OJK Raises GCG Bar: Banks Now Required to Conduct Self-Assessments in Line with 16 Governance Indicators

In an effort to clarify the application of Good Corporate Governance (“GCG”) by Conventional Commercial Banks (Bank Umum Konvensional – “BUK”), Sharia Commercial Banks (Bank Umum Syariah - “BUS”) and Sharia Business Units (Unit Usaha Syariah - “UUS”) (collectively referred to as “Banks”), the Financial Services Authority (Otoritas Jasa Keuangan - “OJK”) has now decided to issue Circular No. 14/SEOJK.03/2025 on the Implementation of Governance by Commercial Banks (“Circular 14/2025”), which officially came into effect on 24 June 2025.[1]