If insurance companies and reinsurance companies (collectively referred to as "Companies") experience force-majeure events and are not able to submit their mandatory periodic reports ("Periodic Reports"), then said Companies will be required to notify the Financial Services Authority (Otoritas Jasa Keuangan/OJK). Moreover, any Companies that discover errors in their submitted monthly reports may now submit applications for monthly report corrections to the OJK.

The Draft Regulation is set to redefine Non-Banking Financial Services Institutions (Lembaga Jasa Keuangan Non-Bank/LJKNB) as financing companies, venture-capital companies (Perusahaan Modal Ventura/PMV), micro-financing institutions and other types of financial services institutions (collectively referred to as "PVML"). In this regard, mandatory risk management has also been redefined and will soon be implemented based on the amounts of nominal assets that are owned by the relevant PVML, which break down as follows: 1) For PMVL with assets over Rp. 200 billion: risk-management committee and work unit (both are mandatory); and 2) For PMVL with assets up to Rp. 200 billion: risk-management function (mandatory) and committee (optional).

The Draft Regulation now mandates that equity crowdfunding service providers ("Providers") must meet a minimum paid-up capital requirement of Rp. 25 billion and a minimum equity requirement of Rp. 5 billion. Moreover, the Draft Regulation also requires providers to first secure principal approvals (persetujuan prinsip) before submitting their business license applications to the OJK.

In order to enact processes of digital reform, the Draft Amendment sets out various provisions that specifically address the organization of digital insurance services, including services that relate to the following aspects: 1) Scope of digital insurance product marketing; 2) Approvals for the organization of digital services; and 3) Electronic systems and risk management.

The Draft Regulation has updated the maximum funding limits as follows: 1) A maximum consumption funding limit of up to Rp. 2 billion and 2) A maximum productive funding limit of up to Rp. 5 billion. Organizers of P2P Lending who engage in productive funding of Rp. 2 billion - Rp. 5 billion will be required to choose a TWP90 of a maximum of 5% for the previous six months and will not have sanctions that involve business activity restrictions imposed upon them by the Financial Services Authority

Human resources development mandates for financing companies, venture-capital companies (Perusahaan Modal Ventura "PMV"), micro-financing institutions and other types of financial services institutions (collectively referred to as "PVML") have been classified into four categories that break down as follows: 1) Organizational structure (e.g. dedicated functions for human resources development, fulfillment of sustainability requirements and outsourced human resources); 2) Funding of human resources development (i.e. mandatory allocation of 2.5% of total manpower funding over the previous year to PMVL that do not fall into the micro-financing institution and medium-scale, non-micro-financing PVML institution categories); 3) Implementation of human resources development (e.g. in relation to the PVML sector, non-PVML sectors [e.g. banking, capital market, information technology and so forth] and other work competency developments); and 4) Planning, policies and monitoring (e.g. establishment of systems and procedures for the sustainable development of PMVL human resources).

The Draft Regulation retains the nine forms of administrative sanctions that may be imposed in relation to violations of Law No. 40 of 2014 on Insurance (e.g. written reprimands, restrictions on business activities, fines and so forth), as originally outlined under Regulation of the Financial Services Authority (Otoritas Jasa Keuangan "OJK") No. 17/POJK.05/2017 ("Regulation 17/2017"). However, the Draft Regulation also now includes a reduction in company soundness levels on the aforementioned list of available administrative sanctions. These administrative sanctions can be imposed upon various specific types of companies and business actors, including: 1) Insurance and reinsurance companies; 2) Insurance/reinsurance broker companies and insurance loss appraisal companies; 3) Actuarial consultants and appraisers; 4) Insurance broker consultants, reinsurance brokers and insurance agents; and 5) Shareholders, controlling parties and other executive positions in insurance companies

Companies are permitted to offer and market their Products digitally, either independently or in collaboration with other parties, once prior approvals have first been granted by the OJK. In this regard, Companies must first fulfill several requirements, which include: 1) Must have secured an Electronic Systems Organizer (Penyelenggara Sistem Elektronik/PSE) registration certificate, as issued by an authorized institution; 2) Must develop and implement policies, standards and procedures that specifically address the area of information technology risk management; and 3) Must meet all requirements mandated by the OJK and other relevant authorities regarding the operation of electronic systems

Comprising 141 articles spanning seven chapters, the Draft Regulation aims to update and integrate frameworks that relate to the licensing and institutions of Employer Pension Funds (Dana Pensiun Pemberi Kerja /DPPK) and Financial Institution Pension Funds (Dana Pensiun Lembaga Keuangan/DPLK) (collectively referred to Pension Funds). In this regard, the Draft Regulation specifies the following matters in relation to the establishment of Pension Funds: 1) Eligible organizers; 2) Types of pension programs permitted to be organized; 3) Applicable requirements; and 4) Mechanism for the securing of approvals from the Financial Services Authority (Otoritas Jasa Keuangan/OJK).

Organizers of peer-to-peer lending services ("Organizers") are required to submit complete and correct funding transaction data reports to the Fintech Lending Data Center at the Financial Services Authority (Otoritas Jasa Keuangan "OJK"). Moreover, Organizers are also required to submit periodic and incidental reports to the OJK. Periodic reports should be submitted on both a monthly and annual basis and must have been audited by OJK-registered public accountants.