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.29/POJK.05/2014;
  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 according to POJK 29/POJK.05/2014

A. Business Activity of Finance Company

A.1 Financing :

1. Investment Financing;

2. Working Capital Financing;

3. Multipurpose Finance; and/or

4. other financing activity based on OJK approval.

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A.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

a. Finance Lease;

b. Sale and Leaseback;

c. Factoring with Recourse;

d. Purchase with Installment Repayment;

e. Project Finance;

f. Infrastructure Finance;

g. other financing after obtaining prior approval from OJK.

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2. Working Capital Finance

a. Sale and Leaseback;

b. Factoring with Recourse;

c. Factoring Without Recourse;

d. Working Capital Facility; and/or

e. other finances after obtaining prior approval from OJK.

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3. Multipurpose Finance

a. Finance Lease;

b. Purchase with Installment Repayment; and/or

c. other finances after obtaining prior approval from OJK.

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