Member of the Board of Governors of Bank Indonesia has issued Regulation No. 19/14/PADG/2017 on the Regulatory Sandbox for Financial Technologies, which addresses technical provisions which relate to the organization of a regulatory sandbox approach for Financial Technology, as regulated under Bank Indonesia Regulation No. 19/12/PBI/2017 on the Organization of Financial Technologies.

Bank Indonesia recently issued Regulation No. 19/12/PBI/2017 on the Organization of Financial Technologies. Regulation 19/2017 is essentially aiming to accommodate technological developments, as well as to guarantee customer protection within the financial sector in a bid to maintain monetary stability and the stability of the financial system, as well as reliable payment systems capable of supporting sustained national economic growth.

The Financial Services Authority has issued Circular No. 50/SEOJK.03/2017 on Reporting and Requests for Debtor Information through the Financial Information Services System, which will serve as an implementation of OJK Regulation No. 18/POJK.03/2017.

The Board of Bank Indonesia Governors has issued Regulation No. 19/9/PADG/2017 on Money-Market Supporting Institutions Which Organize Activities Relating to Commercial Papers within the Money Market, which will serve as a set of guidelines for any supporting institutions engaging in money-market transactions involving commercial papers.

SDCs are savings in the form of deposits which are issued based on sharia principles through the implementation of mudharabah mutlaqah or mudharabah muqayyadah agreements. SDCs can be transferred prior to their maturity date through the use of sales-purchase agreements (ba?i), inheritance or grants. In addition, SDCs may also be traded through the secondary market through the use of repurchase agreements (repo) which are based on sharia principles.

To minimize the risks inherent to commercial banking business in both a preventative and curative manner, the Financial Services Authority has issued Regulation No. 46/POJK.03/2017 on the Implementation of Commercial Bank Compliance. This new regulation makes a minor alteration to the provisions which were originally set out under Bank Indonesia Regulation No. 13/2/PBI/2011 on the same matte. Essentially, this regulation addresses several matters, including: 1) Compliance function; 2) Director of compliance; and 3) Sanctions.

In order to anticipate the dynamics of economic development, as well as to enhance the sustainability and competitiveness of the national banking sector (both in terms of sharia and conventional banks), the Financial Service Authority has issued Regulation No. 39/POJK.03/2017 on Single-Presence Policy for Indonesian Banks. In essence, this new regulation updates several provisions which were originally set out under Bank Indonesia Regulation No. 14/24/PBI/2012. Our discussion of this new regulation will revolve around the following matters: 1) The implementation of Single-Presence Policy; 2) Transfer of Authority from BI to the OJK; and 3) Administrative sanctions.

As a form of assistance for commercial banks undergoing short-term financial-liquidity stress, the BI Board of Governors has issued Regulation No. 19/6/PADG/2017 on Short-Term Liquidity Loans for Commercial Banks. In essence, Regulation 19/2017 redefines several provisions relating to short-term liquidity loans (PL JP), including the following issues: (1) Requirements for the securing of PLJP; (2) PLJP application procedures; (3) Repayment methods; (4) Reporting obligations; and (5) Prohibitions and limitations during PLJP periods.

In a bid to create a more efficient, reliable and secure domestic payment system, as well as to facilitate the public need for non-cash transactions, Bank Indonesia has finally issued Regulation No. 19/8/PBI/2017 on the National Payment Gateway. This regulation basically sets out several important provisions regarding the organization of the National Payment Gateway (NPG), including: 1) Scope of the NPG; 2) Parties within the NPG; 3) Implementation of the NPG; 4) Mandatory Reporting; 5) The role of Bank Indonesia; and 6) Sanctions.

In order to set out further provisions on the implementation of risk management for the utilization of information technology by commercial banks, the Financial Services Authority (OJK) has issued Circular Letter No. 21/SEOJK.03/2017, which addresses three major areas: 1) Guidelines on risk-management measures; 2) Mandatory reports which must be submitted by commercial banks regarding their utilization of information technology; and 3) Requirements for the securing of approval from the OJK for the implementation of certain plans and activities which relate to the utilization of information technology.