OJK Regulation No. 33 of 2025 on the Health Assessment of Insurance Companies, Guarantee Institutions, and Pension Funds

FINANCIAL SERVICES AUTHORITY REGULATION OF THE REPUBLIC OF INDONESIA NUMBER 33 OF 2025 ON THE HEALTH ASSESSMENT OF INSURANCE COMPANIES, GUARANTEE INSTITUTIONS, AND PENSION FUNDS BY THE GRACE OF GOD THE ALMIGHTY THE COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY,

Considering: a. that the health level of insurance companies, guarantee institutions, and pension funds is a reflection of the condition and performance of insurance companies, guarantee institutions, and pension funds, which serves as a tool for the Financial Services Authority in determining supervision strategies and focus; b. that to support the implementation of risk-based supervision for guarantee institutions, it is necessary to regulate again the provisions regarding the health level assessment for insurance companies, guarantee institutions, and pension funds; c. that based on the considerations as referred to in letters a and b, it is necessary to establish a Financial Services Authority Regulation on the Health Assessment of Insurance Companies, Guarantee Institutions, and Pension Funds;

Recalling:

1. Law Number 21 of 2011 on the Financial Services Authority (State Gazette of the Republic of Indonesia Year 2011 Number 111, Supplement to the State Gazette of the Republic of Indonesia Number 5253) as amended by Law Number 4 of 2023 on the Development and Strengthening of the Financial Sector (State Gazette of the Republic of Indonesia Year 2023 Number 4, Supplement to the State Gazette of the Republic of Indonesia Number 6845);
2. Law Number 40 of 2014 on Insurance (State Gazette of the Republic of Indonesia Year 2014 Number 337, Supplement to the State Gazette of the Republic of Indonesia Number 5618) as amended by Law Number 4 of 2023 on the Development and Strengthening of the Financial Sector (State Gazette of the Republic of Indonesia Year 2023 Number 4, Supplement to the State Gazette of the Republic of Indonesia Number 6845);
3. Law Number 1 of 2016 on Guarantee (State Gazette of the Republic of Indonesia Year 2016 Number 9, Supplement to the State Gazette of the Republic of Indonesia Number 5835) as amended by Law Number 4 of 2023 on the Development and Strengthening of the Financial Sector (State Gazette of the Republic of Indonesia Year 2023 Number 4, Supplement to the State Gazette of the Republic of Indonesia Number 6845);
4. Law Number 4 of 2023 on the Development and Strengthening of the Financial Sector (State Gazette of the Republic of Indonesia Year 2023 Number 4, Supplement to the State Gazette of the Republic of Indonesia Number 6845);

DECIDES: Establish: FINANCIAL SERVICES AUTHORITY REGULATION ON THE HEALTH ASSESSMENT OF INSURANCE COMPANIES, GUARANTEE INSTITUTIONS, AND PENSION FUNDS.

CHAPTER I GENERAL PROVISIONS

Article 1 In this Financial Services Authority Regulation:

1. Insurance Companies, Guarantee Institutions, and Pension Funds, hereinafter referred to as PPDP, are financial service institutions that carry out activities in the insurance, guarantee, and pension sectors.
2. Board of Directors is the organ of the company that has the authority and is fully responsible for the management of the company for the benefit of the company, in accordance with the purpose and objectives of the company and represents the company, both in and out of court, in accordance with the articles of association provisions for PPDP in the form of a limited liability company or equivalent to the Board of Directors for PPDP in the form of a legal entity in the form of a cooperative, joint venture, state-owned enterprise, and pension fund.
3. Board of Commissioners is the organ of the company that is tasked with carrying out general and/or specific supervision in accordance with the articles of association and providing advice to the Board of Directors for PPDP in the form of a limited liability company or equivalent to the Board of Commissioners for PPDP in the form of a legal entity in the form of a cooperative, joint venture, state-owned enterprise, and pension fund.
4. PPDP Health Level is the result of the assessment of the condition of PPDP conducted on good corporate governance, risk profile, profitability, and capital adequacy or funding.
5. Composite Rating is the final rating of the PPDP Health Level assessment result.
6. Subsidiary Company is a company owned and/or controlled by PPDP directly or indirectly, both domestically and abroad.
7. Control is an action aimed at influencing the management and/or company policy in any way, directly or indirectly.
8. Sharia Principles are Islamic legal principles based on fatwas and/or statements of Sharia compliance issued by institutions having authority in determining fatwas in the Sharia field.

