Policy

A Resilient Financial Services Sector Supporting Faster National Economic Growth

Jakarta, August 4, 2025. The Monthly Board of Commissioners Meeting of the Indonesia Financial Services Authority (OJK), held on July 30, 2025, assessed that the stability of the Financial Services Sector (SJK) was still maintained.

In its latest report, the International Monetary Fund (IMF) has upgraded the world economic growth projection, including domestic economic growth in Indonesia for 2025 and 2026. This was spurred by better-than-expected economic activity in the first half of 2025, lower reciprocal import tariffs than previously announced by the US Administration, improving global liquidity, as well as an accommodative fiscal policy stance.

Trade tensions have eased following successful tariff negotiations between the US and several key trading partners. Similarly, global economic indicators improved beyond expectations, as indicated by stronger manufacturing and world trade performance, coupled with the release of Q2/2025 growth data for major global players, including the US and China, which outperformed expectations.

In general, global financial markets rallied on the back of risk-on investors and lower volatility, accompanied by capital flows to emerging markets, including Indonesia.

At home, demand indicators remained stable, as reflected by low inflation and faster growth of the money supply. Supply-side indicators remained mixed, with a persistent trade surplus and a high level of reserve assets despite the manufacturing PMI remaining in contractionary territory.

The deal struck between Indonesia and the US to reduce tariffs to 19 percent, one of the lowest in the region, is expected to create compelling opportunities to build on Indonesia's competitiveness, particularly against other countries facing higher US tariffs.

Developments in the Capital Market, Financial Derivatives and Carbon Exchange (PMDK) 

Amid growing sentiment stoked by global trade and geopolitical tensions, the domestic stock market closed at 6,927.68 on June 30, 2025 (down 2.15 percent year-to-date), before rebounding to 7,484.34 on July 31, 2025 (up 5.71 percent year-to-date). Month to date, sectoral index performance in July 2025 experienced broad-based gains across all sectors, led by technology, infrastructure, and manufacturing.

Market capitalization reached an all-time high for three consecutive days in July 2025, peaking on July 29, 2025, at IDR13,701 trillion. At the end of July 2025, the capitalization value stood at IDR13,492 trillion. Meanwhile, non-resident investors in July 2025 booked a net sell totalling IDR8.34 trillion (mtd) (ytd: net sell of IDR61.91 trillion). 

In terms of transaction liquidity, the average daily trading value on the domestic stock market (ytd) in July 2025 was recorded at IDR13.42 trillion, up from IDR13.29 trillion at the end of June 2025 and surpassing the average transaction value recorded in 2024 at IDR12.85 trillion.

In the bond market, the ICBI bond market index rallied 1.17 percent (mtd) to a level of 418.84, with the average government bond (SBN) yield falling by 10.82 bps (mtm) (down 41.10 bps ytd). As of July 30, 2025, non-resident investors booked a net buy of IDR13.28 trillion (mtd) (ytd: net buy of IDR55.32 trillion). In the corporate bond market, non-resident investors recorded a net buy of IDR0.32 trillion (mtd) (ytd: net sell of IDR1.08 trillion). 

In the investment management industry, as of July 31, 2025, the value of Assets Under Management (AUM) stood at IDR856.62 trillion (up 1.95 percent mtd or up 2.30 percent ytd), with the Net Asset Value (NAV) of mutual funds recorded at IDR526.53 trillion, up 3.21 percent (mtd) (ytd: up 5.46 percent) and a net subscription of IDR14.43 trillion (mtd) (ytd: net subscription of IDR12.40 trillion).

Fundraising in the capital market maintained a positive trend, with the value of public offerings reaching IDR144.78 trillion, including IDR8.49 trillion from 16 new issuers. Meanwhile, 11 public offering pipelines remain active, with an estimated indicative value of IDR12.95 trillion.

In terms of fundraising through securities crowdfunding (SCF), since the enactment of the SCF regulation until July 31 2025, a total of 18 providers have been licensed by OJK, with 876 securities issuances from 534 issuers, 184,504 investors, and total SCF funds collected and administrated in the Indonesian Central Securities Depository (KSEI) amounting to IDR1.64 trillion.

Between January 10 and July 31, 2025, a total of 96 participants and 19 providers had obtained a principal license from the OJK in the financial derivatives market. The transaction value in July 2025 was IDR3,191.01 trillion, with an average daily transaction value of IDR138.74 trillion (year-to-date: IDR29.80 trillion per day). The total transaction volume of financial derivatives with securities as underlying assets from January 2 to July 31, 2025, was recorded at 655,632 lots, with an accumulated value of IDR4,500.10 trillion.

Regarding the carbon exchange, from its launch on September 26, 2023, until July 31, 2025, there were 116 licensed service users, with a total volume of 1,599,357 tCO2e and an accumulated value of IDR77.95 billion. 

At the ASEAN Corporate Governance Conference and Awards 2025 held in July in Malaysia, Indonesia achieved significant progress in terms of the ASEAN Corporate Governance Scorecard (ACGS), recording a nine percent increase in the national average score, the highest in the region. Four issuers from Indonesia entered the ASEAN Top 50, with two banks breaking into the top ten, indicating a growing reputation for governance among Indonesian issuers. In addition, the number of Indonesian public listed companies (PLCs) recognised in the ASEAN Asset Class increased significantly from nine to 23, thus reflecting the concrete impact of several coaching initiatives and supervisory efforts consistently implemented by OJK to foster transparency, accountability, and sustainability in the capital market.

During the period from March 20 to July 31, 2025, 45 issuers disclosed information regarding plans to perform buybacks without a General Meeting of Shareholders (RUPS), with an estimated buyback fund allocation of IDR26.52 trillion. Of the 45 issuers, 36 have executed buybacks with a realized value of IDR3.7 trillion, accounting for 13.88% of the total. At the end of July 2025, four of the 45 issuers in question had extended their buyback period, and a further 30 had completed the implementation period. 

