OJK Prepares New Regulations on Venture Capital Supervision

The Financial Services Authority (“OJK”) is currently preparing a Draft Regulation of the OJK (“Draft Regulation”) on the Organization of Venture Capital Companies (“PMV”) and Sharia Venture Capital Companies (“PMVS”). This new regulation is designed to improve Regulation of OJK No. 25 of 2023 (“Regulation 25/2023”) on the Organization of Venture Capital Companies and Sharia Venture Capital Companies, as amended by Regulation of OJK No. 49 of 2024 (“Regulation 49/2024”) which was deemed necessary to align with the evolving dynamics of the venture capital industry in Indonesia.

 “This refinement is not merely a technical change, but part of our effort to ensure the PMV and PMVS industries grow on a foundation of strong governance and proportional supervision commensurate with risk,” said Agusman, the OJK’s Executive Director for the Supervision of Financing Institutions, Venture Capital Companies, Microfinance Institutions, and Other Financial Services Institutions.

There are at least two main points of change proposed in this Draft Regulation. First, adjustments to funding provisions for VCs and VC service providers, which are expected to open up broader opportunities for industry players to access funding sources. Second, the strengthening of comprehensive, risk-based supervision, particularly regarding two business models: Venture Debt Corporations (“VDC”) and Venture Capital Corporations (“VCC”).

“It is still in the discussion and public consultation phase, with the target being this year,” he added.