Regulatory AlertsAmendment to Financial Services Authority Regulation Number 49 of 2024 on Supervision, Determination of Supervisory Status, and Follow-up of Supervision of Financing Institutions, Venture Capital Companies, Microfinance Institutions, and Other Financial Service Institutions
The Financial Services Authority (OJK) issued Regulation Number 25 of 2025 to amend Regulation Number 49 of 2024, adjusting supervisory parameters for microfinance institutions in response to economic slowdowns affecting debtor repayment capacity and equity ratios. This regulation modifies the scope of supervision for other microfinance institutions and introduces a transition period for equity-to-paid-up-capital ratios, with new health criteria taking effect on December 31, 2027. It further stipulates that existing intensive or special supervision statuses for microfinance institutions under the previous regulation are deemed terminated upon the entry into force of this new regulation.
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