Enforcing PMDK regulations in July 2025, OJK imposed administrative sanctions in the form of fines against violations of prevailing PMDK laws totalling IDR8,627,000,000.00 on 19 entities, alongside six written warnings and one written reprimand, as well as administrative sanctions in the form of the revocation of the business licences for securities companies operating as underwriters and broker-dealers to PT Pratama Capital Sekuritas and administrative sanctions in the form of the revocation of the business licences for securities companies operating as underwriters to PT Masindo Artha Sekuritas. 

In 2025, OJK imposed administrative sanctions based on the outcomes of case investigations in the capital market as follows:

1. Administrative sanctions in the form of fines totalling IDR19,407,000,000.00 on 33 entities,
2. Administrative sanctions in the form of the revocation of the individual license of one entity,
3. Administrative sanctions in the form of the revocation of the business license for securities companies operating as underwriters and broker-dealers on four securities companies, and
4. Written warnings to 14 entities and one written reprimand. 

Furthermore, OJK imposed administrative sanctions in the form of fines totaling IDR19,121,220,000.00 on 304 financial service providers (PUJK) in the capital market, as well as 90 written warnings for late report submissions. Additionally, fines totaling IDR100,000,000.00 and 34 written warnings were issued for other non-case violations, excluding late submissions. 

Developments in the Banking Sector (PBKN)

Banking intermediation remained stable with a well-managed risk profile, recording credit growth of 7.77 percent (yoy) in June 2025 (May 2025: 8.43 percent) to reach IDR8,059.7 trillion.

By loan type, investment loans posted the strongest growth at 12.53 percent, followed by consumer loans at 8.49 percent and working capital loans at 4.45 percent (yoy). By bank group, national private commercial banks were the primary driver of credit growth during the reporting period, recording a 10.78% yoy increase. Based on borrower category, corporate loans posted 10.78 percent growth. In comparison, MSME loans grew by 2.18 percent amid ongoing efforts in the banking industry to focus on restoring the quality of MSME loans. 

By economic sector, the growth of loan disbursements to several sectors recorded double-digit annual growth. The mining and quarrying sector recorded a 20.69 percent growth, with 19.17 percent for the services sector, 17.94 percent for transportation and communication, and 11.23 percent for electricity, gas, and water supply.

Third-party funds (DPK) recorded 6.96 percent (yoy) growth in June 2025 (May 2025: 4.29 percent yoy) to reach IDR9,329 trillion, with demand deposits, savings deposits, and time deposits growing by 10.35 percent, 6.84 percent, and 4.19 percent (yoy), respectively.

BI-Rate reductions have been accompanied by lower interest rates in the banking industry. Compared to conditions in the previous year, the weighted average lending rate has decreased by 11 basis points to 8.99 percent, primarily driven by lower interest rates on productive loans. Regarding to fund mobilization, the weighted average deposit rate has also begun decreasing from the previous month. 

Liquidity in the banking industry remained ample in June 2025, with the ratios of liquid assets to non-core deposits (LA/NCD) and liquid assets to third-party funds (LA/TPF) recorded at 118.78 percent (May 2025: 110.33 percent) and 27.05 percent (May 2025: 24.98 percent), respectively, well above the regulatory thresholds of 50 percent and ten percent. Meanwhile, the Liquidity Coverage Ratio (LCR) was recorded at 199.04 percent.

Credit quality in the banking industry was maintained, as indicated by a gross NPL ratio of 2.22% (May 2025: 2.29%) and a net NPL ratio of 0.84% (May 2025: 0.85%). Loans at Risk (LaR) retreated to 9.73 percent (May 2025: 9.93 percent). The LaR ratio, therefore, is relatively stable in line with pre-pandemic levels. 

The banking industry's resilience also remained solid, as reflected in a high Capital Adequacy Ratio (CAR) of 25.81 percent (May 2025: 25.48 percent), providing a robust buffer against risk in anticipation of global uncertainty.

The share of Buy Now Pay Later (BNPL) loans disbursed by the banking industry stood at just 0.29 percent of total credit, yet continues to record strong annual growth. As of June 2025, the balance of outstanding BNPL loans reported via the Financial Information Services System (SLIK) grew 29.75 percent (yoy) (May 2025: 25.41 percent yoy) to IDR22.99 trillion, with the number of accounts increasing to 26.96 million (April 2025: 24.79 million).

Optimism surrounding the promising economic outlook for Indonesia and state of the banking industry moving forward was also boosted by the agreement reached with the US Administration concerning import tariffs on Indonesian products, alongside the recent BI-Rate reduction, accelerated government spending, and several government programs that will drive new loan disbursements, maintain food security, and strengthen public purchasing power.

Several existing government programs, including the Red and White Cooperative (KMP) program, supported by government funds, three million houses, and the Free Nutritious Meal (MBG) program, can be utilized by the banking industry for business development, including credit/financing growth.

Concerning regulatory enforcement and consumer protection in the banking industry, the OJK revoked the business license of PT BPR Dwicahaya Nusantara, located in Batu City, East Java, on July 24, 2025, due to governance violations and failure to meet the minimum core capital requirements. 

Regarding the ongoing crackdown on online gambling, which has wide-reaching and deleterious impacts on the economy and financial sector, OJK has instructed banks to block approximately 25,912 accounts based on data submitted by the Ministry of Communication and Digital Affairs. In addition, OJK is following up on the reports by also requesting banks to close accounts matching specific Population Identification Numbers (NIK) and mandating Enhanced Due Diligence (EDD). Seeking to enhance the quality of cybersecurity systems in the banking industry, the OJK has urged banks to further strengthen their cyber incident detection capabilities by continuously monitoring anomalous and suspicious financial transactions that may indicate potential fraud. 

