Alternative Investment Instruments for Assets of Insurance and Reinsurance Companies

In a bid to redefine provisions relating to investment of the assets of conventional insurance and reinsurance companies operating within Indonesia (“ Companies ”), the Financial Services Authority (Otoritas Jasa Keuangan- “ OJK ”) has issued Regulation (“ Amendment ”) on the Amendment to Regulation of the OJK on Financial Soundness for Insurance and Reinsurance Companies (“ Regulation 71/2016 ”). [1] The primary objective of the Amendment is to define alternative investment instruments for assets of Companies which do not operate to the detriment of the prudential aspect. The amendment specifically redefines the following matters: [2]