In terms of mandatory spin-offs of conventional commercial banks that are looking to convert their sharia business units into sharia commercial banks, the Draft Bill removes the spin-off deadline and now only states that spin-offs are mandated for conventional commercial banks with sharia business units with asset values of at least 50% of the total asset values of the relevant parent banks. Previously, a deadline of 2023 was set for mandatory spin-offs

The overall procedure for the registration of PA and PAF with the OJK breaks down as follows: 1) Submission of a registration application to the OJK along with the relevant required documents; 2) Inspection of the application and required documents by the OJK; and 3) PA/PAF will then be notified of application approvals and will be issued official registration certificates

All PUJK are required to implement various activities that relate to increasing financial literacy and financial inclusion at least once a semester. Any failure to comply with this obligation may lead to the imposition of administrative sanctions that range from warnings to a prohibition on continuing in the role of primary party

In order to support the organization of offshore cash borrowing in relation to the funding and management of loan portfolios, established planning processes and several adjustments to provisions that address the procurement of offshore cash loans have been introduced

The organization of systems by the relevant PJP and/or PIP encompasses the following matters: 1) Pricing schemes; 2) System capital obligation fulfillment; 3) Information technology auditor; 4) Development of activities, products and/or cooperation; 5) Cooperation with goods and/or service providers; 6) Sole ownership; and 7) Corporate actions that take the form of mergers, consolidations, separations and/or acquisitions

Organizers of LPBBTI are required to submit applications for various licenses, approvals and reporting to the OJK through the OJKs data communications network system or offline through the OJK office

During the marketing of any new products/services, PUJK should comply with various new provisions, including a prohibition on the marketing of any products/services to prospective consumers through personal communication facilities without approvals first being secured from said prospective consumers. Said approvals must be obtained prior to PUJK contacting and marketing their products/services to prospective consumers

This regulation also increases the amount of paid-up capital that is required in order to establish LPIP, which has now been set at a minimum of Rp. 200 billion. Previously, a minimum limit of Rp. 50 billion was set

Commencing 1 May 2022, P2P Lending will be subject to the imposition of Income Tax, while Fintech companies will be subject to the imposition of Value Added Tax

The drafting process for LAPS SJK regulations should comprise the following phases: 1) Drafting; 2) Consultation with the relevant stakeholders; 3) Draft adjustment; 4) Submission of application for approvals from supervisors; and 5) Submission of application for OJK approval