The Board of Commissioners of the Financial Services Authority is preparing a single implementing regulation for conventional and sharia pawnshop companies to replace two circulars. It removes the 20% cap on fee-based income and tightens approval requirements for other business activities. It also drops several sharia-specific provisions, makes written collateral security guidelines mandatory, and keeps the minimum loan values unchanged.

Draft Regulation introduces an integrated Health Level self-assessment based on five factors, alongside return on assets (RoA) and return on equity (RoE), and operating expenses to operating income (beban operasional terhadap pendapatan operasional/BOPO) assessments and a business-scale-based governance checklist. The framework also incorporates risk management requirements according to business scale, with annual self-assessments due by 31 March and updated assessments and action plans required in specified circumstances.

Regulation 11/2026 consolidates periodic reporting obligations for Guarantee Institutions, covering monthly, annual, and other reports, while introducing cumulative monthly reporting and 10 categories of other reports. Annual reports now include audited financial statements and publication reports, with management letters submitted where issued. Administrative sanctions are expanded to include financial health downgrades and Rp2 million fines for inaccurate monthly reports.

Regulation 16/2026 establishes an integrated the Mineral and Strategic Commodities Exchange (Bursa Mineral dan Komoditas Strategis/BMKS) framework covering licensing, governance, capital, infrastructure, and interoperability requirements for the Exchange, Clearing Institution (Lembaga Kliring/LK), Electronic Custodian Institution (Lembaga Kustodian Elektronik/LKE), exchange members, warehouse managers, Conformity Assessment Institutions (Lembaga Penilaian Kesesuaian/LPK), and supporting parties.

The Draft Amendment strengthens Providers? obligations on financial resilience, credit scoring, liquidation preparedness, business cessation, portfolio transfers, fraud prevention, and funding selection, while introducing new classifications for Funders and Provider performance tiers. It also retains the 85% foreign ownership cap, subject to specified exemptions and temporary flexibility.

The OJK is currently preparing a consolidated governance framework for Insurance Companies, Guarantee Institutions, and Pension Funds (Perusahaan Perasuransian, Lembaga Penjamin, dan Dana Pensiun ? ?PPDP?), strengthening Board of Directors composition and qualification standards, independent commissioner and Sharia Supervisory Board requirements, and internal audit and compliance functions based on business scale or asset size.

This Draft Regulation establishes escalating core capital requirements for conventional and sharia-compliant entities marketing PAYDI, reaching up to Rp1 trillion and Rp500 billion respectively. This Draft Regulation also mandates live digital video-conferencing for remote sales to comply with OJK consumer protection standards. Furthermore, this Draft Regulation permits ETF subfunds across diverse asset classes and requires explicit illustrative calculations showing residual death benefits after accelerated rider deductions.

The Draft Regulation will strengthen the integrated liquidity risk management framework for the Financial Conglomerate Required to Establish a Financial Conglomerate Holding Company Financial Conglomerate Holding Company (Perusahaan Induk Konglomerasi Keuangan ? ?PIKK?) by requiring PIKK to maintain adequate liquidity, conduct integrated stress testing, enhance liquidity risk governance, and comply with reporting obligations subject to administrative sanctions for non-compliance.

This Regulation strengthens the regulatory framework for Information Technology-Based Joint Funding Service (Layanan Pendanaan bersama Berbasis Teknologi Informasi ? ?P2P Lending?) Organizers through the introduction of dual reporting obligations, enhanced request procedures for borrower information and stricter data governance requirements. This new framework also reinforces user data protection by prohibiting unauthorized commercialization and sharing while clarifying the available administrative sanctions and expanding the OJK?s supervisory powers.

If this Draft Regulation is ultimately enforced, then it will expand the reporting obligations that apply to sharia insurance companies, sharia reinsurance companies and sharia units, which will have to publish new types of reports and comply with enhanced reporting requirements. The new Draft Regulation also centralizes report submissions, which will have to be completed via the OJK?s validated reporting system, and introduces various procedures that will have to be complied with during force-majeure events. The new framework will also hopefully strengthen compliance by requiring reporting errors to be corrected. In this regard, inaccurate monthly reports will be subject to the imposition of administrative sanctions in line with the applicable regulatory framework.