Article 2 (1) This Financial Services Authority Regulation regulates the Health Level assessment for PPDP. (2) PPDP as referred to in paragraph (1) includes: a. insurance companies, consisting of:

1. insurance companies, including those conducting part of their business based on Sharia Principles;
2. reinsurance companies, including those conducting part of their business based on Sharia Principles;
3. Sharia insurance companies; and
4. Sharia reinsurance companies, as referred to in statutory provisions regarding insurance; b. guarantee institutions, consisting of:
5. guarantee companies, including those conducting part of their business based on Sharia Principles;
6. re-guarantee companies;
7. Sharia guarantee companies; and
8. Sharia re-guarantee companies, as referred to in statutory provisions regarding guarantees; and c. pension funds as referred to in statutory provisions regarding pension funds, including those conducting all or part of their business based on Sharia Principles.

CHAPTER II PPDP HEALTH LEVEL

Section One General

Article 3 (1) PPDP is required to maintain and/or improve the PPDP Health Level by applying the principle of prudence and risk management in carrying out business activities. (2) The Board of Directors and Board of Commissioners are responsible for maintaining and monitoring the PPDP Health Level and taking necessary steps to maintain and/or improve the PPDP Health Level as referred to in paragraph (1). (3) PPDP is required to conduct a PPDP Health Level assessment using an individual risk-based approach. (4) In the event that PPDP exercises Control over a Subsidiary Company, in addition to conducting a health level assessment using an individual risk-based approach as referred to in paragraph (3), PPDP is required to conduct a health level assessment using a consolidated risk-based approach. (5) PPDP conducting part of its business based on Sharia Principles is required to conduct a health level assessment for the Sharia unit or Sharia business unit using an individual risk-based approach.

Article 4 (1) PPDP is required to conduct a self-assessment of the PPDP Health Level as referred to in Article 3 paragraphs (3) to (5). (2) The self-assessment of the PPDP Health Level as referred to in paragraph (1) is conducted at least once (1) in one (1) year for the position at the end of December. (3) In addition to conducting a self-assessment as referred to in paragraph (2), PPDP is required to update the self-assessment of the PPDP Health Level when necessary. (4) The results of the self-assessment of the PPDP Health Level as referred to in paragraphs (2) and (3) must receive approval from the Board of Directors. (5) The results of the self-assessment of the PPDP Health Level as referred to in paragraph (4) are submitted to the Board of Commissioners. (6) For PPDP conducting all or part of its business based on Sharia Principles, in addition to being submitted to the Board of Commissioners as referred to in paragraph (5), the results of the self-assessment of the PPDP Health Level are also submitted to the Sharia supervisory board. (7) PPDP is required to submit the results of the self-assessment of the PPDP Health Level to the Financial Services Authority no later than: a. February 15 for the PPDP Health Level assessment as referred to in paragraph (2); or b. 30 (thirty) working days since the date of updating the self-assessment of the PPDP Health Level as referred to in paragraph (3). (8) If the submission deadline for the results of the self-assessment of the PPDP Health Level as referred to in paragraph (7) letter a falls on a holiday, the results of the self-assessment of the PPDP Health Level are submitted on the next working day. (9) If the final submission deadline for the results of the self-assessment of the PPDP Health Level as referred to in paragraph (7) falls on a national holiday or joint holiday, the Financial Services Authority has the authority to determine the due date for the submission of the report.

Article 5 (1) The Financial Services Authority conducts a PPDP Health Level assessment once (1) in one (1) year for the position at the end of December. (2) The Financial Services Authority conducts an update of the PPDP Health Level assessment when necessary. (3) The PPDP Health Level assessment as referred to in paragraph (1) and the update of the PPDP Health Level assessment as referred to in paragraph (2) are conducted based on examination results, periodic reports submitted by PPDP, and/or other information.

