OJK Prepares Guidelines for Annual Business Plans of Microfinance Institutions

The Financial Services Authority (Otoritas Jasa Keuangan – “OJK”) is in the process of finalizing a Draft Regulation of the Board of Commissioners (Rancangan Peraturan Anggota Dewan Komisioner – “RPADK”) concerning the Business Plan of Microfinance Institutions (“RPADK OJK 2026”). This regulation will serve as a guideline for the preparation of Business Plans for Microfinance Institutions (Lembaga Keuangan Mikro – “LKM”) and as a follow-up to the mandate of Article 145 paragraph (5) of OJK Regulation No. 41 of 2024 on Microfinance Institutions (“POJK 41/2024”). 

“Medium- and large-scale LKM are required to prepare annual Business Plans in a realistic manner by taking into account the prudential principle and risk management,” stated Agusman, Chief Executive Supervisor of Financing Institutions, Venture Capital Companies, Microfinance Institutions, and Other Financial Services Institutions (“PVML”). 

In addition, OJK is strengthening supervision through digitalization, whereby each LKM is required to submit its Business Plan, adjustments, and realization reports online through OJK’s data communication network system. 

The provisions on the preparation of Business Plans for medium- and large-scale LKM are planned to come into effect for the 2028 financial year. Administratively, the regulation is planned to take effect on 1 November 2027.