Developments in the Insurance, Guarantee, and Pension Fund (PPDP) Industry 

The PPDP industry plays a crucial role in mitigating the financial risk exposure of the public during periods of illness and in cases of accidents, property, or vehicle damage, while providing solutions for future planning, including the availability of sustainable income sources upon reaching a non-productive age. Additionally, through guarantee institutions, the PPDP industry serves as a catalyst for business owners, including MSMEs, to unlock broader access to capital. Insurance industry assets as of June 2025 stood at IDR1,163.11 trillion, representing a 3.27% yoy increase. In the commercial insurance industry, total assets were recorded at IDR939.88 trillion, representing a 3.58% year-over-year (YoY) growth.

In terms of premium income, commercial insurance industry performance from January-June 2025 stood at IDR166.26 trillion, growing 0.65 percent (yoy), consisting of life insurance premiums that contracted by 0.57 percent (yoy) to IDR87.48 trillion as well as general insurance and reinsurance premiums that grew by 2.04 percent (yoy) to IDR78.77 trillion. 

In general, the capitalisation of the commercial insurance industry remains solid, with the life insurance, as well as general insurance and reinsurance industries, in aggregate reporting risk-based capital (RBC) ratios of 473.55 percent and 312.33 percent, respectively (well above the 120 percent threshold).

In terms of non-commercial insurance, comprising the Social Security Agency for Employment (BPJS Ketenagakerjaan) and the Social Security Agency for Health (BPJS Kesehatan), as well as insurance programs for civil servants (ASN), military personnel (TNI), and the police (POLRI) related to occupational accident compensation and accidental death insurance, total assets were recorded at IDR223.23 trillion with a growth of 1.99 percent (yoy).

As of June 2025, the pension fund industry's total assets grew 8.99% yoy to reach IDR1,578.47 trillion. In terms of voluntary pension programs, total assets recorded a yoy growth of 5.03 percent, with a value of IDR391.43 trillion.

Regarding compulsory pension programs, consisting of old age benefits and pension benefits under the auspices of BPJS Ketenagakerjaan, as well as retirement savings and pension contribution accumulation programs for civil servants (ASN), military personnel (TNI), and the police (POLRI), total assets reached IDR1,187.03 trillion, growing 10.36 percent (yoy).

In terms of guarantee institutions, as of June 2025, the asset value contracted by 0.04 percent (yoy) to IDR47.27 trillion.

Concerning regulatory enforcement and consumer protection in the PPDP sector, OJK took the following measures:

1. Fulfilling the first stage of the equity enhancement obligations for 2026, following OJK Regulation (POJK) Number 23 of 2023. Based on the monthly reports submitted as of June 2025, a total of 108 out of 144 insurance and reinsurance companies (75.0 percent) have already met the minimum equity requirements for 2026. OJK will continue to take the necessary measures based on progress action plans to fulfill the minimum equity obligations through capital injections from shareholders, as well as from credible resident/non-resident investors, while encouraging consolidation within the industry, including the return of business licenses.
2. Regulating intermediary activities in the insurance sector, not by business type, including insurance brokers and agents. Companies operating unlicensed (illegal) insurance brokerages are prosecuted to the full extent of the law, while insurance companies collaborating with illegal brokers face punitive administrative sanctions. Legal action was also taken against the agents of several companies operating as brokers. In addition, OJK initiated legal action against official insurance brokers caught embezzling premiums. 
3. Implementing various efforts to resolve ongoing issues plaguing financial service institutions (FSIs) through special surveillance, as applied to six insurance and reinsurance companies as of July 30, 2025, to improve their financial condition in the interest of the policyholders. Additionally, nine pension funds have been placed under special surveillance. 

Developments in Financing Institutions, Venture Capital Firms, Microfinance Institutions, and Other Financial Service Institutions (PVML Sector) 

In the PVML sector, the financing receivables of finance companies (PP) grew 1.96 percent (yoy) in June 2025 (May 2025: 2.83 percent yoy) to IDR501.83 trillion, underpinned by investment financing that rose by 8.16 percent (yoy).

Finance companies effectively managed their risk profile, as reflected in a gross non-performing financing (NPF) ratio of 2.55% (May 2025: 2.57%) and a net NPF ratio of 0.88% (May 2025: 0.88%). The gearing ratio of finance companies was recorded at 2.24x (as of May 2025: 2.20x), which is significantly below the 10x cap.

Venture capital financing in June 2025 increased by 0.84 percent year-over-year (yoy) (May 2025: 0.88 percent yoy), with a value of IDR16.35 trillion (May 2025: IDR16.35 trillion).

In the FinTech peer-to-peer (P2P) lending industry, outstanding financing in June 2025 increased by 25.06 percent yoy (May 2025: 27.93 percent yoy), with a value of IDR83.52 trillion. The aggregate NPL ratio (TWP90) stood at 2.85 percent in the reporting period (May 2025: 3.19 percent).

According to the Financial Information Services System (SLIK), BNPL financing disbursed by finance companies in June 2025 increased by 56.26 percent (yoy) (May 2025: 54.26 percent yoy) to IDR8.56 trillion, with a gross NPF ratio of 3.25 percent (May 2025: 3.74 percent).

