Amendment to Financial Services Authority Regulation Number 10 of 2025 Concerning Changes to Regulation Number 1/POJK.05/2017 on Business Licensing and Institutional Requirements for Guarantee Institutions

EXTRACT
FINANCIAL SERVICES AUTHORITY REGULATION
OF THE REPUBLIC OF INDONESIA
NUMBER 10 OF 2025
CONCERNING
AMENDMENT TO FINANCIAL SERVICES AUTHORITY REGULATION NUMBER 1/POJK.05/2017 CONCERNING BUSINESS LICENSING AND INSTITUTIONAL REQUIREMENTS FOR GUARANTEE INSTITUTIONS BY THE GRACE OF GOD THE ALMIGHTY THE COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY,

Considering:
a. that in order to strengthen the institution of guarantee institutions, it is necessary to increase capital, expand the operational scope of guarantee institutions, and to realize a healthy, trusted, and sustainable guarantee industry; b. that the Financial Services Authority Regulation Number 1/POJK.05/2017 concerning Business Licensing and Institutional Requirements for Guarantee Institutions is no longer in line with the development of the guarantee industry, so it needs to be amended;
c. that based on the considerations as referred to in letters a and b, it is necessary to establish a Financial Services Authority Regulation concerning Amendment to Financial Services Authority Regulation Number 1/POJK.05/2017 concerning Business Licensing and Institutional Requirements for Guarantee Institutions;

Recalling:

1. Law Number 21 of 2011 concerning the Financial Services Authority (State Gazette of the Republic of Indonesia Year 2011 Number 111, Additional State Gazette of the Republic of Indonesia Number 5253) as amended by Law Number 4 of 2023 concerning Development and Strengthening of the Financial Sector (State Gazette of the Republic of Indonesia Year 2023 Number 4, Additional State Gazette of the Republic of Indonesia Number 6845);
2. Law Number 1 of 2016 concerning Guarantee (State Gazette of the Republic of Indonesia Year 2016 Number 9, Additional State Gazette of the Republic of Indonesia Number 5835) as amended by Law Number 4 of 2023 concerning Development and Strengthening of the Financial Sector (State Gazette of the Republic of Indonesia Year 2023 Number 4, Additional State Gazette of the Republic of Indonesia Number 6845);
3. Financial Services Authority Regulation Number 1/POJK.05/2017 concerning Business Licensing and Institutional Requirements for Guarantee Institutions (State Gazette of the Republic of Indonesia Year 2017 Number 6, Additional State Gazette of the Republic of Indonesia Number 6013);

DECIDES:
Establish: FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING AMENDMENT TO FINANCIAL SERVICES AUTHORITY REGULATION NUMBER 1/POJK.05/2017 CONCERNING BUSINESS LICENSING AND INSTITUTIONAL REQUIREMENTS FOR GUARANTEE INSTITUTIONS.

Article I
Several provisions in the Financial Services Authority Regulation Number 1/POJK.05/2017 concerning Business Licensing and Institutional Requirements for Guarantee Institutions (State Gazette of the Republic of Indonesia Year 2017 Number 6, Additional State Gazette of the Republic of Indonesia Number 6013) are amended as follows:

1. The provisions of Article 1 are amended to read as follows:
   Article 1
   In this Financial Services Authority Regulation:

2. Guarantee is the activity of providing guarantees by the guarantor for the fulfillment of the financial obligations of the guaranteed party to the guarantee recipient.

3. Sharia Guarantee is the activity of providing guarantees by the guarantor for the fulfillment of the financial obligations of the guaranteed party to the guarantee recipient based on Sharia principles.

4. Sharia Principles are Islamic legal principles in guarantee activities based on fatwas issued by institutions having authority in setting fatwas in the Sharia field.

5. Reinsurance is the activity of providing guarantees for the fulfillment of financial obligations of guarantee companies.

6. Sharia Reinsurance is the activity of providing guarantees for the fulfillment of financial obligations of Sharia guarantee companies and Sharia business units.

7. Guarantee Institution is a guarantee company, Sharia guarantee company, reinsurance company, and Sharia reinsurance company that carry out guarantee activities.

8. Guarantee Company is a legal entity engaged in the financial sector with the main business activity of conducting Guarantees.

