OJK Regulation No. 38/POJK.05/2015
On December 21, 2015, Board of Commissioner of Indonesia Financial Service Authority (Otoritas Jasa Keuangan / OJK) released OJK Regulation No. 38/POJK.05/2015 about “Registration and Supervision of Actuary, Certified Public Accountant, and Appraiser to Provide Services for Non-Banking Financial Industry in Indonesia”. According to this regulation, actuaries, public accountants, and appraisers must be registered to OJK as Non-Banking Financial Industry (IKNB) services providers first before conducting services for Non-Banking Financial Institutions (LJKNB). Non-Banking Financial Institutions include insurance companies, pension funds, leasing companies and other non-banking financial institutions (include financial institutions in Sharia basis).
Non-Banking Financial Institutions are prohibited to accept services from actuaries, public accountants and appraisers which are not registered to OJK. Common services for Non-Banking Financial Institutions which are conducted by actuaries, public accountants, and appraisers are, but not limited to:
- Actuary conducts valuation service of insurance company technical reserve fund.
- Public accountant conducts assurance service of leasing company financial statement.
- Public appraiser conducts valuation service of land or building as investment valuation base for pension fund financial statement and investment report.
This regulation also arrange the service provision period. Each profession is limited to provide services to the same institution for certain times or years consecutively, which are actuaries are limited to provide services to the same institution for 3 times consecutively, public accountants for 5 years consecutively, and appraisers for 3 years consecutively. However, actuaries will be allowed to provide services to the same institution after 1 time, public accountants after 2 years and appraisers after 3 years it does not provide services for the same institution.
Once registered as Non-Banking Financial Industry (IKNB) services providers in OJK, each actuary, public accountant and appraiser has obligation to disclose information if any violation of financial service regulation occurred at Non-Banking Financial Institutions, and also if there is a condition or pre-condition which has negative impacts to the company going concern or stakeholders.
This regulation will be applied 9 months after release date. Existing service engagement of actuaries, public accountants or appraisers, which has been signed before this regulation released, still can be applied up to the service engagements are ended.