Indonesia Mutual Fund Foreign Limits to Be Eased Under New OJK Rules

Indonesia mutual fund foreign limits are set to rise as regulators prepare to relax restrictions for the country’s USD50bn fund industry, enabling greater global diversification. The Financial Services Authority (OJK) has approved an industry proposal to raise offshore investment caps and is drafting new rules expected next year. Current regulations limit foreign holdings to 15% of net asset value, curbing flexibility and scale. The Indonesian Investment Managers Association has suggested raising limits to 51% or more for direct equity funds and up to 80% for other mutual funds. The reforms, modernising rules established after the 1990s Asian financial crisis, aim to attract investors while ensuring sufficient capital stays within Indonesia’s financial system.