It has been almost two years since the Indonesian Insurance Law (“Insurance Law 2014”) was passed into law by the Indonesian House of Representatives (click here for our e-bulletin of 2 October 2014).
The Insurance Law 2014 envisaged that regulations setting out detailed rules for implementing the new requirements would be issued within two and a half years of the law being promulgated. To date, however, the Indonesian Financial Services Authority (known locally as the “OJK”) has yet to issue a number of key implementing regulations. That said, in the period since the Insurance Law 2014 was passed into law, a number of important market and (often unwritten) regulatory practices have developed which impact on the execution of insurance M&A transactions in Indonesia.
In this briefing, we highlight four key areas which are often given careful consideration when insurance M&A transactions are undertaken in Indonesia:
- Foreign ownership limit for Indonesian insurance companies;
- Definition of “controller” of an Indonesian insurance company and applicability of “fit and proper” test;
- OJK’s “single presence policy” in the Indonesian insurance sector; and
- Bancassurance arrangements, in particular whether exclusive arrangements are permissible.
Please click here for our briefing.
The contents of this publication, current at the date of publication set out above, are for reference purposes only. They do not constitute legal advice and should not be relied upon as such. Specific legal advice about your specific circumstances should always be sought separately before taking any action based on this publication.
© Herbert Smith Freehills 2019