24 July 2023
On 11 July this year, the Indonesian Financial Services Authority (OJK) issued the long awaited OJK Regulation No. 11 of 2023 on Spin-off of Sharia Units of Insurance Companies and Reinsurance Companies (OJK Regulation 11), which replaces the provisions on sharia unit spin-off of insurance and reinsurance companies in OJK Regulation No. 67/POJK.05/2016 on Licensing and Institution of Insurance Companies, Sharia Insurance Companies, Reinsurance Companies and Sharia Reinsurance Companies (OJK Regulation 67). The mandate for sharia spin-off ("Spin-off") was introduced in October 2014, without any clear guidance on what the process would be. The main question now is, does OJK Regulation 11 answer all of the key questions about the process?
On 11 July this year, the Indonesian Financial Services Authority (OJK) issued the long awaited OJK Regulation No. 11 of 2023 on Spin-off of Sharia Units of Insurance Companies and Reinsurance Companies (OJK Regulation 11), which replaces the provisions on sharia unit spin-off of insurance and reinsurance companies in OJK Regulation No. 67/POJK.05/2016 on Licensing and Institution of Insurance Companies, Sharia Insurance Companies, Reinsurance Companies and Sharia Reinsurance Companies (OJK Regulation 67). The mandate for sharia spin-off ("Spin-off") was introduced in October 2014, without any clear guidance on what the process would be. The main question now is, does OJK Regulation 11 answer all of the key questions about the process?