Indonesia Banking Booklet 2018 VOLUME 5 Chapter 1 I N D O N E S I A
B A N K I N G
B O O
K COVER L E T
2 0 1 8
INDONESIA BANKING BOOKLET
INDONESIA BANKING BOOKLET
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INDONESIA BANKING BOOKLET 2018 Chapter 1
BANKING LICENSING AND INFORMATION DEPARTEMENT
Menara Radius Prawiro Kompleks Perkantoran Bank Indonesia Jl. MH Thamrin No. 2, Jakarta 10350
157 / Fax: (021) 385 8321
www.ojk.go.id
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4 Indonesia Banking Booklet 2018
Foreword
This 2018 Indonesia Banking Booklet constitutes a publication media presenting brief information concerning Indonesian banking industry. This booklet is expected to enable the readers to obtain brief information concerning direction of the banking policies in 2018 as well as policies and regulations Chapter 1 in the banking sector issued by Indonesia Financial Services Authority (OJK) in 2017. In contrast to the previous edition, this edition is divided into four chapters, as follows: Chapter I, which contains (i) OJK's vision, missions, functions and tasks and (ii) definitions, prohibition and business activities of the banking industry; Chapter II, which contains the authorities and policies of OJK in the banking sector; Chapter III, which contains the direction of OJK’s policies in 2018 and the development of OJK’s policies in 2017; and Chapter IV, which contains banking regulations that are still in force, including OJK’s Regulations issued in 2017. We realize that there are yet shortcomings in the presentation of this 2018 Indonesia Banking Booklet in terms of contents and formats, however, we still hope that the information presented can yet provide optimal benefits to the readers.
Jakarta, May 2018 Department of Banking Licensing and Information Indonesia Financial Services Authority
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TABLE OF CONTENTS OR OR 5 O O 6 O 12 O R 13 O 15
CHAPTER 1 A. Indonesia Financial Services Authority 19 Chapter 1 Chapter OJK’s Vision and ission 19 OJK’s Objective 19 OJK’s Strategic Values 19 OJK’s Functions and Tasks 20 OJK’s Organization 20 B. Banking 23 efinition 23 usiness ctivities of the an 23 usiness ctivities rohi ited or an s 29
CHAPTER 2 A. OJK Authority to Banking Industry 35 B. Bank Supervision 36 C. Bank Preliminary Investigation 38 D. Bank Investigation 41 OJK’s involvement in the Task Force Investment 41 lert sta lishment of Regional or eams 42 E. Integrated Supervision 43 inancial onglomerates 44 ntegrated upervision Roadmap 46 F. Roadmap Banking Industry 46 Roadmap for ndonesian an ing evelopment 46 Roadmap of ndonesian haria an ing 49 Roadmap of ustaina le inance 52 G. ASEAN Banking Integration Framework 55 H. Basel Framework 56 I. Transformation of Regional Development 61 Banks J. Credit Reporting System 63 K. Banking Information System for the Purpose 64
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Of Supporting Bank Supervision Task L. Customer Education and Protection 68
CHAPTER 3 A. OJK 2018 Policy Direction 85 B. Development of OJK’s Policies in Banking 87
Sector in 2017 Chapter 1 Financial Inclusion and ublic el are 87 onsumer ducation and rotection 87 Investigation o anking ases 89 Sistem a anan In ormasi Keuangan 89 Online e orting o ank i uidit overage 90 atio and S usiness lan Online e orting 91 egional oo eration in the Frame ork o IF 93 Issuances o egulation concerning anking 93 egulating S ecial olic or Victims o atural isaster 93 evelo ment o Sharia anking 94 evelo ment o Sharia anking roducts and 97 ducation Trans ormation o egional evelo ment ank 98
CHAPTER 4 A. Regulations on Bank Institutional Arrangement, 106 Management, and Ownership stablishment o anks 106 ank O nershi 111 Sole O nershi in anks in Indonesia 111 Share O nershi o ommercial ank 113 anagement and uman esources 116 Fit and ro er Test or ain arties o 131 Financial Service Institutions ank erger onsolidation and c uisition 132 Incentives in ank onsolidation 133 O ening o ank O ice 134 hanges in ank ame and or ogo 141 losing o ank ranch O ices 141 ank i uidation 141 evocation o usiness icense at The 142
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e uest o Shareholders Sel i uidation usiness icense evocation as Follo O 143 The ondition O ot eing ble to e ehabilitated hange in onventional ank usiness 143 ctivities To Sharia ank B eg lations once ning Bank B siness 144 ctivities ppo ting ctivities an e vices ank usiness ctivities 144 Chapter 1 Chapter e osits 149 on O ice ased Financial Services For the 151 ur ose O Financial Inclusion aku andai redit estructuring 155 ustodian ith anagement Trust 157 uideline or evelo ment o ank redit 158 olicies Obligation in re aration and 158 Im lementation of Ban’s Credit or Financing olicies or ommercial anks Standard or O erating In ormation 159 Technolog or ural anks and Sharia ural anks Sti ulation on Sharia roducts 160 Obligation to eet et Stable Funding atio 163 or ommercial anks tip lation once ning P ential P inciple 163 ank ore a ital 163 inimum a ital de uac e uirement 165 Sti ulation oncerning a imum egal 172 ending imit sset ualit 175 rovision or sset rite O 180 Im lementation o nti Fraud Strateg For 187 ommercial anks uide or alculation o isk eighted sset 188 or redit isk b sing The Standard roach rudential rinci le in ommercial ank 189 a ital artici ation ctivities rudential rinci le or ommercial ank 191
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at tso rce art of t e e entation of or to t er arties r dentia rinci e in sset ec riti ation 193 cti ities for Co ercia Ban s r dentia rinci e in t e Cond ct of 194 tr ct red rod ct cti ities for Co ercia Chapter 1 Ban s r dentia rinci e in t e Cond ct of 195 Foreign Financia rod ct genc cti ities Co ercia Ban s e entation of ood Cor orate 196 o ernance e entation of Co iance F nction for 210 Co ercia Ban s e entation of is anage ent for 211 Co ercia Ban s ra Ban s and Financia Cong o erates e entation of is anage ent n e 218 se of nfor ation ec no og B Co ercia Ban s e entation of is anage ent n e 219 se of nfor ation ec no og B Co ercia Ban s Credits r Financing o ec rities Co anies 220 nd Credits r Financing it are Co atera s e entation of is anage ent in 221 nternet Ban ing is anage ent e entation at Ban s 221 at tend esidentia o se ners i Credits and otor e ic e Credits B is anage ent Certification for 223 Co ercia Ban anagers and fficers e entation of nti one a ndering 224 and re ention f e F nding of erroris rogra ti i ation of Foreign or ers and ransfer 226 of no edge rogra in Ban ing ector e entation of is anage ent at 226 Ban s at Cond ct cti ities of ar eting
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Coo eration it ns rance Co anies Bancass rance e entation of is anage ent n 227 Ban cti ities e ated o t a F nds e enting is anage ent t 228 Co ercia Ban s at ro ide ri e C sto er er ice ationa cono ic ti s For Co ercia 229 Ban s aria Co ercia Ban s and aria Chapter 1 Chapter B siness nits e ire ent o eet i idit Co erage 231 atio For Co ercia Ban s ecia o icies on a it of 232 Credit Financing in reas ffected at ra isasters D eg lation once ning epo ts an cco nting 233 tan a s rans arenc of Ban Financia Condition 233 nfor ation rans arenc on Ban rod cts 239 and se of C sto er ersona ata ndonesian Ban ing cco nting ide ines 239 for Co ercia Ban s aria Ban ing cco nting ide ines for 240 aria Ban s and B eter ination on e se of Financia 241 cco nting tandards for ra Ban eriodic e orts of Co ercia Ban s and 242 t er e orts e orting and e esting of e tor 247 nfor ation t ro g iste a anan nfor asi e angan e aga enge o a nfor asi er reditan 248 tip lation once ning Bank pe vision 250 Ban B siness an 250 ssess ent of Ban o ndness e e 252 eter ination of t e tat s and Fo o of 254 t e er ision of Co ercia Ban eter ination of t e tat s and Fo o of 256 t e er ision of ra Ban s and aria ra Ban s
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e ire ents and roced re of Ban 259 a ination eco er an for ste ic Ban s 259 Bridge Ban 261 eg lation once ning ons me cation 264 an P otection
Financia iterac and nc sion 264 Chapter 1 ett e ent of Cons er Co aints 264 ar eting of rod cts and or er ices 266 tandard gree ents 267 Confidentia it of Cons er ersona ata 267 and or nfor ation Other Regulation’s 267 ating nstit tions and atings c no edge 267 ndonesia Financia er ices t orit Certification nstit tions for ra 268 Ban s aria ra Ban s Ban ecrec 269 ission of C sto er nfor ation re ated 269 to a es t orit on Cri ina n estigations in 271 Financia er ices ector se of t e er ices of ic cco ntants and 272 ic cco nting Fir s in Financia er ice cti ities e entation of staina e Finance for 273 Financia er ice nstit tions ss ers and ic Co anies
PP D 280
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O ist of eg ations Con ersion es ts fro B 283 eg ation ist of Ban ing eg ation at are ti in Force 287 Entity’s Termination by as Force n est ent 303 ert Ban ing Cases at read a e er anent 307 ega Force in rac t ro g o t o ar er ino ogies in Ban ing nd str Chapter 1 Chapter 309
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O R i re OJK’s Organization Structure 22 i re stration o Ty e o inan ia 45 on omeration i re i ars o nte rate er ision 46 oa ma
i re oa ma o stainab e inan in 56 Chapter 1 – i re m ementation o ase in n onesia 58 i re rame or or ase a ita in 59 n onesia i re o isti rame or or Trans ormation 62 ro ram i re ta es o Trans ormation 62 m ementation i re rame or o re it e ortin ystem 64 in n onesia i re oa ma m ementation o 67 i re e anism e est or ebator 68 n ormation t ro i re o e o ebtor n ormation T at T e 68 b i an btain i re i ars o erio – 70 i re ons mer an b i rote tion 72 i re n o raphics of OJK’s Customer Services 74 i re n o ra i s o tan ar 76 i re n o ra i s o 77 i re et o or onitorin an na y in 79 ons mer rote tion i re stration o a ase o n 81 m ation it o t ermit i re ro e tion o e e o ment o 90 b i atory e ortin Entities i re n ormation on n ine bmission o 92 an siness ans i re i ision o ones an etermination o 135 oe i ients i re ara teristi s o sa in s 153 i re er i e o era e an assi i ation o 155 a an ai ent
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igure Commercia an ase on usiness 164 ctivities igure Supervision C c e of S 258 igure ustration of ternatives for ransfers 263 of sset an or ia i ities from an Origina an to a ri ge an Chapter 1 Chapter
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O a e pes of an s is s 36 a e atri of mp ementation of is ase 38 Supervision to an an Cong omerates a e eporting through O O 66 a e an inancia iterac an 88 nc usion n e es Chapter 1 a e arget reas of the Specia o ic 93 Concerning e a ation on Cre it ua it a e ist of OJK egu ations ssues uring he 103 ear a e O ects an Criteria of it an roper est 132 a e Criteria ssuance of Certificates of 150 eposit a e pe of a u an ai gent 155 a e SC S sset ua it 179 a e S sset ua it 180 a e arameters of ropert ac e 223 Consumption Cre it a e roce ures an ea ine for Su mission 236 an nnouncement of u icize eports a e O ects an Criteria of it an roper est 242 a e Categories of Commercia an 253 Composite atings a e eights of C actors 254 a e etermination of he Status of an 255 Supervision a e Stages of Sustaina e inance 275 mp ementation a e erio s of Sustaina i it eports 278
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CHAPTER 1 INDONESIA FINANCIAL SERVICES AUTHORITY
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A. INDONESIA FINANCIAL SERVICES AUTHORITY Indonesia Financial Services Authority/Otoritas Jasa Keuangan (OJK) is an independent institution and free from interferences by other parties which has functions, tasks, and authorities of regulation, supervision, on-site supervision, and investigation of the Financial Services
Sector (FSS) as referred to the Law of the Republic of Chapter 1 Indonesia Number 21 of 2011 on Financial Services Authority.
OJK’s Vision and Mission Vision To become a supervising agency of the financial services industry, which is trustworthy, protects the interests of consumers and public, and able to develop the financial services industry into a national economic pillar that has global competitive power as well as able to advance public welfare. Mission 1. To realize the establishment of all activities in the financial services sector in an orderly, fair, transparent, and accountable manner. 2. To realize a financial system that grows in a sustainable and stable manner. 3. To protect the interests of consumers and public.
OJK’s Objective OJK is established with the objective that all activities in the FSS: 1. Operate in an orderly, fair, transparent, and accountable manner; 2. Are able to create a financial system that grows in a sustainable and stable manner; and 3. Are able to protect the interests of consumers and public.
OJK’s Strategic Values 1. Integrity means acting in an objective, fair, and consistent manner in accordance with the code of ethics and organizational policies by upholding
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honesty and commitments. 2. Professionalism means working with full responsibility based on high competence to achieve the best performance. 3. Synergy means undertaking productive and quality collaboration with all stakeholders, both internal and external. 4. Inclusivity means being open to and accepting diverse stakeholders as well as widening public’s Chapter 1 Chapter opportunities and access to the financial industry. 5. Visionary means having extensive insight and foresight (forward looking) as well as thinking out of the box.
OJK’s n ions and as s OJK has the function of establishing an integrated system of the regulationand supervision of overall activities in the FSS. In addition, OJK performs the task of regulation and supervision of: 1. Financial service activities in the Banking sector; 2. Financial service activities in the Capital Market sector; and 3. Financial service activities in the Insurance, Pensiun Fund, Financing Institution, and other Financial Service Institution (FSI) sectors.
OJK’s Organization OJK is led by the Board of Commissioners comprising nine members appointed by a Presidential Decree and has collective and collegial nature, with the following membership arrangement: 1. Chairman, concurrently member; 2. Vice Chairman functioning as the Head of Ethics Committee, concurrently as member; 3. Chief Executive functioning as Banking Supervisor, concurrently as member; 4. Chief Executive functioning as Capital Market Supervisor, concurrently as member; 5. Chief Executive functioning as Insurance, Pension Fund, Financing Institutions, and Other Financial
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ervices nstitutions upervisor concurrentl as e ber ead o oard o uditors concurrentl as e ber o issioner in charge o onsu er ducation and rotection division
o icio e ber ro ank ndonesia who is Chapter 1 concurrentl a e ber o the oard o overnors o ank ndonesia and o icio e ber ro the inistr o inance who is an chelon level o icial inistr o inance
he nauguration of OJK’s 20 oard o o issioners
On July 20, 2017, all of the seven Members of OJK’s 2017 oard o o issioners have been inaugurated to replace the previous whose ter o o ice has ended The names of the seven members of OJK’s 2017 – oard o o issioners are as ollows i boh antoso as hair an o oard o o issioners urhaida as ice hair an o oard o o issioners eru risti ana as ecutive ead o ank upervisors oesen as ecutive ead o apital arket upervisors iswinandi as ecutive ead o on ank inancial ndustr upervisors h ad ida at as hair an o udit oard irta egara as e ber in charge o onsu er ducation and rotection After their inaugurations, the seven Members of OJK’s Board of o issioners will e ecute tasks as andated b aw o he epublic o ndonesia nu ber o concerning together with OJK’s ex officio’s Board of Commissioners from Bank Indonesia, Mirza Adityaswara, and OJK’s ex officio’s Board o o issioner ro inistr o inance ardias o reviously, the names of the seven Members of OJK’s 2012 oard o o issioners were ulia an adad ah at alu anto elson a pubolon irdaus aelani urhaida l a vianti and usu aningtuti oetiono
21 Indonesia Banking Booklet 2018 ADK DKEP Bidang 7 officio - Finance member from the the from Ex Member 9 Ministry of ADK DKAI Bidang 6 Officio Officio Bank - Board of Auditors Committee of Auditors Board Ex Indonesia Member 8 DKI 2 Chapter 1 Chapter member from member from ADK Bidang 5 DKI 1 Consumer Member 7 Protection Protection in charge of in charge Education and and Education Commissioner DKM 2 DKM
ADK Bidang 4 DKM 1 DKM Member 6 of Auditors Head of Board DKB 4 DKB 3 NBFI NBFI Chief Chief ADK Member 5 Supervisor Bidang 3 Executive of Executive Figure 1.1. OJK’s Organization Structure DKB 2 DKB 1 Chief Chief Directors of Operations Directors Capital Capital Market Market Board of Commissioners Board Member 4 Supervisor Executive of Executive DKOI ADK DKHK Bank Chief Chief Bidang 2 Member 3 Supervisor Executive of Executive
DKIK SCPR Ethics Ethics / Head of Member 2 Committee DKML Vice Chairman DKPS ADK 1 Bidang 1 or more information at www o k go id at information more or Chairman Member 1 DKPT
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. K Banking refers to everything related to a bank, which includes the institution, business activities, as well as the rocedures and rocesses involved in the execution of bank business activities
e inition Chapter 1 1 Bank are business entities that collect funds from the ublic in the form of de osits and channels the funds to the ublic in the form of credits and or other forms for the ur ose of enhancing the living standard of the community 2 Commercial Bank CB are banks that conduct business activities in the conventional manner and or based on sharia rinci les, which within its business activities rovide services related to ayment flows ural Banks B are banks that conduct business activities in the conventional manner or based on sharia rinci les, which not rovide services related to ayment flows Conventional Banks are banks that conduct business activities in the conventional manner Based on the ty es, there are Conventional Commercial Banks CCB and ural Banks B haria Bank are banks that conduct business activities based on haria rinci les Based on the ty es, there are haria Commercial Banks CB and haria ural Banks B haria rinci les are Islamic law rinci les in banking activities based on fatwa legal decisions issued by an institution that has the authority to determine fatwa in the field of sharia
usiness cti ities o t e an 1 Business Activities that can be undertaken by any CB are a Collect funds from ublic in the form of de osits, com rising demand de osits giro , term de osits, certificates of de osit, savings de osits,
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and or other e uivalent forms b xtending credits c Issuing romissory notes d Buying, selling, or guaranteeing at own risks as well as for the interests and at the instructions of its customers, in the forms of 1 rafts bills of exchange, including drafts acce ted by banks, which validity eriods are no longer than the norm in the trading of Chapter 1 Chapter referred drafts 2 romissory notes and other commercial a ers which validity eriods are no longer than the norm in the trading of referred notes tate treasury bills and government securities Certificates of Bank Indonesia BI Bonds Commercial a ers with maturity eriods of u to one year and 7 Other commercial a er instruments with maturity eriods of u to one year e Transferring money both for own interest as well as for the interests of customers f lacing funds at, borrowing funds from, or lending funds to other banks, using notes, telecommunication facilities, as well as sight drafts, checks, or other facilities g eceiving ayments from claims on securities and making settlements with or between third arties h roviding de osit boxes for safe kee ing of goods and securities i ndertaking custodial activities for the interests of other arties based on contracts ndertaking fund lacements from customers to other customers in the form of securities not listed at the stock exchanges k ndertaking factoring activities, credit card business, and trust activities
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l roviding financing and or undertaking other activities based on haria rinci les, in accordance with revailing regulations m Conducting other activities commonly undertaken by banks as long as they are not in conflict with the Act concerning Banking and
other revailing legislations Chapter 1 n Conducting activities in foreign currencies by com lying with revailing regulations o ndertaking ca ital artici ation activities at other banks or com anies in the financial field, such as leasing business, venture ca ital, security com any, insurance, as well as settlement and custodial clearing institution, by com lying with revailing regulations Conducting tem orary ca ital artici ation activities to resolve the im act of credit failure or financing failure based on haria rinci les, with the re uirement to withdraw its artici ation, by com lying with revaling regulations Acting as the founder of ension funds and management of ension funds in accordance with the rovisions of revailing ension fund legislations and r Conducting bank business activities in the form of custodianshi with management trust 2 Business Activities that can be undertaken by any CB and any haria Business nit B are a Collecting funds in the form of e osits, com rising emand e osits iro , avings e osits, or other e uivalent forms based on wadi’ah agreement or other agreement that are not in conflict with haria rinci les b Collecting funds in the form of investments, com rising e osits, avings e osits or other e uivalent forms based on mudharabah agreement or other e uivalent agreement that are not in conflict with haria rinci les c Channeling yield sharing financing based on mudharabah agreement, musyarakah
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agreement or other agreement that are not in on i t with haria rin i e d hanne ing inan ing a ed on m ra ahah agreement a am agreement i ti hna agreement or other agreement that are not in on i t with haria rin i e e hanne ing inan ing a ed on ardh agreement or other agreement that are not in on i t with haria rin i e Chapter 1 Chapter hanne ing inan ing or ea e o mo a e or immo a e ro ertie to tomer a ed on i arah agreement and or ea e r ha e in the orm o arah ntahi a ittam i or other agreement that are not in on i t with haria rin i e g nderta ing de t ta en o er a ed on hawa ah agreement or other agreement that are not in on i t with haria rin i e h nderta ing de it ard and or inan ing ard ine e a ed on haria rin i e i ing e ing or g aranteeing at own ri third art e ritie i ed a ed on rea tran a tion and haria rin i e h a among other i arah m ara ah m dhara ah m ra ahah a a ah ata hawa ah agreement ing e ritie a ed on haria rin i e i ed the go ernment and or e ei ing a ment rom aim on e ritie and ma ing ett ement with or etween third artie a ed on haria rin i e ro iding de o it o e or a e ee ing o good and e ritie a ed on haria rin i e m ran erring mone oth or own intere t a we a or the intere t o tomer a ed on haria rin i e n ro iding etter o redit or an g arantee a i itie a ed on haria rin i e o ond ting other a ti itie ommon in the an ing ie d and o ia ie d a ong a the are not in on i t with haria rin i e and in
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a ordan e with the ro i ion o re ai ing egi ation ond ting oreign rren a ti itie a ed on haria rin i e ond ting tem orar a ita arti i ation a ti itie to re o e the im a t o inan ing
ai re a ed on haria rin i e with the Chapter 1 re irement to withdraw it arti i ation r ond ting a ti itie in the a ita mar et a ong a the are not in on i t with haria rin i e and the ro i ion o re ai ing egi ation in the a ita mar et ie d erating an ing a ti itie or rod t a ed on haria rin i e ing e e troni de i e t ing o ering and trading in hort term e ritie a ed on haria rin i e thro gh the mone mar et oth dire t a we a indire t and ro iding other rod t or nderta ing other a ti itie that are a ed on haria rin i e n addition to a ti itie re erred to in n m er two a o e ine a ti itie i ted e ow an on e ond ted name a ing e ing or g aranteeing at own ri third art e ritie i ed a ed on rea tran a tion and haria rin i e h a i arah m ara ah m dhara ah m ra ahah a a ah or hawa ah agreement nderta ing todian hi or the intere t o other artie a ed on agreement that are in a ordan e with haria rin i e nderta ing the n tion o tr tee a ed on wa a ah agreement d ond ting a ita arti i ation a ti itie at other or inan ia in tit tion that ond t ine a ti itie a ed on haria rin i e e ting a the o nder and management o en ion nd a ed on haria rin i e and ing o ering and trading in ong term
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e ritie a ed on haria rin i e thro gh the a ita mar et oth dire t a we a indire t ine ti itie that an e nderta en a are a m ation o nd rom the i in the orm o de o it om ri ing term de o it a ing de o it and or other e i a ent orm tending redit ro iding inan ing and or nd a ement Chapter 1 Chapter a ed on haria rin i e in a ordan e with reg ation et an ndone ia and d nderta ing nd a ement in the orm o erti i ate o term de o it erti i ate o de o it and or a ing de o it at other an ine ti itie that an e nderta en a are a o e ting nd rom the i in the orm o e o it in the orm o a ing de o it or equivalent forms based on wadi’ah agreement or other agreement that are not in on i t with haria rin i e and n e tment in the orm o a term de o it or a ing de o it or other e i a ent orm a ed on m dhara ah agreement or other agreement that are not in on i t with haria rin i e hanne ing nd to the i in the orm o ie d haring inan ing a ed on m dhara ah or m ara ah agreement inan ing a ed on m ra ahah a am or i ti hna agreement inan ing a ed on ardh agreement inan ing or ea e o mo a e or immo a e ro ertie to tomer a ed on i arah agreement or ea e r ha e in the orm o and e t ta en o er a ed on hawa ah agreement nd a ement at other haria an in the form of trusts based on wadi’ah agreement or
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investments based on mudharabah agreement and or other agreement that are not in onfli t with haria rin i les d ransferring mone both for own interest as well as for the interests of ustomers through the a ounts of the e isting at and
and Chapter 1 e roviding other rodu ts or underta ing other a tivities of sharia ban ing in a ordan e with Sharia Principles based on OJK’s approvals usiness u ort tivities usiness su ort a tivities are other a tivities ondu ted b ban s outside ban business a tivities hese business su ort a tivities are related to human resour es ris management om lian e internal audit a ounting and finan e nformation e hnolog logisti s and se urit
usiness cti ities ro i ite For an s are rohibited from ondu ting the following business a tivities a nderta ing a ital arti i ation e e t when related to the a tivities referred to in usiness tivities of the an number letter o and in the e lanation on usiness tivities b ondu ting insuran e business and nderta ing other businesses outside business a tivities referred to in usiness tivities of the an number and are rohibited from ondu ting the following business a tivities a ondu ting business a tivities that are in onfli t with haria rin i les b ondu ting a tivities of selling and bu ing shares dire tl in the a ital mar et nderta ing a ital arti i ations e e t ondu ting a ital arti i ation a tivities at a or inan ial nstitution that ondu ts business a tivities based on haria rin i les and ondu ting tem orar a ital
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par icipa ion ac ivi ies o resolve he i pac o inancin ail re based on Sharia Principles i h he re ire en o i hdra i s par icipa ion speci icall or S and ond c in e porar capi al par icipa ion ac ivi ies o resolve he i pac o inancin ail re based on Sharia Principles i h he re ire en o i hdra i s par icipa ion speci icall or S Chapter 1 Chapter d ond c in ins rance b siness ac ivi ies e cep as a ar e in a en o sharia ins rance prod c s are prohibi ed ro cond c in he ollo in b siness ac ivi ies a eceivin deposi s in he or o de and deposi s iro and par icipa in in pa en lo b ond c in b siness ac ivi ies in orei n c rrencies e cep as a orei n rrenc rader with OJK’s approval; c nder a in capi al par icipa ions d nder a in ins rance b siness and e nder a in o her b sinesses o side hose re erred o in siness c ivi ies o he an n ber S are prohibi ed ro cond c in he ollo in b siness ac ivi ies a ond c in b siness ac ivi ies ha are in con lic i h Sharia Principles b eceivin deposi s in he or o de and deposi s iro and par icipa in in pa en lo c ond c in b siness ac ivi ies in orei n c rrencies e cep in orei n c rrenc e chan es with OJK’s approval; d ond c in ins rance b siness ac ivi ies e cep as a ar e in a en o sharia ins rance prod c s e nder a in capi al par icipa ions e cep in ins i ions es ablished or overco in li idi proble s o S and
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rta i oth r si ss s o tsi si ss a tiviti s o r rr to i si ss tiviti s o th a r
Chapter 1
31 Indonesia Banking Booklet 2018 Chapter 1 Chapter
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CHAPTER 2 OJK AUTHORITY TO BANKING INDUSTRY
33 IndonesiaBooklet Perbankan Banking BookletIndonesia 2018 2018
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A. OJK Authority to Banking Industry Based on Law of The Republic of Indonesia number 21 of 2011 concerning OJK, in relation to the implementation of the tasks concerning regulating and supervising of the banking sector, OJK has the following authorities: 1. The right to license is an authority to set the procedures for bank licensing and establishment, which covers the granting and revocation of bank business licenses, granting of permits for opening, closing, and transferring bank offices, granting of approvals on bank ownership and management, granting of licenses to banks for conducting certain business activities. 2. The right to regulate is an authority to set regulations concerning banking business aspect and activities for the purpose creating a sound banking industry that is able to provide banking services desired by the public. Chapter 2 3. The right to control involves: a. On-site supervision, which comprises general examination and specific examination, with the objective of obtaining a picture of bank financial situation and monitoring bank compliance level to prevailing regulations, as well as finding out whether there are unsound practices that endanger bank business sustainability; and b. Off-site supervision, which is supervision using monitoring tools such as periodic reports submitted by banks, reports of examination results, and other information. 4. The right to impose sanction is the authority to impose sanctions in accordance with the provisions of legislations on a bank when the bank does not fully comply or does not comply with regulations. This action contains an element of nurturing so that banks operate in accordance with sound banking principles. 5. The right to investigate in accordance with the law gives OJK the authority to perform investigations within the FSS, including in the banking sector. Investigations shall be conducted by investigators in Republic of Indonesia’s Police and Civil Servant
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officers in Results of investi ations s all be sub itted to public prosecutors for procecutions 6. ut orit to conduct consu er protection ic is t e aut orit to conduct consu er protection in t e for of prevention of consu er and societ losses consu er co plaint services and le al defense
B. Bank Supervision In carr in out ban supervision tas at present runs its supervision s ste b usin t o approac es na el 1. Co pliance ased Supervision C S ic is based on t e onitorin of ban co pliance to re ulations t at are related to ban operation and ana e ent in t e past it t e ob ective of ensurin t at properl and correctl in accordance it prudential principle Supervision on t e fulfil ent of t e co pliance aspect is an inte ral part of t e i ple entation of ris based ban supervision and
Chapter 2 Chapter 2. Ris ased Supervision R S is ban supervision t at uses ris based strate ies and et odolo ies t at enable ban supervisors to detect si nificant ris s at earl sta e and ta e approapriate and ti el supervisor easures an ris based supervision e a ination is perfor ed on t e follo in t pes of ris s
Tabel 2.1. Types of Bank Risks Types of Bank Risks Credit Risk Ris t at arises fro failure on t e part of a counterpart in eetin its obli ation Market Risk Ris t at arises fro a ove ent in ar et variables adverse ove ent in a portfolio o ned b ban t at can cause a loss to t e ban ar et variables are a on ot ers interest rate and e c an e rate Liquidity Risk that is due to bank’s inability to eet Risk its obli ations t at ave beco e due Operational Ris t at is due to inade uate and or non Risk functionin internal process u an error s ste failure or e istence of an e ternal
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Types of Bank Risks oble that in luen es bank o e ation Legal Risk Risk that is due to the e isten e o eaknesses in the u idi al as e t u idi al as e t eaknesses a e aused a on othe s by the e isten e o la suits absen e o su o tin le islations o eaknesses in the a ee ents su h as un ul il ent o a ee ent alidity e ui e ent o la ed ollate al a ee ent Reputation Risk that is due to a on othe s the Risk e isten e o a ne ati e ubli ation elated to bank business a ti ities o ne ati e e e tion on the bank Strategic Risk that is due to ina u a y o a de ision Risk ade and o i le entation o a st ate i de ision as ell as a ailu e in anti i atin Chapter 2 han es in business en i on ent Compliance Risk that is due to bank not o lyin o Risk not e e utin the o isions o le islations and othe e ailin e ulations Rate of Risk a isin o han es in ates o etu n Return Risk aid by bank to the usto e s that a e aused by han es in ates o etu n e ei ed by bank o unds hannelin hi h an in luen e the beha io o thi d a ty und usto e s o the bank Equity Risk a isin o the situation in hi h Investment bank a ti i ates in bea in usto e Risk business losses inan ed in a yield sha in based inan in those usin the net e enue sha in ethod as ell as those usin the o it and loss sha in ethod Intra-group Risk that is due to de enden y o one transaction entity di e tly o indi e tly on anothe risk entity in the sa e inan ial on lo e ate o the u ose o ul illin obli ations unde itten as ell as un itten a ee ents hethe ollo ed and o not ollo ed by und t ans e s
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Table 2.2. Matrix of Implementation of Risk Based Supervision to Bank and Conglomerates on lo o y e o Risk e ates edit Risk √ √ √ a ket Risk √ √ √ i uidity Risk √ √ √ e ational Risk √ √ √ e al Risk √ √ √ Re utation Risk √ √ √ t ate i Risk √ √ √ o lian e Risk √ √ √ Rate o Retu n √ Risk uity √ n est ent Risk nt a ou √ ansa tion Risk
Chapter 2 Chapter nsu an e Risk √
C. Bank Preliminary Investigation anks as inte ediation institutions a e o ten used as the ehi les and o ta ets o the unla ul en i h ent o sel es a ily e be s o e tain ou s hi h an ulti ately lead to the banks e e ien in st u tu al oble s u h a tions an be done eithe by e be s o the oa d o o issione s and oa d o i e to s e loyees a iliated a ties o ne s sha eholde s o the bank o othe a ties in hi h i no e enti e easu es to e ent the e u en e o su h a tions and e essi e easu es on a ties o en to ha e o itted su h a tions a e taken ay ause a de line in the le el o ubli on iden e in the bankin syste t o o on e nin to itas asa euan an has i en a andate to on the e ulation and su e ision o banks n e o in bank su e ision task ay ind de iations o bankin e ulations both those o ad inist ati e natu e as ell as those that ha e indi ations o bankin i inal o enses he handlin o de iations o bankin e ulations that ha e indi ations