9. Sharia Guarantee Company is a legal entity engaged in the financial sector with the main business activity of conducting Sharia Guarantees.

10. Reinsurance Company is a legal entity engaged in the financial sector with the business activity of conducting Reinsurance.

11. Sharia Reinsurance Company is a legal entity engaged in the financial sector with the business activity of conducting Sharia Reinsurance.

12. Guarantor is the party conducting guarantees.

13. Guarantee Recipient is a financial institution or non-financial institution that has provided credit, financing, Sharia-based financing, or service contracts to the guaranteed party.

14. Guaranteed Party is the party that has obtained credit, financing, Sharia-based financing, or service contracts from a financial institution or non-financial institution that is guaranteed by a Guarantee Company or Sharia Guarantee Company.

15. Credit is the provision of money or receivables that can be equated with it, based on a loan agreement or consensus, made by a bank or cooperative with another party that obligates the borrower to repay their debt after a certain period with the provision of interest.

16. Financing is the provision of financial facilities or receivables that can be equated with it, based on an agreement or consensus, made by a financing institution with another party that obligates the financed party to repay their debt after a certain period, including those conducted based on Sharia Principles.

17. Sharia-Based Financing is financing as referred to in laws regulating Sharia banking.

18. Sharia Business Unit hereinafter referred to as UUS is a working unit of a Guarantee Company that functions as the head office of offices or units conducting Sharia-based Guarantee business activities.

19. Financial Institution is a bank and non-bank financial institution.

20. Branch Office is an office of a Guarantee Institution that is directly responsible to the head office or UUS.

21. Guarantee Certificate is proof of the approval of Guarantee from the Guarantee Company to the Guarantee Recipient regarding the financial obligations of the Guaranteed Party.

22. Kafalah Certificate is proof of the approval of Sharia Guarantee from the Sharia Guarantee Company and UUS to the Guarantee Recipient regarding the financial obligations of the Guaranteed Party.

23. Controlling Shareholder hereinafter abbreviated as PSP is a legal entity, individual, and/or business group that directly or indirectly owns shares or shares equivalent to shares in a Guarantee Institution and/or has the ability to exercise control over the aforementioned Guarantee Institution.

24. Paid-up Capital is paid-up capital for Guarantee Institutions in the form of a limited liability company, principal savings and mandatory savings for Guarantee Institutions in the form of a cooperative legal entity, or state capital participation for Guarantee Institutions in the form of a state-owned enterprise legal entity.

25. Board of Directors is the organ of a Guarantee Institution authorized and fully responsible for managing the Guarantee Institution for the benefit of the Guarantee Institution, in accordance with the purpose and objectives of the Guarantee Institution and representing the Guarantee Institution, both inside and outside of court, in accordance with the articles of association for Guarantee Institutions in the form of a limited liability company, or equivalent to the Board of Directors for Guarantee Institutions in the form of a state-owned enterprise or cooperative legal entity.

26. Board of Commissioners is the organ of a Guarantee Institution tasked with conducting general and/or specific supervision in accordance with the articles of association and providing advice to the Board of Directors for Guarantee Institutions in the form of a limited liability company, or equivalent to the Board of Commissioners for Guarantee Institutions in the form of a state-owned enterprise or cooperative legal entity.

27. Sharia Supervisory Board hereinafter abbreviated as DPS is a board that has the task and function of supervision and providing advice to the Board of Directors regarding the implementation of activities of Sharia Guarantee Companies, Sharia Reinsurance Companies, and Guarantee Companies having UUS to be in accordance with Sharia Principles.

28. General Meeting of Shareholders hereinafter abbreviated as GMS is the organ of a Guarantee Institution that has authority not given to the Board of Directors or Board of Commissioners within the limits determined in legislation concerning limited liability companies and/or the articles of association for Guarantee Institutions in the form of a limited liability company, or equivalent to the GMS for Guarantee Institutions in the form of a state-owned enterprise or cooperative legal entity.

29. Merger is a legal act performed by 2 (two) or more Guarantee Institutions to merge themselves by establishing 1 (one) new Guarantee Institution which by law acquires assets, liabilities, and equity from the merging Guarantee Institutions and the legal status of the merging Guarantee Institutions ends by law.

