Stricter Procedures for PRP Premium Payments Introduced: Conventional Banks with UUS Required to Maintain Separate Bank Codes

In 2024, the Deposit Insurance Corporation (Lembaga Penjamin Simpanan – “LPS”) issued Circular No. SE-7/ADK1/2024 (“Circular 7/2024”) on Procedures for Payments of Premiums and Fines for Underpayments and/or Late Payments (“Fines”) of Premiums under the Banking Restructuring Program (Program Restrukturisasi Perbankan – “PRP”). As its title suggests, Circular 7/2024 set out guidelines for use by conventional commercial Banks, sharia commercial Banks, sharia business units (Unit Usaha Syariah – “UUS”), rural Banks (Bank Perekonomian Rakyat – “BPR”) and sharia BPR (BPR Syariah – “BPRS”) (collectively referred to as “Banks”) regarding payments of PRP Premiums (“Premiums”) and Fines (collectively referred to as “Applicable Fees”).