38 Indonesia Banking Booklet 2018 o bankin i inal o enses need to be ade autiously in o de to a oid i a ts that i ht in luen e bank e utation and o the u ose o eatin a bankin syste that is sound hi h in tu n su o ts inan ial syste stability n o ation on de iations o bankin e ulations that ha e indi ations o bankin i inal o enses ay o e o esults o bank su e ision and o othe a ties n the e ent the handlin o these de iations needs to be ollo ed u ith in esti ations the in esti ations ill be conducted on the bank’s affiliated parties and / or other a ties that use the bank as a ehi le and o ta et n addition has the autho ity to i ose ad inist ati e san tions on banks in a o dan e ith e ailin le islations he in esti ation ethodolo y used o indin out de iations that ha e o u ed and the elated a ties as Chapter 2 ell e ulations that ha e been iolated in ol es a on othe s 1. nde takin o a esea h e ie o eli ina y su o tin do u ents and in o ation e ei ed to identi y uality and uantity o the sus e ted bankin i inal o enses that ha e o u ed 2. nde takin o eetin s la i i ation sessions inte ie s ith the oa d o i e to s bank o i e s sta o othe a ties in o de to obtain in o ation that ill u the la i y the osition o the ase 3. nde takin on the s ot he k o the ob e t o the in esti ation o e a le th ou h a di e t isit to the customer’s address in o de to ind out the e isten e and alidity o the in o ation and 4. olle tin additional su o tin do u ents elated to the indi ations o sus e ted bankin i inal o enses n a o dan e ith the o ulation o bankin i inal o en es sti ulated in ti les u to o t o o on e nin ankin as a ended by t o o o ti le u to o t o o on e nin ha ia ankin de iations o bankin
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re ulations that ha e indications of bankin criminal offenses are differentiated in their relation to 1. icenses includin amon others accumulation of funds from the public in the form of deposits ithout the appro al of 2. ank secrec includin amon others a nforcin bank or affiliated parties to pro ide e planations concernin deposit customers and their deposits ithout a ritten instruction or appro al from b ro idin e planations that should be kept confidential and c ot pro idin e planations that should be pro ided for the purposes of ta es and bank recei able settlements the interests of ustice in criminal cases as ell as at the re uests appro als or authori ations of deposit customers 3. ank super ision includin amon others bank
Chapter 2 Chapter obli ation to submit to information and e planations on their businesses and obli ations 4. ank business acti ities includin amon others a. alse recordin deliberate elimination of or omission to make records in the accountin books as ell as obscurin chan in hidin deletin or elimination records from accountin books b. e uestin or acceptin appro in or permittin to recei e a re ard for personal ain in carr in out bank operational acti ities c. e lectin to take measures necessar for ensuring bank’s compliance to the provisions of pre ailin le islations and d. i in instruction for the e ecution or non e ecution of actions that cause bank not performing steps necessary for ensuring bank’s compliance to the pro isions of pre ailin le islations hen the in esti ation results find the e istence of suspected bankin criminal offences that ha e been made b affiliated parties and/or other parties the cases are
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further handed over to OJK’s work unit that performs the investigation task
D. Bank Investigation As mandated in Article of Act o of concerning Otoritas Jasa Keuangan, in order to perform the supervision task, OJK has the authority to undertake investigations on SIs, actors, and/or financial service support activities as referred to in legislations prevailing in the SS OJK’s Investigators are Investigation Officers of the Republic of Indonesia’s Police and/or Civil Servant Officers who are given special authority as Investigators, who are employed at OJK in order to perform investigations of criminal offences within the SS in accordance with Act o of concerning Otoritas Jasa Keuangan Chapter 2 OJK’s involvement in the Task Force for Investment Alert In order to create effective coordination between supervisory institutions in the field of public fund accumulation and investment management as well as with other law enforcement officers, regulators, supervisory institutions, and law enforcers have established Task orce for Investment Alert/Satgas aspada Investasi S I through Chairman of Capital Market and inancial Institution Supervisory Agency ecree umber Kep / / dated June for work period that is renewed annually At the beginning of the formation of S I, regulators and supervisory institutions as well as law enforcement officers who were its members were the Capital Market and inancial Institution Supervisory Agency, Ministry of Trade, the Police’s Criminal Investigation Agency, as well as Pusat Pelaporan dan Analisis Transaksi Keuangan PPATK After the handover of the tasks and functions of the Capital Market and inancial Institution Supervisory Agency to OJK, Chairman of Capital Market and inancial Institution Supervisory Agency ecree umber Kep / / dated June was superseded by OJK’s
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oard of Commissioners ecree umber /K K / dated June OJK’s Board of Commissioners Decree number /K K / dated June , last amended through OJK’s Board of Commissioners Decree number /K K / concerning stablishment of Task orce for andling of Suspected nlawful Actions in the ield of Public und Accumulation and Investment Management Based on this OJK’s Board of Commissioners Decree, OJK is mandated to carry out the task as Chairman of S I OJK’s task as Chairman of S I is to coordinate the prevention and handling of suspected unlawful actions in the field of public fund accumulation and investment management
st lishment o e ion l o e ms The rise of activities in public fund accumulation and investment management without permits or misuses of
Chapter 2 Chapter licenses that have occurred in different regions in Indonesia necessitates the establishment of S I Regional ork Teams in order to ensure optimum, efficient, and uick responses by S I Regional ork Teams on complaints and/or reporting from the public S I Regional ork Teams have been established in order to increase the effectiveness of the operational level coordination of the technical implementation of the Memorandum of nderstanding on Coordination of The Prevention and andling of Suspected nlawful Actions in the ield of Public und Accumulation and Investment Management by the heads of seven ministries and/or institutions In order to achieve that ob ective, the S I Regional ork Teams are tasked to inventori e and analy e cases of suspected illegal investments as well as undertake coordination with related agencies in accordance with the fields, including the possibility of oint investigations and reporting to local police offices The establishment of S I Regional ork Teams is e pected to give benefits not only to certain groups but also to SI and the Public
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Benefits for are a e i e ub ic interest and trust in financia ser ice roducts being offered and b ncrease income, both from the side of third art funds as e as the side of ending, and thus su ort economic gro th Benefits for the ub ic are a. he ub ic can more uick obtain information re ated to acti ities of un a fu accumu ation of ub ic funds and in estment management b. educe the otentia for osses due to ess effecti e hand ing c. ro ide ease to the ub ic in odging re orts and or uestions re ated to acti ities of fund accumu ation and in estment management ithout ermits and ha e oss otentia and Chapter 2 d. oidance from in estment acti ities on unc ear financia instruments ccessing and submitting information re ated to i ega in estments can be made through ebsite as adain estasi o k go id mai as adain estasi o k go id e e hone
nte te e vision rtic e of a of he e ub ic of ndonesia number of concerning Otoritas Jasa Keuangan has mandated OJK to estab ish integrated regu ator and su er isor s stems for a acti ities ithin the financia ser ices sector, the im ementations of hich are undertaken through 1. stab ishment of ork units that im ement the tasks of integrated regu ating, icensing, and su er ision 2. ntegration of the regu ation of a s from the Banking, Ca ita arket, and B sectors OJK has made, is making, and i continue to make efforts to integrate financial services sector’s regu ations that are cross cutting he integrated regu ation, is the regu ation that a ies to at east t o financia sectors and sectora regu ation that ha e significant im acts on other financia sectors this
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ti e eac t e of financial service sectors as its o n reg lations o e e a les of reg lations t at ave een integrate are eg lation n er concerning it an ro er est or ain arties n inancial ervice nstit tions an eg lation n er concerning se of t e ervices of lic cco ntants an lic cco nting ir s in inancial ervice ctivities 3. ntegration of t e licensing entire financial services sector t ro g one oor is c rrentl a ing effort to integrate licensing na el t e licensing services t ro g one oor s orte an infor ation s ste ne of t e s ste s t at ave een evelo e to s ort integrate licensing is t e iste eri inan an egistrasi erintegrasi rrentl several t es of licensing anage sing are ancass rance gen en al fe e sa ana t al
Chapter 2 Chapter n ec rit ales gent egistration of lic cco ntants an lic cco nting ir s an aria on s 4. ntegration of t e s ervision of all ntegrate s ervision as starte it t e i le entation of t e s ervisions of several s t at are incor orate into conglo erates n t is regar as iss e t ree reg lations relate to integrate s ervision of inancial onglo erates na el a. eg lation no concerning le entation of ntegrate is anage ent or inancial onglo erates b. eg lation no concerning le entation of ntegrate anage ent for inancial onglo erates c. eg lation no concerning ntegrate ini a ital e ac e ire ent for inancial onglo erates
in n i l on lome tes n accor ance it eg lation n er a inancial onglo erate
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co rises a n er of inancial ervice nstit tion ic are incor orate into one gro e to o ners i an or control lin ages ase on t e str ct res can e ivi e into t ree t es as follo s a. ertical ro if t ere is clearl a irect relations i et een t e arent co an an t e s si iar co an an ot are b. ori ontal ro if t ere is no irect relations i between the FSI’s in one FC, however, these FSI’s are o ne or controlle t e sa e art c. i e ro if t ere are a siness gro str ct re t at is a vertical gro as ell as a ori ontal gro it in one n ill stration of t e ifferences et een t e t ree t es of is resente in t e fig re elo Chapter 2 i e ll st tion o e o in n i l on lome tion
Vertical Group Horizontal Group Ultimate Other Ultimate Ultimate Other Ultimate Shareholders Shareholders Shareholders Shareholders
Bank A Bank Insurance Securities Financing A B C D Insurance Securities Financing A C D
Mixed Group
Ultimate Other Ultimate Shareholders Shareholders
Bank Insurance Securities Financing A B C D
Insurance Financing E F
o con ct s ervisions of as evelo e s rveillance et o s t at incl e t e no o r inancial onglo erate ntegrate is ating an ntegrate ervisor lan to oc ent t e supervisor's understanding of any FC, the FC’s risks, and s ervisor strateg for t e at gro i e level n a ition as also evelo e an iste nfor asi enga asan erintegrasi to assist s ervisors in
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ana y ing and deter ining de isions regarding the supervision of any FC and issuing an Integrated Supervision oad ap
nte te e vision o m n Integrated Supervision oad ap is deve oped with the ob e tives of providing po i y dire tion, deve oping supervisory syste ethodo ogy, and strengthening the i p e entation of integrated supervision of FC, in ine with the genera po i y for the finan ia servi es se tor supervision, incorporated in the Indonesia’s Master Plan for Finan ia Servi es Se tor – he – Integrated Supervision oad ap overs three ain aspe ts, na e y a. Integrated Supervision o i y for FC b. Integrated Supervision Syste and ethodo ogy for FC and c. Integrated Supervision I p e entation for FC
Chapter 2 Chapter i e ill s o nte te e vision o m MPSJKI Materializing Financial Conglomerates that are sound and stable, which support the financial system’s stability
POLICY SYSTEM & IMPLEMENTATION METHODOLOGY Complementing and Developing Integrated Strengthening Strengthening The Supervision System Integrated Supervision Integrated Supervision and Methodology On Implementation On Policy On Financial Financial Financial Conglomerates Conglomerates Conglomerates Reliable Human Resources Effective IT system
o m n in n st o m o n onesi n n in evelo ment oad ap for Indonesian anking eve op ent oad ap enge bangan erbankan Indonesia I – overs deve op ent of Conventiona anks with the ob e tive to ensure banking se tor deve op ent runs in a ign ent with the vision of Indonesian
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develop ent, to create Indonesia that is independence, advanced, ust, and prosperous irections o the Indonesian banking industry’s development and stren thenin incorporated in P are desi ned to anticipate challen es that ill ace the an in industr , oth at the do estic as ell as lo al scales P has also een desi ned to et o serve opportunities or the banking industry which are Indonesia’s potentials and advanta es in line ith the e ort to pro ote the national econo in order to achieve hi h and sustaina le econo ic ro th 1. Indonesian an in pportunities and hallen es Indonesia has a hu e potential o ro in and developin into an advance countr in the uture his hu e potential re uires inancin support ro the hole , includin ro the an in industr In addition to this inancin need on the do estic side, Chapter 2 the potential or develop ent co es ro the re ion, na el i ple entation o the cono ic o unit and e istence o orei n an ranch ices or an s ith orei n o nerships that can create opportunities in supportin the national econo ic ro th urther ore, in this era o rapid I develop ent, inancial technolo also has a si ni icant role in the uture develop ent o the an in industr 2. Polic irection or Mediu er an in evelop ent – hin s that ill e the ocus o in develop ent o the an in industr in the ediu ter and that are e pected to e a le to respond to chan es in the internal and e ternal environ ents o the an in industr are a on others a pti i in the role o an s in the e ort to support ood securit , ener and other priorit sectors, inancin o certain econo ic sectors, as ell as develop ent and i ple entation o sustaina le undin principles nhance ent o an o nership structure in support o sustaina le econo ic develop ent
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his is in line with developments o governance and risk management as well as international standard implementation rom the sides o regulations reporting and supervision c Implementation o risk based integrated supervision by i undertaking supervision on conglomerate companies in order to early detect risks that can arise in the inancial services system ii developing and implementing risk based supervision mechanism and iii stepping up investigations o pro essional compliance and compliance o the supporting institutions d trengthening o crisis management protocol and inter institution coordination through enhancement o the mechanism or prevention and handling o crisis enhancement o recovery and resolution plan and enhancement o inter institution coordination in relation to the handling
Chapter 2 Chapter o inancial crisis e iscussion concerning the reciprocity principle applicable or Indonesian banks to e pand their service reach in the region and mechanism or dispute settlement in anticipation o the emergence o cross border disputes between countries In anticipation o the rise in competition against banks rom other countries has encouraged the national banks to enhance their capacities in terms o capital as well as in rastructure through the consolidation process in order to have stronger competitiveness in the inancial market evelopment o micro inance products and or services in accordance with business needs so that banks can support the increase in business unds access or In order to step up the capacities o banks including sharia banks in reaching communities which up to this time have not had or lacked inancial access the inclusive inance initiative and aku andai branchless
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banking are undertaken g evelopment o in ormation technology in rastructure to make it more optimal and yet can still maintain security and reliability o the application services and data in ormation h trengthening the unctions and role o in supporting regional economies through i strengthening the capacity and governance o through trans ormation program that has been initiated by through the involvement o ural evelopment ank ssociation sosiasi ank embangunan aerah sbanda and inistry o ome airs that will be the re erence in strengthening the capacity and governance o RDB, and (ii) enhancement of the owners’ commitment in supporting the role and capacity o Chapter 2 i nhancement o the role o sharia banks with e pansions o businesses network sharia inancial products and air playing ield or by developing regulations that encourage the growth o in accordance with business characteristics and the industry’s level of preparedness; and trengthening the capital structure and institutional structure o through synergy with commercial banks and enhancement o the owners’ commitment to RB’ role in supporting regional economies urthermore in the e ort to enhance the uality o supervision over will implement risk based supervision
o m o n onesi n h i n in oadmap o Indonesian haria anking – is a plan or development o the Indonesian sharia banking sector or – which re ers to I and as well as aligned to the asterplan o Indonesian haria inancial rchitecture o the ational evelopment lanning gency I is e pected to be able to be the re erence or sharia banking stakeholders in developing the sharia banking
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industry so that it is e pected to increase its role and contri ution in supporting the national economy and financial system sta ility as well as increasing e uali ing pu lic welfare R ision for – “Realizing sharia banking sector that gives significant contri ution to sustaina le economic growth, e uita le development, and financial system sta ility as well as that has high competitiveness”. his vision is translated into policy directions, wor program, and implementation time plan, comprising seven policy directions he seven policy directions for development of the sharia an ing sector – are as follows 1. trengthening policy synergy etween the authority and the government and other sta eholders, y a. Promoting the establishment of RI’s National ommittee for haria inance Development;
Chapter 2 Chapter b. tepping up cooperation etween regulators and universities; c. sta lishment center for researches and development of sharia an ing and finance; and d. nitiating and developing sharia investment an s, particularly for the purpose of financing government pro ects 2. trengthening of the capital and usiness scale as well as improving efficiency, y a. nhancement of the policy on minimum core capital and B classification of B; b. romoting the esta lishment of sharia B B D ( tate wned Business nterprises Regional wned Business nterprises) an s; and c. ptimi ing the role and enhancing the commitment of onventional ommercial Ban ( B) to develop sharia an ing services so that the share of sharia an ing services can reach a minimum share above 10% of the parent CCB’ assets
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3. Improving the fun ing structure to support i ening of the financing segment b a. ptimizing the management of ha akaf zakat infa sho a oh fun s through sharia banking b. ncouraging involvement of the sharia banks in management of the fun s of central regional governments an B N B an c. ncouraging fun placements resulting from emissions of sharia securities at sharia banks. 4. Improving the ualit of services an pro uct iversit b a. nhancing the role of haria Banking orking roup orking roup Perbankan ariah P in eveloping sharia banking pro ucts b. nhancing regulation concerning ne pro ucts Chapter 2 an activities an c. eveloping an enhancing sharia banking pro uct stan ar inclu ing ocumentations in line ith business characteristics. 5. Improving the uantit an ualit of human resources an I as ell as other infrastructure b a. evelopment of sharia banking curriculum stan ar in universities b. apping competenc an competenc stan ar for sharia bankers as ell as revie polic relate to allocation of bu get for bank human resource evelopment an c. evelopment of professional certification program as ell as other human resource evelopment programs for sharia banking in cooperation ith me ium level an higher level e ucation institutions or banking consultants. 6. nhancing public literac an preference b a. Holding Pasar Rakyat Syariah (Sharia People’s arket an b. Islamic Banking iB campaign program on sharia banking pro ucts an sharia banking strengthening of positioning ifferentiation
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randing progra 7. Strengthening as ell as har oni ation o reg lations and s per ision y a. nhan e ent o the poli y related to inan ing o al e ( b. e elop ent o arly arning Syste ( S appli ation or S and S and c. nhan e ent o reg lations on erning the instit tions o S and S and also g idelines or s per ision and li ensing
o m o st in le in n e S staina le de elop ent is a de elop ent on ept that e phasi es on interrelationship o three ain aspe ts na ely e ono i gro th so ial li e s staina ility and en iron ental preser ation in a s staina le anner S staina le de elop ent on ept is adopted ore y ad an e o ntries as ell as de eloping o ntries
Chapter 2 Chapter parti larly a ter the ending o the illenni e elop ent oals ( s in and the start o the S staina le e elop ent oals (S s or i ple entation years o p to ne o the triggering a tors or the i ple entation o the S staina le e elop ent oals is li ate hange hi h is d e to de elop ent pro esses here ore i ple entation o the S staina le e elop ent oals has e o e the ain iss e in ea h i ple entation o de elop ent oth edi ter as ell as long ter oth at national as ell as glo al s ales or the p rpose o a ilitating inan ing nd pro ision or s staina le de elop ent as ell as adaptation to and itigation o li ate hange ith inistry o n iron ent and orestry has la n hed the Road ap o S staina le inan e Road ap e angan erkelan tan (R on e e er his road ap ontains presentations o ork plan on erning the de elop ent o s staina le inan ing or all inan ial Ser i e nstit tion ( S he a n hing o R has re ei ed appre iations oth ro do esti side as ell as international side is e en the irst a thority ithin the SS that iss es a
52 Indonesia Banking Booklet 2018
Road ap ith a o prehensi e s ope e a se it reg lates the hole SS he a kgro nd or the la n hing o R is the need or strategi and syste ati eas res in gi ing dire tion to SS to take an a ti e role and gi e a positi e ontri tion to the s staina le de elop ent pro ess ( ong er e elop ent Plan (RP P and edi er e elop ent Plan (RP hi h stand on P na ely Pro it People and Planet he R has the o e ti e o translation the s staina le inan ing condition that the Financial Services Industry’s desires to a hie e in relation to s staina le inan ing in ndonesia in the short ter edi ter and long ter ( Spe i i ally or S i ple entation o s staina le inan ing has the o e ti es (i to enhan e the resilien e and o petiti eness o S so that they an ha e the Chapter 2 apa ity to gro th and de elop in a s staina le anner (ii to pro ide so r es o nds re ired y the p li hi h re ers to RP P and RP that ha e the hara teristi o P and (iii to ontri te to the national o it ent on the pro le o glo al arning thro gh siness a ti ities that pre ent itigate or e en adapt to li ate hange to ards a lo ar on e ono y that is o petiti e he R states the li it on the de inition o s staina le inan ing hi h is o erall s pport ro inan ial Ser i es nd stry or s staina le gro th res lting ro an align ent o e ono i so ial and en iron ental interests S staina le inan ing o prises o r di ensions na ely (i to rea h ind stry so ial and e ono i e ellen es or the p rpose o red ing the threat o glo al arning and pre ention o en iron ental and other so ial pro le s (ii to help shi t the target to a lo ar on e ono y that is o petiti e (iii strategi ally pro otes en iron entally riendly in est ents in ario s siness e ono i sectors; and (iv) supports Indonesia’s Development Prin iples na ely P (pro gro th pro o s pro poor and pro en iron ent as stated in the RP he R has o r s staina le inan ing prin iples na ely
53 Indonesia Banking Booklet 2018
(i) a ris mana ement principle that inte rates the environment protection and social aspects into the ris mana ement o FSS; (ii) priority economic sector sustaina le development principle that is inclusive y steppin up inancin activities particularly in a riculture sectors (a riculture livestoc hus andry and maritime) in rastructure industry ener y and S s; (iii) environmental and social overnance and reportin principle y runnin stron environmental overnance and social practices as ell as transparency in the operational activities o the FSS and the customers o FSS; and (iv) enhancement o capacity and colla orative partnership principle y developin capacities o human resources I and operational processes o each FSS In the implementation o three ocus areas are e pected namely (i) a step up o und provisions rom FSI or reen pro ects; (ii) a step up o demand or reen pro ects; and (iii) enhancement o supervision and
Chapter 2 Chapter coordination in the implementation o inancin sustaina ility ean hile or the lon term ocus is iven to the inte ration o ris mana ement ood corporate overnance an soundness level assessment and development o inte rated in ormation system o sustaina le inancin p to the has een implemented throu h the implementation o various pro rams such as amon others 1. areness pro ram the holdin s o seminars or shops (national and international) and the a ardin o Sustaina le Finance ard (SF ); 2. apacity uildin trainin o asic level environmental analysis or FSIs and supervisors o FSI comprisin atches ( participants); 3. uidelines reen lendin model containin amon others rene a le ener y and e icient ener y reen uildin volume sustaina le inancin o or anic a riculture o oil palm trees uide or implementation o S and teachin learnin module on
54 Indonesia Banking Booklet 2018
environmental analysis; 4. oordination colla oration Sustaina le Financin oordination Forum has t ice involved elements rom the overnment FSI association international institutions and on overnment r ani ations sectoral coordination orums participations in international orums (amon others nited ation nvironment ro ram) 5. Industry participation pilot pro ect entitled irst movers on sustaina le an in participated y ei ht an s; and 6. evie s and preparation o sustaina le inancin re ulations revie s involved potential undin or rene a le ener y and e icient ener y pro ects pro ect ased inancin preparation o sustaina le inancin re ulation and preparation o re ulations on sustaina le inancin and preparation o Chapter 2 re ulation on sustaina le reportin
i e o m o st in le in n in – o n tion o im lementin olicy on principles o SF n entive o oo e tion olicy on increase in SF ith othe instit tions portion Fiscal Incentives olicy on SF supervision on Fiscal Incentives
Incentives (within OJK’s esilien e ont ol st en thenin rudential Incentives Stren thenin o ris In ormation u mana ement in SF ard related to the olicy on eportin environment and social condition
ampai ns trainin on livin environment analysis development o reen ro ects FSI access to lo al u lic Funds oordination on SF olicy
n in nte tion me o S an in Inte ration Frame or ( IF) is an ASEAN’s initiative with the objectives to create an inte ration mechanism and to accelerate an in inte ration throu h the provision o mar et access and operational le i ility in S countries y o servin the ul ilment o prevailin prudential re uirements in each o
55 Indonesia Banking Booklet 2018
the ASEAN co ntries A i e ines has been a ree on at the en o his oc ent beco es the i e or ASEAN co ntries in n erta in bi atera a ree ents re ate to ban s that wi be resent in the ASEAN ban in ar et he A i e ines sti ates inte ration rinci es that sho be re erre to as we as sta es that sho be o owe in this inte ration rocess he best ban s owne b the ASEAN co ntries or nown with the ter ino o o a i ie ASEAN an A sho eet the a ree re ire ents na e avin oo trac recor as shown a on others b a ar e ar et share avin a e ate ca ita an is inancia so n avin oo overnance an S orte b the ho e co ntr a thorit to be a A
se ew
Chapter 2 Chapter e entation o ase a ita ra ewor n onesia as one o the e bers in the or as we as other internationa or s s ch as inancia Stabi it oar S ase o ittee on an in S ervision S has iven its co it ent in a o tin reco en ations ro ce b those or s n ine with that an with the trans er o ban s ervision nction ro to the implementation of OJK’s tasks in the future will not be se arate ro e orts to a o t those vario s reco en ations n the rocess o a o tin the vario s above entione reco en ations wi contin e to a j st to the con ition an eve o ent o the o estic ban in in str Evo tion o ase a ita ra ewor a ita is one o the ain oc sses o ban s ervisor a thorit in i e entin the r entia rinci e S has iss e one ca ita ra ewor conce t that has beco e an internationa stan ar na e a n it iss e the ca ita conce t as we as the ca c ation o is ei hte Assets A
56 Indonesia Banking Booklet 2018
spe ifi all for re it risk b n it enhan e the apital omponent b a in ier as well as al ulation of for market risk n it issue the o ument entitle nternational on er en e on apital easurement an apital tan ar e ise ramework or better known as asel n it issue asel re ommen ation whi h o ers the framework of al ulation for market risk b usin the internal mo el imposition of apital bur en for se uriti ation transa tions risk mana ement aspe t on ompensation on entration risk reputation risk an stress testin aluation of all e posures re or e base on fair alues an is losure on se uriti ation Chapter 2 e n in response to the lobal finan ial risis issue a re ommen ation on enhan ement of bank resilien e both at the mi ro le el as well as the ma ro le el or better known as asel an f n issue a o ument entitled “The tan ar i e pproa h for easurin ounterpart re it isk posures CCR)” as part of its effort to ontinuousl enhan e the framework that has been issue pre iousl mplementation of asel ramework in n onesia a asel ramework illar illar an illar in n onesia has been full implemente sin e e ember number of re ulations relate to asel implementation are illustrate as follows in fi ure b asel ramework or the purpose of the implementation of the remuneration framework in n onesia as part of the asel framework OJK has issue OJK e ulation o OJK on ernin mplementation of o ernan e in ro ision of emunerations ate e ember urthermore in Januar OJK has also ma e
57 Indonesia Banking Booklet 2018
a e ha e e ase C s a e a e ss ed ss a C s a e a e e se a a a
i e I e ent ti n se II in In nesi
Basel II
Pilar 1. Minimum Capital Pilar 2. Supervisory Review Pilar 3. Market Discipline Requirement Process
o o o o o o
Credit Risk Market Risk Operational Risk
Internal Basic Standardized Standardized Internal Standardized Rating Based Indicator AMA Approach Approach Model Approach Approach Approach
o o o o o o ha e been re o e o
a e been implemente ot yet implemente ase a e ) Ca a a e
Chapter 2 Chapter e e e Re a as ss ed e Ca a de a Re e e C e a a s h h s a es ) e ha e e a a a h h ha es e a d e e e a a s e s a da e h he ase a e ) he a de a a a h h ses e a a a e ha R a d a a e a a e ha R a d ) he a es a sh add a a a as he e a e he a de a a a da e h he s e e e a he e a ase has ee ade s a es s e ea h e e a h he e e a s a es e ) d a e add a a a e ase a s d es e a a a a e
58 Indonesia Banking Booklet 2018
s a da ds eas e a d e e ha a a eeds a a as a a a ses a e d C e a e Ra CR) a d e a e d Ra R) CR s es a d eas e e h he e e e ha a sh e d es e e a a h a d sse ) s e a de e e ash a s he e da s
i e ew se III it in In nesi
e ulation publishe
• ier •
asel Chapter 2 apital omponent
onser ation uffer
ountercyclical uffer
apital urchar e
ea h e R s es a d eas e e h he se e ha a e d es e e e a a d s a es h s a e ds a s e eed he e ed a s d a e d e ea s ess he se CR e e a d es a has ss ed Re a e a ee CR e e e a da e h he e a Re a he a ee CR s ade s a es e h he C e e a e s e e e e h a a e e e h a a ea h ea s eased )
59 Indonesia Banking Booklet 2018
ea h e e a R ha s e h C e e e e a R s a a a h s e has ss ed a e a R ) e e a e a e a e he a e ess e e e a e he a s s e C has a s d ed a add a a a e e e a e a as e s ased a a h s e e he a a a s e h he s e ha ha e ee e e The se he e e a e a s as a a s a a a s e h s e e e he a e ess e e e a e e e he e e se de e e a ess ha a e da e he h e a a s s e a d he e The e e a e a ha has e e s
Chapter 2 Chapter a a ed d d e e ) a a h a a e s e h e h ed s ) he se e e e e a e a has ss ed e e a e a C s a e a e e e es es ses a s e a ed a es ) a a ase Re s a s s s e s) e e e C shed he ase a s s s e s h h a e e e e ase The d e e ses a e s a da ds ded a a a e e e ) a e C ed R s a da d a h e a Ra s ased R ) a h C ed a a d s e C ) e a a R s a e R s e e a e Ra a d The ase Re s a e e e ed e e e ed a e ha a a Re a C s s e ssess e a a ee he d a he e d e e
60 Indonesia Banking Booklet 2018
a a Ch e he C has ade a de s e es s he Re a C s s e ssess e a RC ) d es a a sector’s regulations. Indonesia’s Liquidity Coverage Ra CR) e a s a e assessed as C a C) a d s a a a e s assessed as a e C a C) RC has ee d ed a C e e es sd s) d d es a RC s a assess e ess e e sed he C see he he he a e a s issued by a country’s authority are consistent with the e a a a s a da ds ss ed he C Indonesia has gained those RCAP’s results with not so eas s e e a a he RC had ee ade s e s a h a se assess e ha as a ed de a s e ee he ase a e a d he e a e a s Res Chapter 2 he se assess e as he s ed he C he BCBS’s reference when RCAP assessors d ed he assess e ased he assess e es d es a s e a e a s a e he h e a a a s a da ds The ades ha he RC has a a ded d es a e de donesia’s banking regulations at the same e e h h se he C e e es including for RCAP result for Indonesia’s Capital a e h h has e e ed he sa e ade as ha he ed a es h h s a e e h he ade ha he e e he ea
I ns ti n e i n eve ent n s The Re a e e e a R ) T a s a a as a hed a he es de Re d es a h he s ea R e e a s h h h e e ess s as e as ha s a he e h a d e a a a he e s a s s a a e a e Th s s s e ea ed h h h ee a s a e ) e ha e e he e e ess R
61 Indonesia Banking Booklet 2018
ii strengthening institutional resilience and iii enhancement of the contribution of R B to regional economies. hese are illustrated in the figure . .
