Regulatory AlertsOJK Regulation No. 29 of 2024 on Alternative Credit Scoring (PKA)
The Financial Services Authority (OJK) issued Regulation No. 29 of 2024 to establish licensing and supervision requirements for Alternative Credit Scoring (PKA) entities under the Financial Sector Development and Strengthening Act. This regulation defines institutional and governance standards, operational procedures, and compliance obligations for Innovative Credit Scoring services. It further mandates specific reporting mechanisms for annual business plans and outlines procedures for the suspension or revocation of business licenses.
Regulation /
Regulation Search / Alternative Credit Scoring (PKA)
Sector: ITSK
Sub-Sector: Alternative Credit Scoring
Regulation Type: OJK Regulation
Regulation Number: 29 of 2024
Effective Date: 12/18/2024
Appendix 1
POJK 29 of 2024 on Alternative Credit Scoring (PKA).pdf Abstract of POJK 29 of 2024 on Alternative Credit Scoring (PKA).pdf FAQ of POJK 29 of 2024 on Alternative Credit Scoring (PKA).pdf
Page Content
Financial Services Authority Regulation Number 29 of 2024 concerning Alternative Credit Scoring (PKA)
Abstract:
With the enactment of Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (UU P2SK), further regulations are required regarding the licensing and supervision of Financial Sector Technology Innovations (ITSK). One scope of ITSK as regulated in Article 213 of the UU P2SK is market support, where one example of ITSK included in the market support coverage is Innovative Credit Scoring (ICS) or Alternative Credit Scoring (PKA).
The legal basis for this Financial Services Authority Regulation (POJK) is: Law No. 21 of 2011 as amended by Law No. 4 of 2023; and Law No. 4 of 2023.
This Financial Services Authority Regulation regulates provisions concerning institutions, governance, the implementation of Alternative Credit Scoring, supervision, cessation of activities and revocation of business licenses, and other compliance aspects.
Note:
This Financial Services Authority Regulation takes effect on the date of promulgation.
This Financial Services Authority Regulation was promulgated on December 20, 2024, and established on December 18, 2024.
This POJK mandates further regulations regarding the procedures and mechanisms for reporting annual business plans and reporting procedures.