The 2015 Regulation mandates that commercial banks implement prudentiality principles as part of a government effort to stimulate national economic growth. The prudentiality principles laid out in the 2015 Regulation apply to the following areas: credit-risk calculations for risk-weighted assets (Aset Tertimbang Menurut Resiko ? ?ATMR?) using a standardized approach, asset-quality assessment, and capital investment by commercial banks.

The Financial Services Authority (?OJK?) has issued Circular Letter No. 16/SEOJK.03/2015 on Rural Bank (?2015 Circular?). Prior to the 2015 Circular, the same matter was regulated under the Bank Indonesia (?BI?) Circular Letter No. 8/31/DKBU dated 12 December 2006, as amended by BI Circular Letter No. 12/33/DKBU dated 1 December 2010.

The stated aim of the 2015 Regulation is to maintain and preserve the rupiah?s exchange rate by strengthening the supervision of monetary related matters. Under the 2015 Regulation, BI may perform indirect supervision and examinations of individuals and business entities to ensure their compliance with monetary regulations.

Bank Indonesia (?BI?) has issued Regulation No. 17/10/PBI/2015 on Loan to Value Ratio or Financing to Value Ratio for Loan and Financing Facilities for Property and Advance Payments for Loans or Financing Facilities for Motor Vehicles (?2015 Regulation?). The 2015 Regulation also sets out criteria of commercial and sharia banks that are eligible for the new LTV and FTV ratios.

In essence, the Regulation requires conventional commercial banks (bank umum konvensional ? ?Bank?) to prepare a report to be submitted to the OJK. The report will outline a bank?s current financial performance and other related information in monthly, tri-monthly, and on an annual basis.

The stated aim of the 2015 Regulation is to develop strong, sound, productive, and competitive national rural banks. This objective is achieved by stipulating comprehensive changes to the capital structure and minimum capital requirements that must be satisfied by rural banks (?Rural Banks?).

The Minister of Finance (?Minister?) has issued Regulation No. 84/PMK.05/2015 on Procedures to Withdraw Foreign Loans and/or Grants (?2015 Regulation?). The stated aim of the 2015 Regulation is to provide guidelines for the government to withdraw, distribute, and disburse loans and grants received from foreign creditors/grantors (?Foreign Party?).

The Financial Services Authority (OJK) has issued Regulation No. 4/POJK.03/2015 on Good Corporate Governance for Rural Banks (?Regulation?). The stated aim of the Regulation is to improve the performance of rural banks (bank perkreditan rakyat), protect the interests of stakeholders in rural banks, and improve the regulatory compliance of rural banks.

The Regulation establishes a framework for commercial banks to determine interbank offered rates (?Rates?), which are comprised of: Jakarta Interbank Offered Rate (?JIBOR?); and Jakarta Interbank Bid Rate (?JIBID?).

Bank Indonesia (BI) has issued Regulation No. 16/21/PBI/2014 on Implementation of Prudential Principles for the Management of Foreign Loans of Non-Bank Corporations (?Regulation?) to make improvements to BI Regulation No. 16/20/PBI/2014 (?Previous Regulation?) which previously regulated the same.