On 19 December 2024, the Financial Services Authority (“OJK”) issued a New Regulation* as the implementation of Law No. 4 of 2023**. This regulation aims to enhance governance and operational standards in investment management within Indonesia’s capital markets.
Effective as of 23 December 2024, the New Regulation introduces key requirements for mutual funds, particularly concerning loan transactions and investment limitations.

First, concerning the receipt and extension of loans, mutual funds may only receive loans in the form of funds from Financial Services Institutions (“LJK”) and/or Securities Financing Institutions (“LPE”), with a maximum limit of 10% of their Net Asset Value (“NAV”). Similarly, mutual funds may extend loans in the form of securities to the Clearing and Guarantee Institution, with a limit of 30% of their NAV.

Second, the regulation sets out provisions regarding mutual fund investments in shares of Corporate Mutual Funds or participation units of other Collective Investment Contract Mutual Funds. Investment limitations vary based on the type of mutual fund—such as foreign mutual funds, sharia mutual funds based on foreign securities, or target date mutual funds. Investment managers must ensure compliance with these requirements when determining the placement of mutual fund investments, as stipulated under the New Regulation.

To streamline regulatory compliance, this regulation revokes several provisions under existing regulations***.

*Financial Services Authority Regulation No. 33 of 2024 concerning Development and Strengthening of Investment Management in the Capital Market

**Law No. 4 of 2023 concerning the Development and Strengthening of the Financial Sector.

***Article 6(1)(p) and (q) of OJK Regulation No. 23/POJK.04/2016, Article 3(m) of OJK Regulation No. 32/POJK.04/2017, and Article 15(m) of OJK Regulation No. 33/POJK.04/ 2017.