Financial Services Authority Regulation No. 14/POJK.05/2015 regarding Self-Retention and Domestic Reinsurance Support (“OJK Regulation”) was issued to establish a more comprehensive framework concerning self-retention and reinsurance support of insurance companies, which will replace on 1 January 2016 the previous legal framework concerning this matter under Head of Capital Market and Financial Services Supervisory Agency Regulation No. 11/BL/2012 regarding Reinsurance Support, Self-Retention Limit, and Format and Structure of Reinsurance Program Reports (“Bapepam-LK Regulation”).
Seeking to attract the interest of foreign citizens to invest and travel in Indonesia, helping the country’s foreign reserve in the process, Financial Services Authority Circular Letter No. S-246/S.01/2015 regarding Foreign Citizens Opening Bank Accounts in Foreign Currencies (“OJK Circular”) has been issued to all commercial banks on September 15, 2015, to ease requirements for foreign citizens in opening a domestic bank account.
After the success of the microfinance program called the People’s Business Loan (Kredit Usaha Rakyat – “KUR”) and the enactment of Law No. 1 of 2013 on Microfinance Institutions (“Microfinance Law”), the Financial Services Authority (Otoritas Jasa Keuangan – “OJK”) continues the government relay to provide wider access to financial services for micro, small and medium enterprises.
To this end, the OJK has recently issued the following three regulations, each detailing the legal framework for the so-called microfinance institutions (lembaga keuangan mikro), and also to implement the Microfinance Law:
- OJK Regulation No. 12/POJK.05/2014 on Business Licensing and Organization of Microfinance Institutions (“Licensing Regulation”);
- OJK Regulation No. 13/POJK.05/2014 on Business Implementation of Microfinance Institutions (“Activity Regulation”); and
- OJK Regulation No. 14/POJK.05/2014 on Development of and Supervision over Microfinance Institutions (“Supervision Regulation”).