Amendment 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.

Indonesia

Otoritas Jasa Keuangan (Financial Services Authority)

Financial Services Authority Regulation Number 25 of 2025 regarding Amendment 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

Abstract: To follow up on the slowdown in economic conditions impacting debtors' repayment ability and equity-to-paid-up-capital ratios, and to adjust the implementation of a transition period for the equity-to-paid-up-capital ratio parameter for Microfinance Institutions, 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 needs to be amended.

The legal basis for this Financial Services Authority Regulation is: Law Number 21 of 2011 as amended by Law Number 4 of 2023; Law Number 1 of 2013 as amended by Law Number 4 of 2023; Law Number 4 of 2023; and POJK Number 49 of 2024.

This Financial Services Authority Regulation regarding the Amendment 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 concerning the scope of supervision over Other Microfinance Institutions regulates changes to the scope of supervision for Microfinance Institutions.

Note: This Financial Services Authority Regulation takes effect on the date of its promulgation. This Financial Services Authority Regulation was promulgated on November 10, 2025, and established on November 4, 2025. Criteria in the supervisory status for Microfinance Institutions taking effect since December 31, 2027 include among others: a. health level; b. quantitative parameter in the form of equity-to-paid-up-capital ratio; and c. quantitative parameter in the form of net non-performing financing receivables ratio.

At the time this Financial Services Authority Regulation takes effect, Microfinance Institutions that have been designated in Intensive Supervision status or Special Supervision status based on 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, are declared to have had their Intensive Supervision status or Special Supervision status terminated based on this Financial Services Authority Regulation.