OJK Regulation 5/2026: OJK Revamps the Investment Manager Licensing Regime

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For more than 15 years, the licensing framework governing securities companies engaged in investment management remained largely unchanged, despite the vital role Investment Managers play in mobilising and managing public funds through portfolio management. While the Financial Services Authority (Otoritas Jasa Keuangan - "OJK") had introduced various regulations over the years governing the conduct, governance, and business practices of Investment Managers, the licensing regime itself has remained largely untouched.

On 29 April 2026, alongside the issuance of OJK Regulation 3/2026 - which establishes the regulatory framework for securities companies acting as underwriters and/or broker-dealers, as discussed in our ARMA Update - the OJK turned its attention to Investment Managers. Through OJK Regulation No. 5 of 2026 on the Conduct of Business of Securities Companies Acting as Investment Managers ("OJK Regulation 5/2026"), the OJK modernises the long-standing licensing regime while comprehensively updating the regulatory framework governing investment management activities.

This ARMA Update discusses OJK Regulation 5/2026, with a particular focus on how it aligns the Investment Manager licensing framework with that applicable to other securities companies through a classification based on business activities.

Investment Manager

OJK Regulation 5/2026 defines an Investment Manager as a party whose business activities involve managing securities portfolios, collective investment portfolios, and/or other investment portfolios for the benefit of a group of clients or individual clients, excluding insurance companies, Sharia insurance companies, pension funds, and banks that conduct their own business activities in accordance with laws and regulations.[1]

OJK Regulation 5/2026 broadens the scope of the definition by adding "and/or other investment portfolios," allowing Investment Managers to manage investment [text continues below]

7) other investment products as may be designated by the OJK.

Investment Managers classified as MIKU 2 may carry out complete investment management main activities, as follows:[3]

MIKU 2	Permitted main activities
1)	the management of Securities Portfolios for individual clients based on a bilateral and individual investment management agreement;
2)	the management of collective Investment Portfolios for the benefit of a group of clients through an investment vehicle or Investment Product; and/or
3)	the management of other Investment Portfolios for the benefit of a group of clients or individual clients.

Apart from the activities mentioned earlier, both MIKU 1 and MIKU 2 are permitted to engage in other business activities, such as serving as investment advisors and financial advisors ("Other Activities"). However, they must adhere to relevant requirements, including declaring these activities in their business plan and meeting the conditions outlined by the OJK.

Lastly, OJK now explicitly prohibits both types of MIKU from engaging in business activities as underwriters and/or broker-dealers, as well as from undertaking any business activities other than those determined for each type of MIKU.[5]

B. Capitalisation and Assets Under Management ("AUM")

The above classification also has implications for the minimum paid-up capital requirements, as well as ongoing compliance with the Adjusted Net Working Capital (Modal Kerja Bersih Disesuaikan or "MKBD"), as well as the AUM, as follows:

	MIKU 1	MIKU 2
BOD	Director in charge of the investment function; and Director in charge of non-investment function.	Director in charge of the investment function; Director in charge of the compliance function; and Director in charge of functions other than the investment and compliance functions.
Conditions	All BOD members must be domiciled in Indonesia.[14] The director in charge of the investment function must possess an individual license as an Investment Manager Representative.[15] The director in charge of the compliance function must possess an individual license as an Investment Manager Representative and compliance certifications.[16] The director in charge of non-investment/compliance functions must possess an individual license as a Securities Company Representative.[17]
BOC	Minimum of 2 (two) BOC members.[18]	Minimum of 2 (two) BOC members, including 1 (one) ordinary BOC member and 1 (one) independent commissioner.[19]
	Where the BOC members comprises more than 2 (two) members, the number of independent commissioners shall be 30% of all BOC members.[20]

As a rule, directors may not hold certain positions at other companies, whether in Indonesia or overseas. This includes roles such as director, commissioner, sharia supervisory board member, or certain executive positions. They must also avoid positions that create conflicts of interest or are otherwise prohibited by law. OJK Regulation 5/2026 provides limited exceptions in certain circumstances.[21] In addition, commissioners are also subject to restrictions on holding positions in other companies, including other financial institutions and domestic non-financial companies.[22]

