Amendment to the Eligibility Requirements for Sharia Short Term Funding

Davidson Samosir

Bank Indonesia (“BI”) has issued Regulation No.14/20/PBI/2012 (“Amendment”), which amends BI Regulation No. 11/24/PBI/2009 on Sharia Short Term Funding for Sharia Commercial Banks (“Regulation”). The Amendment is issued in the context of Indonesia’s effort to become a global sharia banking center, in this case by improving the eligibility requirements for receiving liquidity injections in the form of a sharia short term funding facility (Fasilitas Pendanaan Jangka Pendek Syariah, or “FPJPS”).