BI Eases Bank Equity Participation in Financial Service Companies

Bank Indonesia (“BI”) has issued Regulation No. 15/11/PBI/2013 on Applying Prudential Principles to Equity Participation Activities (“PBI 15/2013”).

PBI 15/2013 aims to improve competitiveness in the banking industry by providing leniency to banks to invest in financial service companies through the acquisition of shares or mandatory convertible bonds. Additionally, PBI 15/2013 sets out how the prudential principles are to be applied when banks make such investments. To achieve this objective, the scope of PBI 15/2013 includes: