OJK Calibrates Supervisory Parameters for Venture Capital and P2P Lending

The Financial Services Authority ("OJK") will calibrate the supervisory parameters under the OJK Regulation on the Second Amendment to OJK Regulation No. 49 of 2024 ("POJK 49/2024") concerning the Supervision of Venture Capital Companies, Microfinance Institutions, and Other Financial Services Institutions ("PVML"). This regulatory measure is being taken amid OJK's intensified efforts to strengthen the integrity of the industry.

"This is being carried out to refine the previous provisions through changes to quantitative parameters, the determination of intensive supervision and special supervision status for PVMLs, as well as the period for which special supervision status may be imposed," said Agusman, Chief Executive of PVML Supervision at OJK. 

With these changes to the quantitative parameters, businesses in the PVML sector (including venture capital companies and P2P lending) will need to exercise greater care in maintaining their financial ratios and operational performance to avoid being placed under a more stringent supervisory classification. The adjustment to the special supervision period also signals OJK's expectation that management of entities experiencing difficulties resolve issues more promptly and in a measurable manner.