Precautionary Principle in Outsourcing Works for Commercial Banks

Bank Indonesia Regulation No. 13/25/PBI/2011 on Precautionary Principle to Delegate Part of Commercial Bank Works to Third Parties (“Regulation”) has been issued to reaffirm commercial bank’s main responsibility on intermediation. It is also aimed at preventing potential risks that may occur from works that are delegated to third parties who are not commercial banks employees.

The Regulation consists of eight chapters and 26 articles.

Pursuant to Article 1 (2), partial delegation to third parties (penyerahan sebagian pelaksanaan pekerjaan kepada pihak lain) or outsourcing (alih daya) is defined as delegating commercial bank partial tasks to an outsourcing company based on a work agreement and/or an outsourcing agreement.