Finance Companies Struggle to Meet Minimum Equity Requirement

OJK Reports Four Non-Compliant Firms

The Financial Services Authority (OJK) has revealed that four finance companies out of a total of 145 operating in Indonesia have failed to meet the mandatory minimum equity of Rp100 billion by the deadline of December 2025. This regulatory requirement is part of OJK's efforts to strengthen the financial sector and ensure stability in the finance industry.

Continued Monitoring and Compliance Efforts

Agusman, Head of Executive Supervisor for Financing Institutions, Venture Capital Companies, Microfinance Institutions, and Other Financial Services Institutions (PVML) at OJK, stated that the regulator is taking necessary steps to encourage the four non-compliant finance companies to fulfill the minimum equity requirement. The number of non-compliant companies has remained unchanged from the previous month, indicating the ongoing challenges these firms face in meeting the regulatory threshold.

Implications for the Finance Sector

The minimum equity requirement of Rp100 billion is a critical regulatory measure aimed at ensuring that finance companies maintain sufficient capital to operate effectively and withstand financial shocks. The OJK's continued oversight and efforts to enforce compliance underscore the importance of this regulation in maintaining the stability and integrity of Indonesia's financial services sector.