OJK issues new financial regulations in Indonesia

The Indonesian Financial Services Authority (OJK) has introduced several new regulatory measures across various financial sectors.

To diversify investment options, the OJK is now permitting pension funds to invest up to 20% of their total portfolios in foreign markets. This policy serves as an alternative when domestic instruments offer limited returns or availability, though the regulator emphasized that such investments will be subject to strict supervision.

In support of the national '3 Million Houses Program,' the OJK issued Regulation Number 12 of 2026 regarding Asset-Backed Securities in the form of Participation Certificates (EBA-SP). This regulation aims to expand secondary financing sources for the housing sector through capital market instruments while maintaining transparency and investor protection.

Additionally, the OJK released Regulation Number 9 of 2026, which mandates incidental reporting for the capital market, derivative finance, and carbon exchange sectors through an integrated digital system to enhance technological supervision.

Finally, the OJK is drafting amendments to Regulation Number 41 of 2024 concerning Microfinance Institutions (LKM). The proposed changes include provisions for write-offs to help institutions manage non-performing loans, provided they adhere to specific asset quality and provisioning requirements.