i e istic ew ns ti n
ransformation o be a ban ith hi h an stron competiti eness an that ision contributes si nificantly for the ro th an e uality of sustainable re ional economy ontributi e e ional tron resilience utcomes e elopment ent i h competiti eness
usiness tren thenin ro uct ana ement e elopment ana ement ana ement of li ui ity processes e elopment of ser ices of mar etin of net or s of portfolios ris s capital
e elopment an tren thenin of ana ement of the ana ement of stan ar i ation of o ernance ris or ani ation human information systems an oun ation mana ement resources culture technolo y operatin enabler compliance proce ures
Pengembangan In order toProduk achieve this vision the R B ransformation Program will be implemented through three stages phases namely i oundation Building ii rowth Acceleration and iii arket Leadership In the Chapter 2 Chapter implementation of the program each R B will enter each stage and set business goals and targets in line with the capacity and preparedness of each R B as depicted in the following figure
i e t es ns ti n I e ent ti n hase ar et hase ea ership ro th cceleration hase oun ation uil in
he R B ransformation Program will be implemented through three stages as follows 1. Phase I oundation Building he goal is to build the supporting processes overnance Risk Compliance and strong capital supplemented with quality human resources work culture and reliable information system through
62 Indonesia Banking Booklet 2018
synergy of the R B roup as the basis for the growth in phase two. 2. Phase II rowth Acceleration he goal is to grow rapidly in order to achieve the third position based on total assets by strengthening core business processes entering the commercial credit segment strengthening syndication loans and intensifying synergy in R roup and between R B as well as strengthening of the “ONE RDB” corporate culture. 3. Phase III arket Leadership he goal is to build the position as market leader with targeted asset si e of number or number as well as respective core and supporting capabilities through the R B roup transformation into a olding Corporation. In this phase R B shall be the market leader with significant contribution to the Chapter 2 regional economies.
J e it e tin ste he Credit Reporting System CRS that is going to be implemented in Indonesia is a dual system concept so that in Indonesia in the future there will be a Public Credit Registry PCR managed by and a number of Private Credit Bureau PCB managed by private parties. his concept will synergi e the role of as the authority in charge of collecting data from SI and the power of private sector in developing innovations that will produce various information products and services required by SI. he dual CRS concept in Indonesia is described as follows in figure . . n the side of PCR at present is developing SLI which is a system that will replace SI that is currently managed by BI. SLIK will be useful for supporting OJK’s tasks as well as assisting the public and FSS’s actors in making decisions on financing and investments. In the future SLI will be further developed to support financing and investments in the capital market and B I as well as provide market intelligence.
63 Indonesia Banking Booklet 2018
i e ew e it e tin ste in In nesi
Banks and NBFIs
PCB
BasicBasic ReportReport Data from Credit Reports, Data of banks and Credit Scores debtors NBFIs and other value- collateral added services facilities, etc.
Data from Bank and Reports for NBFIs Credit Reports, Internal Credit Score and OJK other value-added services Non-Financial • Banking Institutions • NBFI • Capital Market • Consumer Education and Protection Data on electricity, Public water, telephone, TV subscription bills, tax Credit Basic data, bankruptcy data Report and other consumer Report obligations from non- financial institutions
On the side of B a B in Indonesia is known with the name of Lembaga engelola Informasi erkreditan L I regulated in BI Regulation Number BI Chapter 2 Chapter concerning L I and BI ircular Letter Number D KL dated December concerning L I . L I is an institution or agency that collects and processes credit data and other data to produce alue added credit information such as credit profile and credit scoring customer monitoring credit alerts and Small edium Enterprise S E grading. L I can undertake cooperation with financial and non financial institutions in order to widen and enrich the co erage of credit data and other data.
K n in In ti n ste the se O tin n e visi n s . Bank Information System Bank Information System Sistem Informasi erbankan SI is an information system used by bank supervisors in analyzing a bank’s condition, performing assessment of Bank Soundness Le el by using Risk Based Bank Rating RBBR speeding up access to information on bank’s financial condition, enhancing security and integrity of banking data and
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infor ation is developed for t e purpose of supporting bank supervision task t roug uality infor ation, by providing t e follo ing functions a as a business tool ile at t e sa e ti e a ediu for rapid infor ation presentation up to t e strategic level b providing infor ation at acro level, individual bank level, as ell as ot er infor ation related to bank business environ ent and c integrating data ic is currently scattered in different syste s anage ent nfor ation yste of upervision s an effort to i prove t e uality of supervision, t e develop ent of infor ation syste leads to a ore focused supervisory syste in ter s of off site and on site onitoring to t e conditions faced by ple entation of t e arly arning yste of t e Chapter 2 is conducted to support onitoring of off site conditions, and t en to co plete periodic ealt rating assess ents e result of analysis is intended to be used in deter ining t e focus of inspection conducted by supervisors so t at it is e pected to i prove t e effectiveness and efficiency of supervision on site n addition, t e develop ent of nterprise ata are ouse is e pected to be an effective eans to onitor and present infor ation on t e condition of t e as a ole as a atter of deter ining t e policy to be taken plikasi elaporan nline is a eb based application t at serves to provide services to inancial nstitutions in fulfilling t e obligation of online reporting can be accessed by internal or e ternal users of t roug t e ebsite ttps apolo o k go id facilitated reporting as follo s in table
65 Indonesia Banking Booklet 2018
e e tin th h O O
FSI’s that are e e t e te e ti ns O i e e es e t
i i it egulation - o ercial upervisor ve e ti nu ber anks ank ( e tin - o ercial concerning anks e uire ent o eet - oreign anks i uidity overage atio or o ercial anks
nest a of epublic ate ay, ic upervisor e tin ndonesia nu ber co prises ank ( of concerning anks, a nesty nvest ent anagers, and ecurity rokers ealers e tin egulation nu ber ll s s elpdesk rbbpr o k g Chapter 2 Chapter n h i concerning ural ank o id Rural Bank’s and Sharia Rural Bank’s siness ns usiness lans ( e tin - egulation u ber ll s elpdesk Sharia’s pelaporanbus ini concerning ini u o k go id it apital de uacy e c e uire ent for aria e i e ent o ercial anks n is se - ircular etter ei hte sset u ber concerning alculation of perational - ircular etter u ber concerning alculation of redit and - ircular etter u ber concerning alculation of arket
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Sis a anan n r asi uan an Sis a anan n r asi uan an S is an in r a i n s s ana d su r h i l n a i n su r is r du i s and in r a i n s r i in inan n a rdan i h h r isi ns l isla i n is au h ri d r ula and d l an and d in r ank in r a i n s s in l in h r ins i u i ns in h inan ial s r h r r in rd r arr u i s du i s and un i ns d s i n ssar d l a n s s su r r di a ss in r a i n hr u h S S an us d a ili a h r ss r idin unds h i l n a i n risk ana n h ass ss n h uali d rs and i r h dis i lin h inan ial indus r
Fi ure R a a I le entati n S I Chapter 2 es bli atory embership for all an entura apital ull ompanies mplementation nfrastructure an eb inancin ompanies trial eacti ate an a n ompanies
pril es nau uration of bli atory reportin by embership for all SID’S reporter s s an financin institutions
aralel un ith until es
S s ar s ull ra i n as anuar r la in h r l S S ar in r his da r isi n d r in r a i n h u li has rans rr d r B h u li ill a l ain his s r i in dir l h ad i n a n r and R i nal i i u l s
67 Indonesia Banking Booklet 2018
Fi ure e hanis Re uest r e t r In r ati n thr u h S I
Debtor OJK Consumer Service Officer-in-charge performs verification of the completeness of 3 Officer-in-charge performs request 2 the documents and print debtor 1 A debtor comes to OJK by information bringing supporting documents and filling out a debtor information request form
Officer-in-charge confirms by giving explanation and handing over result of debtor information to the debtor as well as the receipt 4
5 Debtor receives iDeb
Supporting documents for requesting iDeb are: 1. Individual person debtor Photocopy of identity card by exhibiting the original identity, comprising KTP for Indonesian Citizen or Passport for Foreign Citizen 2. Business enterprise debtor Photocopy of the identities of the business enterprise and the management by exhibiting the original identity of the business enterprise, comprising Tax Identity Number (NPWP), company deed of incorporation, and the latest amended articles of association.
Fi ure S e e t r In r ati n hat the u li an tain
Chapter 2 Chapter D
ra i n h S a li a i n r rs R ula i n nu r n rnin R r in and R u s in r n r a i n hr u h h Sis a anan n r asi uan an S s ri i n h r ula i n is r s n d in ha r
ust er u ati n an r te ti n r i l u r n rnin ri as asa uan an s a s ha n h asks is r id r i n r h nsu rs and r h u li n r la i n nsu r r i n his s a s ha inan ial S r i ns i u i n is an ins i u i n ha ndu s a i i i s in h Bankin a i al ark nsuran nsi n und inan in ns i u i n s rs
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and h r inan ial S r i ns i u i ns nsu rs ar ar i s h la h ir unds and r u ili s r i s r id d a S s rin a n h rs us rs a Banks in s rs a a i al ark li h ld rs a h nsuran s r as ll as ar i i an s in nsiun unds as d n l isla i ns a li a l in h inan ial S r i s S r r h ur s i l n in nsu r r i n has issu d R ula i n u r n rnin inan ial S r i s S r nsu r r i n hi h s a s ha inan ial S r i s Busin ss rs S ar r ial Banks Rural Banks S uri ani s n s n d is rs us dian Banks nsiun unds nsuran ani s R insuran ani s inan in ns i u i ns a n ani s and uaran ani s rin h s ha ndu usin ss a i i i s in n n i nal ann r as ll as as d Chapter 2 n sharia rin i l s his r ula i n s i ula s h li a i n S r id inan ial du a i n h nsu rs and r u li s ha h an r und rs and h asi a ur s ri h s li a i ns ri r and h n u ili in inan ial r du s s r i s his an r du h n ial r nsu r l ss s du la k und rs andin la k lari rr n us in r a i n i n S n addi i n i h r ards nsu r r i n S s ar li d a l rans ar n rin i l air r a n r lia ili nsu r da a in r a i n n id n iali and s uri and lain handlin as ll as s l n s dis u s i h h nsu rs in a si l ui k and inan iall a rda l ann r
n lin i h h i l n a i n h nsu r r i n r inan ial S r i s S r r ula d h inan ial nsu r r i n S ra S r h ri d hi h has a isi n r a in ark dis i lin in nd n sia s inan ial s r i s s r hi h ill su r inan ial s s s a ili and na i nal n i r h sus aina ili in nd n sia and has a issi n in r asin nsu r and uni rus in r a i i in h inan ial s r i s s r r idin r uni i s and r uni i s r
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inan ial s r i s ins i u i ns d l airl i i n l and rans ar n l and r ali in nsu rs h ha an und rs andin h ri h s and li a i ns in ass ia d i h inan ial s r i s ins i u i ns n r ali in h isi n and issi n a S ri d nsis s ur illars na l n ras ru ur illars R ula i n illars ark ndu illars and ilar du a i n uni a i ns
Fi ure illars S eri –
S I Market Confidence & Market Dicipline
I S I D I D I I
I I I I I II III I
Chapter 2 Chapter has a r a h s in r r in i s un i n in h i ld SS nsu r du a i n and r i n na l r n i a i ns r n i a i ns ar arri d u in h r s r ula i n and i l n a i n in h i ld nsu r du a i n and r i n du a i n hi h is r n i in na ur is r uir d as h ini ial s r nhan in inan ial li ra h u li s ha h ha a d und rs andin inan ial s r i r du s and s r i s in ludin asi a ur s n i s and risks inan ial s r i r du s and r s r i s as ll as h ri h s and li a i ns inan ial nsu rs r n i a i i i s an ndu d hr u h ari us dia and a s na l a r isi n inan ial in r a i n and du a i n h h r dir l a a hr u h u li s r i ad r is n s and hr u h nlin dia sika iuan u k id and s ial dia nsu r and r u li lain s r i hr u h s nsu r S r i s ark in lli n r r n in n ial l ss s
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n h ar h nsu rs d s l ass ss n s su i d S h a i Sur illan and sus nsi n a i i i s r h r a i ns n addi i n r idin du a i n and n in in r a i n sh uld als nsur ha r du s and s r i s ad a aila l S h nsu r r i n rin i l ir ular r S n rnin r isi n n r a i n r h ur s h ark in inan ial S r i r du s and r Services governs the offering of FSIs’ r du s s r i s hr u h rs nal uni a i n d i s l h n ssa s r i ail and ui al n d i s r dir isi s ha ar n l ann in h nsu rs and r u li h Chapter 2 ll in ar in s ha S s sh uld l i h in i in rs r du s s r i s hr u h rs nal uni a i n d i s na l a uni a i n a nl ad n nda hr u h Sa urda u n n na i nal h lida s r – l al i a h a r n s r r u s s andida nsu rs r nsu rs in r h na h S and lain irs h purpose and objective before offering the FSI’s r du s and r s r i s and in h as h S is usin a rs nal uni a i n d i in h r l h n h S sh uld ak a aila l and us a i r rdin d i h n r uir d as id n h is n a l al a i n und r ak n a nsu r and h S a ur and r h n r uir d h Su r isi n ar n a rin d and r l r si n d h nsu r sh uld r s n d and h i r rdin d i ha r rds h Consumer’s approval presented in printed r an r a d as h ui al n a
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ritten approval statement signed b the Consumer
I
S
S
Chapter 2 Chapter
instructing FS s to settle complaints
epressive ctions epressive actions are underta en in the forms of complaint settlements facilitations for dispute settlements suspensions of activities or other actions and legal defenses to protect consumers underta es preventive and repressive actions that are directed at financial inclusion and financial s stem stabilit epressive actions are e ecuted through a facilitations for complaint settlements and b legal defenses for Consumers b instructing FSI to settle Consumers’ complaints Integrated Consumer Services stablishment of Integrated Consumer Services is one of the implementation forms of the mandate of the ct concerning in its effort to provide education and protection for the Consumers and public against violations of the ct and regulations applicable in the FSS under the authorit of here are several a s to access these services
72 Indonesia Banking Booklet 2018 n mel ele one l onsumen o o s m le e s te tt onsumen o o o le s n ro n mu Co e
n or er to ro e ons stent ser es meet l le re u rements e e Customer ommun t s t s t on n m e ont nuous m ro ement s Customer er e s m lemente n e e ert t on s n e o em er ere re t ree t es o Consumer er es t t Chapter 2 n e o t ne t e ommun t n mel e ome l e or Consumers to on e n orm t on l e or t e n n l Consumer n t e ommun t to s e omes l e or Consumers to su m t om l nts rel t n to ro u ts n or ser es m e n o ere un er t e ut or t o s e ll or t e su m ss on o om l nts t e re u re o uments re s ollo s t e e en e s su m tte om l nt to t e rele nt n or t e ns er om lete ent t es r t on o t e om l nt n su ort n o uments n Consumers n or ommun t es re ree o r e to o t n ll t e o e ser es n t on Customer er es e een su orte t e nte r te Consumer er e stem t t s t e ollo n e tures r le t tr le s stem Consumers re le t n t me to no out t e ro ress o
73 Indonesia Banking Booklet 2018
om l nts t t e een lo e t r e le t tr e le s stem re le to no t e resolut on ro ess o om l nts or s utes t t nnot e settle et een t e n t e r Consumers or t e Consumers e re ueste settlement l t t on rom t e
Figure 2.14. Infographics of OJK’s Customer Services CO IC IO CO I IC S I S
S C O S Center or e u t on resse to em er o ont n n onsumer ser es n n l OJK’s Board of t e ronolo su ort n Comm ss oners n r e o ess or ro m ll n o s ute o uments o t e om l nt Consumer u t on n e um le nter r ses located at OJK’s Regional rote t on lre es t roo o SI O o C n ture s u n mu o o l roo o s ute un er to u l ro ess
I F e er een l t te t t t e s ute s or ot er not un er u l ro ess or onsumen o o s ute settlement e n l t te not er nst tut ons s ute settlement nst tut on
I FO IO C I S IC CO S CO I S IC
Su mission of esponse optiona tracea e
S ISSIO trac a e Of information to Chapter 2 Chapter eceipt of Information materia I FO IO I process re ate or unit institution optiona
I IS I OC I FO IO O ISIO S IC verification CO SS re uest
uestion I
avai a e no le e n ement agree ispute stem
Su mit a esponse not avai a e agreement I I appointment of F O I O I faci it F CI I O verification for isagreement invo ving on
COO I IO ith re ate or unit institution
ntern l s ute esolut on t n r t n r e e ts t t e n m lement st n r to re l e e ellent onsumer rote t on ro l n st n r s t ree m ort nt ene ts or n mel en our n t e to e u e s s or e elo n m n mum t n r er t n ro e ure or t e m lement t on o onsumer ser es ro n ert nl n us ness ro ess me n sm rel te to n en our n oo settlements o om l nts on t e s es o t e n Consumers
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le entation of R tandard s o ld e ased on nine rinci les a isi ilit lici es t e roced re for lodging o laints to ons ers lic and ot er sta e olders ccessi ilit as a facilit for o laint andling ser ice t at is easil accessi le for t e ons ers c Res onsi e i ediatel andles follo s and settles ons er o laints as ell as ro ides clear infor ation on t e stat ses and res lts of o laint andling to t e ons ers in accordance it re ailing roced res and reg lations Chapter 2 d air reat ent andles eac ons er o laint in a fair o ecti e and i artial anner e ost of o laint er ice does not i ose c arges on o laint andling e ce t for ot er ser ices re ested t e ons er o tside t ose alread ade a aila le t e ic a o nts are co nicated to and a ro ed t e ons er and are erifia le f ata onfidentialit sa es g ard t e confidentialit of infor ation concerning ons ers o a e lodged co laints against an art osoe er e ce t en re ired OJK for t e r ose of settling co laints re ired legislations and or it t e a ro als of t e ons ers g oc s on ons er in a alanced anner a s attention to t e interests of ons ers t ro g co it ent and i le entation in o laint settle ents it o t neglecting t e rig ts and o ligations of ot arties cco nta ilit
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as clear f nctions str ct res s ste s rig ts and o ligations res onsi ilities and a t orities ot on t e arts of t e as ell as t e ons ers in relation to i le entation re orting as ell as decision a ing on o laint andling i ontin o s ro e ents nderta es contin o s i ro e ents on o laint andling rocess in order to en ance t e alit of rod cts and or ser ices n i le enting co laint andling a is o liged to erfor follo s and settle ents of co laints it in no later t an or ing da s it a ti e e tension of no later t an t e ne t or ing da s gi ing ritten notices to t e ons ers rior to t e e irations of t e set ti e eriods nder certain conditions
Figure 2.1 . Infographics of I Stan ar
Chapter 2 Chapter
R B
I S ser ices for settle ent of co laints B s sta lis ent of a or nit F C IO for t e andling of co laints ic is acco nta le to t e oard of directors ro ision of s orting I I for e lo ees at O ning I CO O s ste ini ti e d ring t eir t at erfor s internal f nction ser ice eriods for co laint ser ices settle ent at B C IS or nit
S O o n OC and FO O on co laints S IC S for co laint settle ent
ro ision of I FO IO on S S of co laints
ro ision of CC SS to co laint onitoring OJK O I I IO to i ose c arges
S FO co laint
I S I OC SS S
isagree e istence of related to ISC CI S FI CI in agree ent as ect
e istence of cons er as et gree I t e O I IO loss on co laint ser ices settle ent B to O I OJK
re orted s itted e er osition of S C IO of a ent SIC and O S on enalt on B t at is late in C O IC t e t s itting does not s it re ort
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lternati e is te Resol tion Bodies is te settle ents t ro g lternati e is te Resol tion Bodies e aga lternatif en elesaian eng eta are ade en dis te settle ents et een cons ers and no n as R do not reac agree ents ro ides dis te settle ent ser ices t at can e accessed easil are ic ine ensi e as ell as erfor ed an reso rces o are co etent and nderstand t e e an ing sector alread as t e ndonesian Ban ing lternati e is te ettle ent Bodies e aga lternatif en elesaian eng eta er an an ndonesia ic as started to o erate at t e eginning of
Figure 2.1 . Infographics of S Chapter 2
C IS for co laint settle ents at
POST
cons er s its erification of re est confir ation of recei t S for doc ents of re est for co laint settle ent co laint settle ent
mediator arbiter
ajudikator
agreement reac ed co laint se ection or settle ent rocess appointment of a t ro g t ird art me iation or a u ication or ist of deter ined OJK ar itration ins rance ca ital ar et
ension f nd g arantee
financing and an ing a ns o s erfor s monitoring of i le entation of agree ent
77 Indonesia Banking Booklet 2018
es of ser ices ro ided a ediation et od for settling dis tes t ro g a t ird art ediator to el t e dis tants to reac an agree ent d dication et od for settling dis tes t ro g a t ird art ad dicator ic ill a e a decision on a dis te t at arises et een t e referred arties n ad dication decision is inding on t e arties concerned if t e cons er acce ts it n t e e ent t e cons er re ects t e decision t e cons er a see anot er resol tion effort c r itration et od for settling a ci il dis te of co rt ased on an ar itration agree ent ade in riting t e dis tants n ar itration decision is final and inding on t e arties
Chapter 2 Chapter ar et ond ct or t e r ose of creating and de elo ing t e and en ancing ons er rotection OJK nderta es ons er rotection onitoring and anal sis sing t e elf ssess ent et od and e atic r eillance e elf ssess ent is one of t e tec ni es for ons er rotection onitoring t e filling o t of a or ing a er t at descri es t e condition of ons er rotection i le entation erfor ed a t ro g t e i le entation of a ro ision of ed cation con e ance of infor ation for t e r ose of t e ar eting of financial ser ice rod cts and or ser ices c standard agree ents et een ons ers and d confidentialit and sec rit of ons er ersonal data and or infor ation e cons er co laint ser ices and settle ents and f ser ices for t e r ose of dis te settle ents
78 Indonesia Banking Booklet 2018
Figure 2.1 . etho for onitoring an na ing Consumer rotection
Based on res lts of t e elf ssess ents OJK cond cts anal ses t at are erified against t e co laint re orts ar et intelligence res lts ster Chapter 2 s o ing and s er ision data ase Res lts of t e atic s r eillance anal ses in ic res lts of initial anal ses are co ared it res lts of i le entation of t e t e atic s r eillance acti ities t ro g ons er rotection olic as ell as ar et intelligence res lts are f rt er disc ssed to co e it reco endations for t e an s er ision or nit to erfor s er isor actions i osition of sanctions
ips on Consumer rotection
irst re ie t e rofile of t at offers t e rod cts or ser ices Re ie et er t e rod cts or ser ices offered a e recei ed a ro als or are listed at t e OJK Read caref ll eac infor ation or contract related to t e rod cts or ser ices offered t e and re est e lanations en re ired in order to a e clear nderstanding of all atters rior to ing or signing an contract agree ent is o liged to gi e a co of contract agree ent to t e ons er Be ca tio s of an attracti e offer or ad ertise ent t at
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ro ises a c ig er ret rn t an t e co on ractice and i ediatel lodge a re ort or co laint to OJK ene er a ro le arises in relation to a rod ct or ser ice alread sed t e ons er
ips on Secure Internet an ing
rotect t e co ter it anti ir s s are filter and e ail filter soft ares as ell as fire all rogra ediatel contact and re ort to t e ene er t ere is so et ing s s icio s o not ans er an e ail t at re ests for ersonal infor ation ill ne er re est ersonal infor ation s c as ersonal dentification er or ass ord ns re t at o are accessing t e correct e site address of the FSI’s internet banking. Do not click on a website Chapter 2 Chapter address t at is deli eratel iss elled or is si ilar it t e gen ine address
ips on Investment Characteristics o Cautious Of
Offering e tre el ig rate of ret rn arantee of free ris in est ent i ing ge on ses and cas ac s for e ers o can recr it ot er e ers is ses of t e testi onies of co nit leaders for gi ing effects of endorse ent and tr st ro ises of ease in it dra als of assets alread in ested and sec rit g arantee on assets alread in ested ease fle i ilit and sec rit B ac g arantee it o t rite do n rading B siness icense rat in sa a erdagangan is not a license for acc lating lic f nd and anaging in est ents
80 Indonesia Banking Booklet 2018
Figure 2.1 . I ustration of a Case of Fun ccumu ation ithout ermit
In ears erio f n s ata ate ati an at with he blic tr sts an is a o nting to ario s wa s to attract the intereste to beco e billion fro attention of the blic to e bers an lace f n s eo le were acc late acc late f n s at ata at ata ersa ara ersa ara
ata oblige the e bers to fin blic e bers who were
can i ate new e bers b t an e bers began to be Chapter 2 e bers ref se an beca e angr worrie an re este earl fter ear ata f n isb rse ents ersa ara began to ha e iffic lt in fin ing new e bers an th s a ents of interests to e bers began to stall
ata ersa ara i not ha e a er it fro for acc lating f n s fro the blic. e bers lo ge a co laint on this roble to aw nforce ent fficer
81 Chapter 2 82 CHAPTER 3 OJK's POLICY DIRECTION Indonesia Banking Booklet 2018
this page is intentionally left blank Chapter 3 Chapter
84 Indonesia Banking Booklet 2018
A. OJK 2018 Policy Direction Starting from 2018 onward, OJK assesses that the Financial Services Sector faces a number of challenges, covering among others: 1. The rising need for infrastructure development financing, considering the limitation of state’s budget. 2. The yet low competitiveness of Indonesia’s financial services sector relative to those of other countries in the region. 3. The existence of financial technology that develops rapidly and requires quick and appropriate policies from regulators. 4. There is a high expectation that the financial services sector becomes the solution to the efforts of lowering the level of inequality and stepping up public welfare through financial literacy and provision of financial access to the wide public. 5. Offers of illegal investments that are wide spreading and causing losses to the public by utilizing low public financial literacy level. 6. Challenges coming from the external side, such as normalization of monetary policies in advanced countries and world geopolitical challenges. To face those challenges in 2018, OJK has set six Strategic Policies that are cross-sectoral, strategic, and have wide impacts on the stakeholders, namely; Chapter 3 1. Support infrastructure financing and priority sectors as well as deepen the financial market, by among others: - Increasing access for domestic investors as well as involvement of financial service institutions in the regions through the issuance of the policy on Regional Security Company establishment. - Boosting the widening and utilization of more varied financing instruments, covering among others perpetual bonds, green bonds, and regional bonds, including implementation of collective investment contract scheme. 2. Enhance financial education and literacy, by among others: - Developing financial education models that are on
85 Indonesia Banking Booklet 2018
target and measurable by utili ing various delivery channels. - ptimi ing the role of the Tas orce for Investment lert in ta ing action against illegal investments. . ptimi e supervision of the financial services industry, by among others - ptimi ing the role of technology in integrated supervision in the ban ing, capital mar et, and non ban financial industry sectors by applying international standards that have been ad usted to Indonesian condition. - tepping up efficiency through more intensive use of information technology. . romote innovations in technology products fintech in the financial services sector that are advantageous to the public, by among others - Issuing the policy for perators of igital inancial ervices, covering the mechanism for registration and licensing, as well as application of regulatory sandbo and policy on crowdfunding. - irecting financial service institutions to step up synergy with fintech companies or establish fintech business lines. . tep up efficiency and competitiveness of the financial services industry, by among others - romoting synergy between ban s and other financial institutions in infrastructure pro ect
Chapter 3 Chapter financing. - Intensifying the application of technology in developing products and services. . ncourage the improvement and e uity of community welfare, by among others - eveloping eople usiness redit rogram redit saha a yat lusters, which involve the channeling of accompanied by mentoring and mar eting of products by core companies, namely tate wned usiness nterprises , egional overnment wned usiness nterprises , illage
86 Indonesia Banking Booklet 2018
wned usiness nterprises es ultiple illage wned usiness nterprises es as well as the private sector companies. - ptimi ing the function of the egional inance ccelerated ccess Team Tim ercepatan ses euangan aerah T Team to empower low income communities in the regions.
