BI Issues Sharia Monetary Operations Regulation

Bank Indonesia (“BI”) has issued Regulation No. 16/12/PBI/2014 on Sharia Monetary Operations (“Regulation”) setting out guidelines on carrying out monetary operations based on sharia principles, known by its abbreviation as “OMS” (Operasi Moneter Sharia).

The Regulation aims to support the OMS’ objective of controlling Indonesia’s monetary policy by applying sharia principles which falls under the authority  of BI.[1] The Regulation is of relevance to sharia commercial banks, intermediary institutions,[2] and the public in general.