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OJK Regulation No. 26 of 2025 on Asset and Liability Management of Insurance and Reinsurance Companies
The Financial Services Authority (OJK) issued Regulation No. 26 of 2025 to replace previous financial health rules with a dedicated framework for the asset and liability management of insurance and reinsurance companies. The regulation introduces stricter investment governance, including limits on direct investments in unlisted companies and related-party transactions, while expanding permissible investments to include seed money and gold ETFs. It mandates a two-year transition period for existing non-compliant direct investments and provides specific transitional treatments for existing credit cooperation and medium-term note holdings.
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Regulation of the Financial Services Authority Number 26 of 2025 concerning Asset and Liability Management of Insurance Companies and Reinsurance Companies


Abstract:
That in order to support business development, strengthen investment governance, create a healthy ecosystem, and optimize benefits for policyholders, it is necessary to refine regulations regarding the asset and liability management of insurance companies and reinsurance companies, which were previously regulated in Financial Services Authority Regulation Number 71/POJK.05/2016 concerning the Financial Health of Insurance Companies and Reinsurance Companies as amended several times by Financial Services Authority Regulation Number 5 of 2023 concerning the Second Amendment to Financial Services Authority Regulation Number 71/POJK.05/2016 concerning the Financial Health of Insurance Companies and Reinsurance Companies.


That there is a change in the title name to "asset and liability management" to avoid ambiguity and is expected to better reflect the substance regulated.


The legal basis for this Financial Services Authority Regulation is: Law No. 21 of 2011; Law No. 40 of 2014; and Law No. 4 of 2023.


In order to strengthen the investment governance of insurance companies and reinsurance companies, the refinements made include among others:


    

  1. direct investment participation in limited liability companies whose shares are not listed on the stock exchange;
    2. 

  2. limits on related-party investments for sub-funds;
    3. 

  3. limits on sub-fund investments abroad; and
    4. 

  4. adjustment of the category of related parties for Collective Investment Contracts (KIK).
    5. 



In order to deepen the financial market and optimize benefits for policyholders, the refinements made include among others:


    

  1. recognition of the placement of assets of insurance companies and reinsurance companies in the formation of initial sub-funds (seed money) as permitted assets (AYD);
    2. 

  2. removal of investment limits for PAYDI sub-funds in mutual funds; and
    3. 

  3. expansion of investment placements in mutual funds traded on the stock exchange (ETF), including gold ETFs.
    4. 



Note:
This Financial Services Authority Regulation takes effect on the date of promulgation.
This Financial Services Authority Regulation was promulgated on November 24, 2025, and established on November 10, 2025.


Upon the effective date of this Financial Services Authority Regulation:


    

  1. Financial Services Authority Regulation Number 71/POJK.05/2016 concerning the Financial Health of Insurance Companies and Reinsurance Companies;
    2. 

  2. Financial Services Authority Regulation Number 27/POJK.05/2018 concerning Amendments to Financial Services Authority Regulation Number 71/POJK.05/2016 concerning the Financial Health of Insurance Companies and Reinsurance Companies; and
    3. 

  3. Financial Services Authority Regulation Number 5 of 2023 concerning the Second Amendment to Financial Services Authority Regulation Number 71/POJK.05/2016 concerning the Financial Health of Insurance Companies and Reinsurance Companies, are repealed and declared invalid.
    4. 



Upon the effective date of this Financial Services Authority Regulation, Companies that have existing placements of Permitted Assets in the form of direct investment participation but have not yet met the requirements:


    

  1. placement of Permitted Assets in the form of direct investment participation; and/or
    2. 

  2. maximum limit of total investment placements in the form of direct investment participation,
must adjust to the provisions in this Financial Services Authority Regulation within a maximum period of 2 (two) years from the effective date of this Financial Services Authority Regulation.
    3. 



Upon the effective date of this Financial Services Authority Regulation, placements of Permitted Assets in the form of investments via credit cooperation mechanisms with third parties (executing) that existed prior to the effective date of this Financial Services Authority Regulation, are recognized as Permitted Assets until the end of the cooperation agreement term.


Placements of Permitted Assets in the form of existing Medium Term Notes prior to the effective date of this Financial Services Authority Regulation must be interpreted as Non-Publicly Offered EBUS as long as they do not conflict with this Financial Services Authority Regulation.
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