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News Flash: OJK to set limit on foreign ownership in insurance firms
JAKARTA: The Financial Services Authority (OJK) is setting its sights on limiting foreign ownership of Indonesian insurance companies
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AKARTA: The Financial Services Authority (OJK) is setting its sights on limiting foreign ownership of Indonesian insurance companies.
Currently, based on Government Regulation No. 39/2008, foreign companies can legally own a maximum of 80 percent of local insurance companies.
According to OJK deputy commissioner for the non-banking industry, Ngalim Sawega, the regulation sought to protect local insurance companies from being dominated by foreign entities.
'We will [also] reduce the minimum limit of foreign ownership in Indonesian insurance companies,' said Ngalim as quoted by kompas.com.
Ngalim said that the Finance Ministry and the House of Representatives needed to deliberate the proposed regulation and that law lawmakers were currently drafting a bill regarding the foreign ownership cap.
He added that the cap on foreign ownership in insurance companies needed to take into account the amount of capital owned by local insurance companies.