Regarding regulatory enforcement and consumer protection in the PVML sector, OJK took the following measures:

1. OJK revoked the business license of PT Dana Mandiri Sejahtera on July 8, 2025, for failing to meet the minimum equity requirements before the end of the business suspensions sanctions period
2. Currently, four out of 145 finance companies have failed to meet the minimum equity requirement of IDR100 billion, and 11 out of 96 P2P lenders have been unable to meet the minimum equity requirement of IDR12.5 billion. Five of the 11 P2P lenders are currently undergoing analysis based on a request to increase their paid-up capital. OJK continues to take the measures required following the progress action plan concerning efforts to fulfill the minimum equity obligations in the form of capital injections from shareholders, as well as from credible resident/non-resident strategic investors, including the return of business licenses.
3. Enforcing compliance and integrity in the PVML sector, OJK in July 2025 imposed administrative sanctions on 19 finance companies, three venture capital companies, 30 P2P lenders, 44 private pawnbrokers, one special financial institution, and ten microfinance institutions for violations of prevailing POJKs, as well as based on supervisory findings and/or follow-up inspections. The administrative sanctions consisted of 40 fines and 115 written warnings. OJK expects the enforcement measures to foster good governance, prudence, and compliance in the PVML sector, ultimately improving performance and optimizing the industry's contribution.

Developments in Financial Sector Technology Innovation (ITSK), Digital Financial Assets and Crypto Assets (IAKD Sector) 

1.Regulatory sandbox implementation: 

1. Interest from ITSK providers to become OJK sandbox participants remains overwhelming. As of July 2025, OJK received 222 consultation requests from prospective sandbox participants. Of that total, 132 parties have submitted consultation forms and 120 have conducted consultations.
2. OJK has received 18 applications for sandbox participants, of which eight were approved. These approved participants consist of seven ITSK providers with Digital Financial Asset and Crypto Asset (AKD-AK) business models and one ITSK provider from the Market Support category. Four applications to become sandbox participants are currently under review, consisting of three providers with the AKD-AK business model and one provider with an open finance business model.

2. TSK Provider Registration:

1. Given the completion of the registration process for all ITSK providers using the Innovative Credit Scoring (ICS) and Financial Service Aggregator (PAJK) business models, which had previously passed the OJK sandbox process, in accordance with POJK Number 3 of 2024 concerning ITSK Implementation, all ITSK providers with registered status are now required to submit a license application to OJK. Meanwhile, new ICS and PAJK providers can submit a license application to OJK directly. 
2. As of July 2025, OJK received six applications for business licenses from ITSK providers, comprising two ICS and four PAJK applications. All applications for business licenses from ITSK providers are currently under review by OJK. 

3. Based on the reports submitted as of June 2025, ITSK providers registered with OJK have successfully established 1,027 partnerships with financial service institutions (FSIs) across various sectors, including the banking industry, finance companies, insurance, securities companies, online lenders, microfinance institutions and pawnbrokers, as well as with information technology service providers and data source providers. 

4. During June 2025, Financial Service Aggregators (PAJK) successfully facilitated partner-approved transactions worth IDR2.29 trillion, bringing the total transaction value in 2025 to IDR12.27 trillion (year-to-date), with a total of 6.91 million PAJK users distributed throughout the Indonesian archipelago. In addition, the number of credit score data requests (inquiries/hits) received by Innovative Credit Scoring (ICS) providers amounted to 27.58 million hits in the reporting period, bringing the total number of hits this year to 108.07 million (ytd). Such developments indicate that the services offered by ITSK providers have contributed to accelerating market deepening in the financial services sector, while increasing accessibility and inclusion in the use of financial products and services.

5. As of July 2025, a total of 1,181 tradeable crypto assets were recorded. OJK has approved licenses for 23 entities within the crypto trading ecosystem, comprising one crypto exchange, one clearing and settlement institution, one custodian, and 20 crypto asset traders. Meanwhile, OJK is currently processing the licenses for another ten prospective crypto asset traders.

6. Regarding the development of crypto asset activities in Indonesia, the number of consumers continues to track an upward trend, reaching 15.85 million consumers in June 2025 (a 5.18 percent increase from the position recorded in May 2025, at 15.07 million consumers). The value of crypto asset transactions in June 2025 was recorded at IDR32.31 trillion (down 34.82 percent from the position recorded in May 2025 at IDR49.57 trillion), indicating maintained consumer confidence and robust market conditions. 

Developments in Market Conduct Supervision, Education and Consumer Protection (PEPK) 

From January 1 to July 25, 2025, OJK hosted 3,212 financial education activities, engaging more than 6,359,861 participants throughout Indonesia. The Sikapi Uangmu digital platform, which serves as a dedicated communication channel for financial education content to the public through a minisite and application, published 191 pieces of educational content, reaching a total of 1,239,309 viewers. In addition, 17,028 users accessed the Financial Education Learning Management System (LMSKU), with modules being accessed a total of 7,617 times, and 3,771 module completion certificates were issued.

The various efforts taken to increase financial literacy were further supported by strengthening the financial inclusion program in collaboration with the Regional Financial Access Acceleration Teams (TPAKD) in all 38 provinces and 514 regencies/cities in Indonesia. 

OJK implemented the following financial literacy and inclusion initiatives in July 2025:

