Rabu, Mei 22, 2024

OJK Introduces Four Strategic Policies Through Most-Recent Framework on BPR and BPRS

The Chief Executive of Banking Supervision at the Financial Services Authority (Otoritas Jasa Keuangan – "OJK"), Dian Ediana Rae ("Chief Executive"), has issued a statement asserting that the recent introduction of Regulation of the OJK No. 7 of 2024 ("Regulation 7/2024") on Rural Banks (Bank Perkreditan Rakyat – "BPR") and Sharia Rural Banks (Bank Perkreditan Rakyat Syariah – "BPRS") is essential for shaping the industrial landscape through BPR and BPRS in ways that are capable of overcoming future challenges and business competition. In this regard, Regulation 7/2024 has been introduced as one of the mandates that feature under Law No. 4 of 2023 on the Development and Strengthening of the Financial Sector ("Law 4/2023"), which is ultimately being aimed at the improvement of and strengthening of public trust in BPR and BPRS.
Regulation 7/2024 has been in force since 30 April 2024 and addresses a wide range of institutional aspects that specifically relate to BPR and BPRS, including the following four strategic policies: 1) BPR and BPRS may now be listed on the stock exchange through the Initial Public Offering (IPO) mechanism; 2) Mergers, consolidations and acquisitions now fall under the consolidated obligations of BPR and BPRS that are under the ownership of controlling shareholders; 3) Microfinance institutions are now permitted to merge with BPR and BPRS; and 4) Institutional aspects of BPR and BPRS (e.g. office networks) have now been improved.
In light of the above-described strategic policies that have now been introduced under Regulation 7/2024, the Chief Executive hopes that this new framework will allow BPR and BPRS to operate on the same level playing field as other financial institutions, as well as improve the capital capacities of the BPR and BPRS industry across the nation.
For more on this story, see Hukumonline: “OJK Perkuat Aspek Kelembagaan Industri BPR dan BPRS”.

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The Chief Executive of Banking Supervision at the Financial Services Authority (Otoritas Jasa Keuangan – "OJK"), Dian Ediana Rae ("Chief Executive"), has issued a statement asserting that the recent introduction of Regulation of the OJK No. 7 of 2024 ("Regulation 7/2024") on Rural Banks (Bank Perkreditan Rakyat – "BPR") and Sharia Rural Banks (Bank Perkreditan Rakyat Syariah – "BPRS") is essential for shaping the industrial landscape through BPR and BPRS in ways that are capable of overcoming future challenges and business competition. In this regard, Regulation 7/2024 has been introduced as one of the mandates that feature under Law No. 4 of 2023 on the Development and Strengthening of the Financial Sector ("Law 4/2023"), which is ultimately being aimed at the improvement of and strengthening of public trust in BPR and BPRS.
Regulation 7/2024 has been in force since 30 April 2024 and addresses a wide range of institutional aspects that specifically relate to BPR and BPRS, including the following four strategic policies: 1) BPR and BPRS may now be listed on the stock exchange through the Initial Public Offering (IPO) mechanism; 2) Mergers, consolidations and acquisitions now fall under the consolidated obligations of BPR and BPRS that are under the ownership of controlling shareholders; 3) Microfinance institutions are now permitted to merge with BPR and BPRS; and 4) Institutional aspects of BPR and BPRS (e.g. office networks) have now been improved.
In light of the above-described strategic policies that have now been introduced under Regulation 7/2024, the Chief Executive hopes that this new framework will allow BPR and BPRS to operate on the same level playing field as other financial institutions, as well as improve the capital capacities of the BPR and BPRS industry across the nation.
For more on this story, see Hukumonline: “OJK Perkuat Aspek Kelembagaan Industri BPR dan BPRS”.

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