30. Consolidation is a legal act performed by 1 (one) or more Guarantee Institutions to merge with an existing Guarantee Institution resulting in the assets, liabilities, and equity of the consolidating Guarantee Institution transferring by law to the receiving Guarantee Institution and subsequently the legal status of the consolidating Guarantee Institution ends by law.

31. Takeover is a legal act performed by a legal entity or individual to take over shares of a Guarantee Institution resulting in the transfer of control over that Guarantee Institution.

32. Separation is a legal act performed by a Guarantee Institution to separate business resulting in all assets, liabilities, and equity of the Guarantee Institution transferring by law to 2 (two) or more legal entities, or part of the assets, liabilities, and equity of the Guarantee Institution transferring by law to 1 (one) or more legal entities.

33. Any Person is an individual or business entity, whether in the form of a legal entity or not.

34. The provisions of paragraph (2), paragraph (3), paragraph (4), and paragraph (5) of Article 7 are amended to read as follows:
    Article 7
    (1) Paid-up Capital in Guarantee Institutions is determined according to the operational area scope.
    (2) The amount of Paid-up Capital for Guarantee Companies and Sharia Guarantee Companies at the time of establishment is set at a minimum of:
    a. IDR 250,000,000,000.00 (two hundred fifty billion rupiah), for the national area scope; b. IDR 100,000,000,000.00 (one hundred billion rupiah), for the provincial area scope; or
    c. IDR 50,000,000,000.00 (fifty billion rupiah), for the regency or city area scope.
    (3) The amount of Paid-up Capital for Reinsurance Companies and Sharia Reinsurance Companies for the national area scope at the time of establishment is set at a minimum of IDR 500,000,000,000.00 (five hundred billion rupiah).
    (4) Paid-up Capital as referred to in paragraph (2) and paragraph (3) must be paid in cash and in full in the form of time deposits in the name of the Guarantee Company or Reinsurance Company at a general bank or Sharia general bank in Indonesia. (5) Paid-up Capital as referred to in paragraph (2) and paragraph (3) must be paid in cash and in full in the form of time deposits in the name of the Sharia Guarantee Company or Sharia Reinsurance Company at a Sharia general bank or Sharia business unit of a general bank in Indonesia.

35. The provisions of paragraph (1) of Article 8 are amended to read as follows:
    Article 8
    (1) The operational area scope of Guarantee Institutions consists of:
    a. Guarantee Companies and Sharia Guarantee Companies consisting of national, provincial, and regency/city areas; and b. Reinsurance Companies and Sharia Reinsurance Companies are designated for the national area.
    (2) The operational area scope of Guarantee Institutions must be clearly stated in the articles of association of the Guarantee Institution.

36. The provisions of paragraph (2) and paragraph (3) of Article 9 are amended and 2 (two) paragraphs are inserted between paragraph (2) and paragraph (3), namely paragraph (2a) and paragraph (2b) so that Article 9 reads as follows:
    Article 9
    (1) Guarantee Institutions are prohibited from opening Branch Offices outside the operational area scope.
    (2) Guarantee Companies and Sharia Guarantee Companies with provincial or regency/city area scopes are prohibited from conducting Guarantee or Sharia Guarantee activities for Guaranteed Parties outside their operational area scope, except if they meet the requirements:
    a. conducting guarantees in areas bordering directly; b. there are no Guarantee Companies and Sharia Guarantee Companies in the target area; and
    c. obtaining approval from the Financial Services Authority.
    (2a) In applying for approval as referred to in paragraph (2) letter c, Guarantee Companies and Sharia Guarantee Companies must meet the provisions:
    a. composite health rating 1 or composite health rating 2; and b. having equity of at least 150% (one hundred fifty percent) of the minimum equity required according to the operational area scope.
    (2b) In the event that there is no regulation regarding the health level of Guarantee Companies and Sharia Guarantee Companies as referred to in paragraph (2a) letter a, Guarantee Companies and Sharia Guarantee Companies must meet:
    a. total gearing ratio of at most 40 (forty) times; and b. liquidity ratio of at least 120% (one hundred twenty percent).
    (3) Guarantee Companies and Sharia Guarantee Companies with provincial or regency/city area scopes are prohibited from conducting indirect Guarantee or Sharia Guarantee activities for Guaranteed Parties outside their operational area, except if they meet the provisions:
    a. Guarantee Companies and Sharia Guarantee Companies cooperate with other Guarantee Companies and Sharia Guarantee Companies outside their operational area scope through a joint Guarantee or Sharia Guarantee mechanism; or b. the Guaranteed Party is a debtor of the Guarantee Recipient owned by the same shareholder as the Guarantee Company and Sharia Guarantee Company.

