OJK Set to Enforce Written Orders for Mandatory Corporate Actions Undertaken by Banks and Non-Operational PIKK

In 2024, the Financial Services Authority (Otoritas Jasa Keuangan – “OJK”) introduced Regulation of the OJK No. 31 of 2024 on Written Orders (“Regulation 31/2024”). Broadly speaking, the framework of Regulation 31/2024 outlines various aspects regarding the authority of the OJK to issue written orders. Written orders are directives that are issued to Financial Service Institutions (Lembaga Jasa Keuangan – “LJK”) and/or other certain parties (“Other Parties”)[1] directing said parties to carry out or refrain from carrying out certain specific activities so that they will be in compliance with provisions set out under relevant Laws and Regulations that apply within the financial services sector and/or to prevent and mitigate losses to consumers, the public and the financial services sector as a whole.[2] In this regard, Regulation 31/2024 affirms that said written orders will be issued to LJK within the context of Mergers, Consolidations, Acquisitions, Integrations and/or Conversions (Penggabungan, Peleburan, Pengambilalihan, Integrasi dan/atau Konversi - “P3IK”).[3]