New regulations issued by the Financial Services Authority have been well-received by investment managers, as they are seen as capable of strengthening Indonesia’s capital market industry.
These regulations address issues ranging from minimum capital requirements and corporate governance to enhanced risk management, with the aim of making the investment industry healthier and more professional.
In the latest regulations, the OJK categorizes investment managers into two groups—MIKU 1 and MIKU 2—based on the scope of operations conducted by each company.
Additionally, investment management firms are required to meet specific working capital and asset under management standards to better prepare for market risks and developments in the digital financial industry.
Industry players believe these policies can boost investor confidence as the oversight system becomes stricter and more transparent.
The new regulations are also seen as helping to create a more stable, competitive, and resilient investment management industry amid global economic dynamics.
With strengthened governance and risk management, Indonesia’s capital market industry is expected to develop more healthily while attracting greater participation from both domestic and foreign investors.