Banks Required to Pay Restructuring Program Premiums Commencing January 2025

In order to deal with any potential financial system crisis, as originally addressed under Law No. 9 of 2016 and its amendment (“Law 9/2016”), the Indonesian President may decide to organize a Bank Restructuring Program (Program Restrukturisasi Perbankan – “PRP”), which will be implemented by the Deposit Insurance Corporation (Lembaga penjamin simpanan – “LPS”).[1]  Before the President decides to initiate a PRP, the LPS will be required lay the groundwork for the PRP through the collection of funds that are sourced from banking industry contributions in the form of premiums. [2] Details of the PRP are set out under the newly issued Regulation of the Government No. 34 of 2023 (“Regulation 34/2023”), which came into force on 16 June 2023.