Implementation of Risk Management for Financing Institutions, Venture Capital Companies, Microfinance Institutions, and Other Financial Service Institutions

The Financial Services Authority (OJK) issued Regulation No. 48/PADK.06/2025 to implement risk management standards for financing institutions, venture capital companies, microfinance institutions, and other financial service providers. The regulation establishes guidelines for risk management application, organizational structure, and the submission of self-assessment results regarding the PVML risk profile to the OJK. It repeals several previous circulars and provisions related to risk assessment and health level evaluations for these entities, with a six-month adjustment period for internal strategies and procedures.

Indonesia

Otoritas Jasa Keuangan (Financial Services Authority)

Regulation of the Member of the Board of Commissioners of the Financial Services Authority Number 48/PADK.06/2025 concerning the Implementation of Risk Management for Financing Institutions, Venture Capital Companies, Microfinance Institutions, and Other Financial Service Institutions

Abstract: The Regulation of the Member of the Board of Commissioners of the Financial Services Authority (PADK) is drafted to implement the mandate of Article 2 paragraph (4), Article 5 paragraph (4), Article 25 paragraph (4), Article 26 paragraph (8), Article 27 paragraph (2), Article 29 paragraph (10), Article 33 paragraph (9), Article 35 paragraph (5), and Article 36 paragraph (6) of the Financial Services Authority Regulation Number 42 of 2024 concerning the Implementation of Risk Management for Financing Institutions, Venture Capital Companies, Microfinance Institutions, and Other Financial Service Institutions (State Gazette of the Republic of Indonesia Year 2024 Number 55/OJK, Supplement to the State Gazette of the Republic of Indonesia Number 123/OJK).

This PADK regulates: a. the implementation of Risk Management; b. Risk Management guidelines; c. organizational structure and Risk Management functions; and d. the procedure for submitting the results of the self-assessment of the PVML Risk Profile to the Financial Services Authority; e. the format for the self-assessment of the Risk Profile.

The legal basis for this PADK is POJK No. 42 of 2024.

Note: This PADK takes effect on the date it is established. This PADK was established on December 30, 2025. Adjustments and improvements to Risk Management strategies, policies, and procedures, or internal Risk Management guidelines as referred to in Article 2 shall be implemented within 6 (six) months from the establishment of this Regulation of the Member of the Board of Commissioners of the Financial Services Authority.

Upon the entry into force of this PADK:

Financial Services Authority Circular Letter Number 7/SEOJK.05/2021 concerning the Implementation of Risk Management for Financing Companies and Sharia Financing Companies;
provisions regarding risk profile assessment on Financing Companies, Infrastructure Financing Companies, Venture Capital Companies, and Export Financing Institutions in the provisions: a. Appendix V of Financial Services Authority Circular Letter Number 11/SEOJK.05/2020 concerning the Assessment of the Health Level of Financing Companies and Sharia Financing Companies; b. Appendix V of Financial Services Authority Circular Letter Number 27/SEOJK.05/2021 concerning the Assessment of the Health Level of Infrastructure Financing Companies; c. Appendix V of Financial Services Authority Circular Letter Number 15/SEOJK.05/2022 concerning the Assessment of the Health Level of Export Financing Institutions; d. Appendix V of Financial Services Authority Circular Letter Number 19/SEOJK.06/2024 concerning the Assessment of the Health Level of Venture Capital Companies and Sharia Venture Capital Companies, are repealed and declared invalid.