OJK Revokes PT SME Finance Indonesia's Business License
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Editor
17 January 2024 11:37 WIB
TEMPO.CO, Jakarta - The Financial Services Authority (OJK) officially revoked the business license of PT Sarana Majukan Ekonomi Finance Indonesia (PT SMEFI) through a Decree by the OJK Board of Commissioners No.KEP-2/D.06/2024, issued January 15.
"This revocation was carried out on the basis that PT SMEFI has been categorized as an insolvable company," Aman Santosa, the OJK's head of Literacy, Financial Inclusion and Communications Department, said in an official statement, Tuesday, January 16.
PT SMEFI has also been subject to administrative sanctions in the form of a third warning for violating provisions related to the Financing to Asset Ratio (FAR) value, he said.
Prior to the revocation, the OJK has declared PT SMEFI as a company with special supervision status due to its insolvency. The regulator then gave the company time to make strategic improvements and meet the FAR value provisions. However, up to the agreed deadline, the company failed to do them.
Aman said that the revocation of PT SMEFI's business license was carried out to exert statutory provisions as an effort to create a healthy financing industry in Indonesia.
From here on, PT SMEFI is prohibited from carrying out business activities in the financial sector. The company is also obliged to settle their rights and obligations to debtors, creditors and/or funders, in accordance with applicable statutory provisions.
In addition, the company must provide a Customer Information and Complaints Center within its internal scope. "PT SMEFI is prohibited from using the words finance, financing, and/or words that characterize financing activities under the company's name," he said.
PT SMEFI is a non-bank financial institution previously known as PT Indosurya Inti Finance. The company changed its name and obtained a business license in February 2022, offering working capital, investment and multipurpose financing facilities with a focus on the small and medium enterprise (SME) sector.
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