Indonesian financial sector regulatory compliance

Indonesian financial institutions are navigating various regulatory mandates issued by the Financial Services Authority (OJK) and the Indonesia Stock Exchange (BEI).

In the insurance and reinsurance sector, companies are working to meet minimum equity requirements by the end of 2026. As of August 2026, 117 out of 147 firms have complied, while 30 remain. Industry representatives have noted that organic growth may be insufficient, suggesting companies must optimize capital injections through shareholders or new investors to avoid returning business licenses. Additionally, the OJK is requiring the spin-off of Sharia Business Units by the end of 2026, a move expected to create 38 independent Sharia insurance and reinsurance companies.

Simultaneously, the banking sector is facing pressure to meet minimum public share ownership (free float) requirements. Twenty-six banking issuers have not yet reached the 15% threshold set by the BEI. Compliance deadlines for these banks range from March 2027 to March 2029. To achieve these levels, banks are considering corporate actions such as rights issues or seeking strategic investors, with some facing potential delisting if they fail to comply.