OJK Introduces Financial Reporting Integrity Standards for IAKD Organizers: Reporting Manipulation May Result in Substantial Sanctions

The Financial Services Authority (Otoritas Jasa Keuangan – “OJK”) is currently completing work on a new Draft Regulation (“Draft Regulation”) on Financial Reporting Integrity for Organizers of Technological Innovations Within the Financial Sector (Inovasi Teknologi Sektor Keuangan – “ITSK”), Digital Financial Assets and Crypto Assets (ITSK, Aset Keuangan Digital dan Aset Kripto – collectively referred to as “IAKD”).

The Draft Regulation will apply to IAKD organizers (“Organizers”) and will specifically target their Boards of Directors (“BoD”), Boards of Commissioners (“BoC”), controlling shareholders (Pemegang Saham Pengendali – “PSP”) and affiliated parties. By mandating strict internal controls and anti-fraud mechanisms, the Draft Regulation aims to ensure accurate and transparent financial reporting. Furthermore, any failure to ensure the integrity of financial reporting will result in Organizers and their personnel being subject to the imposition of severe administrative sanctions.