This new Bank Indonesia (BI) Regulation significantly broadens the Monetary Operations (Operasi Moneter OM) framework through the introduction of government-established financial institutions (Lembaga Jasa Keuangan LJK) that support public welfare programs as eligible securities issuers. In this regard, LJK will now operate alongside BI, the Republic of Indonesia and foreign governments. This new framework also broadens the available types of eligible securities, retaining most existing instruments while introducing BI Floating Rate Notes (BI-FRN) and LJK-issued securities, which must have a minimum remaining maturity of five business days at the time of their second leg. Additionally, this new Regulation sets BI-FRN prices at 100% of face value and applies market-based pricing to sovereign bonds that are issued by foreign governments, as well as to LJK-issued securities.

Written orders that relate to Mergers, Consolidations, Acquisitions, Integrations and/or Conversions (Penggabungan, Peleburan, Pengambilalihan, Integrasi dan/atau Konversi - P3IK) may be issued to conventional and sharia commercial banks, as well as to conventional and sharia rural banks (collectively referred to as Banks) and/or Non-Operational Holding Companies of Financial Conglomerates (Perusahaan Induk Konglomerasi Keuangan PIKK) that meet certain specific criteria. Examples of such criteria include the need to achieve an expedited resolution of an issue that is being experienced by a Bank; financial problems that may threaten business continuity; an inability to increase or maintain a Banks capital and/or liquidity at an adequate level; and so forth.

The Financial Services Authority (Otoritas Jasa Keuangan OJK) has introduced a new reporting framework for commercial banks (Banks) that replaces the previous structured and unstructured reporting categories with periodic and incidental reporting, while also simultaneously expanding the scope of said reporting obligations to include Representative Offices of Banks Domiciled Abroad (Kantor Perwakilan dari Bank yang Berkedudukan di Luar Negeri KPBLN). Under this updated framework, all submissions and corrections that are made to both periodic and incidental reports must be completed by Banks and KPBLN through their appointed responsible reporting officers via the OJK Reporting System (APOLO) exclusively. If such submissions are incomplete or inaccurate, then administrative fines may be imposed, with penalties reaching up to Rp. 10 million per report.

The Draft Bill introduces a number of substantial reforms to the institutional frameworks of Indonesias key financial authorities, i.e. Bank Indonesia (BI), the Deposit Insurance Corporation (Lembaga Penjamin Simpanan LPS) and the Financial Services Authority (Otoritas Jasa Keuangan OJK), specifically by placing all three of these bodies under the direct oversight and evaluation of Indonesias House of Representatives (Dewan Perwakilan Rakyat DPR). Under the proposed framework, BI and the OJKs operational performance will be assessed by the DPR. Similarly, LPS Work Plans and Budgets will be subject to DPR approvals.

Sharia Commercial Banks and Sharia Business Units are required to maintain minimum Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) thresholds. These thresholds will be phased in from 2026 until full 100% compliance is achieved in 2028. The LCR must be supported by sufficient High Quality Liquid Assets (HQLA), while the NSFR requires banks to sustain a minimum ratio of Available Stable Funding (ASF) to Required Stable Funding (RSF). Sharia Banks must also comply with various obligations, which include daily calculations and monitoring, periodic reporting to the Financial Services Authority and public disclosures

The Draft Circular reaffirms that Sharia Commercial Banks (BUS), Sharia Business Units (UUS) and Representative Offices of Banks Domiciled Abroad (KPBLN) are required to submit both periodic and incidental reports through the OJKs Online Reporting Application (APOLO). The mandatory periodic reports comprise daily, monthly, quarterly, semiannual and annual reports, and are organized into four information group categories: financial, risk and capital, products and activities, and main data information. Meanwhile, the mandatory incidental reports are also grouped into four specific categories: supervisory information, institutional matters, business activities and other categories. In order to meet these reporting obligations, every institution must appoint an officer who will assume responsibility for the submission of reports. When making such an appointment, an appointment letter should be submitted offline to the OJKs data and statistical management unit, while any subsequent changes should also be reported in this way.

While maintaining the core provisions that specifically address the mandatory publication of reports (Reports) by commercial banks (Banks) that engage in conventional business activities, this new framework has now expanded the scope of said Reports to encompass the following additional Report types: 1) Sustainability Reports; 2) Annual integrated governance implementation Reports for Banks that act as the Holding Companies of Financial Conglomerates (Perusahaan Induk Konglomerasi Keuangan/PIKK); and 3) Annual financial statements for Banks that are issuers or public companies. Moreover, Regulation 18/2025 now also newly requires Banks to draw up semesterly financial statements and financial performance information for data at the end of June and/or December. These statements and information should be drafted in a comparative format in accordance with financial accounting standards.

Draft Circular of the Financial Services Authority (Otoritas Jasa Keuangan OJK) 2025 (Draft Circular) on Transparency and the Publication of Reports by Conventional Commercial Banks (Banks) is set to enhance overall bank transparency through the addition of a semi-annual reporting period and the introduction of new valuation, leverage, credit quality and risk formats. Banks must also ensure oversight by their boards and should submit monthly, quarterly, semi-annual and annual reports. In this regard, December has been set as the key deadline.

Circular 14/2025 requires all Conventional Commercial Banks (Bank Umum Konvensional/BUK), Sharia Commercial Banks (Bank Umum Syariah/BUS) and Sharia Business Units (Unit Usaha Syariah/UUS) to expand their self-assessment indicators as part of their implementation of good corporate governance. The number of indicators has now been increased from 11 to 16, with a specific requirement being introduced for sharia banks to evaluate the performance of their Sharia Supervisory Boards.

Regulation of Bank Indonesia No. 5 of 2025 on Monetary Policy ("Regulation 5/2025") marks a significant evolution in Bank Indonesias overall monetary policy, broadening its objectives beyond the stability of the rupiah to support sustainable economic growth. Bank Indonesias new monetary policy framework, as set out under Regulation 5/2025, emphasizes the maintenance of low inflation, exchange rate stability and sufficient foreign exchange reserves. The formulation of this new monetary policy has been guided by both domestic and global economic indicators, thereby ensuring a responsive and forward-looking approach. Both Regulation of Bank Indonesia No. 17/8/PBI/2015 of 2015 on Monetary Regulation and Supervision ("Regulation 17/2015") and the new framework of Regulation 5/2025 provide layered enforcement mechanisms, thereby ensuring accountability for both banks and inspectors.