OJK Strengthens Oversight with New POJK 37/2025 Regulation

Enhanced Supervisory Framework for Non-Bank Financial Institutions

The Financial Services Authority (OJK) has officially issued POJK 37/2025, a comprehensive new regulation focusing on the status determination and supervisory actions for non-bank financial institutions including insurance companies, guarantee institutions, and pension funds. This regulatory update represents a significant enhancement of the previous POJK 9/2021 framework.

Key Improvements in the New Regulation

The new regulation introduces several important enhancements to the existing supervisory framework. Notably, it incorporates risk-based supervision for the guarantee industry, marking a significant shift towards more sophisticated oversight mechanisms. Ogi Prastomiyono, Head of Insurance, Guarantee, and Pension Fund Supervision at OJK, emphasized that these changes are designed to strengthen the overall stability of Indonesia's financial services sector.

Impact on Financial Sector Stability

The implementation of POJK 37/2025 is expected to have a positive impact on the stability and robustness of Indonesia's financial system. By enhancing supervisory capabilities and introducing more nuanced risk assessment mechanisms, OJK aims to create a more resilient financial environment. The regulation demonstrates OJK's commitment to maintaining best practices in financial regulation while adapting to the evolving needs of the financial services industry.