Regulatory AlertsAmendment to Financial Services Authority Regulation Number 1/POJK.05/2017 Concerning Business Licensing and Institutional Requirements for Guarantee Institutions
The Indonesian Financial Services Authority (OJK) issued Regulation Number 10 of 2025 to amend licensing and institutional rules for guarantee institutions to strengthen the sector's health and sustainability. The regulation significantly increases minimum paid-up capital requirements based on operational scope and restricts cross-border guarantee activities to specific bordering areas with OJK approval. Additionally, it mandates the appointment of controlling shareholders, prohibits shareholder funds from illicit sources, limits foreign worker roles to executive or IT functions, and updates administrative sanctions.
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