Regulatory AlertsAssessment of the Health Level of Information Technology-Based Joint Financing Service Providers
The Financial Services Authority (OJK) issued ADK Member Regulation 38/PADK.06/2025 to establish a mandatory health level assessment framework for Information Technology-Based Joint Financing Service Providers (LPBBTI). The regulation requires all LPBBTI operators to maintain a minimum Composite Rating of 3 and outlines a risk-oriented evaluation methodology covering capitalization, funding quality, profitability, liquidity, and management factors. It details the quantitative and qualitative assessment procedures, defines a five-tier composite rating scale, and authorizes the OJK to verify submitted data and apply judgment-based adjustments to final ratings.
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Assessment of the Health Level of Information Technology-Based Joint Financing Service Providers
Sector : PVML
SubSector : LPBBTI
Regulation Type : ADK Member Regulation
Regulation Number : 38/PADK.06/2025
Effective Date : 12/8/2025
Appendix 1 PADK 38-PADK06-2025 Assessment of the Health Level of Information Technology-Based Joint Financing Service Providers.pdf Abstract PADK 38-PADK06-2025 Assessment of the Health Level of Information Technology-Based Joint Financing Service Providers.pdf FAQ PADK 38-PADK06-2025 Assessment of the Health Level of Information Technology-Based Joint Financing Service Providers.pdf
Page Content ADK Member Regulation 38/PADK.06/2025 Assessment of the Health Level of Information Technology-Based Joint Financing Service Providers Abstract: This ADK Member Regulation is drafted pursuant to the mandate of Article 167 paragraph (3), Article 171 paragraph (3), and Article 177 paragraph (8) of Financial Services Authority Regulation Number 40 of 2024 concerning Information Technology-Based Joint Financing Services. Service Providers must meet a minimum Health Level requirement of Composite Rating 3. This ADK Member Regulation governs the general principles for assessing the health level of Information Technology-Based Joint Financing Service Providers (LPBBTI), namely: a. risk-oriented; b. proportionality; c. materiality and significance; and d. comprehensive and structured. LPBBTI Service Providers conduct health level assessments covering the following factors: a. capitalization; b. funding quality; c. profitability; d. liquidity; and e. management. The procedure for assessing the health level of LPBBTI Service Providers is carried out by initially quantifying components of each factor using quantitative and qualitative aspects, and the quantitative assessment results of components are ranked based on factor rating guidelines that consider adjustments or judgment, thereby producing comprehensive and structured factor rating conclusions. The final health level assessment is determined based on an analysis of each health level assessment factor, including analysis of the capitalization factor, funding quality factor, liquidity factor, profitability factor, management factor, and an overall health level analysis. The aforementioned analysis is part of a comprehensive and structured health level assessment that must at least include the latest information on the Service Provider's condition, current key issues, including inter-factor correlations, which may be considered when adjusting the composite rating conclusion if necessary (judgment). The health level assessment establishes 5 (five) Composite Ratings with the following categories: a. Composite Rating 1 (very healthy); b. Composite Rating 2 (healthy); c. Composite Rating 3 (fairly healthy); d. Composite Rating 4 (less healthy); and e. Composite Rating 5 (unhealthy). The assessment of the capitalization factor includes assessment of the sufficiency, projection, and capitalization capacity to anticipate risks components. The assessment of the funding quality factor includes assessment of the following components: a. quality of productive assets and concentration of risk exposure; and b. adequacy of policies and procedures, documentation systems, and performance in handling problematic productive assets. The assessment of the profitability factor includes assessment of the following components: a. ability of productive assets to generate profit; and b. operational efficiency level; The assessment of the liquidity factor includes assessment of the following components: a. ability to meet short-term and long-term obligations, and the potential for mismatch between short-term and long-term obligations; and b. adequacy of liquidity management policies; The assessment of the management factor includes assessment of the following components: a. quality of general management, including fulfillment of commitments to the Financial Services Authority and other parties; b. implementation of risk management, particularly management's understanding of the Service Provider's risks; c. implementation of good corporate governance; and d. Service Provider's compliance with Sharia principles and implementation of social functions, for Service Providers conducting business activities based on Sharia principles. The legal basis for this ADK Member Regulation is: POJK No. 40 of 2024. The Financial Services Authority may verify and validate the accuracy and fairness of the data forming the basis for calculating the Health Level assessment factors prepared by the Service Provider. Note: This ADK Member Regulation takes effect on the date of issuance. This ADK Member Regulation is issued on December 8, 2025.