37. 1 (one) article is inserted between Article 10 and Article 11, namely Article 10A so that it reads as follows:
    Article 10A
    (1) The source of funds used by shareholders for participation and/or capital addition to Guarantee Institutions is prohibited from originating from:
    a. loans; and b. money laundering, terrorism financing, proliferation financing of weapons of mass destruction, and other financial crimes.
    (2) The provisions on the source of funds as referred to in paragraph (1) are stated in the shareholder's statement letter.
    (3) The provisions as referred to in paragraph (1) and paragraph (2) do not apply if the shareholder of the Guarantee Institution is:
    a. the central government; b. the regional government; and/or
    c. a legal entity controlled by the central government or regional government.

38. 1 (one) article is inserted between Article 11 and Article 12, namely Article 11A so that it reads as follows:
    Article 11A
    (1) Guarantee Institutions are required to appoint at least 1 (one) PSP.
    (2) Guarantee Institutions are required to submit an application for the determination of PSP as referred to in paragraph (1) together with the application for the competence and propriety assessment of the prospective PSP to the Financial Services Authority. (3) The procedure for assessing the competence and propriety of PSP is carried out in accordance with the Financial Services Authority Regulation regarding the competence and propriety assessment for key parties of financial service institutions. (4) In the event that there are other PSPs not yet appointed by the Guarantee Institution, the Financial Services Authority is authorized to determine PSPs other than those referred to in paragraph (1). (5) The procedure for determining other PSPs by the Financial Services Authority as referred to in paragraph (4) is carried out without following the provisions of the Financial Services Authority Regulation regarding the competence and propriety assessment for key parties of financial service institutions.

39. The provisions of Article 16 are added with 3 (three) paragraphs, namely paragraph (3), paragraph (4), and paragraph (5) so that it reads as follows:
    Article 16
    (1) The name of the Guarantee Institution as referred to in Article 13 paragraph (2) letter a number 1 must be clearly stated in the articles of association starting with the form of the legal entity and containing the word:
    a. Guarantee or Jaminan, for Guarantee Companies; b. Reinsurance or Jaminan Ulang, for Reinsurance Companies;
    c. Guarantee or Jaminan and the word Sharia, for Sharia Guarantee Companies; or
    d. Reinsurance or Jaminan Ulang and the word Sharia, for Sharia Reinsurance Companies.
    (2) The use of names as referred to in paragraph (1) for Guarantee Institutions in the form of state-owned enterprise legal entities, limited liability companies, and cooperatives must meet the provisions of legislation.
    (3) The name of the Guarantee Institution must be clearly stated on the office building, advertisements, letterheads of the Guarantee Institution, and other documents of the Guarantee Institution.
    (4) The Financial Services Authority is authorized to issue written instructions to Guarantee Institutions to change the name of the Guarantee Institution if the name of the Guarantee Institution does not comply with the provisions as referred to in paragraph (1) and paragraph (2). (5) Guarantee Institutions are required to comply with the written instructions of the Financial Services Authority as referred to in paragraph (4).

40. Article 32 is repealed.

41. Article 33 is repealed.

42. Article 34 is repealed.

43. 1 (one) article is inserted between Article 38 and Article 39, namely Article 38A so that it reads as follows:
    Article 38A
    (1) Guarantee Institutions may employ foreign workers.
    (2) Foreign workers as referred to in paragraph (1) must meet the provisions:
    a. may only hold positions as:

44. experts who are executive officials; or

45. consultants; and
    b. may only be assigned to handle functions:

46. underwriting; and/or

47. information systems.
    (3) Guarantee Institutions employing foreign workers must meet the usage period of foreign workers for a maximum of 5 (five) years and can be extended 1 (one) time for a maximum of 5 (five) years.

48. The provisions of paragraph (5) and paragraph (6) of Article 40 are amended, and paragraph (7), paragraph (8), and paragraph (9) of Article 40 are repealed so that Article 40 reads as follows:
    Article 40
    (1) Guarantee Institutions may change their operational area scope.
    (2) Changes to the operational area scope as referred to in paragraph (1) include:
    a. increasing the operational area scope; or b. decreasing the operational area scope.
    (3) Changes to the operational area scope as referred to in paragraph (2) must meet the requirements:
    a. meeting the Paid-up Capital provisions for the target area scope; and b. having obtained approval for the change of operational area scope from the PSP.
    (4) Guarantee Institutions that decrease their operational area scope as referred to in paragraph (2) letter b are prohibited from reducing Paid-up Capital.
    (5) To carry out changes to the operational area scope as referred to in paragraph (1), the Board of Directors must submit an application for approval to the Financial Services Authority using format 9 as stated in the Appendix which is an integral part of this Financial Services Authority Regulation, attaching:
    a. the plan for changing the articles of association; b. proof of approval for the change of operational area scope from the PSP; and
    c. a work plan containing at least:

49. the business activity plan of the Guarantee Institution and steps of activities to be carried out to realize short-term and long-term plans; and

50. projections of monthly financial position reports, profit and loss reports, and cash flow reports starting from when the Guarantee Institution conducts operational activities with the new operational area scope.
    (6) In the event that the expansion of provincial or regency/city areas causes the Guarantee Institution to be in a different operational area, the Guarantee Institution can still operate in the area before the expansion.
    (7) Repealed.
    (8) Repealed.
    (9) Repealed.

51. 1 (one) article is inserted between Article 40 and Article 41, namely Article 40A so that it reads as follows:
    Article 40A
    (1) Approval for the change of operational area scope as referred to in Article 40 paragraph (3) letter b must first be agreed upon in the GMS.
    (2) Changes to the operational area scope resulting in an increase in the operational area scope as referred to in Article 40 paragraph (2) letter a can be carried out if the Guarantee Institution is not currently subject to administrative sanctions at the time of submitting the application for approval for the change of operational area scope.

52. The provisions of paragraph (4), paragraph (6), paragraph (7), paragraph (8), and paragraph (9) of Article 43 are amended so that it reads as follows:
    Article 43
    (1) Reporting the change of name of the Guarantee Institution as referred to in Article 42 paragraph (3) letter a must be submitted by the Board of Directors to the Financial Services Authority using format 10 as stated in the Appendix which is an integral part of this Financial Services Authority Regulation, attached with documents consisting of photocopies of the tax identification number (NPWP) under the new name of the Guarantee Institution and:
    a. changes to the articles of association accompanied by proof of approval from the competent authority for Guarantee Institutions in the form of limited liability company legal entities; b. photocopies of the minutes of the members' meeting and/or changes to the articles of association for Guarantee Institutions in the form of cooperative legal entities; or
    c. government regulations underlying the change of name for Guarantee Institutions in the form of state-owned enterprise legal entities.
    (2) Reporting the change of purpose and business activities of the Guarantee Institution as referred to in Article 42 paragraph (3) letter b must be submitted by the Board of Directors to the Financial Services Authority using format 11 as stated in the Appendix which is an integral part of this Financial Services Authority Regulation, attached with documents consisting of changes to the articles of association and proof of approval or consent from the competent authority. (3) Reporting the change of the head office location of the Guarantee Institution as referred to in Article 42 paragraph (3) letter c must be submitted by the Board of Directors to the Financial Services Authority using format 12 as stated in the Appendix which is an integral part of this Financial Services Authority Regulation, attached with documents consisting of photocopies of the tax identification number (NPWP) under the new address of the Guarantee Institution and:
    a. changes to the articles of association accompanied by proof of approval from the competent authority for Guarantee Institutions in the form of limited liability company legal entities; b. photocopies of the minutes of the members' meeting and/or changes to the articles of association for Guarantee Institutions in the form of cooperative legal entities; or
    c. government regulations underlying the change of head office location for Guarantee Institutions in the form of state-owned enterprise legal entities.

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