Updated LPS Audit Rules Introduced for Banks Undergoing Liquidation: Mandatory KAP Audits Now Apply to Banks with Total Deposits of at Least Rp. 200 Billion

Back in 2019, the Indonesia Deposit Insurance Corporation (Lembaga Penjamin Simpanan – “LPS”) issued Regulation No. 4 of 2019 on the Recording of Transactions and Financial Reporting by Banks Undergoing Liquidation, which was subsequently amended by Regulation No. 2 of 2022 (collectively referred to as “Regulation 4/2019”). Broadly speaking, Regulation 4/2019 details the various duties and responsibilities of liquidation teams, which are responsible for the preparation of essential documents for Indonesian banks whose business licenses have been revoked by the Financial Services Authority (Otoritas Jasa Keuangan/OJK) and which are therefore undergoing processes of liquidation.