Regulatory AlertsAmendment to POJK No. 28/POJK.05/2015 on Dissolution, Liquidation, and Bankruptcy of Insurance, Sharia Insurance, Reinsurance, and Sharia Reinsurance Companies
The Financial Services Authority (OJK) issued POJK No. 38 of 2024 to enhance the effectiveness of dissolution, liquidation, and bankruptcy procedures for insurance and reinsurance entities. The regulation clarifies that OJK's decisions to dissolve a company and form a liquidation team are equivalent to shareholder meeting resolutions, restricts debt payment suspension requests exclusively to the OJK, and mandates the inclusion of culpable directors and shareholders in the OJK's related party database. It also harmonizes liquidation practices with other financial sectors and defers to the Deposit Insurance Corporation for policy guarantee matters once relevant government regulations take effect.
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