Deposit Guarantor Agency (LPS) and Community Credit Banks (BPR)

The Government has issued Government Regulation 43 of 2005 on the Completion of the Government Guarantee for the Payment Obligations of Community Credit Banks (the “Regulation”) to bring to a conclusion this government guarantee program considering the establishment of the Deposit Guarantor Agency (LPS or Lembaga Penjamin Simpanan) as regulated under Law No. 24 of 2004 on the Deposit Guarantor Agency (the “LPS Law”). The purpose of this Regulation is to facilitate and ease the transition to the new regulatory framework.