As part of its continuing effort to strengthen the institutional foundation of the guarantee industry, Indonesia’s Financial Services Authority (Otoritas Jasa Keuangan or “OJK”) has issued Regulation No. 10 of 2025, amending OJK Regulation No. 1/POJK.05/2017 on the business licensing and institutional governance of guarantee institutions. The new regulation will take effect on 6 November 2025, six months after its promulgation.
A major highlight is the significant increase in minimum paid-up capital requirements at the time of establishment, based on the geographical scope of operations. Guarantee and sharia guarantee companies operating at the national level must now maintain IDR 250 billion in capital, while provincial and municipal-level companies must have IDR 100 billion and IDR 50 billion, respectively. In addition, re-guarantee and sharia re-guarantee companies may only operate at the national level, with a minimum paid-up capital of IDR 500 billion.
The regulation also tightens restrictions on capital sources, explicitly prohibiting the use of loan proceeds or illicit funds – including those linked to money laundering or terrorism financing – for capital contributions. Exceptions apply only to shareholders that are central or regional governments or their controlled entities.
Another key development is the requirement to appoint a controlling shareholder (pemegang saham pengendali). Existing institutions must comply with this requirement by 6 May 2026, at the latest.
Given these changes, guarantee institutions are advised to initiate internal reviews and realign their governance and capital structures in anticipation of the new compliance thresholds. The regulation reflects OJK’s broader agenda to improve governance, transparency, and resilience in Indonesia’s non-bank financial sector.