B. Development of OJK’s Policies in Banking Sector in 2017 Financial Inclusion and Public Welfare arious efforts have been made by in facilitating the level of ine uality to decrease and the welfare of the wide public to improve, which are in the forms of a. idening the a u andai branchless ban ing program, with the total number of customers reaching , million and involvement of . agents as well as total savings balance reaching p , trillion. b. romotion of financing to be more directed to the productive sectors. Total reali ed financing channeled through the program until ecember reached p , trillion or , of the target. c. Initiation of the ational luster program for several leading commodities in order to accelerate the distribution of in some ban s which business Chapter 3 models are not in the retail segment. d. ptimi ing the role of the T which currently comprises T at the provincial, regency as well as city levels.
Consumer Education and Protection also see s to increase public awareness related to consumer education and protection in the financial services sector, in the forms of a. ublication of results of the urvei asional dan In lusi euangan I ational and inancial Inclusion urvey for all sectors, which shows financial literacy inde of . and financial inclusion inde of . . These figures increase compared to results
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of the I for all sectors, namely financial literacy inde of . and financial inclusion inde of . . The financial literacy and inclusion inde es in the ban ing sector are presented in the following table.
a le an inancial iterac an ncl sion n e es
pe of n e 2013’s Index 2016’s Index
iteration , , Inclusion , ,
b. In order to improve the financial literacy and inclusion inde es mentioned above, has enacted egulation umber . concerning nhancement of inancial iteracy and Inclusion on ecember , . To further detail the egulation, has issued ircular etter umber . concerning inancial iteracy and ircular etter umber . concerning inancial Inclusion with the hope that financial literacy and inclusion enhancement can be materiali ed as mandated in the residential ecree umber of through a synergy among the inancial ervice Institutions. c. inancial onsumer rotection trategy trategi erlindungan onsumen euangan for the period of – , was launched on ay , Chapter 3 Chapter and covers three phases, namely uilding hase from to , evelopment hase from , and cceleration hase from period. In its implementation, the refers to four pillars, namely Infrastructure onsumer protection regulation upervision of mar et conduct and ducation and communication. d. oosting the Tas force for Investment lert to be more active in reviewing the various investment offers that are wide spreading amongst in the public and are actively giving public announcements appeals on entities that do not have business licenses and have
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Investigation of Banking Cases
Sistem Layanan Informasi Keuangan Chapter 3
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e 3 1 e n e e en I e n n es
2500 2000 1500 Total 1000 500 SLIK 0 Mei 1 Jan 31 Dec 31 Dec 2017 2018 2018 2022 Total 2242 2221 2221 2221 SLIK 1622 1629 2135 2221
Explanation: “Total” comprises the total number of all FSIs. Meanwhile, “SLIK”
Online Reporting of Bank Liquidity Coverage Ratio Chapter 3 Chapter
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occurrence of crisis con itions. Followin up this K e ulation, in , K launche the use of L application as the online L reportin system. Users of this application are from OJK’s external side (reporting banks) as well as OJK’s internal side. eportin ban s ma access the mo ule for uploa in reports, ownloa in reports, an a ministrati e users from the ban s as fficers in har e. Meanwhile, for OJK’s internal side, this application is used in supervision an monitorin of reports from ban s. eportin ban s ha e be un submittin L reports online on March , for ata on Februar position. The Monthl L reports submitte b the ban s comprise uantitati e reports with set calculation format as well as qualitative reports (containing banks’ analyses of the L calculations an or alues usin a template set in the K e ulation on L .
RB and SRB Business Plan Online Reporting The business plans of s an S s is one of the most important references for K in e elopin an optimal an effecti e an S super ision plans. Earl preparation of business plans will enable smooth operational acti ities of s an S s from the be innin of the ear. ith the enactment of K e ulation umber K. concernin usiness lans of ural Chapter 3 an s an Sharia ural an s, K re uires all s an S s to submit their usiness lans online. Followin up on this K e ulation, in , K launche the use of L application as an online reportin s stem for the business plans of s an S s. The online usiness lan submission was first performe on ecember , . Four t pes of reportin mo ules that shoul be reporte online b s an S s are usiness lan Submission, usiness lan ustment, usiness lan men ment, an usiness lan eali ation.
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e 3 2 In n n n ne ss n nd s ness ns
ONLINE SUBMISSION OF RURAL BANK & SHARIA RURAL BANK BUSINESS PLANS
OJK Regulation No.37/POJK.03/2016
RURAL BANK & SHARIA RURAL BANK BUSINESS PLANS
A written document that describes the plans for RB & SRB development and business activities within a certain timeframe and strategies for realizing the plans according to the targets and time lines set.
RB SRB
RB & SRB annual work plan becomes RB & SRB business plan
Annual Work Plan RB & SRB Business Plan Annual Work Plan Reports are Starting 1 November 2017, RB & to be reported by RBs & SRBs to SRB BPs are reported online to OJK in hardcopies OJK with the internet through the Aplikasi Pelaporan Online OJK (APOLO) Chapter 3 Chapter
Deadline and Scope of Report
Submission Deadline Scope of Report To be submitted no later than • Executive summary 15th December before the start of the • Business strategies and policies • Financial report projection Business Plan year based on data of • Target ratios and financial the month of October position. accounts • Fund accumulation plan RBs & SRBs should submit business • Fund channeling plan • Capital plan plan realization reports each semester, • Plan for information technology no later than 1 month after the end of and human resource organization the relevant semester. developments • Plan for implementation of new business activities • Plan for changes in office networks • and others
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Regional Cooperation in the Framework of ABIF n June , OJK has explored cooperation with the entral ank of the hilippines through a etter of ntent, which is the first step before a bilateral agreement. hus, until now there have been three countries that are interested to explore cooperation with ndonesia, namely ingapore, hailand and hilippines. here is a country that already has a bilateral agreement with ndonesia, namely alaysia, through the signing of a bilateral agreement between OJK and ank egara alaysia in .
Issuances of Regulation concerning Banking Regulating hroughout , OJK has issued OJK egulations in the field of banking. he explanations of the OJK egulations and the banking stipulations that are still valid until are presented in the hapter of ndonesia anking ooklet .
Special Policy for Victims of Natural Disaster OJK has issued a special policy regarding determination of the quality of credits in areas in ndonesia that suffer from the impacts of natural disasters. his policy aims to let banks apply relaxation on determination of the quality of overall credits (including restructured credits) on debtors that are affected by the impacts of natural disasters or pro ects located in natural disaster distressed areas. he Chapter 3 special policy is temporary but is expected to accelerate the recovery of post natural disaster banking performance and economic condition.
e 3 2 e e s e s e n e n n e x n n ed d e d e n e d s s e e ex e en ed egency of angroe arthquakes years, since idie Jaya ceh January th arussalam ity of ima usa loods years, since enggara January th arat
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e n e d e d d s s e e ex e en ed egency of ali olcano years, since Karangasem eruptions ecember th egency of umatera olcano year, since Karo Utara eruptions January nd
his special policy refers to OJK egulation umber OJK. concerning pecial reatment on ank redits or inancings for ertain reas in ndonesia ffected by atural isasters.
Development of Sharia Banking hroughout the year , several activities have been carried out, among others, as follows . eview of isk overnance and anagement. his study aims to identify the implementation of the management principles, formulate aspects that need to be developed and the impacts that arise in the implementation of organi ation management in accordance with the business volume. . tudy of stablishment of Jakarta nternational slamic inancial enter (J ). he purpose of the study is to provide recommendations on the shape or design of an international sharia financial center that best suits ndonesia s conditions.
Chapter 3 Chapter . haria conomic and inancial esearch orum orum iset konomi dan Keuangan yariah ( K ) OJK and ndonesian slamic conomy xpert ssociation katan hli konomi slam ndonesia ( ) have conducted K activities with the theme owards a ew aradigm for evelopment of ndonesia s haria inance ndustry trengthening the ole of overnment . . mplementation of ctivity of haria anking mpowerment orking roup in evelopment of Organic arming in ndonesia. meeting of the Organic arming orking roup ollow Up on
94 Indonesia Banking Booklet 2018
inancing hanneling to Organic arming ector has been conducted. ach member of the orking roup, especially from sharia banking, submitted a report on the results of the financing distribution plans to the organic farming sector. . i esearch rant rogram. he main ob ectives of this program are to accelerate implementation of the research agenda, as well as to support researches on sharia banking by students and researchers from the external side of OJK. esults of the researches are expected to be useful in supporting the formulation of OJK’s policies in the fields of sharia banking and finance. . tudy of stablishment of ompanies for s. he study aims to map a oint scheme model of information technology development for s in an umbrella organi ation for an ompany and identify strategic issues related to that oint information technology development. . tudy of he mpacts of ulti licenses for s. he application of “one fits for all” for SRBs is deemed to be no longer appropriate, since there are considerable asset and capital gaps in the industry. herefore, the nature of “one fits for all” needs to be reviewed so that each can have business activities that are in accordance with its capacity. Chapter 3 . tudy of haria usiness Unit everaging. his study aims to support the development of the sharia banking industry in relation to the obligation of Us to spin off in . . tudy of haria anking haring latform. his study aims to support development of the sharia banking industry in relation to the obligation of Us to spin off in . . reparation of haria inance evelopment eport aporan erkembangan Keuangan yariah ( K ). he purpose of this report is to ensure that all stakeholders, both within and outside the country, obtain complete information concerning the development, policy implementation, and
95 Indonesia Banking Booklet 2018
development direction of sharia finance during KS has been translated into nglish in order to broaden the publication concerning information on sharia finance development to international stakeholders ooperation with slamic inancial Services Board SB s one of the SB members OJK has submitted responses related to two SB surve s namel Surve on echnical ote on inancial nclusion and slamic inance and Surve uestionnaires on he mplementation of he SB Standards ro ect on the establishment of orld slamic nvestment Bank B B is a pro ect concerning the establishment of a sharia based infrastructure financing institution initiated b the B reparation of ational Strateg for inancial arket evelopment and eepening Strategi asional engembangan dan endalaman asar Keuangan S K S K is one of the mandates of the formation of oordination orum evelopment inancing hrough inancial arket orum Koordinasi embia aan embangunan elalui asar Keuangan K K comprising OJK B and inistr of inance OJK is tasked to anal e the role of sharia banking in financial market development and deepening reparation of the ndonesian ational ualification ramework Kerangka Kualifikasi asional ndonesia
Chapter 3 Chapter KK for SRBs n October ocus roup iscussion and orkshop on ormulation of KK of SRBs were held with the industries inistr of anpower SB S O ndonesian Sharia Bank ssociation and rofessional ertification nstitution – ertif n ovember there was an e ternal verification of SRB KK with the inistr of anpower followed b SRB KK onvention in ecember reparation of Sharia Rural Bank SRB ertification odule s a follow up of SKK and KK that have been prepared it is necessar to formulate the SRB
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Development os Sharia Banking Products and Education Chapter 3
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Transformation of Regional Development Bank
Chapter 3 Chapter
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earning credit products in the effort to enhance RDBs’
Chapter 3
99 100 CHAPTER 4 BANKING REGULATIONS Bab 4 Bab Indonesia Banking Booklet 2018
this page is intentionally left blank Chapter 4 Chapter
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In accordance with the Republic of Indonesia Act number 21 of 2011 concerning Otoritas Jasa Keuangan, OJK is authorized to regulate or stipulate provisions concerning business aspects and activities of the banking industry. These provisions are in the form of Regulations of Otoritas Jasa Keuangan and Circular Letters of Otoritas Jasa Keuangan. In addition, OJK also has the authority to convert the stipulations issued from institutions such as the Ministry of Finance, Capital Market and Financial Institution Supervisory Agency, and Bank Indonesia (BI). Throughout 2017, OJK has issued 23 OJK regulations in the banking field. Out of these 23 OJK regulations, there are 14 OJK Regulations which are conversions from Bank Indonesia Regulations, Bank Indonesia Circular Letters, and Decree of the Board of Directors of Bank Indonesia. The list of the 23 OJK regulations is as follows:
Table 4.1. List of OJK Regulations issued during the year 2017 No. OJK Concerning Date Notes Regulation 1 13/POJK.03/ Use of the Services of March 27th New 2017 Public Accountants and 2017 Regulation Public Accounting Firms in Financial Service Activities 2 14/POJK.03/ Recovery Plans for April 4th New 2017 Systemic Banks 2017 Regulation 3 15/POJK.03/ Determination of the April 4th New 2017 Status and Follow Up of 2017 Regulation Commercial Bank Supervision 4 16/POJK.03/ Bridge Bank April 4th New 2017 2017 Regulation 5 18/POJK.03/ Reporting and Requesting April 26th New 2017 of Debtor Information 2017 Regulation through Sistem Layanan Informasi Keuangan 6 19/POJK.03/ Determination of the May 10th New 2017 Status and Follow Up of 2017 Regulation the Supervision of Rural Banks and Sharia Rural
Banks Chapter 4 7 36/POJK.03/ Prudential Principles in July 12th Conversion 2017 Capital Participation 2017 of Activities Regulation
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No. OJK Concerning Date Notes Regulation 8 37/POJK.03/ Utilization of Foreign July 12th Conversion 2017 Workers and Transfer of 2017 of Knowledge Program in Regulation Banking Sector 9 38/POJK.03/ Implementation of Risk July 12th Conversion 2017 Management at 2017 of Consolidation level at Regulation Banks that Conduct Control Over Subsidiary Companies 10 39/POJK.03/ Single Ownership in July 12th Conversion 2017 Indonesian Banking 2017 of Regulation 11 40/POJK.03/ Credits or Financing to July 12th Conversion 2017 Security Companies and 2017 of Credits or Financing with Regulation Share Collaterals 12 41/POJK.03/ Requirements and July 12th Conversion 2017 Procedure for Bank 2017 of Examination Regulation 13 42/POJK.03/ Obligation concerning the July 12th Conversion 2017 Preparation and 2017 of Implementation of Bank Regulation Credit or Financing Policy for Commercial Banks 14 43/POJK.03/ Follow ups of the July 12th Conversion 2017 Implementation of Bank 2017 of Supervision Regulation 15 44/POJK.03/ Restrictions on the July 12th Conversion 2017 Provisions of Credits or 2017 of Financing by Commercial Regulation Banks for Land Procurement and/or Land Preparation 16 45/POJK.03/ Special Treatments on July 12th Conversion 2017 Bank Credits or Financing 2017 of for Certain Areas in Regulation Indonesia Affected by Natural Disasters 17 46/POJK.03/ Implementation of July 12th Conversion 2017 Commercial Bank 2017 of Compliance Function Regulation 18 47/POJK.03/ Obligation concerning the Juli 12th Conversion 2017 Provision of Funds for 2017 of Education and Trainings Regulation for the Development of Chapter 4 Chapter Human Resources of Rural Banks and Sharia Rural Banks
104 Chapter 4 105
s: s Note Booklet 2018 New New Regulation Conversion of Regulation New Regulation Conversion of Regulation New Regulation
Indonesia Banking
2017
ember Date Regulation on Risk Risk on Regulation Dec 18th July 12th July 2017 13rd July 2017 July 12th 12th July 2017 27th July 2017
is an amendment of any Government Government any of isamendment an Conversion of Regulation of Conversion Concerning lment of Net Stable Stable Net of lment ulations are only undertaken when there are are there when undertaken only are ulations Provision of Provision Sharia for Remunerations and Banks Commercial Sharia Business Units Commercial Banks Commercial of Application the in Governance Bank Financial Condition Financial Bank Obligation concerning the Fulfi Funding Ratio for Transparency of Rural Legal Lending Limits of Lending Legal Banks Rural of Implementation Sustainable Finance for Service Financial Institutions, Issuers, and Companies Public
Definition of of Definition concerning the financial services sector and any and sector services financial the concerning of regulation regulation of OJK Regulation 59/POJK.03/ 2017 2017 49/POJK.03/ 2017 50/POJK.03/ 2017 51/POJK.03/ 2017 48/POJK.03/ Replacement of the Act on BI tothe BI of Act on Replacement OJK theAct on legal as Of” section. the in View “In regulations in basis Adjustment of the provisions concerning references by by references concerning provisions the of Adjustment example, the for the provisions, to current referring BI the to refers regulation previous the to OJK Regulation refers one the but new Management Management. Risk concerning Jasa "Otoritas to Indonesia" "Bank thein phrase Change
onversion onversion 23 22 20 21 19 No. no changes in the substances in the previous regulations. regulations. thein previous thein substances changes no the core concerning changes are substances in Changes regulations. the previous of principles other among are not substantive are that changes Meanwhile, legislation issued by the Ministry of Finance, Capital Market and and Market of Finance, by Capital the Ministry issued legislation Indonesia Bank and Agency, Supervisory Institution Financial Letter. OJK Circular and/or Regulation OJK an become to (BI) reg of Conversions Regulation Regulation C 1. 2. 3. Indonesia Banking Booklet 2018
euangan while et obser ing the conte t of the regulate substances. . li ination of clauses that contain obligations which ea lines for i le entation ha e asse such as an re ocation of re ort or action lan sub ission obligation which was enforced when a BI Board of Directors’ Decree, I egulation I ircular etter first beca e effecti e. . ust ents an or a itions to a ter inolog sti ulation in the conte t of har oni ation with the current sti ulation or financial accounting stan ar such as the re lace ent of the ter oreign an ranch Office with a branch office of a ban o icile abroa an the use of the wor aset is use to re lace the wor a ti a . . ust ents an or a itions to the closing section to re o e the sti ulation being con erte an or other ro isions reco en e to be re o e because the substances is irrele ant. I le entation of the con ersions of sti ulations shall be con ucte in or er to follow u on the an ate of the ct concerning Otoritas asa euangan which states that as of ece ber the functions uties an authorities concerning the regulating an su er ision of financial ser ice acti ities in the an ing sector are transferre fro I to O . In a ition the con ersions of I sti ulations into O sti ulations also ai to reinforce O authorit o er such ban ing regulating. ro u to O egulations ha e been issue as the results of con ersions with the list of O egulations resente in the a en i .
u ar of ban ing regulations O an I egulations that are et ali .
A. Regulations on Bank Institutional Arrangement, Management, and Ownership 1. Establishment of Banks an s can onl be establishe an un erta e business acti ities with licenses fro O . Chapter 4 Chapter a. o ercial an s
106 Indonesia Banking Booklet 2018
aid ca ita sho d e no ess than tri ion and can on e esta ished and or owned Indonesian citi ens and or Indonesian e a entities or Indonesian citi ens and or Indonesian e a entities with forei n citi ens and or forei n e a entities in a artnershi haria o ercia Ban s B aid ca ita sho d e no ess than tri ion and can on e esta ished and or owned Indonesian citi ens and or Indonesian e a entities or Indonesian citi ens and or Indonesian e a entities with forei n citi ens and or forei n e a entities in a artnershi c ra Ban Ban er reditan a at B aid ca ita sho d e no ess than one , i ion one , i ion one , i ion and one , i ion an on e esta ished and or owned Indonesian citi ens Indonesian e a entities with a Indonesian citi en owners e iona o ern ents or wo or ore of those arties referred to in n ers , , and d haria ra Ban s Ban e ia aan a at ariah B ini aid ca ita is differentiated into fo r ones as fo ows one , i ion one , i ion one , i ion and
one , i ion Chapter 4 he ones fo ow the one arran e ent for con entiona B B can on e esta ished and or owned Indonesian citi ens and or Indonesian e a
107 Indonesia Banking Booklet 2018
entities with a Indonesian citi en owners e iona o ern ents or wo or ore of those arties referred to in n ers and e enin of orei n Ban Branch ffice enin of a orei n Ban Branch ffice can on e nderta en when the an eets the fo owin re ire ents a in ood ratin and re tation wnin tota assets that is inc ded a on wor d ar est and acin siness f nd in r iah c rrenc or forei n c rrencies in the a e of no ess than the e i a ent of tri ion f enin of orei n Ban e resentati e ffice enin of a orei n Ban e resentati e ffice can on e nderta en when the tota assets of the an that is oin to o en a e resentati e ffice is inc ded a on wor d ar est e resentati e ffice is on a owed to cond ct acti ities s ch as a on others ro ides e anations to third arties concernin the re ire ents and roced re for nderta in re ationshi s with the o erseas ead ffice Branch ffice B ssists o erseas or B in onitorin credit co atera s ocated in Indonesia cts as the a thori ed art in contactin a encies instit tions for the interests of its o erseas or B cts as s er isor of ro ects that are art or f financed its o erseas or B nderta es ro otiona acti ities for the r ose of introd cin the an ro ides infor ation concernin Indonesian trades, econo , and finance to o erseas arties or ice ersa and ssists Indonesian e orters to o tain ar et
Chapter 4 Chapter access o erseas thro h internationa networ s owned the e resentati e ffice
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or ice ersa ransfor ation of i a e redit enc Badan redit Desa B D that Is i en he tat s s ra Ban B rrent there are an B D with siness icenses fro the inister of inance which are i en the status of RB. However, with BKD’s unique o erationa characteristic that is not the sa e as B in enera , B D that are i en the stat s as B are e e ted fro each e is ation a ica e on B ith the effecti eness of e ations, B D that are i en the stat s of B are not e e ted fro an re ation enera a ica e on B nder this re ation, B D are o i ed to eet re ations a ica e on B, a on others those re ated to the instit tion, i e entation of B acco ntin standard, r dentia rinci e, re ortin , and financia trans arenc no ater than Dece er his an for f fi in sti ations a ica e on B sho d e incor orated into an action an and s itted to no ater than Dece er or the r ose of f fi in sti ations a ica e on B, a n er of B D a nderta e er in or a a a ation n B D that cannot f fi sti ations a ica e on B a choose to chan e its siness acti ities into icro inance Instit tion e a a e an an i ro or its siness entit into i a e wned B siness nter rise B Desa i a e wned B siness nit unit usaha B Desa has the a thorit to re o e the siness icense of B D that acts as B, in the cases of B D that nderta e er in or con ersion n B D which cannot eet the sti ations a ica e on B or cannot i e ent the Chapter 4 action an no ater than Dece er n B D which is not acti e in o eration does not s it infor ation on its ein acti e or arter financia re ort d rin the
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first one ear after the K Re u ation o es into effe t n BKD that has han e its usiness a tivities or its usiness entit into K or B Desa an n BKD that su its a request for revo ation of Business i ense at its own initiative h. ransfor ation of onventiona i ro inan e nstitution into Rura Ban an haria i ro inan e nstitution into haria Rura Ban Base on the an ate of t u er of on ernin i ro inan e nstitution, a K a e an the rea h of its finan ia servi es to the u i outsi e its re en it transfor in into a an . K shou transfor into a RB or a haria K K shou transfor into a RB when on u tin usiness a tivities outsi e the re en it of the o i i e of the K or K or he K or K a rea owns a. quit a ountin to at east five ti es of the require ini u ai u a ita for RB or RB in a or an e with the rovisions of e is ations an . hir art fun s in the for of e osits a u u ate in the ast one ear a ountin to at east ti es of the require ini u ai u a ita for RB or RB in a or an e with the rovisions of e is ations. n K K that has a rea o taine a usiness i ense fro K an owns ore a ita of R i ion a su it a request for transfor ation at its own initiative to K eetin the set require ents. urther on, K a ive a rova re e tion no ater than wor in a s sin e the request an o ete require
Chapter 4 Chapter o u ents are re eive .