1. From January to July 25, 2025, OJK implemented the GENCARKAN flagship program through over 23,944 initiatives that engaged 144.5 million participants. These activities included 14,105 offline financial education sessions that reached 4.1 million participants, complemented by 9,839 pieces of digital financial education content, which 140.4 million viewers viewed.
2. Hybrid Training of Trainers (ToT) activities under the auspices of the OJK enable Indonesian Financial Literacy Ambassadors (OJK PEDULI) for Members of the Indonesian Women's Congress (KOWANI) on July 2, 2025, attended by 279 KOWANI members.
3. In-person dissemination activities concerning the Guidelines for Access to Financial Services for Empowered Persons with Disabilities (Pedoman SETARA) and Service Sensitivity Training for Financial Sector Business Players (PUSK) at the OJK Provincial Office in South Sumatra. The activities were attended by representatives from 28 PUSKs in South Sumatra, Organisations of Persons with Disabilities (OPDs), and Prospera, the event partner. 
4. Strengthening and optimising the Regional Financial Access Acceleration Teams (TPAKD), OJK has implemented:
   1. Socialisation Activities concerning Financial Inclusion Indicators (IUP Number 34) at the Regency/City Level in the Medium-Term Regional Development Plan (RPJMD) 2025-2029, from June 30 - July 2, 2025, attended by leaders from all Bappeda and Regional Financial Access Acceleration Teams (TPAKD) throughout Indonesia. The activities aimed to socialise Financial Inclusion as one of the 45 Main Development Indicators (IUP) used in the Long-Term National Development Plan (RPJPN) 2025-2045, which must be cascaded down into Regional Performance Indicators (IKD) within the Regional Government Development Plan at the regency/city level. IKD at the regency/city level is measured using the Regional Financial Access Index (IKAD). Additionally, an online follow-up socialization activity was conducted in Banten Province on July 8, 2025. 
   2. Socialisation activities concerning the Strategic Direction of TPAKD at the TPAKD Regional Coordination Meeting (Rakorwil) for North Sulawesi and Gorontalo on July 3, 2025, in Manado, attended by the Deputy Governor of North Sulawesi and Deputy Governor of Gorontalo, as well as all provincial/regency/city TPAKD teams in North Sulawesi and Gorontalo. Information was presented regarding the strategic direction of TPAKD implementation in 2025, as well as clarification on the work program implementation in line with the TPAKD theme for 2025, namely 'Accelerating the Use of Capital Market Products & Services'. 
5. Strengthening the implementation of the One Account, One Student (KEJAR) program and instilling a culture of saving from an early age, the OJK initiated a massive pilot project encouraging students to open savings accounts in Denpasar on July 23, 2025, and in Jakarta on July 24, 2025, targeting 2,130 schools and 538,110 students. 

Between January 1 and July 14, 2025, the OJK received 268,908 service requests through the Consumer Protection Portal Application (APPK), including 24,975 complaints. Of the total complaints, 9,487 originated from the banking sector, 9,367 from the FinTech industry, 4,994 from finance companies, and 795 from insurance companies; the remaining 332 complaints related to the capital market and other non-bank financial institutions. 

To support government programs in the housing sector, OJK has established a special complaint channel via Kontak 157 to address complaints regarding any constraints or issues in the housing loan application process for low-income earners.  Between January 1 and July 27, 2025, the OJK received 62 complaints regarding housing loans related to the Financial Information Services System (SLIK), with a completion rate of 85.48%. Additionally, OJK received five service requests to discuss Housing Financing Liquidity Facility (FLPP) applications related to the SLIK system.

Seeking to eradicate illegal financial activities, from January 1 to July 24, 2025, OJK received 11,137 complaints relating to illegal entities. Of that total, 8,929 complaints were received about illegal online loans, alongside 2,208 complaints concerning illegal investment activity.

The number of illegal entities shut down/blocked is recapitulated as follows:

Enforcing consumer and public protection regulations through the Task Force for the Eradication of Illegal Financial Activities (Satgas PASTI), during the period from January to July 24, 2025, OJK:

1. Identified and shut down 1,556 illegal online lending entities and 284 illegal investment offers on various websites and applications with the potential to harm the public.
2. Identified the contact numbers of debt collectors from illegal online lending entities and submitted a request to the Ministry of Communication and Digital Affairs of the Republic of Indonesia to block 2,422 contact numbers. 

OJK Policy Direction

Maintaining the stability of the financial services sector and expanding the sector's role in supporting national economic growth, OJK implemented the following policy measures:

1.Policies to Maintain Financial System Stability

OJK welcomed the affirmation by Standard and Poor's (S&P) Global Ratings of Indonesia's sovereign credit rating at a level of BBB (long-term) and A-2 (short-term), with a stable outlook. This reflects maintained confidence in Indonesia's fiscal strength, economic resilience, and solid financial sector. In addition, improving global economic performance, easing trade tensions, and the trade deal struck between the governments of Indonesia and the US are expected to provide room to optimise intermediation in the financial services industry for priority sectors as well as sectors bolstered by the assurance of trade agreements. 

OJK fully supports the policies and facilitation provided by the Government to increase industry competitiveness and realise the existing opportunities, which include expanding the role of financial service institutions (FSIs) in financing schemes for government priority programs, while maintaining risk management and good governance principles and focusing on strengthening a sound, inclusive and competitive financial services ecosystem in pursuit of sustainable economic growth. 

In addition, Satgas PASTI also monitored scam and fraud reports through the Indonesia Anti-Scam Centre (IASC) and found 22,993 contact numbers reported by scam victims. As a follow-up action, Satgas PASTI coordinated with the Ministry of Communication and Digital Affairs of the Republic of Indonesia to analyse and block the contact numbers reported if found to be used in scams or for fraudulent purposes.

Since launch on November 22, 2024, to July 29, 2025, IASC received 204,011 reports, consisting of 129,793 reports submitted by victims through financial sector entities (banks and payment system operators), which were subsequently handled in coordination through the IASC system, along with 74,218 reports submitted by victims directly into the IASC system. In total, 326,283 accounts were reported, and 66,271 accounts were blocked. To date, total reported financial losses amount to IDR4.1 trillion, with IDR248.3 billion of victim funds blocked. IASC will continue to enhance its capacity to expedite the handling of fraud and scam cases in the financial sector.

Enforcing consumer protection regulations, OJK issued written warnings and/or administrative sanctions during the period from January 1 to July 24, 2025, in the form of 86 Written Warnings to 72 Financial Service Providers (FSPs), 13 Written Instructions to 13 FSPs, and 23 Fines to 22 FSPs. Additionally, between January 1 and July 13, 2025, a total of 113 FSPs were required to compensate consumer losses amounting to IDR29.7 billion and USD 3,281.

