/POJK.05/2017 (“Regulation 1/2017”) on Business Licensing and the Organizational Structures of Guarantee Institutions (“Institutions”). As its title suggests, Regulation 1/2017 addressed applicable forms of legal entities, as well as capital, ownership, business licenses and various other matters relevant to Institutions.

However, in an effort to ensure the overall strength of Institutions through processes of capital reinforcement and the expansion of operational areas, as well as through the establishment of a healthier guarantee industry, the OJK has now decided to issue Regulation No. 10 of 2025 on the Amendment to Regulation 1/2017 (“Amendment”), which is set to officially come into force on 6 November 2025.[1] While retaining most of the provisions that were originally set out under the framework of Regulation 1/2017, the Amendment has now clarified several provisions that specifically address the forms of Institutions, particularly in terms of the division of operational areas, as well as their activities and paid-up capital (modal disetor).