Digital-Driven Bank Audits Incoming: Expanded Scope of Examinations, Risk-Based Auditing and Multi-Billion Rupiah Fines for Non-Compliance

The Financial Services Authority (Otoritas Jasa Keuangan – “OJK”) is currently completing work on a new Draft Regulation on Bank Examinations (“Draft Regulation”), which will ultimately modernize its supervisory framework through technological integration and the imposition of significant financial penalties. If the Draft Regulation ultimately comes into force, then the new framework will repeal and replace Regulation of the OJK No. 41/POJK.03/2017 on Requirements and Procedures for Bank Examinations (“Regulation 41/2017”).