OJK Issues New Provisions on Commercial Banks

In an effort to encourage Indonesia’s banking sector to become more efficient, competitive and able to adapt to the needs of the general public, as well as to become more responsive to a dynamic global economy and developments within the banking industry and its ecosystems, including developments relating to information technology, the Financial Service Authority (Otoritas Jasa Keuangan – “OJK”) has issued three new regulations,[1] including Regulation No. 12/POJK.03/2021 on Commercial Banks (“Regulation 12/2021”). Generally speaking, Regulation 12/2021 sets out an updated regulatory framework for various organizational aspects of commercial banks[2] and therefore repeals and replaces several previous regulatory frameworks that addressed similar areas, specifically:[3]