Strengthening LKM Governance: OJK Rolls out 2028 Business Plan and Realization Report Framework for Large- and Medium-Scale LKM

In 2024, the Financial Services Authority (Otoritas Jasa Keuangan– “ OJK ”) issued Regulation No. 41 of 2024 (“ Regulation 41/2024 ”) on Microfinance Institutions (Lembaga Keuangan Mikro– “ LKM ”), which requires LKM to draw up business plans as part of efforts aimed at strengthening governance and business sustainability. [1] In order to fulfill this mandate, the OJK’s board of commissioners is currently completing work on a new Draft Regulation (“ Draft Regulation ”) on LKM business plans. [2]