Perubahan atas POJK Nomor 28/POJK.05/2015 tentang Pembubaran, Likuidasi, dan Kepailitan Perusahaan Asuransi, Perusahaan Asuransi Syariah, Perusahaan Reasuransi, dan Perusahaan Reasuransi Syariah

Short Review of OJK Regulation No. 11 of 2025 on the Implementation of Guarantee Institutions Regulation No. 11 of 2025 issued by the Financial Services Authority (OJK) of Indonesia aims to strengthen the guarantee industry, ensuring it is healthy, trustworthy, and sustainable. This regulation replaces the previous regulations (POJK No. 2/2017 and POJK No. 30/2018) to better align with the current developments in the guarantee sector. It encompasses various aspects of guarantee operations, including licensing, operational scope, risk management, and consumer protection. Key Points 1. Definitions and Scope: - Defines key terms such as "Guarantee", "Sharia Guarantee", "Reinsurance", and various types of guarantee institutions. - Specifies the scope of guarantee activities, including credit guarantees, financing, and other financial obligations. 2. Operational Requirements: - Guarantee institutions must prioritize support for micro, small, and medium enterprises (MSMEs) and cooperatives. - Requires prior approval from OJK for certain guarantee activities. 3. Risk Management: - Institutions must implement risk mitigation strategies, including reinsurance. - Establishes requirements for liquidity and capital adequacy. 4. Technology Utilization: - Mandates the establishment of a website for transparency and information dissemination. 5. Administrative Sanctions: - Outlines penalties for non-compliance, including written warnings and operational suspensions. 6. Consumer Protection: - Emphasizes the importance of consumer protection in line with existing consumer protection laws. 7. Reporting Obligations: - Institutions are required to submit monthly and annual financial reports to OJK. 8. Investment Regulations: - Specifies allowable investment types for guarantee institutions, ensuring they adhere to prudential standards. Prohibitions - Guarantee institutions are prohibited from guaranteeing risks beyond the failure of financial obligations of the guaranteed party. - They cannot engage in activities that do not align with the principles of Sharia for Sharia Guarantee Institutions. Required Actions 1. Approval Process: - Institutions must seek OJK approval before initiating certain guarantee activities. - Submit detailed documentation including product descriptions, risk assessments, and financial projections. 2. Compliance with Reporting: - Ensure timely submission of monthly and annual reports to OJK. - Maintain accurate records and documentation as required by the regulation. 3. Consumer Protection Mechanisms: - Implement consumer protection measures as per the regulation and existing laws. 4. Risk Management Framework: - Develop and maintain a robust risk management framework to mitigate potential risks. Related Reports - Monthly operational reports to be submitted by the 10th of the following month. - Annual audited financial statements due by April 30 of the following year. - Incident reports as required by OJK for any significant operational changes or risks. This regulation is a significant step in enhancing the governance and operational standards of guarantee institutions in Indonesia, promoting a more robust financial ecosystem.