In terms of overseeing market conduct, OJK has enforced regulations through Administrative Sanctions based on the results of onsite/offsite supervision. From January 1 to July 25, 2025, OJK issued six Administrative Sanctions in the form of Written Warnings and ten Administrative Sanctions in the form of Fines for violations of consumer protection regulations relating to the information provided in advertisements. Seeking to prevent a recurrence of similar violations, OJK also issued orders for specific corrective actions, including the removal of advertisements that do not comply with prevailing provisions.

In addition, OJK also enforced regulations concerning the mandatory submission of financial literacy and inclusion reports by imposing administrative sanctions for late submission and failure to submit the financial literacy and inclusion plan for 2025, as well as the financial literacy and inclusion realization for the second semester of 2024. The data is recapitulated as follows:

B. Policies for Developing and Strengthening the Financial Services Sector and Market Infrastructure

1.Seeking to create ease of doing business in the PVML sector towards increasing financing in support of economic growth, OJK is preparing the following judicious deregulation measures:

1. relaxing down payment requirements for financing and funding facilities from finance companies,
2. streamlining the licensing process for pawnbroker businesses at the regency/city administrative level, and
3. Adjusting the implementation schedule for capital ratios concerning the determination of supervisory status at microfinance institutions.

2. OJK has finalised or issued:

1. POJK Number 12 2025 concerning the Implementation of Risk Management and Soundness Assessment of Investment Managers, which prioritises the risk-based supervision of investment managers based on prevailing international standards, namely the International Organisation of Securities Commissions (IOSCO). The POJK regulates, among other things, obligations to implement risk management and assess the soundness of investment managers, alongside reporting mechanisms, thereby identifying significant risks early so that appropriate and timely supervisory actions can be taken. 
2. POJK Number 13 of 2025 concerning Internal Controls and Market Conduct of Securities Companies Operating as Underwriters and Broker-Dealers, which requires securities companies to conduct due diligence on issuers planning to launch public offerings and the management of potential conflicts of interest, among others. The POJK is expected to strengthen investor protection in the capital market by enhancing the quality of issuers, mitigating conflicts of interest in public offerings, strengthening the functions of underwriters and broker-dealers, and regulating the use of social media in the activities of securities companies.
3. POJK Number 16 of 2025 concerning Fit and Proper Tests for Main Parties and the Reassessment of Main Parties in the Financial Sector Technology Innovation, Digital Financial Assets and Crypto Assets (IAKD) Sector, which regulates the factors, procedures and designations of the results of Fit and Proper Tests, the reassessment procedures for main parties (PKPU), as well as the final results and consequences of the PKPU. 
4. Circular Letter (SEOJK) Number 16/SEOJK.07/2025 concerning Anti-Money Laundering/Combating the Financing of Terrorism and Proliferation Financing (AML/CFT/CPF) for Digital Financial Asset Traders, as implementation guidelines for POJK Number 8 of 2023 concerning the Implementation of AML/CFT/CPF in the Financial Services Sector. The RSEOJK regulates a risk-based approach to AML/CFT/CPF program implementation, including active supervision of the board of directors and board of commissioners, policies and procedures, internal controls, management information systems, human resources (HR), and reporting for Digital Financial Asset Traders.
5. Circular Letter (SEOJK) Number 17/SEOJK.06/2025 concerning the Monthly Reports of Pawnbrokers and Sharia Pawnbrokers as implementation regulations for POJK Number 39 of 2024 concerning Pawnbrokers, which regulates, among others, the format, structure, and submission procedures for the Monthly Reports of Pawnbrokers and Sharia Pawnbrokers.
6. Book launch of 'Introducing and Understanding Carbon Trading for the Financial Services Sector' as part of the strategic efforts to strengthen the role of the financial services sector in supporting the green transition towards low-carbon development. The book was compiled to provide a comprehensive and practical understanding of the fundamental principles, regulations, and mechanisms of carbon trading, including its potential, challenges, and the strategic role of the financial services sector in developing a credible carbon market ecosystem with integrity both nationally and globally.

3. OJK is drafting:

1. Draft POJK concerning Mutual Funds as Collective Investment Contracts with Tradable Participation Units on the Stock Exchange and Gold as the Underlying Asset (Gold ETF). The draft POJK was formulated to provide a new alternative investment instrument for market players, which is expected to strengthen the attainment of market deepening targets in line with the direction of capital market development moving forward, thereby expanding investor access to the gold market without requiring the handling of physical gold.
2. Draft POJK concerning the Financial Reporting Integrity of Financing Institutions, Venture Capital Firms, Microfinance Institutions, and Other Financial Service Institutions (RPOJK IPK PVML), which requires a robust financial reporting process to ensure truthful, accurate, and transparent financial information is provided in the financial reports. In addition, the draft POJK also regulates the duties and responsibilities of the board of directors, board of commissioners, and audit committee, as well as the role of controlling shareholders and affiliated parties in the financial reporting process. 
3. OJK is currently finalising plans to amend POJK Number 27 of 2024 concerning the Trading of Digital Financial Assets and Crypto Assets (AKD-AK), to complement existing regulations with norms that regulate trading activities regarding AKD-AK derivatives, for which the regulatory and supervisory function has been transferred from the Commodity Futures Trading Regulatory Agency (Bappebti) to OJK.
4. Draft SEOJK concerning Supporting Professions in the Financial Services Sector. The draft SEOJK is derived from POJK Number 5 of 2025 concerning Supporting Professions in the Financial Services Sector, which regulates the technical competencies of supporting professions and the services they provide in the financial services sector, among others. 
5. Draft SEOJK concerning the Business Activities and Business Lines of Insurance/Reinsurance Companies and Sharia Insurance/Reinsurance Companies according to Equity-Based Insurance Company Category (KPPE), as the implementation regulations of POJK Number 23 of 2023 concerning the Licensing and Institutional Arrangements of Insurance Companies and POJK Number 36 of 2024 concerning Insurance Activity. The draft SEOJK will regulate the standardization of business lines for general insurance, Shariah general insurance, life insurance, and Shariah life insurance products, which will be used to determine the thresholds for business lines to be guaranteed under the policy guarantee program. The draft SEOJK will also regulate the insurance business activities and business lines that can be marketed by insurance/reinsurance companies within the KPPE 1 and KPPE 2 groups. Generally, KPPE 1 companies are only permitted to market insurance products with simple risk and/or those with low insured value. In contrast, KPPE 2 companies are licensed to market all types of insurance products.

