Single Presence Policy Updated

Bank Indonesia (“BI”) has issued Regulation No. 14/24/PBI/2012 on Single Ownership of Indonesian Banks (“Regulation”). The Regulation aims to improve the competitiveness of Indonesia’s banking system both on regional and global levels of economic development by reducing the number of Indonesian banks via consolidation. This policy is also commonly known as “single presence policy”.

Prior to the Regulation, single presence policy was regulated under BI Regulation No. 8/16/PBI/2006 on Single Ownership of Indonesian Banks (“2006 Regulation”). The 2006 Regulation is considered to be outdated and not fitting with the current development of the banking system, including the formation of Financial Services Authority.