Stimulating the Small-Scale Economy: OJK to Allow BPR Participation in Capital Investments

The Financial Services Authority (Otoritas Jasa Keuangan – “OJK”) is currently in the process of drawing up a new Draft Regulation on Banking Business Activities (“Draft Regulation”) in an effort to realize the mandate originally set out under Law No. 4 of 2023 on the Development and Strengthening of the Financial Sector (“Law 4/2023”). The Draft Regulation will set out a comprehensive legal framework that will support the development of various banking activities by both commercial banks (“Banks”) and rural banks (bank perekonomian rakyat – “BPR”).[1]