ANNOUNCEMENT 23 Dec 2016

On 23 December 2016, the Indonesian Financial Services Authority (OJK) issued regulation 73/POJK.05/2016 on Good Corporate Governance for Insurance Companies.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 28 Dec 2016 | Removal date: open ended

Post-migration treatment

Articles 6(5) and 19(5) of the OJK regulation introduce a requirement for all Boards of Directors and Boards of Commissioners of Indonesian insurance companies (i.e. the majority of shares belonging to Indonesian entities) to consist exclusively of Indonesian nationals.

If the insurance company includes also foreign direct participation, the boards may also include foreign nationals. They must nonetheless also consist of Indonesian citizens (art. 6(6) & 19(6)).

The regulation also stipulates that insurance companies shall nominate an Independent Commissioner. The individual must be an Indonesian citizen as well (art. 31f).

The regulation came into force on 28 December 2016.

AFFECTED SECTORS

 

AFFECTED PRODUCTS

 
N/A