The Financial Services Authority (Otoritas Jasa Keuangan/OJK) has issued nine new regulations (Peraturan Otoritas Jasa Keuangan/POJK) aimed at strengthening the oversight and development of the financing sector, venture capital companies, microfinance institutions, and other financial service providers (PVML). These regulations are part of the mandate under Law No. 4 of 2023 on Financial Sector Development and Strengthening (UU P2SK).

The new regulations are expected to create a more stable and transparent PVML sector while improving consumer protection. Additionally, OJK aims to foster an inclusive and sustainable financial industry through these regulatory measures.

List of the 9 New POJK Regulations

The following are the nine newly issued POJK regulations:

1. POJK No. 39 of 2024: Regulates pawn businesses, including requirements for controlling shareholders, capital enhancement, and certified appraisers.
2. POJK No. 40 of 2024: Strengthens regulations on peer-to-peer (P2P) Lending, covering health assessments for platforms, risk management, and credit scoring requirements.
3. POJK No. 41 of 2024: Establishes new rules for microfinance institutions (LKM), including business classification based on scale and loan quality assessment.
4. POJK No. 42 of 2024: Focuses on risk management for PVML, ensuring better risk mitigation strategies.
5. POJK No. 43 of 2024: Introduces policies for human resource development in PVML, including mandatory training and certification.
6. POJK No. 46 of 2024: Strengthens the regulatory framework for financing companies, infrastructure financing firms, and venture capital companies.
7. POJK No. 47 of 2024: Regulates cooperatives in the financial services sector, covering capital requirements and business licensing.
8. POJK No. 48 of 2024: Implements good governance standards to enhance transparency and accountability in PVML.
9. POJK No. 49 of 2024: Establishes guidelines for PVML supervision, including status determination and enforcement measures.

Enhancing Financial Sector Stability

To ensure a more resilient financial sector, OJK emphasizes the importance of effective risk identification and mitigation. POJK 42/2024 outlines active oversight responsibilities for directors, boards of commissioners, sharia supervisory boards, and risk management teams.

From a governance perspective, POJK 48/2024 mandates the implementation of good governance principles, requiring directors and commissioners to oversee internal controls and manage conflicts of interest. Meanwhile, POJK 43/2024 focuses on workforce development through mandatory education and certification programs to enhance human capital in PVML.

For regulatory supervision, POJK 49/2024 introduces stricter monitoring mechanisms, ensuring clear procedures for determining supervisory status and necessary enforcement actions.

Impact on the Financial Industry

These regulations are expected to have a significant impact on the financing, venture capital, and technology-based financial services sectors. POJK 46/2024 enhances digital financing regulations by introducing new provisions on technology adoption and data protection.

For the P2P lending sector, POJK 40/2024 strengthens existing regulations, including health assessments for platform operators and enhanced credit scoring requirements. These measures aim to improve prudential operations and better protect both lenders and borrowers.

In the pawn industry, POJK 39/2024 refines previous regulations by enforcing capital requirements, certified appraiser obligations, and risk management practices. Additionally, POJK 41/2024 introduces business-scale classifications for microfinance institutions, further promoting financial inclusion in the micro sector.

For financial service cooperatives, POJK 47/2024 provides regulatory clarity on capital requirements and business licensing, ensuring these institutions can contribute more effectively to the national economy.

OJK’s Commitment to Financial Stability

The formulation of these nine POJK regulations involved consultations with industry stakeholders, ensuring a balanced approach to regulatory development. With these new measures, OJK reaffirms its commitment to fostering a healthier, more transparent, and sustainable financial ecosystem in Indonesia.

PHOTO: MENPAN

This article was created with AI assistance.