4. Supporting effective licensing and supervision, while maintaining the integrity of the financial services sector, OJK strengthened data exchange cooperation with the Ministry of Legal Affairs by signing a Cooperation Agreement (PKS) concerning the provision, exchange and use of data and/or information to support the duties, functions and authority of the Directorate General of Legal Administrative Affairs of the Ministry of Legal Affairs and OJK. Such cooperation is critical to support the implementation of Act Number 42 of 1999 concerning Fiduciary Guarantees. Providing legal assurance to all parties, OJK requires the financing agreements registered with a fiduciary registration office to contain a fiduciary guarantee. Data exchange with the Directorate General of Legal Administrative Affairs will ensure more effective supervision of the registration obligations concerning fiduciary guarantees. 

5. In conjunction with the Organisation for Economic Cooperation and Development (OECD), OJK has published a review entitled 'Addressing the Challenges for Asset-Backed Pensions in Indonesia', demonstrating a joint commitment to strengthening the pension system in Indonesia. The OECD recognised that Indonesia has made significant progress through the implementation of compulsory asset-backed pension schemes (JHT and JP), which have successfully expanded coverage for formal workers in the private sector. Through this review, the OECD provides strategic recommendations, alongside regulatory harmonization, investment diversification, and restrictions on early pension withdrawals, to ensure the adequacy of pension benefits. Additionally, the OECD recommends life-cycle investment strategies. Such collaboration is expected to support OJK in strengthening the role of pension funds as an instrument of social protection and long-term investment, thereby bolstering national economic stability. 

6. OJK has held technical meetings with the OECD, the Ministry of Finance, and the Coordinating Ministry for Economic Affairs, which are responsible for Indonesia's accession to OECD membership, particularly in terms of insurance and pension funds. The technical meetings were held to prepare for the technical review stage, which was implemented by the OECD after the Indonesian Government submitted all initial memorandum to the OECD on June 3, 2025, marking the start of the formal accession process. 

7. OJK reiterated Indonesia's commitment to overcoming protection gaps in insurance for national hazards and retirement savings, while strengthening national strategies to increase financial literacy, expand the scope of compulsory pension schemes and foster investment diversification to strengthen financial resilience in the Asian region, at the OECD-ADBI-BNM-EPF Roundtable on Insurance and Retirement Savings in Asia, held in Kuala Lumpur, Malaysia. The forum also discussed the latest OECD report on Protection Gaps in Insurance for National Hazards and Retirement Savings in Asia. 

8. Strengthening the foundations of the national digital financial asset and crypto asset (AKD-AK) ecosystem and expediting the transfer process of the regulation and supervision function for digital financial assets and crypto assets from the Commodity Futures Trading Regulatory Agency (Bappebti) to OJK, an Addendum to the Handover Minutes (BAST) was signed on July 30 2025, which includes the transfer of documents and data relating to the derivative products of digital financial assets, including crypto assets (AKD-AK Derivatives) as part of the regulatory, licensing and supervisory purview of OJK. The handover was a continuation of the mandate in accordance with Act Number 4 2023 concerning Financial Sector Development and Strengthening (P2SK Act) and Government Regulation Number 49 of 2024 concerning the Transfer of the Regulation and Supervision Function for Digital Financial Assets, including Crypto Assets, which stipulates OJK's mandate to regulate and supervise all activities in the digital financial asset and crypto asset sector, including the derivative products. 

C. Development and Strengthening of Sharia Financial Services Sector

In the sharia financial industry, the Indonesia Sharia Stock Index (ISSI) rallied 17.62 percent (ytd). In comparison, the Assets Under Management (AUM) of sharia mutual funds posted 22.48 percent (ytd) growth to reach IDR61.91 trillion. Meanwhile, sharia banking intermediation maintained positive annual growth yoy, with Islamic finance growing 8.38 percent, sharia insurance contributions remaining stable at 0.04 percent, and sharia financing receivables increasing 9.56 percent. 

In the insurance industry, following Article 9 of POJK Number 11 of 2023, 41 companies have submitted Sharia Unit Spin-Off Plans (RKPUS), of which 29 companies have declared their intention to spin off a sharia unit by establishing a new company, with the remaining 12 planning to transfer their portfolios to other existing companies. In 2025, 18 companies plan to spin off their Sharia units by establishing new companies, and eight companies will transfer their portfolios to other companies. Since May 2025, one Sharia business unit (Islamic window) has begun the spin-off process by establishing a new company.