Article 6 In the event that there is a difference in the results of the PPDP Health Level assessment conducted by the Financial Services Authority as referred to in Article 5 with the results of the PPDP Health Level assessment conducted by PPDP as referred to in Article 4, the results of the PPDP Health Level assessment conducted by the Financial Services Authority shall prevail.

Section Two Administrative Sanctions

Article 7 (1) PPDP that violates the provisions as referred to in Article 3 paragraphs (1), (3), (4), and (5), Article 4 paragraphs (1), (3), (4), and (7), shall be subject to administrative sanctions in the form of: a. written warning; and/or b. reduction of health level. (2) PPDP declared late in submitting the results of the self-assessment of the PPDP Health Level as referred to in Article 4 paragraph (7) shall be subject to additional administrative sanctions in the form of an administrative fine of: a. IDR 500,000.00 (five hundred thousand rupiah) per day for insurance companies and guarantee institutions; and b. IDR 200,000.00 (two hundred thousand rupiah) per day for pension funds. (3) PPDP that does not submit the results of the self-assessment of the PPDP Health Level as referred to in Article 4 paragraph (7) is calculated for 30 (thirty) days from the end of the submission deadline, and is declared not to have submitted the results of the self-assessment of the PPDP Health Level. (4) PPDP declared not to have submitted the results of the self-assessment of the PPDP Health Level as referred to in paragraph (3) shall be subject to additional administrative sanctions in the form of an administrative fine of: a. IDR 30,000,000.00 (thirty million rupiah) for insurance companies and guarantee institutions; and b. IDR 12,000,000.00 (twelve million rupiah) for pension funds. (5) In the event of a violation of the provisions as referred to in paragraph (1) and the violation has been corrected, the Financial Services Authority provides a written warning sanction that ends automatically. (6) In the event that PPDP has fulfilled the provisions as referred to in paragraph (1) letter a, the Financial Services Authority revokes the administrative sanction.

Article 8 Regarding violations of the administrative sanctions provisions as referred to in Article 7, the Financial Services Authority may conduct a reassessment of the main parties of PPDP in accordance with the Financial Services Authority Regulation regarding reassessment for main parties of financial service institutions.

CHAPTER III MECHANISM FOR INDIVIDUAL HEALTH LEVEL ASSESSMENT OF PPDP

Article 9 (1) The individual PPDP Health Level assessment as referred to in Article 3 paragraph (3) for insurance companies and guarantee institutions is conducted with an assessment scope covering the following factors: a. good corporate governance; b. risk profile; c. profitability; and d. capital adequacy. (2) The individual PPDP Health Level assessment as referred to in Article 3 paragraph (3) for employer pension funds is conducted with an assessment scope covering the following factors: a. good corporate governance; b. risk profile; c. profitability; and d. funding. (3) The individual PPDP Health Level assessment as referred to in Article 3 paragraph (3) for financial institution pension funds is conducted with an assessment scope covering the following factors: a. good corporate governance; b. risk profile; and c. profitability. (4) The individual health level assessment of the Sharia unit or Sharia business unit as referred to in Article 3 paragraph (5) covers assessment of the risk profile factor. (5) Provisions regarding the individual PPDP Health Level assessment as referred to in paragraphs (1) to (4) are established by the Financial Services Authority.

Article 10 (1) Assessment of the good corporate governance factor as referred to in Article 9 paragraph (1) letter a, paragraph (2) letter a, and paragraph (3) letter a, is an assessment of the implementation of good corporate governance principles by PPDP. (2) Assessment of the risk profile factor as referred to in Article 9 paragraph (1) letter b, paragraph (2) letter b, paragraph (3) letter b, and paragraph (4), is an assessment of inherent risk and the quality of risk management implementation in PPDP operations conducted on the following risk factors: a. for insurance companies, including:

