News & Announcements

W&P Newsletter – New Stricter Requirements for Guarantee Institutions

January 9, 2026 News

The Indonesian Financial Services Authority (Otoritas Jasa Keuangan – “OJK”) issued OJK Regulation No. 10 of 2025 (“OJKR 10/2025”), amending the existing OJK Regulation No. 1 of 2017 on Business Licensing and the Organizational Structures of Guarantee Institutions (“OJKR 1/2017”). OJKR 10/2025 introduces significant changes on Guarantee Institutions (i.e., Guarantee Companies, Re-Guarantee Companies, Sharia Guarantee Companies, and Sharia Re-Guarantee Companies), including a broader definition of controlling shareholder, stricter requirements on paid-up capital source of capital funds, and new requirements for the employment of foreign workers, as shown in the comparison table below. Some grandfathered rules apply as discussed below.

No. Matter OJKR 1/2017 OJKR 10/2025
1. Broader Definition of Controlling Shareholder (Pemegang Saham Pengendali – “PSP”) Any individual or legal entity that holds the following over a Guarantee Institution:

  1. 25% or more of shares with voting rights; or
  2. less than 25% shares with voting rights, but has ability to control directly or indirectly.
 Any individual or legal entities that directly or indirectly have the ability to exercise control,  over the Guarantee Institutions.
2. Requirement to designate a PSP None Guarantee Institutions must designate at least 1 (one) PSP to OJK.
3. Increased Paid-Up Capital Requirements
  1. Guarantee Companies and Sharia Guarantee Companies:
    • Minimum of Rp100 billions for national level;
    • Minimum of Rp25 billions for provincial level; and
    • Minimum of Rp10 billions for regency or city level.
  2. Re-Guarantee Companies and Sharia Re-Guarantee Companies:
    Minimum of Rp200 billions.
  1. Guarantee Companies and Sharia Guarantee Companies:
    • Minimum of Rp250 billions for national level;
    • Minimum of Rp100 billions for provincial level; and
    • Minimum of Rp50 billions for regency or city level,
      at the time of establishment.
  2. Re-Guarantee Companies and Sharia Re-Guarantee Companies:
    Minimum of Rp500 billions at the time of establishment.
4. Restrictions on Source of Capital Funds None Prohibition on sources of capital from:

  1. loans (except where the shareholders are the government or legal entities controlled by the government); and
  2. money laundering, terrorism financing, proliferation financing of weapons of mass destruction, and other financial crimes.
5. Requirements for Foreign Workers None
  1. Open only for expert positions (i.e., executive officers) or consultants;
  2. Permitted only to perform underwriting and/or information systems functions; and
  3. maximum 5 (five) years, extendable once for an additional 5 (five) years.

 

The new regulation shows OJK’s commitment to strengthening the capital base and governance framework of the guarantee industry. Given these stricter rules, existing institutions should review their current capital structure, identify and designate their PSP (no later than 6 May 2026), and ensure that their funding sources comply with the new requirements. While the existing institutions are not required to immediately increase their capital, OJK’s broader discretion means that entities should proactively assess their ownership structures, capital adequacy, and governance to ensure compliance readiness.

Some points remain uncertain, for example, whether existing shareholders who were previously not categorized as PSP but are now captured under the broader definition of PSP, will be subject to OJK approval and fit-and-proper testing. Our team will continue to monitor regulatory developments and share updates as they unfold.