Jumat, Mei 31, 2024

LPS Framework on PRP Premiums Introduced: Initial Premium Payments by Banks to Commence by 1 January 2025

Following the enforcement of Regulation of the Government No. 34 of 2023 ("Regulation 34/2023"), the Deposit Insurance Corporation (Lembaga penjamin Simpanan – "LPS") has decided to introduce various aspects that specifically relate to premiums under the Banking Restructuring Program (Program Restrukturisasi Perbankan – "PRP") through the issuance of Regulation No. 1 of 2024 ("Regulation 1/2024"), which has been in force since 17 May 2024.
Conventional and sharia commercial banks ("Banks") that operate within Indonesia are required to pay PRP premiums ("Premiums") and in this regard, Regulation 1/2024 states that these Premiums should be calculated and paid by Banks in certain percentages in the rupiah currency using the closest rounding. The aforementioned percentages should be calculated from a combination of Bank groups (i.e. comprising five groups that are determined based on Bank asset numbers and risk levels).
Pursuant to Regulation 1/2024, payments of the above Premiums should be completed annually by Banks to the LPS for the following two periods: 1) 1 January - 30 June; and 2) 1 July - 31 December. These Premium payments should be deposited into an account determined by the LPS, while initial Premium payments should be completed for the 1 January - 30 June 2025 period.
Payments for each of the above-described periods break down into two phases (i.e. initial Premium payments and subsequent Premium adjustments), during which Banks are required to report the calculation of their Premium results and proof of Premium payments to the LPS. Any Banks that fail to comply with the above-described Premium payment obligations will be subject to the imposition of administrative sanctions by the LPS. Administrative sanctions will take the form of administrative fines.

......

Subscribe to read more legal analysis.

Hukumonline Pro Intelligence

Platform AI hukum terpercaya sebagai solusi komprehensif riset Anda

Professional Solutions

University Solutions

Pro

Rp 5.000.000 /bulan

Jadwalkan Demo

Lihat Detail

Pro AI

Terfavorit

Rp 8.200.000 /bulan

Jadwalkan Demo

Lihat Detail

Pro Compliance

New

Rp 12.500.000 /bulan

Jadwalkan Demo

Lihat Detail

*Syarat dan ketentuan berlaku

Following the enforcement of Regulation of the Government No. 34 of 2023 ("Regulation 34/2023"), the Deposit Insurance Corporation (Lembaga penjamin Simpanan – "LPS") has decided to introduce various aspects that specifically relate to premiums under the Banking Restructuring Program (Program Restrukturisasi Perbankan – "PRP") through the issuance of Regulation No. 1 of 2024 ("Regulation 1/2024"), which has been in force since 17 May 2024.
Conventional and sharia commercial banks ("Banks") that operate within Indonesia are required to pay PRP premiums ("Premiums") and in this regard, Regulation 1/2024 states that these Premiums should be calculated and paid by Banks in certain percentages in the rupiah currency using the closest rounding. The aforementioned percentages should be calculated from a combination of Bank groups (i.e. comprising five groups that are determined based on Bank asset numbers and risk levels).
Pursuant to Regulation 1/2024, payments of the above Premiums should be completed annually by Banks to the LPS for the following two periods: 1) 1 January - 30 June; and 2) 1 July - 31 December. These Premium payments should be deposited into an account determined by the LPS, while initial Premium payments should be completed for the 1 January - 30 June 2025 period.
Payments for each of the above-described periods break down into two phases (i.e. initial Premium payments and subsequent Premium adjustments), during which Banks are required to report the calculation of their Premium results and proof of Premium payments to the LPS. Any Banks that fail to comply with the above-described Premium payment obligations will be subject to the imposition of administrative sanctions by the LPS. Administrative sanctions will take the form of administrative fines.

......