OJK Finalizes Regulation on Integrity of Financing Companies

The Financial Services Authority (“OJK”) is finalizing a draft regulation on the Integrity of Financial Reporting for Financing Institutions, Venture Capital Companies, Microfinance Institutions, and Other Financial Service Institutions (collectively referred to as “PVML”). This regulation requires companies to ensure the accuracy, integrity, and transparency of their financial reporting processes.

"Among other things, the regulation regulates the duties and responsibilities of the Board of Directors, Board of Commissioners, and Audit Committee, as well as the role of Controlling Shareholders and Affiliated Parties in the financial reporting process," said Agusman, the Chief Executive of Supervision for Financing Institutions, Venture Capital Companies, Microfinance Institutions, and Other Financial Service Institutions at OJK, in an interview with Hukumonline.

In addition, OJK is also finalizing a Circular Letter (“SEOJK”) on guidelines for risk management for PVML. The implementation of Risk Management must be adjusted to the objectives, policies, business activities, size, business complexity, and capabilities of the PVML.

“It is expected to be completed soon, within this year,” he added.