Financial Services Authority Regulation Number 31 of 2024 on Written Orders

Regulation of the Financial Services Authority of the Republic of Indonesia Number 31 of 2024 concerning Written Orders

Abstract: POJK on Written Orders is drafted to harmonize regulations regarding the OJK's authority to issue Written Orders applicable across the OJK sector, emphasizing the development of principle-based regulations and alignment and updating with existing regulations, including Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (UU P2SK), particularly regarding the follow-up to the mandate of Article 8A of Law Number 21 of 2011 concerning the Financial Services Authority as amended by UU P2SK (UU OJK), which mandates the OJK to further regulate its authority in issuing Written Orders to Licensed Financial Business Entities (LJK) to carry out mergers, consolidations, takeovers, integrations, and/or conversions (P3IK).

This POJK aims to realize justice, legal certainty, and utility in the implementation of regulatory and supervisory tasks to address various legal issues.

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.

Note: This Financial Services Authority Regulation takes effect on the date of promulgation. This Financial Services Authority Regulation was promulgated on December 23, 2024, and established on December 19, 2024.

Upon the effective date of this Financial Services Authority Regulation: a. all provisions in this Financial Services Authority Regulation and other regulations prior to the effectiveness of this Financial Services Authority Regulation, which contain the authority of the Financial Services Authority to carry out supervisory actions other than Written Orders as referred to in this Financial Services Authority Regulation, are construed as written instructions; and b. all provisions in this Financial Services Authority Regulation and other regulations prior to the effectiveness of this Financial Services Authority Regulation, which contain the authority of the Financial Services Authority to issue orders made in writing and intended as the implementation of Article 8A paragraph (1) letter a and Article 9 letter d of Law Number 21 of 2011 concerning the Financial Services Authority as amended by Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector, are construed as Written Orders as per this Financial Services Authority Regulation.

Upon the effective date of this Financial Services Authority Regulation, all provisions in this Financial Services Authority Regulation and other regulations prior to the effectiveness of this Financial Services Authority Regulation that are equated with Written Orders in accordance with this Financial Services Authority Regulation remain valid insofar as they do not conflict with this Financial Services Authority Regulation.

Upon the effective date of this Financial Services Authority Regulation, the implementation provisions: a. Financial Services Authority Regulation Number 18/POJK.03/2020 concerning Written Orders for Handling Bank Issues; b. Financial Services Authority Regulation Number 40/POJK.05/2020 concerning Written Orders for Handling Non-Bank Financial Service Institution Issues; and c. Financial Services Authority Regulation Number 18 of 2022 concerning Written Orders, are declared to remain valid insofar as they do not conflict with this Financial Services Authority Regulation.

Upon the effective date of this Financial Services Authority Regulation: a. Financial Services Authority Regulation Number 18/POJK.03/2020 concerning Written Orders for Handling Bank Issues; b. Financial Services Authority Regulation Number 40/POJK.05/2020 concerning Written Orders for Handling Non-Bank Financial Service Institution Issues; and c. Financial Services Authority Regulation Number 18 of 2022 concerning Written Orders, are revoked and declared invalid.