OJK Eases Cooperation Arrangements between Sharia and Conventional Banks

In an effort to boost the business capacities of sharia banks (“Bank Umum Syariah – “BUS”), the Financial Services Authority (Otoritas Jasa Keuangan – “OJK”) has issued Regulation No. 28/POJK.03/2019 on Synergy between Banks under Affiliated Ownerships for the Development of Sharia Banking (“Regulation 28/2019”). In essence, Regulation 28/2019 allows BUS to engage in joint cooperation initiatives with conventional banks in order to boost their business, provided that any such banks are affiliated under similar ownership.