OJK Regulation No. 49 of 2024 on Supervision, Supervision Status Determination, and Follow-up for Financing Institutions, Venture Capital Companies, Microfinance Institutions, and Other Financial Service Institutions

Regulation of the Financial Services Authority 49 of 2024 concerning Supervision, Determination of Supervision Status, and Follow-up of Supervision of Financing Institutions, Venture Capital Companies, Microfinance Institutions, and Other Financial Service Institutions

Abstract: To implement the mandate of Article 128 paragraph (4) of Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector, Article 32 of Law Number 1 of 2013 concerning Microfinance Institutions as amended by Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector, and Article 40 of Law Number 2 of 2009 concerning the Indonesia Export Financing Agency as amended by Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector, and to support industry development and legal needs regarding supervision, determination of supervision status, and follow-up of supervision in the financial services sector, it is necessary to formulate new regulations regarding supervision, supervision status, and follow-up of supervision status in the field of Financing Institutions, Venture Capital Companies, Microfinance Institutions, and Other Financial Service Institutions (PVML).

The legal basis for this Financial Services Authority Regulation (POJK) is: Law No. 2 of 2009 as amended by Law No. 4 of 2023; Law No. 21 of 2011 as amended by Law No. 4 of 2023; Law No. 1 of 2013 as amended by Law No. 4 of 2023; and Law No. 4 of 2023.

The Financial Services Authority Regulation on PVML Supervision regulates the scope of supervision, frequency of examinations, examination teams, PVML obligations, examination procedures, follow-up of examination results, examinations by foreign parties, supervision follow-up, determination of intensive and special supervision status, time criteria for supervision status, duration of supervision status, and follow-up of supervision status.

Supervision of PVML can be conducted through: a. Indirect supervision; and b. Direct supervision.

The scope of examinations conducted by the Financial Services Authority covers all aspects or specific aspects of PVML business activities.

The Financial Services Authority determines the Supervision Status of PVML as follows: a. Financing Companies; b. Infrastructure Financing Companies; c. Venture Capital Companies; d. Microfinance Institutions; e. Pawnshop Companies; and f. LPBBTI Organizers.

The Supervision Status of PVML determined by the Financial Services Authority consists of: a. Normal supervision; b. Intensive supervision; or c. Special supervision.

PVML with Intensive Supervision Status or Special Supervision Status is required to submit an action plan to the Financial Services Authority.

Note: This Financial Services Authority Regulation takes effect on the date of its promulgation. This Financial Services Authority Regulation was promulgated on December 31, 2024, and established on December 30, 2024.

Upon the effective date of this Financial Services Authority Regulation: a. Financial Services Authority Regulation Number 4/POJK.05/2018 concerning Secondary Housing Financing Companies as amended by Financial Services Authority Regulation Number 12/POJK.05/2022 concerning Amendments to Financial Services Authority Regulation Number 4/POJK.05/2018 concerning Secondary Housing Financing Companies; b. Financial Services Authority Regulation Number 16/POJK.05/2019 concerning Supervision of PT Permodalan Nasional Madani (Persero); c. Financial Services Authority Regulation Number 46/POJK.05/2020 concerning Infrastructure Financing Companies; d. Financial Services Authority Regulation Number 9/POJK.05/2022 concerning Supervision of the Indonesia Export Financing Agency; e. Financial Services Authority Regulation Number 10/POJK.05/2022 concerning Information Technology-Based Joint Funding Services; f. Financial Services Authority Regulation Number 20 of 2022 concerning Supervision of the People's Housing Savings Management Agency by the Financial Services Authority; and g. Financial Services Authority Regulation Number 25 of 2023 concerning the Conduct of Business by Venture Capital Companies and Venture Capital Service Providers, are declared to remain in force insofar as they do not conflict with the provisions in this Financial Services Authority Regulation.

Upon the effective date of this Financial Services Authority Regulation, Financial Services Authority Regulation Number 11/POJK.05/2014 concerning Direct Examination of Non-Bank Financial Service Institutions as amended several times, lastly by Financial Services Authority Regulation Number 30/POJK.05/2020 concerning the Second Amendment to Financial Services Authority Regulation Number 11/POJK.05/2014 concerning Direct Examination of Non-Bank Financial Service Institutions, is declared invalid for Financing Companies, Infrastructure Financing Companies, Venture Capital Companies, Pawnshop Companies, LPBBTI Organizers, Secondary Housing Financing Companies (PPSP), Indonesia Export Financing Agency (LPEI), and PT PNM.

Upon the effective date of this Financial Services Authority Regulation, provisions regarding the determination of status and supervision follow-up in Financial Services Authority Regulation Number 9/POJK.05/2021 concerning Determination of Status and Follow-up of Supervision of Non-Bank Financial Service Institutions, are declared invalid for Financing Companies and Venture Capital Companies.

Upon the effective date of this Financial Services Authority Regulation, provisions regarding Chapter IX concerning the determination of supervision status in Financial Services Authority Regulation Number 25 of 2023 concerning the Conduct of Business by Venture Capital Companies and Venture Capital Service Providers, are revoked and declared invalid for Venture Capital Companies.

Upon the effective date of this Financial Services Authority Regulation, provisions regarding Chapter XIII concerning the determination of supervision status in Financial Services Authority Regulation Number 46/POJK.05/2020 concerning Infrastructure Financing Companies, are declared invalid for Infrastructure Financing Companies.

Upon the effective date of this Financial Services Authority Regulation, implementation provisions from: a. Financial Services Authority Regulation Number 11/POJK.05/2014 concerning Direct Examination of Non-Bank Financial Service Institutions as amended several times, lastly by Financial Services Authority Regulation Number 30/POJK.05/2020 concerning the Second Amendment to Financial Services Authority Regulation Number 11/POJK.05/2014 concerning Direct Examination of Non-Bank Financial Service Institutions; and b. Financial Services Authority Regulation Number 9/POJK.05/2021 concerning Determination of Status and Follow-up of Supervision of Non-Bank Financial Service Institutions, are declared to remain in force insofar as they do not conflict with this Financial Services Authority Regulation.