Getting MIKU Classification

Within 6 (six) months of the promulgation of OJK Regulation 5/2026 (i.e., by 29 October 2026), existing licensed Investment Managers are required to self-determine their classification as either MIKU 1 or MIKU 2 and submit an action plan to OJK in relation to such determination.[23] Failure to complete the self-determination within the prescribed timeline will result in the Investment Manager being automatically classified as MIKU 2.[24]

In addition, Investment Managers may change their MIKU classification from time to time, subject to OJK approval or instruction.[25] Upon any such change, the Investment Manager must comply with all requirements applicable to the selected MIKU classification.[26]

Other New Provisions Introduced

Apart from the introduction of the MIKU classification, the OJK Regulation 5/2026 also provides new provisions in relation to the business of Investment Managers, amongst others:

Types of Investment Managers Based on Share Ownership

Based on share ownership, Investment Managers are classified into 2 (two) categories:

Type	Description
National Investment Manager	A National Investment Manager is wholly owned by Indonesian individuals and/or Indonesian legal entities.
Joint-Venture Investment Manager	A Joint-Venture Investment Manager is jointly owned by Indonesian individuals and/or legal entities together with foreign legal entities in the financial sector, subject to the following ownership limits:[27] For foreign legal entities engaged in securities business and licensed or supervised by the capital market regulator in their home jurisdiction, ownership may be up to 99% of paid-up capital; or For foreign legal entities engaged in other financial sectors (other than securities), ownership is limited to a maximum of 85% of paid-up capital.

Foreign individuals or non-financial sector legal entities may only participate in the ownership of an Investment Manager in the event that the Investment Manager conducts an initial public offering.[28]

Determination of Controller

OJK Regulation 5/2026 now mandates Investment Managers to determine their controller and to report it to the OJK.[29] In this regard, the regulation distinguishes between a "controller" and a "Controlling Shareholder". Regardless, where the controller is a Controlling Shareholder and/or other key parties (e.g., members of the Board of Directors), such parties are required to undergo a fit-and-proper test to obtain approval from OJK.[30]

Single Ownership Policy

Similar to certain financial sector entities, OJK also enforces a single ownership policy, whereby no party may hold shares in and/or control more than one Investment Manager, whether directly or indirectly, except in the case of share ownership or capital participation by the government.[31] An exception to this policy applies where share ownership is conducted through the capital market as part of an investment portfolio and is not intended to confer control.[32]

Compliance Timeline

Following the promulgation of the OJK Regulation 5/2026, the following transitional actions shall be conducted by Investment Managers:

Relevant Party	Obligation	Deadline / Timeline
All Licensed Investment Managers	Determination of MIKU Classification and Submission of Follow-up Action Plan[33]	6 months since 29 April 2026
	Default MIKU 2 Classification for Investment Managers Failing to Self-Determine[34]	After the aforementioned 6 months elapsed
	Monthly submission of progress of the fulfilment of the Follow-up Action Plan[35], as well as fulfilment of AUM[36]	Within 3 years since 29 April 2026
MIKU 1	If an Investment Manager has been [text truncated in source]	No later than 3 [text truncated in source]

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[14] Article 22 of OJK Regulation 5/2026. ↩

[15] Article 23 (3) of OJK Regulation 5/2026. ↩

[16] Article 24 (2) of OJK Regulation 5/2026. ↩

[17] Article 23 (4) of OJK Regulation 5/2026. ↩

[18] Article 26 (1) of OJK Regulation 5/2026. ↩

[19] Article 26 (2) of OJK Regulation 5/2026. ↩

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Disclaimer:
This client update is the property of ARMA Law and intended for providing general information and should not be treated as legal advice, nor shall it be relied upon by any party for any circumstance. ARMA Law has no intention to provide a specific legal advice with regard to this client update.

Go to

1. Investment Manager
2. B. Capitalisation and Assets Under Management ("AUM")
3. Getting MIKU Classification
4. Other New Provisions Introduced
5. Types of Investment Managers Based on Share Ownership
6. Determination of Controller
7. Single Ownership Policy
8. Compliance Timeline

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