New Provision on Issuance of Deposit Certificates

The Financial Services Authority (OJK) has issued Regulation No. 10/POJK.03/2015 on the Issuance of Deposit Certificates by Banks (“Regulation”) in a bid to increase the transaction volume for deposit certificates.[1] The Regulation sets guidelines for the issuance of deposit certificates so that they comply with principles of prudentiality and risk management, as well as with Sharia regulations.[2]

The Regulation is of relevance to commercial and Sharia banks, as well as to PT Kustodian Sentra Efek Indonesia, which is the country’s central securities depository (lembaga penyimpanan dan penyelesaian – “LPP”).