New Country and Transfer Risk Management Framework Introduced for Commercial Banks: Initial Implementation Set for June 2027

The Board of Commissioners of the Financial Services Authority (Otoritas Jasa Keuangan – “OJK”) is currently completing work on a new Draft Regulation on the Application of Country Risk and Transfer Risk Management for Commercial Banks (“Draft Regulation”). This new framework introduces mandatory identification, measurements, as well as control over sovereign and macroeconomic risks for conventional commercial banks, including branches of foreign banks that operate within Indonesia (collectively referred to as “Banks”).