Finance Lease & Operating Lease

Main Regulations

Main Regulations

  1. Regulation of Financial Services Authority on Business Licensing and Institutional of Financing Institution No.28/POJK.05/2014;
  2. Regulation of Financial Services Authority on Finance Company Business Operation No. 35/POJK.05/2018;
  3. Regulation of Financial Services Authority on Good Governance for Financing Institution No.30/POJK.05/2014.

Types of Business Activities and Method of Financing :

A. Business Activity of Finance Company

  1. Financing :
    1. Investment Financing;
    2. Working Capital Financing;
    3. Multipurpose Finance; and/or
    4. Other financing activity based on OJK approval.
  2. Non-Financing :
    1. Operating Lease;
    2. Fee-based activity which are not contrary to the laws and regulations in the financial services sector.

 

B. Method of Financing

  1. Investment Finance :
    1. Finance Lease;
    2. Sale and Leaseback;
    3. Factoring with Recourse;
    4. Factoring without Recourse;
    5. Purchase with Installment Repayment;
    6. Project Finance;
    7. Infrastructure Finance;
    8. Other financing after obtaining prior approval from OJK.
  2. Working Capital Finance :
    1. Sale and Leaseback;
    2. Factoring with Recourse;
    3. Factoring Without Recourse;
    4. Working Capital Facility; and/or
    5. Other finances after obtaining prior approval from OJK.
  3. Multipurpose Finance :
    1. Finance Lease;
    2. Purchase with Installment Repayment;
    3. Fund facilities; and/or
    4. Other finances after obtaining prior approval from OJK.
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