OJK Draft Regulation on Company Soundness Assessments: Simplified Governance Evaluations and New Cap on Supplementary Capital Set for Introduction

In 2020, the Financial Services Authority (Otoritas Jasa Keuangan – “OJK”) issued Circular No. 11/SEOJK.05/2020 (“Circular 11/2020”) on Assessments of the Soundness Levels of Financing Companies and Sharia Financing Companies (collectively referred to as “Companies”).[1] As its title suggests, Circular 11/2020 has been serving as a set of guidelines for use by Companies when they implement detailed assessments of their soundness levels (“Assessments”) (e.g. on both an individual and consolidated basis).[2]