Indonesia Financial Services Authority issues rules for representative offices of foreign financing institutions

Indonesia Financial Services Authority (OJK) issued a new rulebook for representative offices in Indonesia of foreign-based financing institutions, venture capital firms and other financial services institutions, setting a formal framework to recognise these offices and keep their activities within prudent, transparent and accountable supervision. The regime is designed to facilitate cross-border financing cooperation while prohibiting representative offices from conducting financing business directly in Indonesia. The regulation defines the in-scope foreign institutions (PVL) to include finance companies, infrastructure financing companies, venture capital firms, pawnshops, technology-based joint funding service providers, export-import financing institutions and secondary housing financing companies. It also defines the representative office (KPPVL) as a liaison office and lists permitted activities, including providing information on how to engage with the head office or overseas branches, supporting oversight of financing in Indonesia and monitoring projects financed by the head office or overseas branches, conducting promotions, acting under power of attorney with agencies, exchanging Indonesia-related economic, financial and trade information, supporting exporters’ access to overseas markets through international networks, encouraging foreign equity participation and financing for priority sectors and regions, and facilitating consumer complaints. OJK will support implementation through an outreach session on 12 March 2026, followed by a “Licensing Day” programme providing one-on-one assistance to prospective applicants to accelerate licensing and increase transparency in OJK’s licensing services.