1. strategic risk;
2. operational risk;
3. insurance risk;
4. credit risk;
5. market risk;
6. liquidity risk;
7. legal risk;
8. compliance risk; and
9. reputational risk; b. for guarantee institutions, including:
10. strategic risk;
11. operational risk;
12. guarantee risk;
13. credit risk;
14. market risk;
15. liquidity risk;
16. legal risk;
17. compliance risk; and
18. reputational risk; and c. for pension funds, including:
19. strategic risk;
20. operational risk;
21. credit risk;
22. market risk;
23. liquidity risk;
24. legal risk;
25. compliance risk; and
26. reputational risk. (3) Assessment of the quality of risk management implementation as referred to in paragraph (2) is carried out in accordance with the Financial Services Authority Regulation regarding risk management implementation for PPDP. (4) Assessment of the profitability factor as referred to in Article 9 paragraph (1) letter c, paragraph (2) letter c, and paragraph (3) letter c, must at least include assessment of: a. profitability performance; b. profitability sources; and c. PPDP profitability sustainability. (5) Assessment of the capital adequacy factor as referred to in Article 9 paragraph (1) letter d must at least include assessment of: a. capital adequacy level; and b. capital management. (6) Assessment of the funding factor as referred to in Article 9 paragraph (2) letter d must at least include assessment of: a. funding conditions; and b. additional funding. (7) Assessment of the risk profile, profitability, capital adequacy, and funding factors as referred to in paragraphs (2), (4), (5), and (6) considers the results of the financial health assessment applicable to PPDP. (8) Provisions regarding assessment of the good corporate governance factor, risk profile factor, profitability factor, capital adequacy factor, and funding factor as referred to in paragraphs (1) to (6) are established by the Financial Services Authority.

Article 11 (1) Each PPDP Health Level assessment factor as referred to in Article 9 is rated based on a comprehensive and structured analysis framework. (2) The rating of each factor as referred to in paragraph (1) is categorized as follows: a. rating 1; b. rating 2; c. rating 3; d. rating 4; and e. rating 5. (3) The determination of the rating for the good corporate governance factor is conducted based on a comprehensive and structured analysis of the results of the implementation assessment of good corporate governance principles for PPDP and other information related to good corporate governance for PPDP. (4) The determination of the rating for the risk profile factor is conducted through the following stages: a. determination of the risk level of each risk as referred to in Article 10 paragraph (2); b. determination of the composite inherent risk level and composite risk management implementation quality; and c. determination of the risk profile factor rating based on a comprehensive and structured analysis of the results of determination as referred to in letters a and b, considering the significance of each risk to the overall risk profile. (5) The determination of the rating for the profitability factor is conducted based on a comprehensive and structured analysis of profitability parameters or indicators, considering the significance of each parameter or indicator and considering other issues affecting PPDP profitability. (6) The determination of the rating for the capital adequacy factor is conducted based on a comprehensive and structured analysis of capital adequacy parameters or indicators, considering the significance of each parameter or indicator and considering other issues affecting the capital adequacy of insurance companies and guarantee institutions. (7) The determination of the rating for the funding factor is conducted based on a comprehensive and structured analysis of funding parameters or indicators, considering the significance of each parameter or indicator and considering other issues affecting the funding of employer pension funds. (8) Provisions regarding the determination of ratings for the good corporate governance factor, risk profile factor, profitability factor, capital adequacy factor, and funding factor as referred to in paragraphs (3) to (7) are established by the Financial Services Authority.

