Policy

Jakarta, 6 November 2024. Indonesia Financial Services Authority (OJK) has issued OJK  Regulation (POJK) Number 16/2024 concerning Supervision of PT Sarana Multi Infrastruktur/PT. SMI (Persero).

Chief Executive of Financing Institutions, Venture Capital Corporations, and Microfinance Institutions (PVML) of OJK, Agusman, hopes that the issuance of this OJK Regulation (POJK) will strengthen OJK’s supervision of PT SMI as a Special Mission Vehicle (SMV) and a fiscal tool of the government, aimed at providing infrastructure financing to accelerate infrastructure development in Indonesia.

The issuance of this POJK is expected to enhance the effectiveness of OJK's supervision, particularly following the enactment of the Development and Strengthening of the Financial Sector (P2SK) Law. This regulation strengthens governance and supervision by coordinating with the government on the assessment of the capacity and suitability of the Board of Directors, Board of Commissioners, and the Sharia Supervisory Board, as well as reporting the supervision status of PT. SMI to the Minister of Finance of the Republic of Indonesia, as the shareholder.

Before the enactment of P2SK Law, PT. SMI (Persero) was already under OJK's supervision as one of the infrastructure financing industry players based on POJK Number 46/POJK.05/2020 concerning Infrastructure Financing Companies.

However, Article 106, paragraph (5), letter (c) of the P2SK Law stipulates that infrastructure financing companies and/or development activities established by special assignment from the government (such as PT SMI) "are not included in the scope of Financing Services Business under this Law," meaning that POJK Number 46/POJK.05/2020 no longer applies to PT SMI.

Meanwhile, Article 2E of Government Regulation (PP) Number 53/2020, that is the second amendment to PP Number 66/2007 regarding the State Capital Participation for the Establishment of State-Owned Enterprises (Persero) in the Infrastructure Financing Sector, stipulates that PT. SMI became under the regulation and supervision of the authority overseeing the financial services sector.

Based on these provisions, even though PT SMI is no longer within the scope of the Financing Services Business, it remains under OJK’s supervision as an infrastructure financing company established by a special assignment from the government (a sui generis institution).

With the issuance of POJK Number 16/2024 concerning the Supervision of PT SMI, this regulation serves as the legal basis for OJK to supervise PT SMI, which was established as a special mission vehicle by the government.

POJK Number 16/2024 on the Supervision of PT SMI regulates the following areas:

1. Institutional structure and management;
2. Business operations;
3. Funding sources, investments, and fund placements;
4. Health rating assessments;
5. Supervision status determination;
6. Implementation of anti-money laundering programs, prevention of terrorism financing, prevention of financing for the proliferation of weapons of mass destruction, anti-fraud strategies, and consumer protection;
7. Reporting;
8. The company’s compliance with laws and regulations; and
9. Other aspects related to the functions, duties, and authorities of OJK by prevailing laws and regulations.

POJK Number 16/2024 on the Supervision of PT. SMI takes effect from the date of its promulgation

Click here to download the OJK Regulation Number 16/2024