LogoRegulatory Alerts
OJK Regulation No. 37 of 2025 on Determination of Supervisory Status and Follow-up for Insurance Companies, Guarantee Institutions, and Pension Funds
The Financial Services Authority (OJK) issued Regulation No. 37 of 2025 to establish a risk-based supervisory framework for insurance companies, guarantee institutions, and pension funds (PPDP) to ensure financial system stability. The regulation mandates the classification of PPDP entities into normal, intensive, or special supervisory statuses based on composite ratings, governance factors, and quantitative parameters, with specific validity periods and extension criteria. It also outlines conditions for exempting entities from intensive or special status during mergers, capital increases, or business license returns, while repealing conflicting provisions in the previous Regulation No. 9/POJK.05/2021.
Otoritas Jasa Keuangan (Financial Services Authority) logo
Indonesia
Otoritas Jasa Keuangan (Financial Services Authority)
Click to view thumbnail
OJK Regulation No. 37 of 2025 on Determination of Supervisory Status and Follow-up for Insurance Companies, Guarantee Institutions, and Pension Funds


Abstract:


That to support a financial system that grows sustainably and stably, it is necessary to have healthy insurance companies, guarantee institutions, and pension funds.


That as part of risk-based supervision, problems arising in the insurance, guarantee, and pension sectors need to be addressed early by enhancing supervisory steps for insurance companies, guarantee institutions, and pension funds starting from normal supervision, which may potentially deteriorate in health.


In order to support the implementation of risk-based supervision for guarantee institutions, provisions regarding the determination of status and supervisory follow-up for guarantee institutions are needed.


The legal basis for this Financial Services Authority Regulation (POJK) is:
Law No. 21 of 2011 as amended by Law No. 4 of 2023;
Law No. 40 of 2014 as amended by Law No. 4 of 2023;
Law No. 1 of 2016 as amended by Law No. 4 of 2023; and
Law No. 4 of 2023.


The Financial Services Authority has the authority to determine supervisory status for PPDP (Insurance Companies, Guarantee Institutions, and Pension Funds), which consists of:


    

  1. Normal supervision;
    2. 

  2. Intensive supervision; or
    3. 

  3. Special supervision.
    4. 



The determination of supervisory status is based on factors:


    

  1. Composite rating;
    2. 

  2. Good corporate governance factor rating; and/or
    3. 

  3. Quantitative parameters.
    4. 



The Financial Services Authority determines PPDP with intensive supervisory status for a maximum period of 1 (one) year calculated from the date of the Financial Services Authority's notification letter and may be extended at most 1 (one) time with a maximum period of 1 (one) year.


The Financial Services Authority determines PPDP with special supervisory status for a maximum period of 1 (one) year calculated from the date of the Financial Services Authority's notification letter and may be extended based on the Financial Services Authority's assessment considering the resolution of action plans that have received a statement of no objection.


PPDP may not be designated under intensive supervisory status or special supervisory status for a certain period by the Financial Services Authority, if PPDP:


    

  1. Is in the process of merger, consolidation, or takeover;
    2. 

  2. Is in the process of increasing paid-up capital; and/or
    3. 

  3. Meets certain conditions based on the Financial Services Authority's assessment, to meet the criteria for normal supervisory status.
    4. 



PPDP may also not be designated under intensive supervisory status or special supervisory status for a certain period by the Financial Services Authority, if PPDP is in the process of returning a business license or dissolution.


Note:
This Financial Services Authority Regulation takes effect 6 (six) months from the date of promulgation.
This Financial Services Authority Regulation was promulgated on December 22, 2025, and established on December 17, 2025.


Upon the effective date of this Financial Services Authority Regulation, the implementation provisions of Financial Services Authority Regulation No. 9/POJK.05/2021 concerning Determination of Status and Supervisory Follow-up for Nonbank Financial Service Institutions shall remain in force insofar as they do not conflict with this Financial Services Authority Regulation.


Upon the effective date of this Financial Services Authority Regulation, the provisions regarding the determination of status and supervisory follow-up in Financial Services Authority Regulation No. 9/POJK.05/2021 concerning Determination of Status and Supervisory Follow-up for Nonbank Financial Service Institutions are repealed and declared invalid.
Share