OJK Finalizes New Regulation for Investment Managers

The Financial Services Authority (Otoritas Jasa Keuangan - “OJK”) has finalized the Draft Regulation of OJK on the Organization of Investment Manager Business Activities (“Draft Regulation”). This regulation revises Rule of the Capital Market and Financial Institution Supervisory Agency (BapepamLK) No. V.A.3 Decree of the Head of BapepamLK No. KEP-479/BL/2009 on Licensing for Securities Companies which Conduct Business Activity as Investment Managers, as amended by Decree of the Head of BapepamLK No. KEP-26/BL/2010 (collectively referred to as “Regulation 3/2009”).

“The functions of investment managers will be adjusted to the categorization of their business activities,” said Inarno Djajadi, Executive Director of Capital Market, Derivatives, and Carbon Exchange Supervision (PMDK) at the OJK, to Hukumonline.

The regulation will include the classification and minimum capital requirements for Investment Managers. OJK plans to divide Investment Managers into two categories of Investment Manager Business Activities (Manajer Investasi Kegiatan Usaha - “MIKU”), namely MIKU 1 and MIKU 2. MIKU 1 can only manage Fund Management Contracts (Kontrak Pengelolaan Dana/KPD), and alternative investment products, such as Limited Participation Mutual Funds (Reksa Dana Penyertaan Terbatas/RDPT), Asset-Backed Securities (Efek Beragun Aset/EBA), Real Estate Investment Funds (Dana Investasi Real Estat/DIRE), and Infrastructure Investment Funds (Dana Investasi Infrastruktur/DINFRA). Meanwhile, MIKU 2 can manage all investment products.

Additionally, both MIKU 1 and MIKU 2 must own and maintain an Adjusted Net Working Capital (Modal Kerja Bersih Disesuaikan/MKBD) of at least Rp 20 billion, up from the current minimum of Rp 200 million. Furthermore, under Regulation of the OJK No. 3 of 2021 (“Regulation 3/2021”) Article 41 paragraph (4), which serves as the basis for the current regulations, the OJK requires securities companies engaged in Investment Manager activities to have a minimum paid-up capital of Rp 25 billion.

“We will finalize this by the end of the year,” he concluded.