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2. Bank Ownership un sour es use for the ur ose of ownershi of a B B an RB RB are rohi ite to ori inate a. fro oans or finan in fa i ities in whatever for s fro a an an or other arties in n onesia an or . fro an for the ur ose of one aun erin . e ifi a in the ase of RB, fun sour es a ori inate fro Re iona Revenue an en iture Bu et n aran en a atan an Be an a Daerah BD . arties that a e o e an owners shou eet the fo owin require ents a. Has oo hara ter an ora s, whi h are ref e te a on others an attitu e of o ian e to revai in re u ations, not havin een senten e ue to roven ase of ri e within the ast ears rior to no ination . Has a o it ent for o in with revai in e is ations . Has a o it ent for the eve o ent of soun an in o eration an in res e t of a sharia an , has a hi h o it ent for the eve o ent of soun an resi ient sharia an . ot ein iste in the ist of arties not re o en e to e the ain arties, for e a e ist of ai e ersons in Ban in ie an e. Has a o it ent for not oin an or re eatin ertain a tions in the ase of a an i ate e ers of oar of o issioners or an i ate e ers of oar of ire tors who has revios re eive the re i ate of Havin ai e in the it an ro er est an has un er one san tions set the K. han es in an ownershi fo ows the ro e ure for han es in an ownershi as sti u ate in revai in
e is ations. Chapter 4 3. Sole Ownership in Banks in Indonesia he rin i e in the so e ownershi o i is that ea h art an on e o e a ontro in hareho er in one B in n onesia. n the event a art has e o e
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the ontro in hareho er in ore than one an s or have ur hase shares of another an that auses the art on erne to e o e the ontro in hareho er in ore than one an , the art on erne shou eet the re u ation on ernin o e wnershi . he fu fi ent of the re u ation on ernin o e wnershi shou e erfor e throu h a. er er or onso i ation of an s un er its ontro . esta ish ent of a arent o an in the an in fie or . esta ish ent of a ho in fun tion. he so e ownershi o i is e e te for a. a ontro in hareho er in two an s, where ea h an res e tive on u ts usiness a tivities un er ifferent rin i e, na e in onventiona anner an ase on haria rin i es an . a ontro in hareho er in two an s, where one of the an s is a oint venture an . ontro in hareho er, whi h hooses the er in onso i ation o tion in or er to eet the ownershi stru ture that is in ine with this re u ation, wi re eive in entives in the for s of a. te orar easin in the fu fi ent of tatutor Reserve Require ent iro a i ini u . ti e e tension for sett e ent of e ee an es a ainst the a i u e a en in i it Batas a si u e erian Kre it B K . ease in o enin ran h offi es an or . te orar easin in the i e entation of . he e a entit for of a arent o an in the an in fie sha e i ite ia i it o an esta ishe in n onesia in ine with the rovisions of revai in e is ations in n onesia. he ho in fun tion a on e un erta en a ontro in hareho er that is a an of n onesia e a entit or Re ublic of Indonesia’s Government Agency. he arent o an in the an in fie an the
Chapter 4 Chapter ho in fun tion shou rovi e strate i ire tions
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and consolidate financial re orts of ban s t at are its s bsidiary com anies. In accordance it t e reg lation concerning it and ro er est in t e case of a ontrolling are older t at is a legal entity t e definition of ontrolling are older a lies to t e ltimate o ner and controller of t at legal entity ltimate s are olders . Along t is line t e definition of aving nderta en control bot directly as ell as indirectly s all also refer to t e reg lation concerning it and ro er est. 4. Share Ownership of Commercial Bank it t e iss ance of eg lation mber . o ners i of entral Government of ban s can be erformed directly as ell as t ro g legal entities t at are directly controlled by t e entral Government. An ad stment as been made in antici ation of and to align it t e lan to form a olding com any for ban s it anare sa as t e olding com any so t at t e limitation on entral Government o ners i in ban s does not c ange. or t e r ose of administering o ners i str ct re as decided t e ma im m limit on s are o ners i at ban s based on categories of s are olders and relations i s bet een s are olders as follo s a. A ban financial instit tion and non ban financial instit tion legal entity may o n of ban ca ital b. A non financial instit tion legal entity may o n of ban ca ital and c. An individ al s are older may o n of ban ca ital. a im m limit for individ al s are o ners i in a is of ban ca ital. a im m limit for s are o ners i does not a ly on entral Government and instit tion t at as t e Chapter 4 f nction of andling and or resc ing ban s. elations i s bet een ban s are olders are based on a. e e istence of o ners i relations i
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b. e e istence of family relations i to t e second degree and or c. e e istence of coo eration or similar action in order to ac ieve oint ob ective in controlling t e ban acting in concert it or it o t a ritten agreement so t at ointly all arties ave t e rig t o tion or ot er rig ts for o ning ban s ares. In t e case t e candidate ontrolling are older is a oreign iti en and or a legal entity domiciling overseas t e candidate ontrolling s are older s o ld meet t e follo ing re irements a. as a commitment to s ort t e develo ment of Indonesia’s economy through the bank owned; b. as obtained a recommendation from t e original country’s s ervisory a t ority for a financial instit tion legal entity and c. as a rating of of no less t an level notc above t e lo est investment rating for a ban financial instit tion legal entity levels notc es above t e lo est investment rating for a non ban financial instit tion legal entity or levels notc es above t e lo est investment rating for a non financial instit tion legal entity. A ban financial instit tion legal entity may o n ban s ares of more t an of ban ca ital as long as it as t e a roval of and meets t e set re irements. An individ al and or legal entity may rc ase t e s ares of a directly as ell as t ro g t e bo rse. mber of s are o ners i by a oreign iti en foreign legal entity s all be no more t an of the concerned bank’s total shares. Any shareholder, ic o ns ban s ares more t an t e ma im m limit of o ners i s o ld ma e an ad stment to t e ma im m limit of s are o ners i based on t e res lts
Chapter 4 Chapter of so ndness level assessment and or G G assessment for t e assessment osition of end of ecember .
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hareholders of any bank with the assessment ratings for oundness e el and or of , or for the assessment osition of ecember , should make an ad ustment to the ma imum limit of share ownershi no later than years since anuary . hareholders of any bank with the assessment ratings for oundness e el and of or for assessment osition of ecember may still kee the shares amounting to the share ercentage it owns. here is an obligation to make ad ustment to ownershi limit if the bank suffers a lowering in oundness and or le el to ratings , , or during three consecuti e assessment eriods or at the shareholder own initiati e to sell the shares it owns. Im lementation of the ma imum limit of bank share ownershi a licable for egional o ernments and arent com anies is sti ulated as follows a. ma imum limit of share ownershi for egional o ernments which are going to establish or ac uire a bank is for each egional o ernment; and b. a arent com any in the banking field that is established to meet the re uirement concerning sole ownershi is e em ted from ma imum limit of share ownershi . owe er, if later on the arent com any is going to ac uire another bank, the ma imum limit of share ownershi a licable shall be the highest ownershi limit of the shareholder category of the arent com any in the banking field. ecial e uirement on hare wnershi a. ank hare wnershi of ore han he re uirement for being able to own bank shares of more than is among others ha ing bank oundness le el assessment with com osite rating of or or e ui alent for Chapter 4 bank financial institution that domiciles o erseas, meeting the inimum a ital Ade uacy e uirement in accordance with the risk rofile, and core ca ital tier of no less
115 Indonesia Banking Booklet 2018
than . Assessment osition used for the abo e three re uirements is assessment osition of no less than the last one year. b. e uirement on In estment ating le el notch abo e the lowest in estment rating, for a bank financial institution legal entity; le els notches abo e the lowest in estment rating, for a non bank financial institution legal entity; or le els notches abo e the lowest in estment rating, for a non financial institution legal entity. 5. Management and Human Resources a. anagement of ommercial ank embers of oard of ommissioners and members of oard of irectors should meet the re uirements of integrity, com etency, and financial re utation. he re uirement and rocedure for assessing fulfilment of those re uirements are sti ulated in regulations concerning it and ro er est and . oard of ommissioners a umber of members of board commissioners of a shall be no less than three ersons and no more than the number of members of board of directors. At least one members of board of commissioners should domicile in Indonesia. b oard of commissioners is led by resident commissioner; c oard of commissioners com rises of commissioners and inde endent commissioners; d o less than of members of board of commissioners are inde endent
Chapter 4 Chapter commissioners; e ach ro osal for re lacement and or
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a ointment of members of board of commissioners in the hareholder eneral eeting should obser e recommendation of the emuneration and omination ommittee. f embers of board of commissioners should meet the re uirement of ha ing assed the it and ro er est in accordance with re ailing regulation; g A member of board of commissioners can only hold concurrent osition as member of board of commissioners, member of board of directors, or e ecuti e officer in a non financial institution com any or a member of board of commissioners, member of board of directors, or e ecuti e officer that e ecutes the o ersight function in a non bank subsidiary com any controlled by the bank; h A member of board of commissioners is not considered to hold a concurrent osition when a non inde endent member of board of commissioners erforms the functional task of the shareholder of a bank in the form of a legal entity within its business grou ; and or a member of board of commissioners holding a osition in a non rofit organi ation or institution, as long as the erson concerned does not ignore the tasks and res onsibilities as member of the bank’s board of commissioners; i a ority members of the board of commissioners are rohibited from ha ing family relationshi s u to the second degree with other members of the board Chapter 4 of commissioners and or members of board of directors; embers of board of commissioners should e ecute their tasks and
117 Indonesia Banking Booklet 2018
res onsibi i ies inde enden and are ro ibi ed from bein in o ed in decision makin on bank o era iona ac i i ies; k embers of board of commissioners s o d es ab is a eas di ommi ee; isk oni orin ommi ee; em nera ion and omina ion ommi ee; ee in s of board of commissioners s o d be e d eriodica no ess an fo r imes in a ear a ended b a members of e board of commissioners sica a eas o imes in a ear n e e en an member of e board of commissioners canno a end e mee in s sica e erson concerned ma a end e mee in ro e econference ec no o m n former member of board of direc ors or e ec i e officer of e bank or ar ies o a e re a ions i s i e bank ose ca aci o ac inde enden can be inf enced canno become an inde enden commissioner in e bank concerned before nder oin e coo in off eriod of one ear is s i a ion is no a icab e on former member of board of direc ors or e ec i e office o as erformed e o ersi f nc ion oard of irec ors a embers of a board of direc ors s o d be no ess an ree ersons members of board of direc ors s o d domici e in ndonesia; b oard of direc ors as ed b residen direc or; c ac ro osa for re acemen and or a oin men of member of board of direc ors b board of commissioners in e
Chapter 4 Chapter s o d obser e recommenda ion of
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e em nera ion and omina ion ommi ee; d a ori of members of board of direc ors s o d a e e erience in bank o era ion of a eas fi e ears in e o era iona fie d as a bank e ec i e officer e ce a ic cond c s b siness ac i i ies based on aria rinci es; e ank residen direc or s o d come from a ar inde enden of e on ro in are o der; f a ori members of board of direc ors are ro ibi ed from a in fami re a ions i s o e second de ree i e o er members of board of direc ors and or members of board of commissioners; n member of board of direc ors is ro ibi ed from o din a conc rren osi ion as member of board of commissioners member of board of direc ors or e ec i e officer in ano er bank com an and or ins i ion; member of board of direc ors is no considered o o d a conc rren osi ion en e direc or concerned is res onsib e for the supervision of the bank’s ar ici a ion in a s bsidiar com an erforms e f nc iona ask of member of board of commissioners in a non bank s bsidiar com an con ro ed b e bank as on as e o din of conc rren osi ion does no ca se e erson concerned o i nore e erformance of asks and res onsibi i ies as member of bank board of direc ors; Chapter 4 i n member of board of direc ors bo indi id a as e as oin is ro ibi ed from o nin s ares e ceedin of aid ca i a in ano er com an ;
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n e ber of boar of ire tors is prohibite fro ivin a enera po er of attorne to another part that auses a transfer of tasks an fun tions of the ire tor k oar of ire tors is fu responsib e for the i p e entation of bank ana e ent oar of ire tors shou ana e the bank in a or an e ith their authorities an responsibi ities as set in the arti es of asso iation an provisions of prevai in e is ations oar of ire tors is responsib e for the a ountabi it of its task i p e entation to the shareho ers in the n oar of ire tors shou is ose to the e p o ees bank po i ies that are strate i in the fie of personne o e isions a e b boar of ire tors that are in ine ith the ork ui e ines an ru es are bin in an be o e the responsibi it of a e bers of boar of ire tors an p n for er e ber of boar of ire tors or e e utive offi er of the bank or parties ho have re ationship ith the bank hose apa it to a t in epen ent an be inf uen e annot be o e an in epen ent part as a e ber of the u it o ittee or isk onitorin o ittee in the bank on erne before un er oin the oo in off perio of si onths his stipu ation is not app i ab e on for er e ber of boar of ire tors or e e utive offi e ho has perfor e the oversi ht fun tion ank shou i p e ent risk ana e ent in re ation to bank ana e ent e e utive offi ers
Chapter 4 Chapter openin status han e a ress transfer an or osin of bank offi es hi h i in u e at east
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tive supervision b boar of o issioners an boar of ire tors e ua of po i ies pro e ures an i it settin e ua of the risk i entifi ation easurin onitorin an ontro as e as risk ana e ent infor ation s ste an vera interna ontro s ste pprova to the p an for openin status han e a ress transfer an or osin offi es in the ne t one ear is iven on the onsi eration of a on others a revie sub itte b the bank hi h ontains at east i n ent ith business strate an i pa t on finan ia pro e tion e hanis for bank offi e supervision an perfor an e assess ent vera bank i e ana sis overin a on others e ono i on ition risk ana sis an finan ia ana sis an an on operationa preparations overin a on others hu an resour es an other supportin fa i ities b ana e ent of haria o er ia ank haria o er ia ank oar of o issioners e bers of boar of o issioners an boar of ire tors shou eet the re uire ents of inte rit o peten an finan ia reputation he re uire ent an pro e ure for assessin the fu fi ent of those re uire ents are stipu ate in re u ation on ernin it an roper est oar of o issioners un ertakes oversi ht on i p e entation of the tasks an
responsibi ities of the boar of ire tors as Chapter 4 e as provi es a vi es to boar of ire tors hi h are i p e ente b usin as referen es a on others the stipu ation on ernin i p e entation app i ab e for banks
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oar of o issioners have the fo o in etai s a u ber of e bers of boar o issioners sha be no ess than three persons an no ore than the nu ber of e bers of boar of ire tors b t east one e ber of boar of o issioners o i i es in n onesia oar of o issioners is e b presi ent o issioner o ess than of e bers of boar of o issioners are in epen ent o issioners e a h proposa for appoint ent an or rep a e ent of e bers of boar of o issioners in the shou observe re o en ation of the e uneration an o ination o ittee f e ber of boar of o issioners an on ho on urrent position as e ber of boar of o issioners e ber of boar of ire tors or e e utive offi er in a non finan ia institution o pan or a e ber of boar of o issioners or e ber of boar of ire tors ho e e utes the oversi ht fun tion in a non bank finan ia institution subsi iar o pan o ne b the bank a e ber of boar of o issioners e ber of boar of ire tors or e e utive offi er in a o pan hi h is a shareho er of the bank or an offi er at no ore than three non profit institutions a orit e bers of the boar of o issioners are prohibite fro havin fa i re ationships up to the se on e ree ith other e bers of the boar of o issioners an or e bers of
Chapter 4 Chapter boar of ire tors
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h oar of o issioners shou onitor an eva uate i p e entation of the strate i po i ies an i or the purpose of i p e entin the tasks an responsibi ities oar of o issioners shou estab ish at east i isk onitorin o ittee ii e uneration an o ination o ittee an iii u it o ittee haria o er ia ank oar of ire tors a e bers of boar of ire tors shou be no ess than three persons b e bers of boar of ire tors shou o i i e in n onesia oar of ire tors is e b presi ent ire tor a h proposa for appoint ent an or rep a e ent of e ber of boar of ire tors in the shou observe re o en ation of the e uneration an o ination o ittee e a orit of e bers of boar of ire tors shou have e perien e of at east four ears as an e utive ffi er in the bankin in ustr of hi h ini u one ear at east as an e utive ffi er in a an or or a that is estab ishe throu h the onversion of business a tivities fro a this re uire ent is on ob i ator on one an i ate e ber of boar of ire tors an shou be et b a orit of the boar of ire tors no ater than t o ears after the i ense for business a tivit onversion has been iven f he presi ent ire tor shou o e fro a Chapter 4 part in epen ent of the ontro in hareho er n e ber of boar of ire tors are prohibite fro ho in on urrent
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position as e bers of boar of o issioners e ber of boar of ire tors or e e utive offi e in another bank o pan an or institution e ept hen i the ire tor is responsib e for the supervision of participation in bank’s subsi iar o pan is perfor in the fun tiona task as e ber of boar of o issioners in a non bank subsi iar o pan ontro e b the bank an or iii a ire tor o up in positions in t o non profit institutions h n e ber of boar of ire tors both in ivi ua as e as oint is prohibite fro o nin shares e ee in of the pai up apita in another o pan i oar of ire tors is fu responsib e for i p e entation of the ana e ent base on pru entia prin ip e an haria rin ip es a orit of e bers of boar of ire tors is prohibite fro havin fa i re ationships up to the se on e ree ith the other e bers of boar of ire tors an or e bers of boar of o issioners k n e ber of boar of ire tors is prohibite fro ivin a enera po er of attorne to another part that auses a transfer of tasks an fun tions of the ire tor oar of ire tors is responsib e for the a ountabi it of its task i p e entation to the shareho ers in the ura ank ana e ent ura ank ana e ent o prises boar of ire tors an boar of o issioners e bers of boar of ire tors an e bers of boar of
Chapter 4 Chapter o issioners shou eet the re uire ents of o peten inte rit an finan ia reputation
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ura ank oar of irectors a e bers of boar of irectors s a be no ess t an t o persons b e bers of boar of irectors s ou ave for a e ucation of no o er t an or ac e or e ree or as co p ete at east cre its in a bac e or e ree pro ra c o ess t an of e bers of boar of irectors s ou ave e perience as officers in t e fie of bank operation of no ess t an t o ears or ave un er one interns ip session of no ess t an t ree ont at e bers of boar of irectors s ou ave passin certificates fro ertification nstitutions e e bers of boar of irectors are pro ibite fro avin fa i re ations ips fro ot er e bers of boar of irector an or e bers of boar of co issioners in re ations ips suc as parent c i parent in a s son au ter in a s usban ife sib in or sister brot er in a f n e ber of boar of irectors is pro ibite fro o in concurrent position as e ber of boar of irectors or e ecutive officer in a bankin institution co pan or anot er institution an n e ber of boar of irectors is pro ibite fro ivin a enera po er of attorne t at causes a transfer of tasks an aut orities it out i it ura ank oar of o issioners
a e bers of boar of co issioners Chapter 4 s ou be no ess t an t o persons b o ess t an of e bers of boar of co issioners s ou ave t e kno e e an or e perience in t e bankin fie
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c n e bers of boar of co issioners a on o concurrent position as co issioners in no ore t an t o ot er or e bers of boar of co issioners are pro ibite fro o in positions as e bers of boar of irectors at an or e e bers of boar of co issioners s ou o perio ic eetin s of boar of co issioners no ess t an four ti es in a ear an f en re uire b e bers of boar of co issioners s ou present resu ts of oversi t over t e aria ura ank ana e ent ana e ent co prises boar of irectors an boar of co issioners e bers of boar of irectors an e bers of boar of co issioners s ou eet t e re uire ents of i co petenc ii inte rit an iii financia reputation 1) oar of o issioners a oar of co issioners is e b presi ent co issioner b e bers of boar of co issioners s ou be no ess t an t o persons an no ore t an t e nu ber of e bers of boar of irectors c n t e event t e nu ber of e bers of boar of irectors is ore t an t o persons t e nu ber of e bers of boar of co issioners s ou be no ore t an t ree persons t east one e ber of boar of co issioners s ou o ici e c ose to t e ocation of t e an e n e ber of boar of co issioners a on o concurrent position at no
Chapter 4 Chapter ore t an t o ot er co panies as i e bers of boar of co issioners in
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ot er or or ii e bers of boar of co issioners e bers of boar of irectors an or e ecutive officers at ot er non bank institutions co panies iii a co bination of etter i an etter ii 2) oar of irection a oar of irectors s a be e b presi ent irector b e bers of boar of irectors s a be no ess t an t o persons c o ess t an of e bers of boar of irectors inc u in t e presi ent irector s ou ave operationa e perience at east i t o ears as officers in t e fie of fun in an or financin in s aria bankin ii t o ears as officers in t e fie of fun in an or cre it in conventiona bankin an ave kno e e in s aria bankin fie or iii t ree ears as e bers of boar of irectors or e uiva ent to irectors at s e bers of boar of irectors s ou ave for a e ucation of no o er t an ip o a or ac e or e ree e e bers of boar of irectors s ou ave passin certificates fro certification institutions no ater t an t o ears after effective ates of t e appoint ents f resi ent irector an ot er e bers of boar of irectors s ou act in epen ent in perfor in t eir tasks e bers of boar of irectors are responsib e for i p e entin t e ana e ent of as an inter e iation institution b fu fi in t e pru entia princip e an aria rincip es Chapter 4 e presi ent irector s ou be a part in epen ent of t e ontro in are o er i e bers of boar of irectors s ou
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o ici e c ose to t e ocation of t e ea ffice of e bers of boar of irectors are pro ibite fro avin fa i re ations ips it i ot er e bers of boar of irector in re ations ips suc as parent c i parent in a s parent of son au ter in a son au ter in a usban ife sib in or sister brot er in a an or ii e bers of boar of co issioners in re ations ips suc as parent c i parent in a parent of son au ter in a son au ter in a usban ife or sib in k n e ber of boar of irectors is pro ibite fro o in concurrent position as e ber of boar of irectors e ber of boar of co issioners e bers of aria upervisor oar or e ecutive officer in a financia institution business entit or anot er institution e cept as t e ana e ent of non profit or ani ations institutions as on as i p e entation of t e tasks as irector of is not isrupte an it s ou be reporte to an n e ber of boar of irectors is pro ibite fro ivin a enera po er of attorne t at causes a transfer of tasks aut orities an responsibi ities to anot er part e aria upervisor oar n a ition to bank ana e ent co prisin boar of co issioners an boar of irectors t e or ani ation structure of an a so co prises a aria upervisor oar ic tasks an responsibi ities are a on ot ers assessin an ensurin t e fu fi ent of aria
Chapter 4 Chapter rincip es in operationa ui e an pro ucts issue b bank
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supervisin t e eve op ent process of bank ne pro ucts re uestin fat a fro ationa aria oar e an aria asiona for bank ne pro ucts t at o not et ave fat a perfor in perio ic revie concernin t e fu fi ent of aria rincip es on t e ec anis s for fun accu u ation fun c anne in an provision of bank services an re uestin ata an infor ation re ate to s aria aspect fro bank ork units in t e i p e entation of t eir tasks In the case of a SRB, the implementation of SSB’s tasks an responsibi ities covers nu ber up to nu ber aria princip es in activities re ate to fun accu u ation financin an ot er services are business activities t at o not ave t e e e ents of riba usur maisir a b in gharar haram i icit an zalim un ust u ber of e bers of in a s a be no ess t an t o persons or no ore t an of e bers of boar of irectors ean i e nu ber of e bers of in a t at as or in a s a be no ess t an t o persons or no ore t an t ree persons s a be e b a c air an o is one of t e e bers of an an e ber of a on o concurrent position as e bers of at no ore t an four ot er s aria financia institutions f eve op ent of ankin u an esources an s ou provi e e ucation fun s for t e en ance ent of u an resource kno e e an ski s in t e bankin fie n t e case of a e ucation fun s s ou be no ess t an of tota e pen iture bu et for Chapter 4 u an resources ean i e for a e ucation fun s s ou be no ess t an of t e rea i e u an resource e pen iture in t e previous ear f t ere is an outstan in ba ance in
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e cation f n s, the emainin f n s sho l e added to the following year’s education and t ainin f n s Implementation of e cation an t ainin can e n e ta en a of o n implementation the an pa ticipatin in e cation p o ams n e ta en othe an s oinin ith othe an s in hol in e cation p o ams o sen in h man eso ces to pa ticipate in e cation p o ams hel an in e cation instit tions he e cation plan efe e a o e sho l ecei e app o al f om Boa of ommissione s o S pe iso Boa of B S B RB SRB ompetenc e tification o em e s of Boa of i ecto s an em e s of Boa of ommissione s of R al Ban s an Sha ia R al Ban s o the p pose of maintainin s staina ilit of competenc alit of mem e s of oa of i ecto s an mem e s of oa of commissione s of RB an SRB, RB an SRB sho l e o li e to pe io icall en oll each mem e of oa of i ecto s an mem e of oa of commissione s in o competenc maintenance ce tification p o am n RB o SRB sho l ha e mem e s of oa of i ecto s an mem e s of oa of commissione s ho all ha e o ompetenc e tificates iss e ofessional e tification Instit tions e els of o ompetenc e tifications fo RB an SRB mem e s of oa of i ecto s an mem e s of oa of commissione s a e as follo s o ompetenc e tificate le el sho l e o ne memes of oa of i ecto s of an RB an SRB ith a total assets of less than Rp illion o ompetenc e tificate le el sho l e
Chapter 4 Chapter o ne mem e s of oa of i ecto s of an RB an SRB ith a total assets of at least
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illion and or o etency ertificate for e ers of oard of co issioners is only of one le el and does not ta e into account the total asset of the and he organi ers of or o etency ertification should e rofessional ertification nstitutions listed at 6. Fit and Proper Test for Main Parties of Financial Service Institutions or the ur ose of su orting the reali ation of ri e licensing considers it necessary to enhance the regulation concerning fit and ro er test so that can ro ide licensing ser ices for ownershi and anage ent of in a ore ra id a ro riate easy and trans arent anner n addition there is also a need for aligning regulations concerning fit and ro er test a lica le on in the an ing ca ital ar et and sectors he referred align ent is re uired for re enting the occurrence of regulatory ar itrage and inconsistency in the i le entation of the fit and ro er test in regulated and su er ised y andidate ontrolling hareholders candidate e ers of oard of directors and candidate e ers of oard of co issioners should o tain a ro als fro efore erfor ing actions tas s and functions although they ha e recei ed a ro als fro and ha e een a ointed y the he criteria used in the fit and ro er test for an ain arties are a ntegrity and financial feasi ility for candidate ontrolling hareholder and ntegrity financial re utation and co etency for candidate e ers of oard of directors and candidate e ers of oard of co issioners ay discontinue the fit and ro er test on an candidates of an ain arties when the candidates Chapter 4 concerned are undergoing legal rocesses and there are indications of ro le s in integrity financial feasi ility financial re utation and or co etency in a esults of assess ents y will e deter ined
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no later than wor ing days after all re uest docu ents ha e een recei ed in co lete condition
Table 4.29. Objects and Criteria of Fit and Proper Test Object of Fit and Proper Criteria of Fit and Proper Test Test andidate ontrolling ntegrity and financial hareholder feasi ility andidate e ers of ntegrity co etency and oard of co issioners financial re utation and candidate e ers of oard of directors
7. Bank Merger, Consolidation, and Acquisition a erger consolidation and ac uisition ay e undertaken at the concerned bank’s own initiative, at OJK’s request, and/or at the initiative of a special agency and should o tain a er it fro erger or consolidation ay e underta en etween a co ercial an and a sharia an when the an resulting fro the erger or consolidation eco es a an ased on haria rinci les or a con entional an that owns a ranch ffice ased on haria rinci les ac uisition ay e underta en y an indi idual or a legal entity through urchase of oth art of as well as all of an shares directly as well as through the ourse which causes a transfer of an control to the arty that underta es the ac uisition hare urchase that is considered to cause a transfer in an control is in which share ownershi eco es or ore of an aid u ca ital or less than of an aid u ca ital ut it oth directly as well as indirectly deter ines bank’s management and/or policies.
Chapter 4 Chapter erger consolidation and ac uisition of a ay e underta en at the concerned RB/SRB’s own initiative or at OJK’s request, and
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should obtain a permit from OJK. merger or consolidation ma onl be undertaken between RB or SRB. merger or consolidation between a RB and a SRB ma onl be undertaken when the RB resulting from the merger or consolidation becomes a SRB. merger or consolidation of RB/SRB ma be undertaken between RB/SRB domiciling in the same provincial area or between RB/SRB within different provinces as long as the offices of RB/SRB resulting from the merger/consolidation will be located in the same provincial areas. cquisition of a RB/SRB ma be undertaken b an individual or a legal entit through share take over which results in the transfer of the RB/SRB control. Share purchase that is considered to cause a transfer in RB/SRB control is in which share ownership becomes or more of RB/SRB paid up capital or less than of RB/SRB paid up capital but it, both directl as well as indirectl , determines bank’s management and/or policies. 8. Incentives in Bank Consolidation OJK gives incentives to banks which undertake merger or consolidation. he forms of the said incentives are a. ease in provision of the license to become a foreign currenc bank b. temporar easing in the fulfilment of c. time e tension for settlement of e ceedances against the egal ending imit resulting from the merger or consolidation d. ease in the provision of licenses for opening bank branch offices e. reimbursement of part of consultant fee for the Chapter 4 implementation of due diligence and/or f. temporar easing in the implementation of several stipulations in the regulation that governs for B/S B.
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anks t at plan a merger or consolidation s o ld s bmit a re est or planned tili ation o incenti es t at s o ld be s bmitted b one o t e banks t at participate in t e merger or consolidation and signed b t e president directors o all banks t at participate in t e merger or consolidation 9. Opening of Bank Office ank s o ld state plans or opening stat s c ange and trans er o address and/or closing o bank o ices one ear in ad ance in ank siness lan. bmission o t e plans toget er it t e re ie s s o ld be in line it t e reg lation concerning . as t e a t orit to instr ct an bank to postpone t e plans or opening stat s c ange and/or trans er o address of bank offices if in accordance with OJK’s assessment t ere are among ot ers a decline in so ndness le el bank inancial condition and/or an increase in bank risk pro ile. anks are obliged to state clearl t e name and t pe o bank o ice at eac bank o ice. a. ommercial anks bank s o ld cond ct b siness acti ities and e pand o ice net orks in accordance it t e bank’s basic capacit ic is t e core capital. operating in accordance it its capacit it is belie ed t at a bank can a e a better resilience and be more e icient beca se its acti ities are oc sed on prod cts and acti ities in ic t e bank e cels. long t e same line t e locations ere bank o ices are located a e di erent coe icients. o pro ide ease in t e calc lation o core capital allocation t e area o ndonesia is di ided into si ones starting rom one ic is a cro ded one it ig coe icient p to one ic is a one ere t ere is still lo n mber o banks and as a lo coe icient.
