Regulatory AlertsOJK Circular No. 27/SEOJK.03/2025 on Credit Rating Agencies and Recognized Ratings
The Financial Services Authority (OJK) issued Circular No. 27/SEOJK.03/2025 to establish the criteria and procedures for recognizing credit rating agencies, aligning with Basel III reforms and transferring administrative authority to the licensing division. This regulation mandates direct or indirect recognition for agencies meeting standards of objectivity, independence, transparency, and credibility, which are then published on the OJK website for use in prudential calculations by various bank types. It explicitly repeals the previous Circular No. 37/SEOJK.03/2016 and subjects recognized agencies to periodic monitoring and potential removal from the official list.
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