Indonesia’s Financial Services Authority (Otoritas Jasa Keuangan – OJK) has introduced a consolidated framework for conducting fit and proper tests in the fast-evolving sectors of financial technology innovation, digital financial assets, and crypto assets*. Effective 1 October 2025, the regulation aims to strengthen governance and safeguard the integrity of individuals in strategic positions.
Previously, fit and proper test requirements were spread across multiple sectoral regulations. The new framework streamlines them into one unified set of rules applying to directors, commissioners, and controlling shareholders. These individuals — referred to as primary parties — must meet OJK’s standards of integrity, competence, financial reputation, and overall suitability before assuming their roles.
In line with earlier provisions, primary parties are prohibited from carrying out their duties until they receive formal approval from OJK based on the fit and proper test results. This acts as a preventive safeguard, ensuring only qualified individuals can occupy key positions.
The regulation also harmonises the procedures for re-assessment, which may be triggered if there are indications of misconduct or deficiencies in integrity, competence, or financial reputation. For sharia-based service providers, violations of sharia principles are now expressly recognised as grounds for re-assessment — a requirement introduced for the first time.
By integrating previously fragmented provisions into a single, transparent, and prudent structure, OJK reinforces its commitment to building a credible, well-governed, and sustainable digital financial ecosystem. This step also supports broader efforts to maintain investor confidence and regulatory clarity in one of Indonesia’s most dynamic market segments.
*Financial Services Authority Regulation Number 16 of 2025 on the Fit and Proper Test and Re-assessment of Primary Parties in the Financial Sector Innovation, Digital Financial Asset, and Crypto Asset Sector