Chapter 4 Chapter
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Figure 4.1. Division of zones and determination of coefficients one one one oefficient oefficient oefficient K Jakarta Jawa arat Ka i antan r O erseas Jawa en ah Ke a an ia o akarta atera tara Jawa r a i
one one one oefficient oefficient oefficient ia ceh atera e atan Ja bi Ka i antan atera arat awesi en ah en ah an ka e it n oronta o Ka i antan e atan en k awesi arat awesi tara a n a k tara awesi e atan Ka i antan arat a k a a awesi a a arat en ara Ka i antan tara
f a bank ans to o en a new office network the e istin bank office networks sho d first be taken into acco nt a ainst bank core ca ita then the re ainin a o nt wi deter ine the n ber and t e and ocations of bank new offices that can be o ened b o estic o ercia ank ranch Offices branch office o enin sho d et a er it fro OJK a bank director or officer in the board of directors s b its a re est for o enin of a branch office to OJK s e ented with s ortin doc ents in ine with the re ation concernin a ro a or re ection on bank re est sha be i en no ater than workin da s after the re est doc ents are recei ed in co ete Chapter 4 condition and i e entation of branch office o enin sho d be done no ater than workin da s after the date of OJK’s permit is issued.
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. ommer ia a O erseas ra h Offi es Ope i of o erseas ra h offi e represe tati e offi e a d other t pes of offi es oth of operatio a ature as e as o operatio a ature shou d o tai a permit from OJK. he permit shou d e e e uted ithi o e ear si e the permit from OJK is issued a d a e e te ded for o o er tha o e ear ased o a reaso that a e ustified ope i a o erseas offi e shou d a so o tai a permit from the local country’s authority; the permit a e a arded OJK he the a has e ome a forei urre a for o ess tha mo ths has stated the p a for ope i the ra h offi e i a usi ess a has met the re uireme ts of sou d ess e e ade uate apita a d ris profi e a d has ear address or domi i e for the operatio a offi e appro a or re e tio o a re uest shou d e i e o ater tha or i da s after the re uest do ume ts ha e ee re ei ed i omp ete o ditio a d ope i of ra h offi e a o e u derta e K a d K a s ith the fo o i re uireme ts a K a ma u derta e offi e et or ope i o erseas ut imited to the sia re io a d K a ma u derta e offi e et or ope i i a area o erseas. d. ura a ra h Offi e ura a ased o usi ess ti it a er redita a at Ke iata saha K ma o u derta e Offi e et or Ope i i the same re e or it area as the re e or it area here the head offi e
Chapter 4 Chapter is o ated. pe ifi a for K that has met ore apita of o ess tha p i io it a
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un erta e ffice et or enin in the same re ency or city area here the hea office is locate an or in re ency or city that irectly or ers ith the re ency or city here the hea office is locate ithin the same ro incial area; ural an ase n usiness cti ity may only un erta e ffice et or enin in the same re ency or city area as the re ency or city area here the hea office is locate an or in re ency or city that irectly or ers ith the re ency or city here the hea office is locate ithin the same ro incial area; an ural an ase n usiness cti ity may un erta e ffice et or enin in the same ro ince here the hea office is locate an in re ency or city in another ro ince that or ers irectly ith the ro ince here the hea office is locate e haria ommercial an ffice an haria usiness nit he lan for o enin status chan e transfer of a ress an or closin of an offices as ell as the lan for o enin transferrin an or iscontinuin acti ities shoul e state in the an usiness lan to ether ith the re ie s an may o en re ional offices an functional offices erseas haria ommercial an ranch ffice 1) enin of ranch ffice re resentati e office an other ty es of offices o erseas may only e un erta en ith a ermit from ; 2) enin an office o erseas shoul also o tain a permit from the local country’s authority; he ermit can e a ar e y hen the 3) Chapter 4 an has ecome a forei n currency an for no less than months; has state the lan for o enin the ranch office in an usiness lan; has met the re uirements of soun ness
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le el a e uate capital an ris profile; an has clear a ress or omicile for the office; an 4) he appro al or re ection on an re uest shoul e i en no later than or in ays after the re uest ocuments ha e een recei e in complete con ition; an c penin of haria er ices haria ommercial an in on entional ommercial an an haria er ices are acti ities of fun accumulation an or pro ision of other an ser ices ase on haria rinciples not inclu in fun channelin acti ities un erta en in office net or for an on ehalf of onsultation acti ities are un erta en et een an for the purpose of ris analysis on can i ate customers for financin an pro ects to e finance y may un erta e cooperation ith y openin an haria er ices an or usin consultation acti ities a aila le in y meetin amon others the follo in re uirements a a has an o nership relationship ith a an in hich the is the ontrollin harehol er of the an the ontrollin harehol er of the is also the ontrollin harehol er of ; an a hich oes not o n a has o taine a permit from to un erta e a ency acti ities an or cooperation in accor ance ith the stipulation that re ulates usiness acti ities haria ural an ranch ffice penin of a ranch office may only e un erta en ith a permit from penin of a ranch office shoul at least meet the
Chapter 4 Chapter follo in re uirements
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a ocate in the same ro incial area as the ea ffice; as state the plan in annual or plan; c s supporte y a e uate ; an a es a itional pai up capital of no less than of the re uire minimum capital for in accor ance ith the location of the ranch office to e opene pecifically for hich hea offices are locate ithin the areas of a arta as ell as e ency ity o or epo an eran an e asi in a ition to ein allo e to open ranch offices in the same ro incial area as the ea ffices they are also allo e to open ranch offices in the areas of a arta as ell as e ency ity o or epo an eran an e asi haria usiness nit a any that un erta es usiness acti ities ase on haria rinciples shoul open a ; penin of a may only e un erta en ith a permit from in the form of a usiness license he or in capital of a is set an maintaine at no less than p illion c may e separate from the y 1. esta lishin a ne ; or 2. transferrin the ri hts an responsi ilities of the to an e istin y meetin the pro isions of pre ailin re ulations itional re uirements for openin a
analysis on the CB’s capital capacity; Chapter 4 an analysis on fulfilment of the le al aspect in the separation of the into a
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e elop ent o ha ia Ban in ice et o s o he pose o ti latin ational cono y o Ban s o the p pose o espon in to a con ition o slo in econo ic o th the e is a nee o a te po a y policy that p o otes the o th o sha ia an in y yet o se in p ential p inciple an sha ia p inciples his e lation stip lates a on othe s policy on the e elop ent o sha ia an in o ice net o s o the p pose o i in a sti l s to the national econo y o ny CCB that s ppo ts the e elop ent o sha ia an in net o in the o s o a e ction in co e capital allocation in the calc lation o o ice net o openin ; an an ease in the alance ist i tion o o ice net o s ny CB in the o s o a ease in the e i e ents o openin Ban ha ia e ices in elation to the o a ea o the B anch ice hich is the pa ent o the Ban ha ia e ices; e pansion o the scope o o ile cash acti ity se ices; an o c lo e in o in est ent cost in the calc lation o Co e Capital allocation o ice et o penin ny B in the o s o a e pansion o types o CCB o ices that ay n e ta e ha ia e ice acti ities; ease in the e i e ents o openin ha ia e ices in elation to the o a ea o the B anch ice hich is the pa ent o the ha ia e ices; c e pansion o the scope o o ile cash acti ity se ices; an o lo e in o in est ent cost in the
Chapter 4 Chapter calc lation o co e capital allocation o o ice net o openin
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10. Changes in Bank Name and/or Logo ny chan e in an na e an o lo o sho l e n e ta en y eetin the p o isions o p e ailin le islations incl in e lations iss e y inist y o a e as ell as inist y o a an an i hts n the e ent the elate instit tion has iss e a oc ent i in app o al to the chan e o an na e an o lo o the sai oc ent sho l e s itte to alon ith the e est o a chan e in an na e 11. Closing of Bank Branch Offices he closin o any o an o estic anch o ice sho l o tain a pe it o in the o s o pe it in p inciple an app o al o clos e e est o pe it in p inciple sho l e acco panie y eas es o settlin all o the o li ations o the anch o ice to c sto e s an othe pa ties he e est o app o al o clos e sho l e s itte no late than si onths a te ha in o taine the pe it in p inciple an sho l e acco panie y documents proving that all bank’s obligations to c sto e s an othe pa ties ha e een settle as ell as a letter from bank’s Director stating that steps for settling all branch office’s obligations to the customers an othe pa ties ha e een co plete an that i the e a e clai s in the t e these will be the bank’s esponsi ility B anch o ice closin that has ecei e app o al o clos e sho l e e ec te no late than 30 working days after the date of OJK’s approval, and anno nce in a ne spape that has i e ci c lation in the o icile o the an o ice no late than o in ays a te the ate o app o al o clos e o he closin o any B shall e pe o e in t o sta es na ely a. pp o al o the p epa ation o siness license e ocation o the p pose o settlin the BU’s
o li ations an clai s; an Chapter 4 b. ecision on siness license e ocation a te all the SBU’s obligations and claims have been settled. 12. Bank Liquidation Bank liquidation is an act to rescue all of bank’s rights
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and obligations as the result of business license revocation and dissolution of the bank legal entity. fter October 00 , supervision and e ecution of the liquidation of banks which business licenses are revoked are performed by ndonesia Deposit nsurance orporation embaga en amin Simpanan S . 13. Revocation of Business License at The Request of Shareholders (Self Liquidation) bank that may request for its business license to be revoked at the request of the shareholders shall be a bank that is not placed Under Special Supervision by OJK as stipulated in OJK’s regulation concerning follow up and determination of bank status. Revocation of business license at the request of bank’s shareholders can only be performed by OJK if the bank has settled its obligations to all customers and other creditors. Revocation of business license at the request of bank’s shareholders shall be performed in two stages, namely approval for preparation of business license revocation and decision for business license revocation. Bank’s board of director should submit a request for approval for preparation of business license revocation to OJK and should supplement it with related documents in line with the prevailing regulation. fter that, OJK will issue a letter of approval for preparation of bank’s business license revocation and oblige bank to discontinue all bank’s business activities, announce the plan for dissolution of bank legal entity, and plan for settling bank’s obligations in two daily newspapers with wide circulation no later than 0 working days since the date of the letter of approval for preparation of bank’s business license revocation, immediately settle all bank’s obligations and appoint a ublic ccounting irm to undertake verification on the settlement of bank’s obligations. When all bank’s obligations have been settled, bank’s board of directors submits a request for bank’s
Chapter 4 Chapter business license revocation together with related reports in accordance with regulations to OJK. hen
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approved, OJK will issue a ecision etter on revocation of bank’s business license and request bank to e ecute dissolution of the legal entity in accordance with the provisions of prevailing legislations. ince the date of business license revocation is issued, if in the future there are yet obligations that have not been settled, these shall be the responsibility of bank’s shareholders. 14. Business License Revocation as Follow Up Of The Condition Of Not Being Able to Be Rehabilitated On any bank that is determined by OJK as a bank hat annot Be Rehabilitated idak apat isehatkan , OJK will submit the information to the and request to decide to rescue or not to rescue the bank. f decides not to rescue the bank, OJK will follow up this matter with Business icense Revocation abut in saha . 15. Change in Conventional Bank Business Activities To Sharia Bank onventional Bank may undertake a change in business activities into a haria Bank, as long as it receives a permit from OJK. ain points of the arrangement are a. A change in a Conventional Bank’s business activities into a haria Bank may be done a B into a B or a RB into a RB. b. B that is going to be a B or a RB that is going to be a RB should meet the regulation concerning B capital or regulation concerning RB capital c. B that is going to be a B or a RB that is going to be a RB should establish a haria upervisory Board B d. the request for the permit to change business activities should be submitted by a onventional Bank along with among others Chapter 4 missions and vision of the change of business activities into a haria Bank draft amendment of the articles of associations
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na e and identity data of candidate Controlling hareholder, candidate e bers of board of directors, candidate e bers of board of co issioners, and candidate e bers of B haria Bank Business lan feasibility study concerning arket opportunities and econo ic potentials and plan for settlement of customers’ rights and obligations e Any CCB B that has received the per it to change on business activities into a CB B should state clearly the word “Sharia” in name writing; and iB logo on haria Bank for s, agree ents, products, offices and office net orks
B. Regulations Concerning Bank Business Activities, Supporting Activities, and Services 1. Bank Business Activities a Conventional Co ercial Bank business activities that ay be conducted for each B are set as follo s B ay only conduct a business activities in upiah, covering fund accu ulation activities that are the basic products or activities fund channeling activities that are the basic products or activities trade finance activities activities ith li ited scope for agency and cooperation activities concerning the pay nent syste and electronic banking ith li ited scope activities of te porary capital participations for the purpose of rescuing credits and Chapter 4 Chapter other services b activities as foreign currency trader and
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c other acti ities categori ed as asic products or ser ices in upiah that are commonl conducted an s and are not in iolation with the pro isions of legislations ma onl conduct a usiness cti ities in upiah and foreign currencies fund accumulation acti ities as ma e conducted ; fund channeling acti ities as ma e conducted ut with wider scope; trade finance acti ities; limited treasur acti ities; and other ser ices; usiness cti ities as for with wider scope for agenc and cooperation; and acti ities related to pa ment s stem and electronic an ing; capital participation acti ities in financial institutions in ndonesia; temporar capital participation acti ities for the purpose of rescuing credits; and other acti ities that are common to e underta en an s as long as the do not iolate the pro isions of legislations; ma conduct all usiness acti ities as referred to in num er oth in upiah and foreign currencies as well as capital participations in financial institutions in ndonesia and or o erseas ut limited to the
sian region; and Chapter 4 ma conduct all usiness cti ities as referred to in num er oth in upiah and foreign currencies as well as capital participations in financial institutions in
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ndonesia and or all areas o erseas in amounts larger than those allowed for Sharia ommercial an and Sharia usiness nit usiness cti ities that ma e conducted each are set as follows ma onl conduct a usiness cti ities in upiah co ering fund accumulation acti ities that are the asic products or acti ities; fund channeling acti ities that are the asic products or acti ities; trade finance acti ities; acti ities with limited scope for agenc and cooperation; acti ities concerning the pa ment s stem and electronic an ing with limited scope; acti ities of temporar capital participations for the purpose of rescuing credits; other ser ices; cti ities as foreign currenc trader; and c ther acti ities that are categori ed as asic products or acti ities in upiah that are comm on to e underta en an s and are not in iolations with the pro isions of legislations ma conduct usiness cti ities in upiah and foreign currencies fund accumulation acti ities as ma e conducted ; fund channeling acti ities as ma e conducted with a wider scope; trade finance acti ities; limited treasur acti ities; and other ser ices;
Chapter 4 Chapter usiness cti ities as referred to under with a wider scope for
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agenc and cooperation; and acti ities related to pa ment s stem and electronic an ing; apital participation acti ities at financial institutions in ndonesia; cti ities of temporar capital participations for the purpose of rescuing credits; and ther acti ities that are common to e underta en an s as long as the are not in conflict with the pro isions of legislations; ma conduct all usiness acti ities as referred to in num er oth in upiah as well as in foreign currencies as well as capital participations in financial institutions in ndonesia and or o erseas ut limited to the sian region; and ma conduct all usiness cti ities as referred to in num er oth in upiah as well as foreign currencies as well as capital participations in financial institutions in ndonesia and or all areas o erseas in amounts larger than those allowed for c ural an usiness cti ities should e in line with categories as follows a und accumulation in the forms of eposits in the forms of term deposits sa ings deposits and or other e ui alent forms; and oans recei ed; unds channeling; c unds placements in the forms of emand deposits giro term deposits Chapter 4 certificates of deposit and or sa ings deposits for commercial an s and sharia commercial an s; erm deposits and or sa ings
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deposits at and sharia rural an s; and ertificates of an ndonesia; d ther acti ities for supporting usiness acti ities in the forms of on office ased financial ser ice agenc acti ities for the purpose of financial inclusion a u andai ; Salar pa ment ser ices for customers; cooperation acti ities for the purpose of fund transfers that are limited to receipts of mone transfers from o erseas; ar eting acti ities of lectronic one from other issuers; und transfers oth for own interest as well as the interests of customers through accounts in commercial an s; ooperation acti ities with insurance companies for referring insurance products to customers that are lin ed to products; ecei ing fund deposits for the purpose of pa ment ser ices for claims such as electricit ills telephone ills water ills and ta es; and cti ities as ard issuer for an that has a minimum core capital of p illion usiness cti ities that ma e conducted ; oreign currenc e change usiness acti it ; and ther acti ities to support usiness acti ities in the forms of
Chapter 4 Chapter cti ities as e it ard issuer; and cti ities as lectronic one issuer
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a usiness cti ities that ma e conducted ; and ther acti ities to support usiness acti ities in the forms of ro ision of lectronic an ing ser ices; and cti ities as the operator of non office ased financial ser ices for the purpose of financial inclusion a u andai 2. Deposits a iro emand eposits giro demand deposits account is an account which withdrawals ma e made using chec s il et giro giro drafts other pa ment instruction ehicles or oo transfers n regard account opening an an is prohi ited from accepting a customer whose name is listed in the pre ailing national lac list iro accounts in a sharia an ma e ased on wadi’ah or mudharabah agreement n regard giro accounts ased on wadi’ah agreements no an is allowed to promise ields or onuses n regard giro accounts ased on mudharabah agreements customers should maintain minimum giro alances set the an that cannot e withdrawn e cept at account closing ro ision of profits to mudharabah giro customers shall e ased on the lowest alances at the end of the reporting month erm eposits erm deposits are deposits which withdrawals ma onl e made at certain times ased on agreements etween depositors and the an and ma issue il et deposito deposit drafts Chapter 4 on term deposits nterests on term deposits are imposed with final income ta erms deposits at sharia an s shall e ased on mudharabah agreements with the conditions
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among others that the an is not allowed to reduce customer parts of the profits without the appro als of the customers concerned and co er deposit costs using an profit ratio c ertificates of eposits ertificates of eposit are sa ings in the form of deposits including those ased on sharia principles which certificates as proofs of deposits are transfera le that ma issue ertificates of eposits should meet the following criteria
Table 4.3. Criteria Issuance of Certificates of Deposit
urrenc ertificate of eposit ertificate of eposit ith greement ithout greement
upiah n an without an should first o tain appro al appro al from at the first time of issuing the ertificates of eposit without agreements
oreign n an that has n an that has urrenc alread recei ed recei ed appro al from appro al for for conducting conducting usiness usiness acti ities in acti ities in foreign foreign currencies currencies foreign foreign currenc an currenc an and for issuance of ertificates of eposit without agreements
ertificates of eposit that are issued shall ha e the following characteristics can e issued with agreements or without agreements in accordance with the re uirements that can e met the ; when issued with agreements the certificates of deposit should e of the nature of eing a le to e replaced n regard ertificates of eposit without agreements an should identif the owners
Chapter 4 Chapter at the recordings at epositor and Settlement nstitution em aga en impan dan en elesaian ;
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ertificates of eposit ma e issued in upiah currenc as well as foreign currencies the nominal amount shall e no less than p million or its foreign currenc e ui alent; the tenure shall e minimum one month and ma imum months; and in regard a the interests of ertificates of eposit are fi ed and paid at discount d Sa ings Sa ings are deposits which withdrawals ma onl e done in accordance with certain agreed conditions ut cannot e withdrawn with chec s il et giro or other similar instruments he re uirements for operating sa ings are among others 1) an s ma onl operate sa ings in rupiah; 2) etermination of interest rates are at the discretion of each an ; and 3) nterests recei ed on sa ings should e deducted income ta h Sa ings in sharia an s ma e ased on wadi’ah or mudharabah agreements n regard wadi’ah sa ings an s are not allowed to promise ields or onuses to the customers n regard mudharabah sa ings the customers should in est certain minimum funds in amounts set the an s which cannot e withdrawn the customers e cept at account closing 3. Non-Office Based Financial Services For the Purpose Of Financial Inclusion (Laku Pandai) a u andai is a program that pro ides an ing ser ices and or other financial ser ices through cooperation with other parties an agents and is supported the use of facilities a u andai is necessar considering a here are still man mem ers of the pu lic who do Chapter 4 not et now a out and how to use and or recei e an ing ser ices and other financial ser ices due to among others domiciling in locations far from an offices and or the e istence of costs or
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re uirements that are urdensome; an ing industr and other financial ser ices industries ha e the commitment to support the reali ation of financial inclusion; c he o ernment of ndonesia launched the ational inancial nclusion Strateg program in une comprising among others ranchless an ing and d he e isting ranchless an ing needs to e de eloped to ena le an ing ser ices and other financial ser ices to reach all la ers of the societ all o er ndonesia he o ecti e of a u andai is to support efforts related to economic growth and e uita le de elopment etween regions particularl illages and eastern ndonesia region pro iding access for lower income communities to e a le to conduct financial transactions particularl an ing transactions from where the li e and pro iding financial products that are simple eas to understand and in line with the needs of the communities which at present ha e not een a le to reach financial ser ices roducts pro ided a u andai are a Sa ings with the characteristics of asic Sa ing ccount S which are 1) without minimum limits oth in terms of alance as well as cash deposit transactions howe er has a ma imum alance limit at an time of p million and a cumulati e limit for account de it transactions among others cumulati e cash withdrawals for each month are limited to p million; and 2) without monthl administration charge and is not charged with costs for account opening and closing nor for credit transactions such as for cash deposits he complete illustration of S sa ings is shown in igure
Chapter 4 Chapter redits inancing for icro ustomers redits financing has the o ecti e of financing
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usiness acti ities that are producti e and or other acti ities that support financial inclusion such as for agriculture plantation esta lishing a small shop warung and financing for higher education
Figure 4.2. Characteristics of BSA savings
Maximum Maximum cumulative savings account balance debit transactions is set at no is set at no more more than Rp20 than Rp5 million million/month
c icro nsurance his t pe of insurance product is intended to protect low income communities with eas premiums for e ample health insurance for dengue fe er and t phoid fire insurance accident insurance and earth ua e insurance owning S sa ings the communit can eep their mone in the an s without eing worried that the alances of their sa ings will shrin ecause of account administration charges n the contrar their accounts will still recei e interests on sa ings and are guaranteed S n addition the communit can also conduct the transactions without ha ing to go to an offices ut the ust need to isit the locations of the a u andai Chapter 4 agents that are closer to where the li e he re uirements of eing a le to own a S account is eing an ndonesian iti en not et
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owning a sa ings account and or is willing to onl ha e one sa ings account at that an n the e ent ownership of a S account has reached si months or e en less than si months as long as it meets certain considerations set the operating an the owner of the S sa ings can su mit a re uest for micro customer credit he re uest for credit financing can e su mitted the S customer at the an office Su ranch ffice or through an agent who will forward the re uest to the nearest an office that super ises the agent an that operates a u andai is a an that meets the following re uirements a ndonesian legal entit ; a ing ris profile in accordance with re uirement; c a ing office networ s in astern ndonesia egion and or usa enggara imur; d a ing S S an ing mo ile an ing and internet an ing host to host products and acti ities; and e as o tained appro al from eanwhile an agent is a part that underta es cooperation with a an operating a u andai indi idual and or legal entit that acts as the e tended arm of the an in pro iding an ing ser ices and other financial ser ices in accordance with what has een promised to the communit in the conte t of financial inclusion n agent can ser e the customers in accordance with the ser ice scope stated in the cooperation agreement with the an as depicted elow
Chapter 4 Chapter
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Table 4.4. Type of Laku Pandai agent
Individual Legal Entity eachers retirees traditional eachers retirees traditional chiefs warung owners or chiefs warung owners or heads owners of non legal heads owners of non legal entit entit companies such as or companies such as or irma irma
a ocal people a ndonesian legal entit that is a ing acti ities in the allowed to conduct acti ities location as the main sources in the financial field or has a of income retail outlet c a ing capa ilit credi ilit a ing usiness acti ities in reputation and integrit the location c a ing ade uate d a ing good reputation credi ilit and performance
a ing passed the due diligence held the operating an
Figure 4.3. Service coverage and classification of Laku Pandai agent a ransactions ransactions c ransactions d ransactions related to related to related to related to sa ings with credits or sa ings e cept other the financing to sa ings with financial characteristics micro scale S ser ices in of S customers characteristics accordance co ering co ering co ering cash with account receipts of deposits and pre ailing opening cash re uest withdrawals regulations deposits and documents inter account withdrawals channeling of transfers inter account dis ursements pa ments transfers in oicing or and or fund pa ments of receipts of transfers ills fund installment amounting no transfers pa ments more than alance chec and or p and or repa ments of per da per account principals; customer; closing;
lassification gent Scope of Ser ices lassification of gent a Scope of ser ices a a c a c lassification for eginner gent; ransfer to other a c d
classifications shall e set Chapter 4 a d according to an polic a c d
4. Credit Restructuring a redit restructuring is an effort to reha ilitate
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underta en an in credit acti ities on a de tor that e periences difficulties in meeting his her o ligations and is performed through lowering of credit interest rate; e tension of credit tenure; reduction of credit interests in arrears; reduction in credit principal in arrears; addition to credit facilit ; and or con ersion of credit into emporar apital articipation an can onl conduct credit restructuring on a de tor that meets the following criteria de tor e periences difficulties in repa ing credit principal or interests; and de tor has a good usiness prospect and is capa le of meeting his her o ligation after credit restructuring c an is prohi ited from conducting credit restructuring with the purpose of onl to impro e credit ualit or a oid the o ligation to esta lish ro ision for sset rite ff en isihan enghapusan set d ualit of restructured credit is set as follows nl as high as ualit of the credit efore credit restructuring as long as the de tor has not met the o ligations of repa ing the principal and or interests for three consecuti e periods in accordance with the agreed timing; an rise at the highest one le el a o e ualit of the credit efore restructuring after the de tor has met the o ligations of repa ing the principal and or interests for three consecuti e periods as referred to in num er ; and ased on assessment factors on usiness prospect de tor performance and capa ilit to ma e pa ments a fter determination of credit ualit as referred to in num er ; or
Chapter 4 Chapter n the case the de tor does not meet the conditions and or o ligations to ma e
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pa ments contained in the credit restructuring agreement oth during as well as after the three periods of pa ment o ligations in accordance with the agreed timing e an should oo losses arising from credit restructuring after setting it off with e cess in ncome on restructured credit is recogni ed and recorded in accordance with pre ailing Statement of inancial ccounting Standard S S 5. Custodian with Management (Trust) here is a need for strong legal foundation for the an ing industr to pro ide rust ser ices to Settlor customers oth in the form of corporations as well as indi iduals in order to oost the incoming of repatriation funds into the ndonesian an ing ndustr n custodian with management trust acti ities there are three parties that are in ol ed namel a Settlor is the part who entrusts properties funds and gi es the authorit to manage the funds to the rustee; rustee in this case the an as the part who is gi en the authorit the Settlor ntruster to manage the properties funds for the interest of the part that recei es the enefits namel eneficiar ; and c eneficiar as the part who recei es the enefits from those properties funds he function of trustee can e conducted a an or ranch office of a an domiciling o erseas as long as certain criteria are met and a permit from has een o tained in the form appro al in principle and confirmation letter an that conducts rust acti ities should gi e monthl written report to no later than the th of Chapter 4 the following month after the end of the reporting month he report is su mitted through a letter signed head of the rustee wor unit and ac nowledged an officer that super ises the rustee wor unit
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6. Guideline for Development of Bank Credit Policies an should ha e a written guide for credit policies which at least contains and stipulates main points as set in the guidelines for de elopment of an credit policies as follows a credit prudential principle; credit organi ation and management; c credit appro al polic ; d credit documentation and administration; and e credit super ision and settlement of pro lem credits an should compl with an credit policies that ha e een de eloped consistentl 7. Obligation in Preparation and Implementation of Bank’s Credit or Financing Policies for Commercial Banks s one of the main usiness acti ities underta en the an pro isions of credits or financing contain a relati el high ris that ma cause losses the an and affect the soundness and usiness ia ilit of the an o reduce the said potential ris an s are re uired to appl prudential principles and sound credit or financing principles and ha e written credit or financing policies an credit or financing policies shall at least contain and set the following main points a redit or financing prudential principle; redit or financing organi ation and management; c redit or financing appro al polic ; d redit or financing documentation and administration; e redit or financing o ersight; f on performing credit or financing settlement an s are re uired to compl with and implement in an accounta le and consistent manner an credit or financing policies that ha e een de eloped n reach of the pro isions of this egulation will cause the an to e su ected to administrati e sanctions affecting the an s soundness rating
Chapter 4 Chapter
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an a a n n a n n a Banks an a a a Banks or the purpose of stepping up operational efficienc and ser ice ualit for the communities who use an ing ser ices there is a need for efficient operations and S n this regulation and S are o ligate to conduct operation at least a an ing core applications and data center for an S that has core capital of less than p illion or an ing core applications data center and disaster reco er center for an S that has core capital of no less than p illion n and S is also o liged to ha e and place data center and disaster reco er center in an area in ndonesia with different ris characteristic an ing core applications which should e owned an S should among others a implement pro isions of legislations for and S ; perform accounting recording for transactions etween office networ s on the same da for and S that do not pro ide electronic an ing and do not conduct acti ities as card issuers or in online and real time mode for and S that pro ide electronic an ing and do not conduct acti ities as card issuers; c produce data and information used to support report de elopment process for internal as well as e ternal needs; and d consolidate functions that e ist in the an ing core applications to support pro ision of data and information that are complete accurate up to date and intact
and S are prohi ited from conducting acti ities Chapter 4 as pro iders of ser ices to other parties e cept when related to products and ser ices that are pro ided S
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a n n a a s a Sharia an and Sharia usiness nit roducts and cti ities n order to mitigate arious ris s related to de elopment and inno ations of Sharia an and S products and or acti ities which need to e alanced with licensing mechanism as well as product and acti it reporting in line with efforts to de elop Sharia an s and S the de elopment and inno ations of Sharia an and S products and acti ities should continue to appl sharia principles prudential principle and customer protection principle n its usiness acti ities an an ma issue new products and or conduct new acti ities he criteria for new products and or acti ities are as follows a he ha e not pre iousl een issued or conducted the an concerned; or he ha e een pre iousl issued or conducted the an ut de elopment in features or characteristics ha e een made an should state the plan for issuing new products and or conducting new acti ities in an usiness lan as well as ha e written policies and procedures for managing ris s inherent in an new products and or acti ities an should o tain appro al from to issue new products and or conduct new acti ities if the new products and or acti ities are not stated in the codification of an products and acti ities an ma issue new products and or conduct new acti ities without appro al from in the case the new roducts and or cti ities a ha e een stated in the codification of an products and acti ities;
Chapter 4 Chapter ha e een stated in an usiness lan; c are in line with classification e cept
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S ; and d are supported ade uate operational preparation an should su mit a report on reali ation of the issuance of new products and or conduct of new acti ities for products and or acti ities that oth re uire and do not re uire appro als iscontinuation of products and or acti ities ma e made an an ased on certain considerations or by OJK’s instruction. e uest for appro al or report on the reali ation of issuance of new products and or conduct of new acti ities which ha e een su mitted prior to the effecti eness of egulation um er ut has not recei ed appro al or re ection shall refer to egulation um er Sharia rinciples n Sharia an und cummulation and und hanneling cti ities s ell s Ser ices an usiness acti ities related to fund accumulation fund channeling and ser ices ased on Sharia rinciples conducted a an constitute an ing ser ices n conducting the said an ing ser ices an should compl with Sharia rinciples he said fulfilment of Sharia rinciples shall e performed meeting main stipulations of the slamic law among others the principles of ust and alanced ‘adl wa tawazun enefit maslahah uni ersalism alami ah as well as not containing gharar ris maysir gam ling riba usur zalim un ust dan haram illicit ulfilment of Sharia rinciples shall e performed as follows und accumulations that use among others Wadi’ah and Mudharabah agreements; Chapter 4 und channeling financing that use Mudharabah, Musyarakah, Murabahah, Salam, Istishna’, Ijarah, Ijarah Muntahiya Bittamlik (IMBT) and Qardh agreements; and
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er ices t at use a on ot ers Kafalah, Hawalah and Sharf a ree ents. en t ere are dis utes bet een a ban and t e custo ers t e sett e ents can be ade a on ot ers t rou usya ara discussion ban ediation aria arbitra e or udiciary institutions. c. ti u ation or inancin roduct or o d O ners i or aria an s and o ste u ban rudence in c anne in o d O ners i inancin roduct a sti u ation concernin t is roduct is set to co er a on ot ers ny aria an s ou d a e ade uate ritten o icies and rocedures e co atera or o d O ners i inancin is t e o d bein inanced by t e aria an t at is bound by ien e t in t e ysica at t e aria an and cannot be e c an ed it anot er co atera ny aria an is ro ibited ro c ar in t e cost or ee in and aintainin t e o d t at is used as co atera s or o d O ners i inancin ount o o d O ners i inancin or eac custo er is set at no ar er t an i ion. custo er is a o ed to obtain o d O ners i inancin and Qardh it o d co atera at t e sa e ti e it o era ba ance o no ar er t an i ion ere t e tota ba ance or o d O ners i inancin is no ar er t an i ion d ance ay ent or o d O ners i inancin is no ess t an or o d bu ion bar and no ess t an or o d e e ries and e tenure o o d O ners i inancin is no s orter t an t o years and no on er t an i e years.
