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OJK Regulation No. 12 of 2025 on the Implementation of Risk Management and Health Level Assessment of Investment Managers
The Indonesian Financial Services Authority (OJK) issued Regulation No. 12 of 2025 to mandate the implementation of risk management and health level assessments for investment managers, aligning with Risk-Based Supervision principles. The regulation defines the scope of risk management, including board oversight, policy adequacy, risk identification processes, and internal control systems, while establishing mechanisms for health assessments and reporting. Compliance with these risk management obligations becomes mandatory two years after the regulation's enactment, with sanctions for violations enforced three years post-enactment.
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Regulation of the Financial Services Authority Number 12 of 2025 concerning the Implementation of Risk Management and Health Level Assessment of Investment Managers


Abstract:
The globalization and increasingly complex development of the capital market have driven regulators in many jurisdictions to measure the risks posed by financial products and market participants. This development requires the Financial Services Authority (OJK), as the supervisory agency, to be more active in performing its supervisory functions effectively, in accordance with generally applicable best practices and current developments in each financial services industry.


The Financial Services Authority is currently striving to prioritize a Risk-Based Supervision approach, which enables the early detection of significant risks and the taking of appropriate and timely supervisory actions.


Furthermore, the International Organization of Securities Commissions (IOSCO) also encourages capital market regulators in countries to move towards Risk-Based Supervision in conducting supervision over intermediaries, including mutual funds and Investment Managers. In the implementation of Risk-Based Supervision, supervisory resources are deployed more effectively and efficiently by considering the risk profile of the supervised entities.


The legal basis for this Financial Services Authority Regulation is: Law No. 8 of 1995 as amended by Law No. 4 of 2023; and Law No. 21 of 2011 as amended by Law No. 4 of 2023.


This Financial Services Authority Regulation regulates, among other things:


a. the obligation to implement risk management and health level assessment for Investment Managers;
b. the scope of risk management, which covers:


    

  1. active supervision by the Board of Directors and Board of Commissioners;
    2. 

  2. adequacy of risk management policies and procedures;
    3. 

  3. adequacy of the process for risk identification, measurement, monitoring, and control; and
    4. 

  4. a comprehensive internal control system.
c. the obligation for Investment Managers to have a risk management function;
d. the mechanism for assessing the health level of Investment Managers;
e. the obligation to report the results of the health level assessment of Investment Managers; and
f. follow-up actions on the results of the health level assessment of Investment Managers.
    5. 



Note:
This Financial Services Authority Regulation takes effect on the date of its promulgation.
This Financial Services Authority Regulation was promulgated on May 9, 2025, and established on May 2, 2025.
Provisions regarding the obligation of Investment Managers to implement Risk Management and assess the Health Level of Investment Managers, as regulated in this Financial Services Authority Regulation, shall take effect after 2 (two) years from the date this Financial Services Authority Regulation is promulgated.
Imposition of sanctions for violations of this Financial Services Authority Regulation shall take effect 3 (three) years from the date this Financial Services Authority Regulation is promulgated.
Upon the entry into force of this Financial Services Authority Regulation, provisions regarding the obligation to implement Risk Management as regulated in Article 47 of Financial Services Authority Regulation Number 17/POJK.04/2022 concerning Guidelines for Investment Manager Conduct, are repealed and declared invalid after 2 (two) years from the date this Financial Services Authority Regulation is promulgated.


This Financial Services Authority Regulation (POJK) consists of:
Explanation: 11 pages.
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