BI Redefines Bilyet Giro Regulation

In a bid to enhance customer trust, protection and security as they relate to the use of clearing-account letters, Bank Indonesia (“BI”) has issued Regulation No. 18/41/PBI/2016 on Clearing-Account Letters (“Regulation 18/2016”).[1]
 
With these goals in mind, Regulation 18/2016 sets out a comprehensive set of guidelines for any parties who engage in activities which require the use of a clearing account letter (bilyet giro – “Giro”). However, due to the broad scope of Regulation 18/2016, this edition of Indonesian Legal Brief (ILB) will limit its discussions to the following topics: