Draft Bill on Banking

The House of Representatives (“House”) is currently discussing a Draft Bill on Banking (“Draft Bill”). The Draft Bill aims to repeal and replace Law No. 7 of 1992 on Banking, as amended by Law No. 10 of 1998 (“Banking Law”), which is considered obsolete and unable to answer the challenges of current economic and banking developments.

The Draft Bill is one of the most highly anticipated legislations due to the current developments in the financial service and banking sector, such as the formation of the Financial Services Authority[1] (Otoritas Jasa Keuangan – “OJK”), single presence policy[2], and multiple licensing[3].