Alert! PVML with Assets over Rp. 200 Billion Soon to Be Required to Establish Risk Management Committees and Work Units

In 2020, the Financial Services Authority (Otoritas Jasa Keuangan– “ OJK ”) introduced Regulation No. 44/POJK.05/2020 (“ Regulation 44/2020 ”) on the Application of Risk Management by Non-Banking Financial Services Institutions (Lembaga Jasa Keuangan Non-Bank – “ LJKNB ”), which in essence sets out the applicable LJKNB guidelines for the identification, measurement, monitoring and control of any risks that may arise during LJKNB business activities. [1] It should be noted that Hukumonline’s Legal Research and Analysis Team previously summarized these LJKNB risk-management provisions in the following edition of Indonesian Legal Brief (“ ILB ”): “ Implementation of Risk Management for Non-Bank Financial Service Institutions Reregulated by OJK ”.