OJK Revises Minimum Capital Requirements for Financial Conglomerates

The Financial Services Authority (“OJK”) is currently finalizing regulations on the integrated minimum capital requirement for financial conglomerates that are required to establish a Financial Conglomerate Holding Company (Perusahaan Induk Konglomerasi Keuangan - “PIKK”). The provisions will introduce a group-wide capital adequacy requirement as part of efforts to strengthen supervision of the overall capital position of financial conglomerates.

Friderica Widyasari Dewi, Chairman of the OJK Board of Commissioners, said that the draft regulation is intended to complement OJK Regulation (“POJK”) No. 30 of 2024, particularly with respect to capital and liquidity requirements applicable to PIKKs.

“This Draft Regulation of OJK (“RPOJK”) is intended to complement POJK 30/2024 by regulating capital and liquidity requirements for PIKKs,” Friderica said.

Based on the RPOJK obtained by Hukumonline, OJK will maintain the minimum integrated capital requirement for financial conglomerates at 100% of the Total Minimum Capital (Total Modal Minimum/TMM).

However, compliance with this requirement will be assessed using an integrated capital approach at the group level. In calculating the requirement, OJK will also take into account deductions arising from investments and fund placements between entities within the financial conglomerate.

Under this approach, capital adequacy will be assessed not only by reference to the capital position of each individual entity, but also by taking into account the capital position of the financial conglomerate as a whole.