Chapter 4 Chapter
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a n a n n a a Banks e et tab e undin atio is a co arison bet een a ai ab e stab e undin it t e re uired stab e undin . is t e a ount o stab e iabi ities and e uity or a eriod o one year to und acti ities o t e ban . is t e a ounts o assets and ad inistrati e accounts t at need to be unded by stab e undin . an s are re uired to aintain su icient stab e undin ca cu ated usin t e ic is set or at east . OJK e u ation on ai s to a. aintain stab e undin ad usted to t e co osition o assets and ad inistrati e accounts b. educe i uidity ris re ated to undin sources or a on er eriod o ti e and c. ro e t e stabi ity o ban undin by i itin o er re iance on s ort ter undin sources ro cor orations. u i ent o a ies to K and K an s as e as orei n ban s. an s are re uired to onitor u i ent o indi idua y and at conso idation e e on a ont y basis by de e o in or in a er and e ort. re ortin to OJK is er or ed or t e end o t e uarter osition. n t e e ent t at any ban is unab e to eet t e u to t e an is re uired to sub it a. or in a er and re ort or t e end o t e re ortin ont osition b. ction an or u i ent o and c. e entation re ort o t e action an or u i ent o
a n n n n n a n Bank a a
a. o ercia an Chapter 4 n t e conduct o business acti ities and e ansion o ice net or s a ban s ou d do so in ine it basic ca acity o ned by t e ban na e y t e core ca ita . y o eratin in ine it its ca acity a ban
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is be ie ed to be ab e to a e better resi ience and to be ore e icient because its acti ities are ocused on roducts and acti ities in ic t e ban e ce s. ased on core ca ita ban business acti ities can be cate ori ed into our na e y K K K and K . n ine it t e si e o t e core ca ita business acti ities cate ori ed in K are ore about ro idin basic ban in ser ices. usiness acti ities cate ori ed in K are ider t an t ose o K and so are t e cases u to K ic co ers business acti ities t at are co re ensi e and co e .
a Bank as n B s n ss s
• Business activities are basic BUKU 1 • Core capital is minimum Rp100 billion up to below Rp1 trillion
• Business activities are wider and includes limited BUKU 2 participations • Core capital is minimum Rp1 trillion up to Rp5 trillion
• Business activities are comprehensive and includes BUKU 3 participations • Core capital is minimum Rp5 trillion up to below Rp30 trillion
• Business activities are comprehensive and participations are BUKU 4 wider • Core capital is minimum Rp30 trillion
ny ban s ou d a so eet tar eted si e o roducti e credit in ine it t e cate ory o its business acti ities startin ro or K u to or K . ese ercenta es are ca cu ated a ainst ban tota credit ort o ios and a ready inc ude t e ob i ation to c anne credit a ountin to o tota credit ort o ios. b. ura an ate ori ation o based on core ca ita are set at t ree strata na e y K is a cate ory o any it core ca ita o ess t an bi ion K is a cate ory o any it core Chapter 4 Chapter ca ita o no ess t an bi ion u to ess t an bi ion and
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K is a cate ory o any it core ca ita o no ess t an bi ion. ny ay on y conduct business acti ities and o en o ice net or s in area co era e t at is in ine it its core ca ita . n a a a n a. o ercia an s or t e ur ose o creatin a ban in syste t at is sound and ab e to de e o as e as co ete at nationa as e as internationa e e s ban s need to ste u t e ca acity to absorb ris s arisin ro crisis condition and or e cessi e ban in credit ro t t rou a ste u in t e ua ity and uantity o ban ca ita in accordance it t e re ai in internationa standard na e y ase . n t is re ard t e o o in sti u ation is set or t e u i ent o ini u a ita de uacy e uire ent o is ei ted sset or any an it ris ro i e o atin u to ess t an o or any an it ris ro i e o atin u to ess t an o or any an it ris ro i e o atin or u to o or any an it ris ro i e o atin or atin . n addition to t e sti u ation concernin ban ini u ca ita ade uacy re uire ent abo e t e o o in atters are a so set to ca cu ate ini u ca ita in accordance it ris ro i e a ban s ou d a e nterna a acity de uacy ssess ent rocess ic co ers i acti e o ersi t by board o co issioners and board o directors ii assess ent o ca ita ade uacy iii onitorin and re ortin and i interna Chapter 4 contro . OJK re ie s or as it is ca ed u er isory e ie and a uation rocess
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a ranc O ice o a ban do ici in o erseas s ou d eet ini u a ita ui a ency aintained ssets a ountin to o total bank’s obligations each month and no ess t an tri ion. a cu ation o ini u s ou d be er or ed eac ont and s ou d be et no ater t an t e t o t e o o in ont a ban s ou d ro ide ain core ca ita co on e uity tier o no ess t an . o and core ca ita tier o no ess t an o bot indi idua y as e as in conso idation it ubsidiary o anies and a ban s ou d estab is additiona ca ita as a bu er abo e t e ini u ca ita ade uacy re uire ent in accordance it ris ro i e ic is set as o o s a a ita onser ation u er a ountin to . o or any ban cate ori ed in K and K ic u i ent s a be er or ed in sta es b ountercyc ica u er in t e ran e o u to . o or a ban s and c a ita urc ar e or o estic yste atica y ortant an in t e ran e o u to . o or any ban deter ined to a e syste ic i act. b. aria o ercia an or t e ur ose o creatin a s aria ban in syste t at is sound and ca ab e o de e o in and co etin bot at nationa as e as internationa e e s ban s need to ste u t e ca acity to absorb ris s arisin ro crisis condition and or e cessi e ban in inancin ro t t rou a ste u in t e ua ity and uantity o ban ca ita in accordance it t e re ai in internationa standard na e y ase and s a ic inancia er ices oard .
Chapter 4 Chapter a cu ation o ca ita ade uacy is one o t e basic as ects in t e i e entation o rudentia
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inci le a ital nctions as a b e o abso bing losses a ising om a io s isks he ollo ing o isions a e set o n bank sho ld o ide minim m ca ital in line ith the isk o ile hich is set no lo e than as ollo s a) o o an bank ith isk o ile o ating b) to less than o o an bank ith isk o ile o ating c) to less than o o an bank ith isk o ile o ating o d) to o o an ank ith isk o ile o ating o ating n addition to the e i ement to o ide minim m ca ital in line ith the isk o ile a bank sho ld establish additional ca ital as a b e as ollo s a) a ital onse ation e amo nting to o o an bank catego i ed in and b) o nte c clical e in the ange o to o and o c) a ital cha ge o in the ange o to o n the case a bank o ns and o e e cises cont ol o e s bsidia com anies the e i ement to o ide minim m ca ital and the e i ement to establish additional ca ital as a b e shall be a licable on the bank both indi id all as ell as in consolidation ith the s bsidia com anies a ital om ises a) o e ca ital tie hich co e s (1) ain co e ca ital common e it tie hich co e s Chapter 4 (a) aid ca ital (b) ese e o additional ca ital disclosed ese e and
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(2) additional co e ca ital additional tie and b) lementa ca ital tie a ital com onents that a e taken into accont in eg lation mbe in addition to al ead e e ing to inte national sti lations and standa ds also al ead accommodate inst ments that ha e taken into conside ation thei s itabilit ith sha ia banking cha acte istics and at a iss ed b ational ha ia oa d – ndonesian o ncil o lama hich is e lected in the calc lation o ach bank sho ld take into acco nt o c edit isk and o o e ational isk n addition an bank that meets ce tain c ite ia sho ld also take into acco nt o ma ket isk n meeting the minim m ca ital ade ac e i ement in line ith the isk o ile both indi id all as ell as in consolidation ith s bsidia com anies a bank is obliged to have ICAAP that is in line with the bank’s b siness si e cha acte istics and com le it e o ms and as a es lt ma e est a bank to im o e its ates o en o cement a) inim m ca ital in line ith isk o ile minim m co e ca ital minim m main co e ca ital sta ting om an a b) e i ement o ne ca ital com onent sta ting om an a c) a ital onse ation e amo nting to in stages sta ting om an a to an a d) o nte c clical e and a ital
Chapter 4 Chapter cha ge sta ting om an a
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al ank the se eatin a in st that is s n st n an tive it is ne essa t ake an a st ent t the a ital st t e s that it is in line with bankin best a ti es he visi ns n e nin CA a e set as ll ws 1) An sh l vi e ini a ital that is al late b sin the l west CA at i A 2) a ital ises a) C e a ital tie whi h ve s (1) ain e a ital (2) A iti nal e a ital an b) le enta a ital tie 3) le enta a ital an nl be taken int a nt n hi he than e a ital 4) A sh l vi e e a ital n less than A 5) A iti nal an a en ent the visi ns n e nin a) a ital e sit n b) nt ib te a ital c) nt ib te a ital in the the assets d) b we a ital t be a iti nal e a ital nent e) e a ital e in a t s f) a iti nal a ital e sits in the i e assets g) s le enta a ital an h) A 6) ini e a ital is set at billi n 7) ta es l il ent a) A with a e a ital less than
billi n sh l eet ini e Chapter 4 a ital billi n n late than e e be the e the sh l eet ini e a ital billi n n late than e e be
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b) A with a e a ital at least billi n b t less than billi n sh l eet ini e a ital billi n n late than e e be 8) An is hite ist ib tin its when a) the sai ist ib ti n will a se a l we in e a ital t less than billi n b) the has n t et ini e a ital billi n 9) An whi h has btaine a b siness li ense with ai a ital less than billi n sh l eet ini e a ital a nt n late than ive ea s a te btainin the b siness li ense ha ia al anks the se eatin a in st that is s n st n an tive it is ne essa t ake an a st ent t the a ital st t e s that it is in line with bankin best a ti es he a st ent t a ital st t e is inten e to step up SRB’s capacity to provide funds for the eal se t a ti la l i an s all s ale b sinesses 1) An sh l vi e ini a ital that is al late b sin the l west CA ati A sin e an a 2) Ca ital ises a) C e a ital tie whi h ve s (1) ain e a ital isin ai a ital an ese ve a iti nal a ital (2) A iti nal e a ital an b) le enta a ital tie le enta a ital an nl be taken int a nt n hi he than e a ital
Chapter 4 Chapter 3) A sh l vi e e a ital n less than A sin e an a an
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4) SRB ini u core capita is set at Rp i ion ith severa re uire ents e nte rated ini u apita de uacy Re uire ent or inancia on o erates inancia on o erates shou d provide ini u capita and i p e ent inte rated capita ana e ent in a co prehensive and effective anner rovision of inte rated ini u capita shou d e perfor ed y ca cu atin inte rated R ratio hich is set at no o er than of ota ini u apita of the inancia on o erate a re ate re u atory capita re uire ent he ain ntity shou d deve op nte rated apita de uacy Report each se ester for the positions of the end of the onths of une and ece er hich shou d e prepared for the first ti e for the position of ece er f eter ination of Syste ica y portant Ban and apita Surchar e deter ines an s that have syste ic i pact Syste ica y portant Ban S B and apita Surchar e for any an that has syste ic i pact n deter inin an s that have syste ic i pact uses three indicators na e y an si e interconnectedness ith the financia syste co p e ity of usiness activities inc udin su stituta i ity indicator on the ro e of a an in activities of the pay ent syste and custodianship Based on deter ination of an s that have syste ic i pact deter ines the apita Surchar e y c assifyin an s ith syste ic i pact into five uc ets as fo o s Buc et the apita Surchar e is set at of R Chapter 4 Buc et the apita Surchar e is set at of R Buc et the apita Surchar e is set at of R
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Buc et the apita Surchar e is set at of R and Buc et the apita Surchar e is set at of R u fi ent of apita Surchar e shou d e perfor ed in sta es startin fro anuary up to anuary a n n n n a a n n a o ercia Ban s or parties that are not re ated to the an und provision to one orro er that is not a re ated party is set at no hi her than of an capita ean hi e fund provision to one roup of orro ers that is not a re ated party is set at no hi her than of an capita or parties that are re ated to the an fund provision portfo ios to re ated parties of the an are set at no hi her than of an capita fund provision y a an is cate ori ed as havin e ceeded the e a endin i it B hen it is caused y the fo o in a a o erin of an capita a chan e in e chan e rate c a chan e in fair va ue and d a usiness er er a chan e in o nership structure and or a chan e in ana e ent structure that causes a chan e in re ated parties and or orro er roups and a chan e in re u ations n e ceedances of B and vio ations of B a an shou d su it an action p an to and sha e i posed ith a sanction on an soundness eve Rura Ban s B for credit is ca cu ated ased on credit de it a ance Chapter 4 Chapter
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B for a inter an fund p ace ent at another RB is ca cu ated ased on the no ina va ue of the inter an fund p ace ent or parties that are not re ated ith the RB und provisions to parties not re ated to the RB are set at no hi her than of RB capita ean hi e fund provisions to a roup of orro ers that is not a re ated party is set at no hi her than of RB capita und provisions ith the core p as a partnership pattern or the pattern of eve op ent of Ban Re ationship ith Se f e p o unity roups ith re uire ents in accordance ith stipu ations are not inc uded in the cate ory of fund provisions to unre ated roups of orro ers or parties that are re ated to the RB fund provisions to re ated parties are set at no hi her than of RB capita and those fund provisions shou d have the approva s of one director and one e er of oard of co issioners ace ents at other RB inter an fund p ace ents at other RB that are not re ated parties are set at no hi her than of RB capita und provisions in the for s of credit fund provisions y a RB sha e considered e ceedin the B hen they are caused y the fo o in a o erin of RB capita a usiness er er a usiness a a a ation a chan e in o nership structure and or a chan e in ana e ent that causes a chan e in re ated parties
and or orro er roups and Chapter 4 c a chan e in re u ations n e ceedances of B and vio ations of B a RB shou d su it an action p an to and sha e i posed ith a sanction on
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RB soundness eve as stipu ated in prevai in re u ation c Sharia Rura Ban s a i u i it of und hanne in Batas a si u enya uran ana B is a a i u percenta e of rea i ed fund channe in a ainst SRB capita hich covers SRB financin and fund p ace ents at other an s ceedances a ainst B is the positive difference et een percenta es of fund channe in at rea i ation a ainst SRB capita ith the a o ed B a cu ation of B for inancin sha e differentiated et een a ree ents used as fo o s a n re ard murabahah, istishna’ and multijasa financin it is ca cua ted ased on the a ance of principa price n re ard salam financin it is ca cu ated ased on ac uisition price c n re ard mudharabah, musyarakah and qardh financin it is ca cu ated ased on de it a ance and d n re ard ijarah or IMBT financin it is ca cu ated ased on the a ance of ac uisition price of ijarah or IMBT assets deducted y asset accu u ated depreciation or a orti ation a cu ation of other B a n re ard inter an fund p ace ents in the for of savin s it is ca cu ated ased on the hi hest a ance in the reportin onth n re ard inter an fund p ace ents in the for of deposits it is ca cu ated ased on the no ina a ounts as stated in a deposit drafts at the sa e SRB c n re ard B for fund channe in to
Chapter 4 Chapter individua s and or a re ated parties it is ca cu ated fro RB capita
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d n re ard B for fund channe in to individua custo ers ho receive faci ities and are not re ated parties it is ca cu ated of RB capita n re ard B for fund channe in in the for of financin to one roup of custo ers ho receive faci ities and are not re ated parties it is ca cu ated of RB capita ith financin to respective custo er ho receives such faci ity not e ceedin of RB capita nc uded in the definition of one roup of custo ers ho receive faci ities are non an custo ers ho receive faci ities hich have re ationships in ter s of ana e ent o nership or finance ith the an as custo ers ho receive faci ities ss a a o ercia Ban sset ua ity ny an as a financia institution that perfor s the inter ediation function is re uired to present financia reports that are accurate co prehensive and reflect bank’s whole performance. One of the re uire ents re ated to the presentation of financia reports that are accurate and co prehensive is that the said financia reports shou d e presented in accordance ith prevai in inancia ccountin Standards S particu ar y in the esta ish ent of Reserve for oss fro a ue pair ent adan an eru ian enurunan i ai n addition for the purpose of aintainin usiness sustaina i ity an s shou d continue to aintain credit ris e posure at an ade uate eve a on others y aintainin asset ua ity and continuin to ca cu ate that i inf uence an capita ratio a cu ation of shou d e Chapter 4 perfor ed as fo o s reserve shou d e ca cu ated ith i pair ent concept in the for of and shou d aintain the concept of for prudentia
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p rposes eneral and spec f c sho ld be calc lated on earn n assets wh ch sho ld not be char ed to prof t and loss nstead t sho ld onl nfl ence the calc lat on of es lts of the calc lat on of for earn n assets w ll nfl ence the calc lat on of after be n ded cted from establ shed and spec al sho ld be calc lated on non earn n assets wh ch sho ld not be char ed to nstead t sho ld onl nfl ence the calc lat on of . nfl ence of for non earn n assets n the calc lat on of does not take nto cons derat on establ shed cons der n th s s a d s ncent e n the case of banks that ha e non earn n assets. b. ral ank arn n sset al t ha e an mportant role n s pport n the de elopment of s. sho ld alwa s obser e so nd cred t pr nc ples n relat on to cred t channel n to s b et obser n the pr dent al pr nc ple. sho ld determ ne the same arn n sset al t on se eral acco nts of arn n ssets that are sed for f nanc n one debtor at the same . he st p lat on concern n arn n sset al t has been enhanced and al ned w th for nt t es w tho t bl c cco ntab l t for ral anks and cco nt n del nes. n sho ld determ ne the same arn n sset al t on se eral earn n asset acco nts that are sed for f nanc n one ebtor at the same . n the case there are d fferences n the arn n sset al t on se eral earn n asset acco nts for one ebtor at the same the sho ld determ ne the al t of each earn n asset follow n the lowest earn n asset al t .
Chapter 4 Chapter t p lat ons concern n cred t restr ct r n are as follows
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a bank sho ld char e losses ar s n from cred t restr ct r n after tak n nto acco nt a a nst e cess ro s on for arn n sset r te Off en s han en hap san kt a rod kt f d e to cred t al t mpro ement after restr ct r n and e cess earn n asset d e to al t mpro ement of restr ct red cred t after be n taken nto acco nt a a nst losses that ar se from the sa d cred t restr ct r n ma onl be reco n ed as ncome f there ha e been rece pts of three repa ments on the restr ct red cred t pr nc pal. sho ld mplement restr ct red cred t acco nt n treatment ncl d n b t not l m ted to reco n t on of losses that ar se from cred t restr ct r n n accordance w th and the pre a l n cco nt n del nes for . t p lat ons related to oreclosed ollaterals are as follows 1) foreclosed collaterals sho ld be accompan ed b statement of collateral hand o ers or a thor at on letter to sell from the debtor and a statement of ha n been f ll repa d from the to the debtor 2) the sho ld make efforts to settle the foreclosed collaterals w th n a per od of no lon er than ear s nce the take o er 3) f w th n a per od of ear the cannot settle the oreclosed ssets al es of the oreclosed ssets recorded n balance sheet sho ld be taken nto acco nt as core cap tal red c n factor n the calc lat on of 4) n the e ent the oreclosed ssets e per ence a decl ne n al e d e to re al at on the sho ld reco n e the al e decl ne as loss and Chapter 4 5) n the e ent the oreclosed ssets e per ence an ncrease n al e d e to re al at on the ma not reco n e the r se n al e as ncome.
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c. har a ommerc al ank and har a s ness n t sset al t n shar a bank as a f nanc al nst t t on that performs the ntermed at on f nct on s re red to present f nanc al reports that are acc rate comprehensive, and reflect bank’s whole performance. One of the re rements related to the presentat on of f nanc al reports that are acc rate and comprehens e s that the sa d f nanc al reports sho ld be presented n accordance w th pre a l n . n bank sho ld cond ct f nd placements and or pro s ons based on pr dent al pr nc ple and har a r nc ples. or the p rpose of mplement n pr dent al pr nc ple the oard of rectors sho ld assess mon tor and take re red meas res so that asset al t rema ns ood. a nta n n asset al t to rema n ood s performed b amon others mplement n effect e cred t r sk mana ement ncl d n thro h the de elopment of pol c es and des n accordance w th pre a l n re lat ons. n bank sho ld cond ct assessment of the al t of arn n ssets and on arn n ssets. arn n ssets are bank f nd placements both n p ah as well as fore n c rrenc es to obta n re en e n the forms of f nanc n shar a sec r t es placements at and o ernment cla ms on shar a sec r t es p rchased for resell re erse rep rchase a reements acceptance cla ms der at e cla ms part c pat ons placements at other anks off balance sheet acco nt transact ons and other e alent forms of f nd pro s ons. on Earning Assets are bank’s assets other than arn n ssets that ha e loss potent al amon others n the forms of foreclosed
Chapter 4 Chapter collaterals abandoned propert es as well as nter off ce acco nts and s spense acco nts.
