OJK Reveals Plans for Deregulation of the Financing Industry, Here are the Details

Jakarta – The current economy is considered to be in poor condition. From the US reciprocal tariff policy to ongoing geopolitical conflicts, these factors have affected both global and domestic economic stability.

Various business sectors have been impacted by this economic pressure, including the financing industry. In such a situation, pro-market policies or regulatory relaxation measures are deemed crucial to maintaining the sustainability of businesses.

In response to this, Agusman, the Executive Director of the Financial Services Authority (OJK) overseeing financing institutions, venture capital companies, LKM, and other LJK, revealed that the OJK is preparing deregulation of several OJK Regulations (POJK), including those governing financing companies or multifinance institutions.

“We will wait for you all. We are taking this matter seriously. Hopefully, in the near future, we can officially announce something, but we must, of course, communicate it wisely,” Agusman stated at the “Non-Bank Financial Forum 2025” event organized by Infobank Media Group at the Hotel Indonesia Kempinski Jakarta on Friday, August 1, 2025.

Agusman explained that this deregulation is part of a structural breakthrough and strategic step to encourage growth in the national financing sector.

The plan has also been discussed internally and externally, including with business actors and associations, such as the Indonesian Financing Companies Association (APPI).

In line with this, the OJK has also received various inputs from associations so that the POJK deregulation can truly strengthen a healthier and more competitive financing ecosystem.

“That is why various structures and other strategic steps are needed to bring about more significant financing growth,” he added.

Three POJKs to be Deregulated

Meanwhile, OJK Director of Supervision of Financing Institutions and Venture Capital Companies, Maman Firmansyah, revealed that there will be three POJKs that will be deregulated.

One of them is POJK No. 46 of 2024 on the Development and Strengthening of Financing Companies, Infrastructure Financing Companies, and Venture Capital Companies.

“The main trigger is the very tight growth of the financing industry. Therefore, it will be deregulated. We currently plan to amend three POJKs, one of which is POJK 46,” he said during the same event.

Some of the elements to be relaxed include licensing, down payment (DP) rules, and requirements related to funding facilities. Maman mentioned that the official announcement and detailed strategy will be presented during the OJK briefing session on Monday, August 4, 2025.

“The DP rules will be even more relaxed, especially the 0 percent rule. Then, the requirement for funding facilities, which used to be as high as 150 percent, will be lowered so that more financing companies can sell,” explained Maman.

“Initially, this was our deregulation initiative, but we also invited all relevant associations. Since this is a deregulation concept, the industry is happy, as this is all about development,” he added.

He noted that the three POJK regulations to be deregulated include those related to financing companies (POJK 46 of 2024), pawnshop businesses, and microfinance institutions (LKM). The OJK aims to finalize and implement the deregulation measures this year. (*) Steven Widjaja