Regulatory AlertsOJK Regulation No. 35 of 2024 on Licensing and Institutional Aspects of Pension Funds
The Financial Services Authority (OJK) issued Regulation No. 35 of 2024 to update the licensing and institutional framework for pension funds in Indonesia, aligning them with the Financial Sector Development and Strengthening Act No. 4 of 2023. This regulation consolidates and replaces seven previous OJK regulations to establish new requirements for pension fund formation, governance, Sharia compliance, and liquidation procedures. It introduces specific provisions regarding minimum pension fund documents, organizational structures, investment governance, and the abolition of conflicting prior rules effective three months after promulgation.
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Sector: PPDP
Sub-Sector: Pension Funds
Regulation Type: OJK Regulation
Regulation Number: 35 of 2024
Effective Date: 12/23/2024
Appendix 1 POJK 35 of 2024 on Licensing and Institutional Aspects of Pension Funds.pdf Abstract of POJK 35 of 2024 on Licensing and Institutional Aspects of Pension Funds.pdf FAQ of POJK 35 of 2024 on Licensing and Institutional Aspects of Pension Funds.pdf
Page Content Financial Services Authority Regulation Number 35 of 2024 concerning Licensing and Institutional Aspects of Pension Funds
Abstract: To implement the provisions of Article 137 paragraph (4), Article 139 paragraph (7), Article 140 paragraph (4), Article 141 paragraph (3), Article 142 paragraph (7), Article 143 paragraph (4), Article 144 paragraph (8), Article 182 paragraph (5), Article 183 paragraph (7), Article 184 paragraph (9), and Article 185 paragraph (4) of Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector, and considering that the Financial Services Authority Regulation Number 9/POJK.05/2014 concerning the Dissolution and Liquidation of Pension Funds, the Financial Services Authority Regulation Number 13/POJK.05/2016 concerning the Procedure for Requesting Approval of the Establishment of Employer Pension Funds and Approval of Changes to the Pension Fund Regulations of Employer Pension Funds, the Financial Services Authority Regulation Number 14/POJK.05/2016 concerning the Approval of the Establishment of Financial Institution Pension Funds and Changes to the Pension Fund Regulations of Financial Institution Pension Funds, the Financial Services Authority Regulation Number 15/POJK.05/2016 concerning the Requirements for Management and Supervisory Board of Employer Pension Funds and Acting Management of Financial Institution Pension Funds, the Financial Services Authority Regulation Number 33/POJK.05/2016 concerning the Implementation of Pension Programs Based on Sharia Principles, and the Financial Services Authority Regulation Number 15/POJK.05/2019 concerning Pension Fund Governance, it is necessary to adjust these provisions in accordance with the provisions of Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector and the development of the pension fund industry in Indonesia, thus requiring the refinement of regulations.
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.
The refinements made include, among others, requirements for the establishment of pension funds, minimum content of the Pension Fund Regulations (PDP), minimum content of the Pension Fund Regulations (PDP) of Employer Pension Funds (DPPK) that operate 2 programs, content of written statements from founders and co-founders, approval of changes to PDP for the conversion of pension funds, establishment of Sharia units, sale of Sharia investment packages, changes in funding, changes in pension programs, termination of co-founders, addition of co-founders, merger of pension funds, separation of pension funds, closure of Sharia units, and closure of the sale of Sharia investment packages, organization and human resources, guidelines for pension fund governance, application of management organs for Financial Institution Pension Funds (DPLK), prohibition of dual positions for management, functions and committees, investment governance and investment committees, and provisions on the dissolution and liquidation of pension funds.
Note: This Financial Services Authority Regulation shall take effect 3 (three) months from the date of promulgation. This Financial Services Authority Regulation was promulgated on December 23, 2024, and established on December 20, 2024. Upon the entry into force of this Financial Services Authority Regulation, the following provisions: a. Financial Services Authority Regulation Number 9/POJK.05/2014 concerning the Dissolution and Liquidation of Pension Funds; b. Financial Services Authority Regulation Number 13/POJK.05/2016 concerning the Procedure for Requesting Approval of the Establishment of Employer Pension Funds and Approval of Changes to the Pension Fund Regulations of Employer Pension Funds; c. Financial Services Authority Regulation Number 14/POJK.05/2016 concerning the Approval of the Establishment of Financial Institution Pension Funds and Changes to the Pension Fund Regulations of Financial Institution Pension Funds; d. Financial Services Authority Regulation Number 15/POJK.05/2016 concerning the Requirements for Management and Supervisory Board of Employer Pension Funds and Acting Management of Financial Institution Pension Funds; e. Financial Services Authority Regulation Number 33/POJK.05/2016 concerning the Implementation of Pension Programs Based on Sharia Principles; f. Financial Services Authority Regulation Number 15/POJK.05/2019 concerning Pension Fund Governance; and g. provisions of Article 2 paragraph (2) letter f of Financial Services Authority Regulation Number 27/POJK.05/2016 concerning the Assessment of Competence and Integrity for Principal Parties of Financial Service Institutions, are repealed and declared invalid.