OJK Drafts New Regulations on Collective Investment Contract Mutual Funds

The Financial Services Authority (“OJK”) is currently preparing Draft Regulation of the OJK (“Draft Regulation”) on Mutual Funds in the Form of Collective Investment Contract (“KIK”). This instrument is part of the capital market regulatory framework update in line with the increasing complexity of mutual fund products and investment risk profiles.

“This reform is a key prerequisite for building a credible, resilient, and competitive capital market,” said Friderica Widyasari Dewi, Acting Chair of the Board of Commissioners of OJK, to Hukumonline.

This draft regulation of OJK will provide more detailed provisions on operational mechanisms, including the process of offering participation units, subscription, redemption, and switching. In addition, it also regulates the procedures for calculating and publishing Net Asset Value (“NAB”), management fees, and transparency of information to investors. This includes strengthening the principle of fiduciary duty with a focus on emphasizing the obligation to act professionally, independently, and prioritize the interests of unit holders.