New State Securities and Investment Caps for Investments by Non-Bank Financial Services Institutions

As a way to expand investment-instrument options for non-bank financial services institutions (“NBFI”), the Financial Services Authority (Otoritas Jasa Keuangan– “OJK”) has issued Regulation No. 56/POJK.05/2017 (“Regulation 56/2017”) on the Second Amendment to Financial Services Authority Regulation No. 1/POJK.05/2016 (“Regulation 1/2016”)on Investment in State Securities by Non-Bank Financial Services Institutions.Prior to the issuance of Regulation 56/2017, Regulation 1/2016 was amended once previously through the issuance of OJK Regulation No. 36/POJK.05/2016 (“Regulation 36/2016”).In essence, Regulation 56/2017 amends a number of provisions which address portfolio investments by NBFIs and the matters outlined below: