In a bid to combat money-laundering and terrorism-financing activities, the Financial Services Authority (OJK) has issued Regulation No. 12/POJK.01/2017 on the Implementation of Anti-Money-Laundering and Prevention-of-Terrorism-Financing Programs Within the Financial Sector. This new regulation codifies and strengthens provisions relating to this matter and applies to all financial services providers. Previously, these matters were regulated through four different regulations, specifically: (1) Bank Indonesia (BI) Regulation No. 12/20/PBI/2010; (2) BI Regulation No. 14/27/PBI/2012; (3) OJK Regulation No. 22/POJK.04/2014; and (4) OJK Regulation No. 39/POJK.05/2015.

The Financial Services Authority has issued Regulation No. 5/POJK.05/2017 on Premiums, Benefits and Other Benefits Organized by Pension Funds in an attempt to improve the organization of pension funds within Indonesia. In general, this regulation sets out a number of provisions which relate to the premiums, pension benefits and other types of benefit which may be offered by pension funds which are either established and organized by employers or which are established and organized by banks and life-insurance companies.

In a bid to improve the supervision of commercial banks and also as a follow up to Law No. 9 of 2016 on the Prevention and Control of Financial-System Crises, the Financial Services Authority has issued Regulation No. 15/POJK.03/2017. This new regulation sets out a new set of guidelines for the stipulation of supervision statuses and relevant follow up activities for commercial banks, which are now divided into systematically important banks and non-systematically important banks.

Recognizing the importance of enhancing the financial-soundness of conventional insurance and reinsurance companies in order that they be able to provide adequate protection to their customers, the Financial Services Authority has issued Regulation No. 71/POJK.05/2016 on Financial Soundness for Insurance and Reinsurance Companies. In an attempt to realize this objective, the new regulation outlines a number of financial soundness parameters which should be satisfied by both insurance and reinsurance companies, along with provisions relating to the allocation of guarantee funds, the separation of assets and liabilities of said companies, and the obligation to submit various financial statements to the OJK for compliance-monitoring purposes.

In a bid to boost the number and economic ability of entrepreneurs across Indonesia, the government has established the ultra-micro financing program, which is specifically targeted at productive businesses owned by individuals and/or micro-scale enterprises. In order to provide guidelines for the implementation of such financing, the Ministry of Finance has finally issued Regulation No. 22/PMK.05/2017, which covers various aspects relating to ultra-micro financing, including: (1) Financing targets, coordinators and distributors; (2) Sources of funding; (3) Distribution of financing funds; (4) Reporting obligations; and (5) Sanctions for non-compliance.

Following the issuance of OJK Regulations No. 18/POJK.03/2016 and No. 65/POJK.03/2016, the OJK is continuing to try to enhance provisions which relate to the area of risk management. This time around, the OJK has issued Circular Letter No. No. 4/SEOJK.03/2017, which sets out further details relating to the various measures which must be implemented by any banks dealing with mutual funds, so as to manage possible risk impacts. These risk-management measures are divided into four categories: first measures, which apply in general to all banks; second measures, for banks which are acting as investors; third measures, for banks which are acting as sales agents; and finally, measures which are undertaken by banks which are acting as custodian banks.

Following the issuance of Law No. 1 of 2016 on Guarantees, the Financial Services Authority has issued Regulation No. 2/POJK.05/2017 on the Business Organization of Guarantee Institutions. In essence, this new regulation sets out further provisions which address the various business activities which are engaged in by guarantee institutions. The regulation also addresses the mechanisms underlying the provision of such guarantees, as well as a number of other relevant topics, including: service fees, claim reserves, submissions and payments, transfers of claim rights, equity, investment activities, financial soundness, the utilization of information technology, supporting institutions, mandatory reporting and administrative sanctions.

In a bid to strengthen Indonesia?s banking sector, the Financial Services Authority has formulated a number of provisions which address ownership caps for commercial banks within Indonesia. With this goal in mind, the OJK has issued Regulation No. 56/POJK.03/2016 on the Ownership of Bank Shares, which repeals and replaces Bank Indonesia Regulation No. 14/8/PBI/2012 on the same matter.

The Financial Services Authority (OJK) has issued Regulation No. 49/POJK.04/2016 on Investor-Protection Funds as a response to the change in regulatory and supervisory authority within the capital-market sector from the Capital Market and Financial Institutions Supervisory Board to the OJK. aside from offering greater certainty, the new regulation repeals and replaces the obsolete Capital Market Supervisory Board Decree, which basically addressed the same guidelines regarding investor-protection funds, including the sources of any such funds, membership, relevant fees, scope of protection and indemnification.

The Financial Services Authority has issued Regulation No. 69/POJK.05/2016 on the Organization of Insurance, Sharia Insurance, Reinsurance and Sharia Reinsurance Companies in a bid to offer a set of comprehensive guidelines for such companies as regards the organization of their multifarious business activities. These guidelines essentially cover a wide range of provisions, including the scope of any business activities and their expansion, as well as general procedures for the settlement of claims and complaints and so forth.