OJK Draft Regulation on Company Soundness Assessments: Simplified Governance Evaluations and New Cap on Supplementary Capital Set for Introduction

In 2020, the Financial Services Authority (Otoritas Jasa Keuangan– “ OJK ”) issued Circular No. 11/SEOJK.05/2020 (“ Circular 11/2020 ”) on Assessments of the Soundness Levels of Financing Companies and Sharia Financing Companies (collectively referred to as “ Companies ”). [1] As its title suggests, Circular 11/2020 has been serving as a set of guidelines for use by Companies when they implement detailed assessments of their soundness levels (“ Assessments ”) (e.g. on both an individual and consolidated basis). [2]