Regulatory Alerts2025-04-28
Added · Updated
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
The Financial Services Authority increases minimum paid-up capital for guarantee companies to between IDR 50 billion and IDR 250 billion depending on operational scope, and sets IDR 500 billion for reinsurance companies. The regulation introduces strict eligibility criteria for cross-border operations, requiring composite health ratings of 1 or 2, or specific gearing and liquidity ratios, alongside mandatory OJK approval. It mandates the appointment of controlling shareholders, prohibits shareholder funds from originating from loans or illicit activities, and restricts foreign worker employment to executive experts and consultants in underwriting or IT functions for a maximum of ten years. Additionally, the document updates definitions, name usage requirements, and reporting formats for institutional changes while repealing several obsolete articles.