Both conventional and sharia-based pawnshop companies (collectively referred to as Pawnshops) are required to maintain certain soundness levels, which they should evaluate through annual self-assessments (Self-Assessments) that apply a risk-based approach. Said assessments should measure factors such as capital, loan receivable quality, profitability, liquidity and management, which together should determine a relevant composite rating (peringkat komposit PK) ranging from PK-1 (Excellent) to PK-5 (Poor).

The Housing Credit Program provides credit/financing to individuals or business entities that are categorized as Micro-, Small- and Medium-Scale Enterprises (Usaha Mikro, Kecil dan Menengah - UMKM) and that operate within the housing sector. In essence, the Housing Credit Program breaks down into two schemes: 1) Supply side (i.e. for land acquisition and purchases of building materials, as well as goods/services required for the construction of housing or residential buildings); and 2) Demand side (i.e. purchases, construction or renovations of housing in order to support business activities).

This new Circular affirms that organizers (Organizers) of Information Technology-Based Joint-Funding Services (Layanan Pendanaan Bersama Berbasis Teknologi Informasi P2P Lending) are now permitted to act as distribution partners for government securities, as well as engage in information service collaborations and other Financial Services Authority (Otoritas Jasa Keuangan/OJK) approved activities. Meanwhile, sharia-based P2P Lending services must operate in line with approved contracts that are supported by fatwas or opinions from Sharia Supervisory Board. The new Circular also formalizes the General Meeting of Funders (Rapat Umum Pemberi Dana/RUPD) mechanism, thereby requiring Organizers to establish clear guidelines that cover meeting procedures and mechanisms.

Main parties of the Non-Operational Holding Companies of Financial Conglomerates is subject to the mandatory fit-and-proper assessment organized by the OJK. Taking into account four core assessment factors, this fit-and-proper assessment shall broadly be implemented under the following phases: 1) Drafting of compliance checklist in relation to the required administrative documents; 2) Submission of required administrative documents; 3) Implementation of administrative assessment; and 4) Issuance of fit-and-proper assessment result stipulation by the OJK.

The Draft Circular regulates the administration of supporting professions within the financial services sector and covers areas such as registration, changes to the scope of services, work leave and resignations. This new framework applies to professionals such as public accountants, actuaries, legal consultants, appraisers and notaries. These professionals must complete mandatory education programs and participate in continuous professional development, as well as submit annual activity reports to the OJK.

This new framework establishes a unified framework by consolidating and replacing provisions originally set out under three existing Financial Services Authority (Otoritas Jasa Keuangan "OJK") Regulations, thereby streamlining the process of conducting fit-and-proper assessments and reassessments of Primary Parties operating within the financial technology innovation, digital finance and crypto assets (IAKD) sectors. The new Regulation reaffirms the OJKs authority to assess prospective Primary Parties prior to their assuming their roles, maintaining core criteria such as integrity, financial capability and competence.

Financial Service Institutions (Lembaga Jasa Keuangan/LJK) that engage in bullion-related business activities will soon be required to submit Monthly Reports that cover the disbursement of gold financing, the management of gold savings, gold trading and gold custody. These Monthly Reports must be submitted online through the OJKs data communications network system by the 10th day of the month following the relevant reporting month. Alternative submission methods (i.e. email or physical deliveries) will be permitted in cases where this system is unavailable or is experiencing technical issues.

Any use of funds for capital contributions by shareholders is now required to be declared, while no such funds must originate from any of the following prohibited sources: 1) Loans; 2) Money laundering; 3) Terrorism financing; 4) Financing of the proliferation of weapons of mass destruction; and 5) Financial crimes. However, exceptions to these prohibitions are available to shareholders that comprise government entities or that are controlled by government entities.

Organizers of Financial Sector Technology Innovations (Inovasi Teknologi Sektor Keuangan/ITSK) ("Organizers") are required to submit annual business plans to the Financial Services Authority (Otoritas Jasa Keuangan "OJK") by 10 November of the preceding year. In addition to this business plan, Organizers must also regularly submit periodic reports (i.e. monthly, semesterly and annual reports) and incidental reports detailing any changes that are made to their business activities, as well as institutional matters and incidents that occur such as cyberattacks. Along with digital financial asset traders, Organizers are also obliged to report on the implementation of anti-fraud strategies. All submissions must be completed through the OJKs electronic reporting system.

In addition to requiring supporting professionals that operate within the financial services sector ("Supporting Professionals") to register through the reporting system of the anti-money laundering and counter-terrorism financing programs that are managed by the Financial Transaction Reports and Analysis Center ("PPATK"), this framework has now expanded the list of professions that are classified as Supporting Professionals, which now include: 1) Practicing accountants; 2) Tax consultants; 3) Sharia financial services experts; 4) Providers of registration statement documents; and 5) Parties that engage in analysis and that provide services relating to certain corporate actions (e.g. current transactions, mining potentials, sustainable finances and so forth).