January 2025
The Financial Services Authority (Otoritas Jasa Keuangan or OJK) has finally unveiled the much-anticipated implementing regulation for the new chapter of financial conglomeration. OJK Regulation No. 30 of 2024 on Financial Conglomeration and Financial Holding Company (“POJK 30”) governs the establishment or appointment of a financial holding company (perusahaan induk konglomerasi keuangan or PIKK) - a legal entity tasked with controlling, consolidating and overseeing all of the financial conglomerate's activities. This regulation was promulgated and became effective on 23 December 2024.
Consequently, OJK Regulation No. 45/POJK.03/2020 on Financial Conglomeration (“POJK 45”), which previously governed the concept of financial conglomeration, has been revoked.
In summary, POJK 30 asserts the provisions of PIKK as set out under Law No. 4 of 2023 on the Development and Strengthening of the Financial Sector (“P2SK Law”), which we have elaborated in our past client alert. POJK 30 re-establishes the criteria for financial conglomerates and requires controlling shareholders and ultimate shareholders of Indonesian financial institutions that already fulfilled the criteria to submit an application for PIKK establishment approval at the latest by 23 June 2025.