OJK also continued strengthening strategic alliances and collaboration in the development of Islamic finance, which includes increasing Islamic financial literacy and inclusion as follows:

1. Inaugurating the membership of the Islamic Finance Development Committee (KPKS) as a strategic forum to discuss and formulate solutions to various complex issues faced in the Islamic financial industry. As an internal committee of the Indonesian Financial Services Authority (OJK), KPKS will strengthen OJK's role in harmonizing the regulations, fatwas, and operational practices of Islamic finance under a single, cohesive, and integrated policy framework. The structure of KPKS consists of the OJK Chief Executive of Banking Supervision as Chair and OJK Deputy Commissioner of Government and Islamic Banking Supervision as Vice Chair, alongside several OJK department heads as internal members of the KPKS committee. External members consist of two representatives from the National Sharia Board of the Indonesian Council of Ulama (DSN-MUI) as affiliated members and three experts from the professional field as non-affiliated members, namely Dr. H. Anwar Abbas, M.M, M.A, Prof. Dr. K.H. Hasanudin, M.Ag, Prof. Dian Masyita, S.E., M.T., Ph.D., Mohammad Mahbubi Ali, S.E.I., CIFP, CSA, CSAA, Ph.D., M. Gunawan Yasni, S.E.Ak, M.M., CIFA, FIIS, CRP, CA.
2. Publishing the Indonesia Islamic Financial Development Report (LPKSI) 2024, entitled "Policy Direction Transformation to Actualise Islamic Financial Development and Strengthening", which elucidates workable strategies for the Islamic financial industry to maintain performance and adapt to global dynamics.
3. Implementing unique products for the Islamic banking industry as a continuation of the Roadmap for the Development and Strengthening of Indonesian Islamic Banking (RP3SI) 2023-2027 to strengthen the characteristics of Islamic banking products through workshop activities targeting the Islamic rural banking industry, namely Cash Waqf Linked Deposits (CWLD) in synergy with social finance in the local community and the Istishna' financing product to accommodate financing needs for household renovations and other short-term construction orders. The workshop was hosted in Surabaya on 21-22 July 2025 and attended by 43 sharia rural banks from the East Java region and parts of Central Java. 
4. Introducing the Internal Liquidity Adequacy Assessment Process (ILAAP) with the sharia commercial banking industry and sharia units (Islamic windows) as a component of the international standards relating to the Liquidity Coverage Ratio (LCR) at a Focus Group Discussion (FGD) held on July 25, 2025, to strengthen liquidity management in the sharia banking industry. ILAAP is a self-assessment of internal liquidity conditions, which is expected to serve as a more representative liquidity parameter based on size, characteristics, and complexity. This will ultimately help Islamic commercial banks and Islamic windows manage liquidity more effectively and efficiently, thereby strengthening their business moving forward. 

D. Strengthening OJK Governance

1. The OJK continues to strengthen its risk management function, focusing on identifying key risks, enhancing mitigation planning and monitoring, and providing relevant tools and reporting to support informed strategic decision-making. One area of the strengthening efforts focuses on improving the Governance, Risk, and Compliance Information System (GRC-IS), which integrates four information systems — namely, gratification reporting, risk management, quality control, and internal audit — into one integrated platform. This enhancement is expected to accelerate reporting, maximise the use of data across units, and boost the overall efficiency of business processes in OJK.
2. OJK hosted the Risk and Quality Officer (RQO) Forum on July 24, 2025, to introduce the results of the GRC-IS enhancement as an integrated and comprehensive risk management system, aiming to strengthen the risk awareness culture within the OJK. The forum also featured a knowledge sharing panel discussion with external speakers from the Ministry of Finance and internal resource persons from OJK to increase understanding about innovation and the benefits of implementing information systems for data accuracy, work efficiency and risk management accountability, alongside strategies to increase HR capacity and plans for developing advanced technology in risk management, such as the use of data analytics and artificial intelligence.
3. OJK emphasised the importance of the GRC function as a strategic organisational partner to create and maintain integrated supervision of the financial services sector in a concurrent session during The Institute of Internal Auditors (The IIA) International Conference 2025, attended by approximately 2,300 auditors from 150 countries. The role of the GRC function was translated into three main dimensions: insight, foresight, and oversight. Insight is achieved by providing strategic inputs, maintaining foresight through monitoring key risk indicators, and ensuring oversight through root cause analysis that involves all relevant areas to achieve comprehensive and sustainable improvements.
4. OJK continued to strengthen institutional governance through a comprehensive review of shared service implementation. The OJK is currently preparing to enhance the features and integration of its internal management information system, while refining business processes in areas such as HR management, procurement of goods and services, and recruitment and retention. This initiative is an integral part of the ongoing commitment to strengthening organisational accountability and capacity to execute OJK's duties and functions effectively and efficiently
5. OJK maintains various efforts to strengthen the integrity of the organisation and the financial services sector, including through the implementation of various governance activities. From January to July 2025, governance activities have engaged 38,051 participants, including internal OJK staff and external stakeholders.

E. Regulatory Enforcement in the Financial Services Sector and Investigation Progress

1.OJK strengthened its regulatory enforcement efforts in the financial services sector by imposing administrative sanctions and/or written orders against parties that violated prevailing laws and regulations. As of June 2025, the OJK has imposed at least 1,793 administrative sanctions against violators of prevailing rules and regulations in the financial services sector (as of June 2024, 3,020 administrative sanctions had been imposed). The regulatory enforcement measures are expected to strengthen public confidence and the integrity of the financial services sector in a sustainable manner.

2. Executing the investigation function, as of July 31 2025, OJK investigators have resolved 156 cases, consisting of 130 cases in the banking industry, five cases in the capital market, financial derivatives and carbon exchange (PMDK) sector and one case involving financing institutions, venture capital firms, microfinance institutions and other financial service institutions (PVML). To date, 129 cases have been court adjudicated, including 120 cases with legally binding rulings (in kracht) and nine cases in cassation as follows:

3. The modus operandi of in kracht cases was still dominated by banking crimes, namely falsifying records and failure to comply with prevailing laws and regulations. In addition, there were several crimes in the insurance industry, including the submission of periodic reports and policy embezzlement, as well as crimes in the capital market, such as pseudo-transactions and market manipulation.

For further information, contact: 

Head of Financial Literacy, Inclusion and Communication Department

M. Ismail Riyadi:  Tel. (021) 29600000, Email: humas@ojk.go.id