Initial Payment of Bank Restructuring Premium Imminent: Sanctiony Apply by July 2025

In 2023, the government introduced Regulation No. 34 of 2023 (“Regulation 34/2023”) on Premium Share Amounts for the Funding of the Bank Restructuring Program (Program Restrukturasi Perbankan – “PRP”), which set out various applicable provisions that specifically addressed the payments of PRP premiums (“Premiums”) by conventional and sharia commercial banks (collectively referred to as “Banks”) in an effort to prevent and mitigate the emergence of a potential crisis within the financial system. In this regard, it should be noted that the various Premium-related provisions featured under Regulation 34/2023 were summarized in the following edition of Indonesian Legal Brief (“ILB”): “Banks Required to Pay Restructuring Program Premiums Commencing January 2025”.