Financial Conglomerate – A Major Shift for the Financial Service Industry
Big changes are here for Financial Services Institutions with the issuance of the OJK Regulation on Financial Conglomerates. One key highlight? The mandatory formation of a Holding Company. This means FSIs must navigate complex internal restructuring to align shareholding structures, a process that requires significant time, resources, and strategic planning. Compliance goes beyond just meeting OJK’s approval criteria—it involves adhering to strict governance, risk management, and operational standards within tight timelines. While exemptions apply to state-owned FSIs, rural banks, and foreign bank branches, this regulation signals a major shift in how financial conglomerates are governed in Indonesia.
You are more than welcome to check out our latest article for a detailed breakdown of the regulation and its impact at this link



