On Mar. 6, IDN FSA issued proposed regs re insurers, pension funds.
IDN FSA issued a proposed regulation on risk management for insurance companies, guarantee institutions, and pension funds (PPDP), aiming to support risk-based supervision for guarantee institutions in line with the guarantee industry roadmap.
Implementation must be adjusted to each institution's objectives, policies, business size, complexity, and capabilities; risk management must include active supervision by directors, board of commissioners, and sharia supervisory board where applicable.
Institutions must establish policies, procedures, risk limits, identification processes, measurement, control, monitoring, and comprehensive internal control systems.
Institutions must establish a risk management committee, risk management function; risk management committee must include at least half of the board of directors and relevant executive officers; must be independent from business, operational functions.
Written policies and procedures required for managing risks inherent in business development or expansion; policies must include system procedures, authority in managing business expansion, risk identification, testing periods, and legal analysis.
When enacted, this regulation will revoke IDN FSA reg no. 44/POJK.05/2020, #85545.
Consultation Period
The comment period for this consultation is open until Apr. 30, 2025.
