OJK Has Not Confirmed Reports That No Foreign Venture Capital Has Secured Approval

JAKARTA, Jakartaweekly.com—The six-month deadline for foreign venture capital companies already operating in Indonesia to obtain approval from the Financial Services Authority (OJK) for their representative offices has expired, with no company reportedly having met the requirements under the new regulation.

Information circulating in the market indicates that no foreign venture capital company has yet complied with Financial Services Authority Regulation (POJK) No. 41 of 2025 on Representative Offices of Financing Institutions, Venture Capital Companies, and Other Financial Services Institutions Domiciled Overseas.

When Jakarta Weekly sought confirmation, the OJK declined to comment. The authority neither confirmed nor denied the information.

Under the regulation, foreign venture capital companies with representative offices in Indonesia are required to obtain approval from the OJK.

The regulation gives representative offices that were already operating in Indonesia six months to obtain approval after the POJK came into effect.

“PVL domiciled overseas that have been operating in Indonesia before this Financial Services Authority Regulation comes into effect must obtain approval from the OJK for the establishment of their representative offices no later than six months from the date this Financial Services Authority Regulation comes into effect,” Article 36 of POJK 41/2025 states.

The POJK came into effect on December 22, 2025. Accordingly, the six-month deadline for representative offices that were already operating in Indonesia expired in June 2026.

The provisions on representative offices do not apply only to foreign venture capital companies. POJK 41/2025 also covers foreign companies engaged in financing, pawnshop, and information technology-based lending activities.

For financing companies, the regulation covers, among others, infrastructure financing companies, export-import financing companies, and secondary mortgage financing companies.

Under the POJK, companies seeking to establish representative offices must first obtain approval from the OJK.

“Companies intending to establish a representative office must first obtain approval from the OJK for the establishment of the representative office,” Article 3 of POJK 41/2025 states.

The OJK requires companies to have a good track record and reputation and to demonstrate a commitment to contributing to the Indonesian economy. Representative offices must also be located in a provincial capital.

To apply for approval, foreign venture capital companies must submit a number of documents, including the purpose of establishing a representative office in Indonesia and a copy of the deed of establishment of the head office’s legal entity overseas, including its articles of association as approved in its home country.

The documents must also be accompanied by translations in both Indonesian and English.

Companies must submit a copy of the official business license of their overseas head office issued by the competent authority in their home country. The license must show that the company complies with prudential and business conduct requirements, has not violated local regulations, and has obtained approval to establish a representative office in Indonesia.

In addition, the company’s overseas head office must have a good track record and reputation.

Other requirements include audited consolidated financial statements prepared by an independent public accountant for the past three years, as well as the latest financial statements of the overseas head office.

Companies must also submit the proposed head of the representative office, who must meet the OJK’s administrative requirements, along with a proposed organizational structure, a statement of commitment to contributing to the Indonesian economy, and a one-year business plan.

Information on existing and prospective customers of the head office in Indonesia must also be submitted to the OJK, including details of the financing portfolio.

Once all required documents have been received, the OJK will issue an approval or rejection within a maximum of 20 working days. If the submitted documents are incomplete, the company must provide the missing information no later than 20 working days after the OJK requests additional information.

The proposed head of a foreign venture capital company’s representative office must also undergo a fit and proper test in accordance with OJK regulations governing the assessment of the competence and suitability of key parties at financial services institutions.

The head of the representative office must be domiciled in Indonesia. The position may not be held concurrently with a position as an executive of another foreign company or as the head of another foreign company’s representative office.

After obtaining approval, representative offices are also required to submit periodic reports to the OJK. The reports must be submitted every three months for reporting periods ending in March, June, September, and December.

A Representative Office of a Foreign Venture Capital Company (KPPVL) must also submit a one-year business plan to the OJK. The plan must be signed by the head of the representative office no later than November 30.