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OJK Regulation No. 27 of 2025 on Asset and Liability Management of Sharia Insurance and Reinsurance Companies
The Indonesian Financial Services Authority (OJK) issued Regulation No. 27 of 2025 to strengthen investment governance and optimize benefits for policyholders in Sharia insurance and reinsurance sectors. The regulation introduces new requirements for tabarru' and tanahud funds, prohibits qardh returns, imposes limits on direct investments, and expands permissible investment vehicles such as ETFs and seed money. It repeals previous regulations and grants a two-year transition period for existing direct investments to comply with the new standards.
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Regulation of the Financial Services Authority
Number 27 of 2025 concerning
Asset and Liability Management of Sharia Insurance Companies and Sharia Reinsurance Companies


Abstract:
That in order to support business development, strengthen investment governance, create a healthy ecosystem, and optimize benefits for policyholders, it is necessary to refine regulations regarding the asset and liability management of Sharia insurance companies and Sharia reinsurance companies, which were previously regulated in the Financial Services Authority Regulation Number 6 of 2023 concerning the Second Amendment to the Financial Services Authority Regulation Number 72/POJK.05/2016 concerning the Financial Health of Sharia Insurance Companies and Sharia Reinsurance Companies.


That there is a change in the title to "asset and liability management" to avoid ambiguity and to better reflect the substance being regulated.


The legal basis for this Financial Services Authority Regulation is:
Law Number 21 of 2011;
Law Number 40 of 2014; and
Law Number 4 of 2023.


In order to strengthen the investment governance of Sharia insurance companies and Sharia reinsurance companies, the refinements include:


    

  1. Requirements when a company establishes more than one (1) tabarru' fund and tanahud fund;
    2. 

  2. Prohibition on the return of qardh;
    3. 

  3. Qualitative and quantitative limits for investments in the form of direct participation;
    4. 

  4. Investment of participant investment funds in related parties;
    5. 

  5. Limits on the investment of participant investment funds abroad; and
    6. 

  6. Adjustment of the category of related parties for Collective Investment Contracts (KIK).
    7. 



In order to deepen the financial market and optimize benefits for policyholders, the refinements include:


    

  1. Recognition of the placement of assets of Sharia insurance companies and Sharia reinsurance companies in the formation of initial sub-funds (seed money) as permissible assets (AYD);
    2. 

  2. Removal of investment limits for PAYDI sub-funds in mutual funds; and
    3. 

  3. Expansion of investment placements in exchange-traded funds (ETFs).
    4. 



Note:
This Financial Services Authority Regulation takes effect on the date of promulgation.
This Financial Services Authority Regulation was promulgated on November 24, 2025, and established on November 10, 2025.


Upon the effective date of this Financial Services Authority Regulation:


    

  1. Financial Services Authority Regulation Number 72/POJK.05/2016 concerning the Financial Health of Sharia Insurance Companies and Sharia Reinsurance Companies;
    2. 

  2. Financial Services Authority Regulation Number 28/POJK.05/2018 concerning Amendments to Financial Services Authority Regulation Number 72/POJK.05/2016 concerning the Financial Health of Sharia Insurance Companies and Sharia Reinsurance Companies; and
    3. 

  3. Financial Services Authority Regulation Number 6 of 2023 concerning the Second Amendment to Financial Services Authority Regulation Number 72/POJK.05/2016 concerning the Financial Health of Sharia Insurance Companies and Sharia Reinsurance Companies,
are repealed and declared invalid.
    4. 



Upon the effective date of this Financial Services Authority Regulation, Companies that have existing placements of Permissible Assets in the form of direct participation investments but do not yet meet the requirements:


    

  1. Placements of Permissible Assets in the form of direct participation investments; and/or
    2. 

  2. The maximum limit of total investment placements in the form of direct participation,
must adjust to the provisions in this Financial Services Authority Regulation within a maximum period of 2 (two) years from the effective date of this Financial Services Authority Regulation.
    3. 



Upon the effective date of this Financial Services Authority Regulation, existing placements of Permissible Assets in the form of investments through financing via cooperation mechanisms with other parties in the form of credit granting cooperation (executing) that existed prior to the effective date of this Financial Services Authority Regulation, are recognized as Permissible Assets until the end of the cooperation agreement term.


Provisions regarding Minimum Equity, which were regulated in Financial Services Authority Regulation Number 72/POJK.05/2016 as last amended by Financial Services Authority Regulation Number 6 of 2023 concerning the Financial Health of Sharia Insurance Companies and Sharia Reinsurance Companies, are declared to remain in effect until December 31, 2026.


Existing placements of Permissible Assets in the form of investments in Sharia Medium Term Notes prior to the effective date of this Financial Services Authority Regulation must be interpreted as Private Placements (Ebus Tanpa Penawaran Umum) provided they do not conflict with this Financial Services Authority Regulation.
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