Audit and Risk Committees to Become Standard Governance Features Across PPDP Entities Under Proposed OJK Framework

The Financial Services Authority (Otoritas Jasa Keuangan — “OJK”) is currently completing work on a new Draft Regulation on Good Corporate Governance for Insurance Companies, Guarantee Institutions, and Pension Funds (“Draft Regulation”). One of the new provisions under the Draft Regulation is the consolidation of various corporate governance requirements currently scattered across several regulations into a single integrated framework that applies uniformly to all Insurance Companies, Guarantee Institutions, and Pension Funds (Perusahaan Perasuransian, Lembaga Penjamin, dan Dana Pensiun — “PPDP”).[1]