Article 12 (1) The Composite Rating of the PPDP Health Level is determined based on a comprehensive and structured analysis of the rating of each factor as referred to in Article 11 paragraphs (3) to (7), considering the materiality and significance of each factor. (2) The Composite Rating as referred to in paragraph (1) is categorized as follows: a. Composite Rating 1; b. Composite Rating 2; c. Composite Rating 3; d. Composite Rating 4; and e. Composite Rating 5. (3) Composite Rating 1 as referred to in paragraph (2) letter a, reflects the condition of PPDP that is generally very healthy, so it is assessed as very capable of facing significant negative influences from changes in business conditions and other external factors. (4) Composite Rating 2 as referred to in paragraph (2) letter b, reflects the condition of PPDP that is generally healthy, so it is assessed as capable of facing significant negative influences from changes in business conditions and other external factors. (5) Composite Rating 3 as referred to in paragraph (2) letter c, reflects the condition of PPDP that is generally fairly healthy, so it is assessed as fairly capable of facing significant negative influences from changes in business conditions and other external factors. (6) Composite Rating 4 as referred to in paragraph (2) letter d, reflects the condition of PPDP that is generally less healthy, so it is assessed as less capable of facing significant negative influences from changes in business conditions and other external factors. (7) Composite Rating 5 as referred to in paragraph (2) letter e, reflects the condition of PPDP that is generally unhealthy, so it is assessed as unable to face significant negative influences from changes in business conditions and other external factors. (8) Provisions regarding the Composite Rating of the PPDP Health Level as referred to in paragraphs (3) to (7) are established by the Financial Services Authority.

CHAPTER IV MECHANISM FOR CONSOLIDATED HEALTH LEVEL ASSESSMENT OF PPDP

Section One General

Article 13 (1) The consolidated PPDP Health Level assessment as referred to in Article 3 paragraph (4) for insurance companies and guarantee institutions is conducted with an assessment scope covering the following factors: a. good corporate governance; b. risk profile; c. profitability; and d. capital adequacy. (2) The consolidated PPDP Health Level assessment as referred to in Article 3 paragraph (4) for employer pension funds is conducted with an assessment scope covering the following factors: a. good corporate governance; b. risk profile; c. profitability; and d. funding. (3) The consolidated PPDP Health Level assessment as referred to in Article 3 paragraph (4) for financial institution pension funds is conducted with an assessment scope covering the following factors: a. good corporate governance; b. risk profile; and c. profitability.

Article 14 (1) The determination of the rating for the good corporate governance factor in consolidation as referred to in Article 13 paragraph (1) letter a, paragraph (2) letter a, and paragraph (3) letter a is conducted by considering: a. the significance or materiality of the Subsidiary Company's share to PPDP in consolidation; and b. issues in the Subsidiary Company that significantly affect the implementation of good corporate governance principles in consolidation. (2) The determination of the rating for the risk profile factor in consolidation as referred to in Article 13 paragraph (1) letter b, paragraph (2) letter b, and paragraph (3) letter b is conducted by considering: a. the significance or materiality of the Subsidiary Company's share to PPDP in consolidation; and b. issues in the Subsidiary Company that significantly affect the risk profile in consolidation. (3) The determination of the rating for the profitability factor in consolidation as referred to in Article 13 paragraph (1) letter c, paragraph (2) letter c, and paragraph (3) letter c is conducted based on a comprehensive and structured analysis of specific profitability parameters or indicators resulting from the consolidated financial reports of PPDP and other financial information, considering: a. the significance or materiality of the Subsidiary Company's share to PPDP in consolidation; and b. issues in the Subsidiary Company that significantly affect profitability in consolidation. (4) The determination of the rating for the capital adequacy factor in consolidation as referred to in Article 13 paragraph (1) letter d is conducted based on a comprehensive and structured analysis of specific capital adequacy parameters or indicators resulting from the consolidated financial reports of insurance companies and guarantee institutions and other financial information, considering: a. the significance or materiality of the Subsidiary Company's share to PPDP in consolidation; and b. issues in the Subsidiary Company that significantly affect capital adequacy in consolidation. (5) The determination of the rating for the funding factor in consolidation as referred to in Article 13 paragraph (2) letter d is conducted with reference to the individual PPDP Health Level assessment of the funding factor as referred to in Article 9 paragraph (2) letter d, considering: a. the significance or materiality of the Subsidiary Company's share to PPDP in consolidation; and b. issues in the Subsidiary Company that significantly affect funding in consolidation. (6) Provisions regarding the determination of ratings for the good corporate governance factor, risk profile factor, profitability factor, capital adequacy factor, and funding factor in consolidation as referred to in paragraphs (1) to (5) are established by the Financial Services Authority.

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