This Circular updates the calculation components for Risk-Weighted Assets (Aset Tertimbang Menurut Risiko "ATMR") for peoples economic banks (Bank Perekonomian Rakyat/BPR), thereby expanding the list of assets and increasing the maximum risk-weight percentage to 150%. New classifications include securities issued by regional governments and abandoned property and equity participation, while some asset categories have now been removed altogether. It should also be noted that calculations must be undertaken in line with the format provided under the Appendix to the Circular.

Exporters are now subject to various clarified requirements regarding the placement of Foreign-Exchange Export Proceeds (Devisa Hasil Ekspor "DHE"), with further Regulations to be determined by the government. Additionally, placement instruments have been expanded to include foreign exchange securities and sukuk issued by Bank Indonesia ("BI"), which can also serve as underlying transactions for hedging swaps. Certain provisions related to placement calculations and voluntary deposits have also now been removed, while exporters operating externally to the oil-and-gas sector have now been granted increased flexibility in terms of their ability to convert proceeds to local currency.

Regulation of the Financial Services Authority No. 37 of 2024 on the Amendment to Regulation of the Financial Services Authority No. 17/POJK.05/2017 on Procedures for the Imposition of Administrative Sanctions Within the Insurance Sector and the Blocking of Insurance Company, Sharia Insurance Company, Reinsurance Company and Sharia Reinsurance Company Assets ("Amendment") introduces clear classifications of violations, specifically Administrative Violations and Substantive Violations, with corresponding administrative fines and the possibility of the simultaneous imposition of sanctions. The Amendment also allows for immediate restrictions on business activities in response to substantive violations, even without the issuance of any prior warnings, while licenses may be revoked in response to serious violations. The Amendment also introduces new sanctions, including the downgrading of company health ratings, the banning of specific insurance products and prohibitions on certain individuals occupying key positions within the insurance sector. The Amendment also sets out clearer procedures for the imposition of sanctions, including written warnings, fines and public announcements, with penalties set to be imposed within 30 days of any violations.

While maintaining the core obligations that apply to conventional and sharia commercial banks, as well as conventional and sharia rural banks (collectively referred to as "Banks") as regards ensuring the confidentiality of all information that relates to their depositors and their deposits, this new framework has now expanded the list of confidential information to include information relating to Bank customers who deposit funds ("Investments") in sharia-based Banks ("Investors"). Moreover, this framework also extends this confidentiality to parties that are affiliated with Banks ("Affiliated Parties").

The Controlling Shareholders (Pemegang Saham Pengendali "PSP") and/or Ultimate Controlling Shareholders (Pemegang Saham Pengendali Terakhir "PSPT") of financial conglomerates ("Conglomerates") are now required to establish Financial Holding Companies (Perusahaan Induk Konglomerasi Keuangan "PIKK") by submitting applications by no later than 23 June 2025. Any failure to meet this obligation may result in the imposition of administrative sanctions that range from written reprimands to a prohibition on serving as main parties in Conglomerates.

The basic framework of Foreign Exchange Flow Management (Lalu Lintas Devisa "LLD") management, as implemented by Bank Indonesia ("BI"), outlines three primary targets that encompass volume, composition and volatility. These targets aim to optimize the benefits and manage the risks associated with foreign exchange flow activities. Additionally, four key objects of LLD management are specified, including current accounts, capital accounts, financial accounts and other foreign exchange transactions, as determined by BI.

The payment of deposit insurance premiums, membership contributions and/or fines for any underpayments and/or late payments of premiums (collectively referred to as "Applicable Fees") by conventional and sharia commercial banks and sharia business units, as well as conventional and sharia rural banks (collectively referred to as "Banks"), should be completed annually in line with the following two periods: 1) Period 1: 1 January - 30 June (deadline of 31 January set); and 2) Period 2: 1 July - 31 December (deadline of 31 July set). Moreover, the list of financial institutions capable of facilitating Applicable Fee payments for conventional rural banks and sharia rural banks has now been expanded to include a total of six conventional and sharia banks.

The scope of payment system activities has now been expanded to include currency management services and other specified activities, with qualification levels clarified for operational roles. Certificates are now required at Level 4 for operational staff, Level 5 for supervisors and Level 6 for executive officers or directors, ensuring alignment with the specific payment system activity sub-fields.

The types of reports that must be submitted by commercial banks have now been expanded to include self-assessment reports on bank compliance with bank obligations and resolution plans. Meanwhile, the types of additional reports that must be submitted by rural banks (Bank Perekonomian Rakyat "BPR") and sharia rural banks (Bank Perekonomian Rakyat Syariah "BPRS") have also been expanded to include Single Customer View ("SCV") summary data reports that are drawn up on a per bank and per customer basis, as well as self-assessment reports on banks compliance with their obligations. Said self-assessment reports on bank compliance must be submitted for the first time on 30 June 2025.

The new framework broadly addresses various mandatory measures that must be complied with by both commercial and rural banks (Bank Perekonomian Rakyat/BPR), as well as the roles and responsibilities of their stakeholders regarding the preparation of appropriate, accurate and integrity-based bank financial reports and information. Any non-compliance with these obligations will result in the imposition of administrative sanctions that range from written reprimands and fines to a prohibition on the implementation of business activities.