Overview

In response to rapid changes across the banking landscape and ecosystem, and in view of the banking sector’s increasing reliance on developments within the realms of information technology, the Financial Services Authority (Otoritas Jasa Keuangan – “OJK”) has issued Regulation No. 12/POJK.03/2021 on Commercial Banks (“Regulation 12/2021”) and Regulation No. 13/POJK.03/2021 on the Organization of Commercial Banking Products (“Regulation 13/2021”), which update a number of now-obsolete provisions within the banking sector and which also implement a principle-based regulatory framework that should be able to anticipate any future developments. The updates set out under these two new regulations address matters relating to the establishment and the post-establishment operations of banks.