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A bank sho ld determine the same alit on several acco nts of Earning Assets that are sed for financing one debtor at the same bank etermination of alit also applies on Earning Assets in the forms of f nd provisions or claims e tended b more than one bank that are implemented based on oint and or s ndicated inancing agreements Asset alit is classified as follows
a B B ss a ss a ss inancing √ √ √ √ √ lacements at and √ government haria ec rities √ √ √ apital participations √ √ √ √ emporar capital √ √ √ √ participations lacements at other banks √ √ √ Acceptance claims a lacements other banks √ √ √ b inancing √ √ √ √ √ ff balance sheet acco nt transactions a lacements other banks √ √ √ b inancing √ √ √ √ √ laims on haria ec rities p rchased nder resell agreements reverse rep rchase agreements √ √ √ a lacements other banks √ √ √ √ √ b inancing erivative transactions a lacements other banks √ √ √ b inancing √ √ √ √ √ oreclosed assets √ √ Abandoned properties √ √ √ √ Chapter 4 eferred acco nts √ √ nter office acco nts √ √
ote rrent , nder pecial ention , b tandard , o btf l , and oss
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d haria ral ank Earning Asset alit f nd placements and or provision sho ld be cond cted based on pr dential principle and haria rinciples An sho ld assess, monitor, and take anticipative meas res so that asset alit is alwa s in rrent condition An sho ld determine the same alit on several Earning Asset acco nts sed to finance one c stomer at the same n the event there are differences in earning asset alit for one c stomer at the same , the sho ld appl the same alit for each earning asset following the lowest earning asset alit An is prohibited from cond cting f nd placements in the form of deposits at and or in the form of savings and deposits at A ma onl cond ct f nd placements in in the forms of giro savings for the p rpose of f nd transfers for the interests of the and its c stomers and these f nd placements sho ld be classified as on Earning Assets alit of assets are classified as follows
a B ss a ss a ss inancing √ √ √ √ lacements at other banks √ √ oreclosed collaterals √ √ lacements at onventional √ √ √ ommercial anks
s n ss a. ommercial anks o cover loss risk on f nd placements, a bank Chapter 4 Chapter sho ld establish A on Earning Assets and on Earning Assets in the forms of
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general provision and special provision for Earning Assets and special provision for on Earning Assets n addition to calc lating A, a bank sho ld establish eserve for oss from al e mpairment in accordance with prevailing A he amo nt of general provision is set at no less than of Earning Assets that have rrent alit , not incl ding ertificates of , tate onds rat tang egara and Earning Assets g aranteed with cash collaterals he amo nt of special provision for an is set at minim m of assets with the alit of nder pecial ention after being ded cted with val es of the collaterals of assets with the alit of b tandard after being ded cted with val es of the collaterals of assets of the alit of o btf l after being ded cted with val es of the collaterals and of assets with the alit of oss after being ded cted with val es of the collaterals n the case the collaterals are sed to red ce A, assessment of the collaterals sho ld be cond cted at least b An independent appraiser for Earning Assets to debtors or gro ps of borrowers respectivel amo nting to p billion A bank internal appraiser for Earning Assets to debtors or gro ps of borrowers respectivel amo nting p to p billion he said assessment on collaterals sho ld be cond cted since the beginning of the provision of Earning Assets ollaterals that can be taken into acco nt as red cing factor in the calc lation of A Chapter 4 comprises ec rities and shares that are activel traded in the bo rse in ndonesia or that have investment ratings and are bo nd b lien
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ands, b ildings and residential ho ses that are bo nd with mortgage right achineries that are a nit with the lands and are bo nd with mortgage right Air planes or sea ships with the si e of above c bic meters that are bo nd with hipotek mortgages otor vehicles and inventories that are bo nd in fid ciar and or areho se receipts that are bo nd with g arantee right on wareho se receipts Establishment of provisions applies to o tstanding credit drawdown facilities, both committed as well as ncommitted, however, the provision established is onl a special provision for o tstanding credit draw down facilities that are of non c rrent alit alc lations of general and special A on Earning Assets and calc lation of special A on on Earning Assets shall not be charged to profit and loss b t will onl infl ence the calc lation of A alc lation of Earning A will infl ence the calc lation of A after being ded cted from the established eanwhile, the infl ence of on rod ctive A in the calc lation of A ignores the established , considering this is a disincentive in the case of banks that have non earning assets b. haria ommercial anks and haria siness nits An bank is obliged to establish A on Earning Assets and on Earning Assets A comprises general provision and special provision for Earning Assets and special provision for on Earning Assets eneral A for Earning Assets is set to be no less than of total Earning Assets classified as rrent, not incl ding inancing facilities that are not et withdrawn that is part of ff alance heet Acco nt transaction, haria ertificates of , haria
Chapter 4 Chapter tate ec rities, and or other f nd placements at and or overnment of ndonesia, part of Earning
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Assets g aranteed with overnment of ndonesia g arantees or cash collaterals and or Ijarah inancing and IMBT inancing he amo nt of special provision established is set to be the same as re ired for he obligation to establish a general A is not applicable on Earning Assets for leasing trnsactions in the form of Ijarah agreements or leasing transactions with a transfer of ownership right in the form of IMBT agreements ank sho ld establish depreciation amorti ation for leasing transactions ollaterals that can be taken into acco nt as red cing factor in the establishment of A comprise haria sec rities and shares that are activel traded in the bo rse in ndonesia or that have investment ratings and are bo nd b lien ands, b ildings and residential ho ses that are bo nd with mortgage right achineries that are a nit with the lands and are bo nd with mortgate right Air planes or sea ships with the si e of above c bic meters that are bo nd with hipotek mortgages otor vehicles and inventories that are bo nd in fid ciar and or areho se receipts that are bo nd with g arantee right on wareho se receipts c. ral ank rovision for Earning Asset rovision for Asset rite ff E emptions in the establishment of eneral rovision for Earning Asset rite ff A is for earning assets are in the forms of placements in ertificates of and redits g aranteed with li id collaterals s ch as ertificates of , bonds iss ed b Chapter 4 overnment of , savings and or deposits blocked at the relevant s pplemented with letters of a thori ation for disb rsements and precio s metals
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E pansion of the t pes and binding of collaterals to promote credit channeling to s and calc lation of collateral val es that are taken into acco nt as red ctions in the establishment of A among others covers old ewelries areho se receipts ands and or b ildings with proofs of ownership in the forms of s rat girik letter C or e ivalent doc ments incl ding agreements of sales p rchases siness place los kios lapak right to se right to c ltivate and art of f nds that are g aranteed b tate wned siness Enterprises egional overnment wned siness Enterprises that cond ct b siness as credit g arantors has the a thorit to cond ct recalc lation or to not recogni e collateral val es that have been taken into acco nt in the establishment of A if the does not meet the reg lation An sho ld establish A comprising general A and special A eneral A is set at no less than per mil of Earning Assets that have rrent alit , not incl ding placements in ertificates of and redits g aranteed b collaterals that are li id, in the forms of ertificates of , bonds iss ed b overnment of , savings and or deposits blocked at the relevant s pplemented with letters of a thori ation for disb rsements and precio s metals pecial A is set at no less than of Earning Assets of b tandard alit after ded cted with val es of the collaterals of Earning Assets with o btf l alit after ded cted with val es of the collaterals of Earning Assets of oss alit after
Chapter 4 Chapter ded cted with val es of the collaterals
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al es of collaterals that can be taken into acco nt as red cing factor in the establishment of A are set at the highest of collaterals that are li id, in the forms of ertificates of , bonds iss ed b overnment of , savings and or deposits blocked at the concerned s pplemented with letters of a thori ation for disb rsements and precio s metals of market val es for collaterals in the form of gold ewelries of the val es of mortgage right for collaterals in the forms of lands, b ildings and or residential ho ses that have certificates bo nd with mortgage rights of the val es of collaterals in the form of wareho se receipts which assessments have been performed less than or p the last months and are in line with the aws as well as prevailing reg lations and proced res of a b ect ale al e ilai al b ek a ak of collaterals in the forms of lands, b ildings, and or residential ho ses that have certificates bo nd with mortgage right of for collaterals in the forms of lands and or b ildings with proofs of ownership in the form of rat irik Letter C or e ivalent doc ments, incl ding Agreements of ales rchases drawn b notaries or other a thori ed officers s pplemented with the last one ear a a able otification etters rat emberitah an a ak erh tang of market price, leasing price or transfer price for collaterals in the forms of b siness
place kios los lapak right to se right to Chapter 4 c ltivate s pplemented b proofs of ownership or permits to se iss ed b the legal managements or prepared b a thori ed officers
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of market val e for collaterals in the forms of motor vehicles, ships or motori ed boats s pplemented with proofs of ownership and bo nd in accordance with prevailing reg lations of val es of the collaterals in the form of wareho se receipts which assessment have been cond cted more than the last months p to months and are in line with the aws as well as prevailing reg lations and proced res of part of f nds g aranteed b that cond ct b siness as credit g arantors of the market val e for collaterals in the forms of motor vehicles, ships, or motori ed boats that are s pplemented b proofs of ownership and letters of a thori ation to sell made legali ed b notaries of val es of the collaterals in the form of wareho se receipts which assessment have been cond cted more than months previo sl b t have not e ceeded months previo sl and are in line with the aws as well as prevailing reg lations and proced res d. haria ral ank rovision for Asset rite ff An sho ld establish A on Earning Assets and on Earning Assets A for Earning Assets comprises general provision and special provision, while A for on Earning Assets is special provision he amo nt of general provision at an sho ld be no less than of all Earning Assets of rrent alit , not incl ding haria ertificates of he stip lation concerning the amo nt of special provision at an is set to be the same as the stip lation concerning the amo nt of special provision at an he obligation to establish A does not appl on Earning Assets in
Chapter 4 Chapter the forms of ijarah or IMBT, b t a sho ld
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establish depreciation amorti ation for ijarah or IMBT ollaterals that can be taken into acco nt as red ctions in the establishment of A comprise acilities g aranteed b the ndonesian government or egional government or cash collaterals foreign c rrenc bank notes, gold, savings and or deposits blocked with letters of a thori ation for disb rsements lands, b ildings, residential ho ses that meet certain re irements wareho se receipts b siness places los kios managed b managing agencies and otor vehicles and sea ships that meet certain re irements n a n n a a a Banks An bank sho ld have and implement anti fra d strateg that is ad sted to the internal and e ternal environments, b siness activit comple it , and potential, t pe, and risk of fra d as well as be s pported b ade ate h man reso rces Anti fra d strateg constit tes part of strategic policies, which implementation is reali ed in a fra d control s stem anks, which have owned anti fra d strategies b t have not met the minim m references, sho ld make ad stments to and enhance their anti fra d strategies and sho ld s bmit res lts of monitoring of anti fra d strateg implementation to or the p rpose of controlling risk of the occ rrence of fra d, an bank sho ld implement risk management with strengthening in several aspects, covering at least Active anagement versight, rgani ation tr ct re and Acco ntabilit , as well as ontrol and onitoring Chapter 4 An anti fra d strateg , which in implementation comprises a ra d ontrol stem, has fo r pillars as follows
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a revention containing instr ments for the p rpose of red cing the potential of the occ rrence of fra d, which at least covers anti fra d awareness, identification of v lnerabilities, and know o r emplo ee b etection containing instr ments for the p rpose of identif ing and finding events of fra d in bank b siness activities, which at least covers whistleblowing polic and mechanism, s rprise a dits, and s rveillance s stem c nvestigations, eporting, and anctions containing instr ments for the p rpose of seeking information, reporting s stem, and imposition of sanctions on events of fra d in bank b siness activities, which at least covers investigation standard, reporting mechanism, and imposition of sanctions and d onitoring, Eval ation, and ollow p containing instr ments for the p rpose of monitoring and eval ating events of fra d as well as re ired follow ps based on res lts of eval ations, which at least covers monitoring and eval ation of events of fra d as well as follow p mechanism a a n sk ss sk s n an a a his reg lation constit tes an enhancement of the reg lation concerning calc lation of A so that calc lation of A more reflects risks that face a bank as well as be in line with internationall applicable standards a ain provisions in credit risk covers credit risk d e to the fail res of debtors, co nterparties co nterpart credit risk , and settlements settlement risk b orm la for calc lation of A is et laim isk eight c isk weight is set based on i debtor or co nterpart rating, in accordance with portfolio
Chapter 4 Chapter categor or ii certain percentage for certain t pe of claim
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d ortfolio categor covers i claims to government ii claims to p blic sector entities iii claims to m ltilateral development banks and international instit tions iv claims to banks v residential ho se backed credits vi commercial propert backed credits vii emplo ee or retiree credits viii claims to micro scale b sinesses, small scale b sinesses, and retail portfolios i claims to corporations claims that have become d e and i other assets e atings sed are the latest ratings iss ed b rating instit tions acknowledged b omestic ratings sed for determination of the risk weight of claims in r piah and international ratings are sed to determine the risk weight of foreign c rrenc claims laims in the form ec rities se the ratings of the sec rities, while claims in forms other than sec rities se the ratings of the debtors and f redit isk itigation echni e that are acknowledged are i echni e – ollateral ii echni e arrant and iii echni e arantee or redit ns rance n a n n a Bank a a a a n s A bank ma onl cond ct capital participations in companies that cond ct b siness in the financial field A ma onl cond ct capital participations in companies that cond ct b siness in the financial field based on haria rinciples eanwhile, a and ranch ffice of a bank domiciling overseas ma onl cond ct emporar apital articipations or each capital participation, a bank sho ld obtain the approval of he total of all capital participation portfolios is set to be no higher than capital participations set in accordance with categori ation, as stip lated in prevailing reg lation concerning b siness activities and Chapter 4 office networks based on bank core capital An bank is prohibited from cond cting capital participations e ceeding f nd provision limit referred
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will not disrupt bank’s business sustainability and will not raise bank’s risk bank’s business strategy;
Chapter 4 Chapter the divestment is conducted through an arm’s
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the divestment is not to obtain pro its capital gain ; and has received approval rom b Capital participation by Bank’s Subsidiary Company n the case o a capital participation conducted by a Bank’s Subsidiary Company, the following should be ensured capital participation may only be conducted in a ompany hat onducts usiness in the inancial ield and or in a company that supports inancial services and in the orm o shares; the ubsidiary ompany should apply ade uate prudential principle and risk management; and comply with regulations issued by the authority that supervises the ubsidiary ompany c ccounting reatments anagement uality and ransparency in apital articipations and emporary apital articipations he accounting treatments shall re er to the prevailing he uality should re er to the prevailing regulation concerning assessment o bank asset uality ank should disclose the activity in the nnual eport by re erring to prevailing regulation concerning transparency and publication o bank reports ank should implement risk management by re erring to the prevailing regulation concerning implementation o risk management or or implementation o risk management or and d ther atters ased on certain considerations may instruct a bank to conduct divestment o a capital participation or re ect the re uest or a capital Chapter 4 participation or divestment at bank’s own initiative n a n a Bank a s a n a n k a s
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n outsourcing part of the implementation of works by a bank to other parties, the bank should implement prudential principle and risk management, as well as be responsible for the works outsourced to Service rovider Companies S C utsourcing may only be conducted for support works, both in bank business activities as well as bank business support activities he criteria of support works should at least covers being of low risk, not re uiring high competency ualifications in the banking field, and not directly related to the decision making process that influences bank operations bank may only undertake an outsourcing agreement with a S C after the S C meets at least the following re uirements a being an ndonesian legal entity in the form of imited iability Company or Cooperative b having valid business license from an authori ed institution in line with its business line c having good financial performance and reputation as well as ade uate e perience d having human resources for supporting the implementation of works outsourced and e having facilities and infrastructure re uired for the outsourcing number of works that do not fall in the scope of utsourcing are among others a transfer of works to bank ead ffice or regional office domiciling overseas, parent company, and other entities within bank business group located domestically or overseas, as long as the transfer of works still comply with other prevailing regulations that govern specific activities works, including the implementation of outsourcing, as well as observe the suitability and reasonableness of the said transfer of works b transfer of consultancy service works or special e pertise works, for e ample legal consultant
Chapter 4 Chapter services, notary services, independent appraiser services, and public accountant services and
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c transfer of goods and buildings maintenance service works, such as maintenance of air conditioners, photocopiers, computers and printers as well as maintenance services of bank office buildings rudential principle applicable in the transfer of credit collection work is among others a credit collection scope in this regulation is general credit collection, including collection of credit without collaterals and credit card debts b credits which collection can be transferred to other parties are credits of oss uality in accordance with the prevailing regulation concerning assessment of CB asset uality c cooperation agreements between bank and S C should be undertaken in the form of agreements for the provision of manpower services and d bank should have a policy for collection ethics in accordance with prevailing regulation eanwhile, prudential principle applicable in transfer of cash management works is among others as follows a bank may only undertake outsourcing agreements with S C that meet the re uirements of prevailing regulation and b outsourcing conducted by bank can be discontinued if that outsourcing has the potential of endangering bank’s business sustainability. n a n n ss a n s a Banks inancial assets that are transferred for the purpose of sset Securiti ation should be financial assets that comprise of credits, claims arising from securities, claims arising in the future future receivables and other e uivalent financial assets sset securiti ation should meet the criteria having cash flows, owned and under the control of riginal Creditors and can be Chapter 4 freely transferred to issuers n sset Securiti ation, a bank may function as riginal Creditor, rovider of Supporting Credits, rovider of i uidity acilities, rovider of Services, Custodian Bank, or nvestor
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n a n n n s a Banks tru tured rodu ts are bank rodu ts t at are o binations of t o or ore finan ial instru ents t at are non deri ati e and deri ati e finan ial instru ents or deri ati e and deri ati e finan ial instru ents and at least a e t e follo ing ara teristi s a. t e as alues or flo s arising fro t e rodu ts are linked to one or a o bination of basi ariables su as interest rate e ange rate o odities and or e uities and
b. e attern of anges on t e as alues or flo s of t e rodu ts is not regular o ared to t e attern of anges of t e basi ariables as referred to in letter a. s su t e anges of t ose as alues or flo s do not refle t o erall anges in t e basi ariables linearly asy etri ayoff i are arked a ong ot ers by t e e isten e of tionality a s floors ollars ste u ste do n and or all ut features e erage arriers kno k in kno k out and or inary digital ranges . efinition of t e abo e entioned deri ati es o ers e bedded deri ati es. tru tured rodu t a ti ities are a ti ities and or ro esses t at are ondu ted in relation to t e lanning de elo ent issuan es arketing offerings sales o erational i le entation and or dis ontinuation of a ti ities related to stru tured rodu ts. anks ay only ondu t stru tured rodu t a ti ities after a ing obtained a ro al in rin i le and state ent of effe ti eness for t e issuan e of ea ty e of stru tured rodu t fro . ny foreign urren y ay only ondu t stru tured rodu t transa tions t at are linked to basi ariables in t e for of e ange rate and or interest rate. ny non foreign urren y ay only ondu t
Chapter 4 Chapter stru tured rodu t transa tions t at are linked to basi ariable in t e for of interest rate. ank s ould state
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t e lan for stru tured rodu ts a ti ities in ank usiness lan. ank s ould i le ent effe ti e risk anage ent in ondu ting stru tured rodu t a ti ities. ny bank is ro ibited fro using t e ords “deposit”, “term deposit”, “protected”, “giro”, “savings”, and or ot er ords t at ay gi e t e er e tion to t e usto ers t at t e bank ro ides rote tion on t e return of stru tured rodu t rin i als in full in t e e ent t e stru tured rodu ts issued by t e bank are not su le ented it full rote tion on t e rin i als in original urren ies at t e ti e t ey be o e due.
n a n n n n nan a n s a Banks bank ay only ondu t agen y a ti ities for foreign finan ial rodu ts after a ing obtained a ro al in rin i le fro . o be o e an agent of foreign s are in est ent instru ents in addition to eeting t e re uire ent of a ro al in rin i le fro t e bank s ould also eet t e re uire ent as an agent of foreign s are in est ent instru ents in a ordan e it t e sti ulation set by . ny bank is ro ibited fro a ting as a sub agent in ondu ting agen y a ti ities for foreign finan ial rodu ts. oreign finan ial rodu ts for i banks in ndonesia ay a t as agents s ould at least eet t e follo ing re uire ents a. a e been registered and or et t e sti ulations of t e aut ori ed aut orities in t e original ountries of t e issuers and b. a e been re orted by bank to . n addition to eeting t e re uire ents entioned abo e foreign finan ial rodu ts in t e for of in est ent instru ents ot er t an s ares for i banks ay a t as selling agents s ould be in t e for Chapter 4 of tru tured rodu ts and eet t e follo ing re uire ents a. ssued by o erseas banks t at a e bran offi es in ndonesia
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re in ed to asic varia es s c as e c ange rate and or interest rate and c re not a com ination o vario s instr ments it oreign c rrenc against r pia derivative transactions or t e p rpose o ie d en ancement t at are o spec ative nat re inancia prod cts are not inc ded in overnment g arantee program eca se t e are not in t e orm o savings in an s n a n a nan a ommercia an s ssessment o an imp ementation s a e cond cted at individ a eve as e as in conso idation eve e ratings o actor are set in ive ratings, name ating , ating , ating , ating , and ating ma er actor rating re ects etter imp ementation, and an an t at receives atings , or s o d s mit action p ans an cond cts assessment o deve oping ana sis o t e ade ac and e ectiveness o princip e imp ementation per ormed in a compre ensive and str ct red manner on t ree aspects o governance, name governance str ct re, governance process and governance o tcome e o o ing e p anation is given in re ation to ndependent ommissioners and on ndependent ommissioners on ndependent ommissioner ma trans er into an ndependent ommissioner it t e conditions a as met t e re irements as ndependent ommissioner s o d ndergo a coo ing o period o no ess t an si mont s and c s o d o tain approva rom stip ation to c ari t e re irements or t e
Chapter 4 Chapter trans er rom on ndependent ommissioner to an ndependent ommissioner as e as
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gives an opport nit to a on ndependent ommissioner to ecome ndependent ommissioner sti o serving certain conditions to maintain t e independenc n ndependent ommissioner o as e d o ice or t o consec tive periods ma e reappointed as an ndependent ommissioner or t e ne t period as ong as t e oard o ommissioner eeting assesses t at t e person concerned can sti act independent as e as t e person concerned states in t e is er independence is stip ation is intended to ena e t e maintainance o t e independence o an ndependent ommissioner a t o g t e person concerned as e d o ice or ite a ong time on irmation t at t e ndependent ommissioner as attended t e oard o ommissioner eetings p sica or no ess t an t o times in a ear n an is o ige to s mit and p ici e report on imp ementation o no ater t an o r mont s a ter t e end o t e acco nting ear, so t at it is in ine it t e p ication dead ine or t e ann a report in ine it t e reg ation concerning transparenc and p ication o an reports istri tion o report on imp ementation o in ardcopies to severa parties s c as ndonesian ons mer nstit tion, ndonesian an ing eve opment nstit tion, and ating nstit tions are not o igator , considering t e report is a read available online at bank’s website and so t at it is in ine it t e reg ation concerning transparenc and p ication o an reports ere is an amendment to t e o igation to Chapter 4 cond ct se assessment o imp ementation, ic s o d e cond cted no ess t an t o times in a ear, so t at it is in ine it t e reg ation concerning assessment o commercia an
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so n ness level b a ia o e ial anks an a ia siness nits le entation o o s o l be eali e at least in t e i le entation o t e tasks an es onsibilities o boa o o issione s an boa o i e to s o leteness an i le entation o t e tasks o o ittees an n tion t at e o s t e inte nal ont ol i le entation o t e tasks an es onsibilities o s a ia s e viso boa i le entations o t e o lian e inte nal a it an e te nal a it n tions a i li it in n annelin an t ans a en in inan ial an non inan ial on itions le entation o o s o l be eali e at least in i le entation o t e tasks an es onsibilities o i e to i le entation o t e tasks an es onsibilities o s a ia s e viso boa n annelin to o e inan in sto e s an n e osits b o e e osito s an t ans a en in inan ial an non inan ial on itions al anks it t e e ansion o se vi es alon wit in ease in b siness vol e an isks also in ease an as s o t t e nee o i le entation o b n s o l i le ent i le entation a to in ea o its b siness a tivities an s o l be eali e in t e ollowin o s a le entation o t e tasks an es onsibilities o boa o i e to s b le entation o t e tasks an es onsibilities o boa o o issione s o leteness an i le entation o t e tasks o n tions o o ittees an lin o on li ts o inte est Chapter 4 Chapter e le entation o t e o lian e inte nal a it an e te nal a it n tions
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le entation o isk ana e ent in l in inte nal ont ol s ste a i li it o e it e tensions b siness lan an i ans a en o inan ial an non inan ial on itions s all e o assess ent on i le entation o b be o i e to s a n wit o e a ital o no less t an billion s o l ave no less t an t ee e be s o boa o i e to s an b n wit o e a ital o less t an billion s o l ave no less t an two e be s o boa o i e to s oa o i e to s o a wit o e a ital o no less t an billion s o l establis a nte nal it o k nit at an e a it nte n b isk ana e ent wo k nit an isk ana e ent o ittee an o lian e wo k nit oa o i e to s o a wit o e a ital o less t an billion s o l a oint e e tive o i e s w o e o a nte nal a it n tion b isk ana e ent n tion an o lian e n tion be o e be s o boa o o issione s a n wit o e a ital o o e t an billion s o l ave e be s o boa o o issione s o at least t ee e sons an no o e t an t e n be o e be s o boa o i e to s an
b n wit o e a ital o less t an Chapter 4 billion s o l ave e be s o boa o o issione s o at least two e sons an no o e t an t e n be o e be s o boa o i e to s
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be o in e en ent o issione s a) n wit o e a ital o o e t an billion s o l ave in e en ent o issione s o at least o t e n be o e be s o boa o o issione s an b) n wit o e a ital o less t an billion s o l ave no less t an one in e en ent o issione e be s o boa o i e to s o e e tive o i e s o a ties t at ave elations i s wit t e w i a a it to a t in e en entl an be in l en e annot be o e in e en ent o issione s at t e on e ne be o e n e oin a oolin o e io o one ea oa o o issione s at an wit o e a ital o no less t an billion s o l establis at least a it o ittee an b isk onito in o ittee le entation o t e o lian e n tion in o ani ation st t e is ivi e into a wit o e a ital o o e t an billion s o l establis o lian e wo k nit t at is in e en ent o t e o e ational wo k nits an b wit o e a ital o less t an billion s o l a oint an e e tive o i e w o is in e en ent o t e o e ational wo k nits o i le entin t e o lian e n tion le entation o t e inte nal a it n tion o t e o ani ation st t e o a) n wit o e a ital o o e t an billion s o l establis t e an b) n wit o e a ital o less t an billion s o l a oint one e e tive o i e
Chapter 4 Chapter w o is es onsible o t e i le entation o t e inte nal a it n tion
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e o ts elate to i le entation o a e a) e o t on ain oints o t e i le entation o t e tasks o e be o boa o i e to in a e o t e o lian e n tion b) Special report on board of directors’ oli ies e isions t at eviate o sti lations c) e o t on a oint ents an is issals o ea o o e e tive o i e in a e o i le entation o t e inte nal a it n tion d) e o t on t e i le entation an ain in in s o inte nal a it in l in in o ation on a it es lts t at a e on i ential e) e ial e o t on ea inte nal a it in in t at is o e te to be able to disrupt the RB’s business s stainabilit f) e o t on es lts o eviews b an e te nal a t o an wit o e a ital o o e t an billion an g) e o t on i le entation o le entation o nte ate o inan ial on lo e ates n inan ial on lo e ate nee s to i le ent oo ove all so t at t e inan ial on lo e ate an en an e e o an e ote t stakeholders’ interest, and step up compliance to t e ovisions o evailin le islations as well as ene all a li able et i al val es n t e i le entation o t e e is a nee o a i e o nte ate w i will be t e e e en e o all wit in t e inan ial on lo e ate so t at i le entation alit Chapter 4 wit in t e inan ial on lo e ate an be en an e ain ovisions n inan ial on lo e ate s o l i le ent
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nte rated hich implementation is performed b the ain ntit or this purpose, the ain ntit should ha e at least i ain ntit board of commissioners ii ain ntit board of directors iii inte rated committee i inte rated compliance ork unit inte rated internal audit ork unit and i uide for inte rated he ain ntit board of directors has the tasks and responsibilities of amon others ensurin implementation of inte rated ithin the inancial on lomerate and de elopin a uide for inte rated he ain ntit Board of ommissioners has the tasks and responsibilities of amon others performin o ersi ht o er implementation at each S so that it is in line ith the uide for inte rated mplementation of the tasks and responsibilities of the ain ntit board of directors and or board of commissioners do not take into account the holdin of concurrent positions e officio he inte rated ommittee has the tasks and responsibilities of amon others performin e aluation of the nte rated implementation throu h at least assessment on the ade uac of internal control and implementation of the compliance function in an inte rated manner embership of the nte rated ommittee at least comprises a n independent commissioner, ho acts as chairman in one of the committees at the ain ntit , as chairman as ell as member b ndependent commissioners representin
Chapter 4 Chapter and are appointed from S ithin the inancial on lomerate, as members
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c n independent part as member and d embers of Sharia Super isor Board from S ithin the inancial on lomerate, as members emberships of independent commissioners, independent parties, and members of Sharia Super isor Board in the nte rated ommittee in the inancial on lomerate are not considered as holdin concurrent positions nte rated ompliance ork nit has the tasks of at least monitorin and e aluatin implementation of the compliance function at each S ithin the inancial on lomerate nte rated nternal udit ork nit has the tasks of at least monitorin implementation of internal audit at each S ithin the inancial on lomerate uide for nte rated should contain at least a Re uirements to become candidate members of board of directors, candidate members of board of commissioners, and members of Sharia Super isor Board b Structure of board of directors, board of commissioners and Sharia Super isor Board c ndependent actions of board of commissioners d mplementation of S mana ement function b board of directors e mplementation of the o ersi ht function of board of commissioners and Sharia Super isor Board f mplementation of the compliance function, internal audit function, and Chapter 4 e ternal audit implementation mplementation of risk mana ement function h Remuneration polic and
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i andlin of conflicts of interest inancial on lomerate, hich ain ntit is a Branch ffice of an entit domicilin o erseas, should meet the re ulation concernin inte rated he ain ntit should de elop report on assessment of inte rated implementation each semester for the positions of end of une and ecember, and should be submitted no later than the th of the second month after the end of the rele ant reportin month he ain ntit should de elop an annual report on inte rated implementation hich should be submitted no later than fi e months since the end of the accountin ear bli ation to submit the report on assessment of inte rated implementation for the first time should be performed for report position as follo s a une , for an ain ntit that is cate ori ed as B b ecember , for an ain ntit that is a non B bank and non bank mposition of sanctions shall start from a anuar , for an ain ntit that is cate ori ed as B b anuar , for an ain ntit that is non B bank and non bank e mplementation of in ro ision of Remunerations for ommercial Banks n order to stren then bank , remunerations for members of board of directors, members of board of commissioners, and other parties that are considered to ha e si nificant influence on bank risk profile need to be linked to the risks taken nsound remuneration practices are considered to be one of the factors that contributed to the orld
Chapter 4 Chapter economic crisis in his caused leaders of the member countries to declare the need for a
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reformation in remuneration practices in the financial sector in order to stren then bank capital and li uidit ndonesia, as one of members, has the commitment to adopt the rinciples for Sound ompensation ractices, hich ha e the ob ecti e of amon others to pre ent e cessi e risk takin beha ior b decision makers in a bank in order to run after short term tar ets b i norin risks that ill arise in the future n addition, this matter has been included in Basel implementation, particularl illar market discipline , in hich an bank is demanded to disclose information concernin remunerations in a more transparent manner to the public and market actors ain pro isions Bank should implement in the pro ision of remunerations to members of board of directors, members of board of commissioners, and bank emplo ees mplementation of the said shall co er at least a the tasks and responsibilities of board of directors and board of commissioners b the tasks and responsibilities of the Remuneration ommittee c implementation of prudential principle in the pro ision of remunerations d disclosure of remunerations mplementation of prudential principle in the pro ision of Remunerations a i ed Remunerations Remunerations that are not linked to performances and risks, such as amon others basic salaries, facilities, housin allo ance, health allo ance, Chapter 4 education allo ance, holida allo ance, and pensions Should at least obser e business scale, business comple it , peer roup,
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inflation rate, financial condition and capacit , as ell as should not be in conflict ith pre ailin le islations b ariable Remunerations Remunerations are linked to performances and risks, amon others in the forms of bonus or other e ui alent forms n addition to obser in re uirements for i ed Remunerations, should also promote prudent risk takin re i en in the forms of cash and or shares or share based instruments issued b the bank o ublic Banks should a ard remunerations in the forms of cash and shares share based instruments issued b the concerned Bank n the e ent the Bank e periences losses, the Bank is allo ed not to distribute ariable remunerations or ma distribute them in relati el small alues c aterial Risk akers R a Bank should determine parties ho are R , hich meet the follo in criteria a members of board of directors and or other emplo ees, ho due to their tasks and responsibilities, make decisions hich ha e si nificant impacts on bank risk profile and b members of board of directors, members of board of commissioners and or mplo ees ho recei e ariable remunerations in lar e alues
Chapter 4 Chapter an Bank should postpone ariable remuneration pa ments to parties ho
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are classified as R in certain percenta es, si es of the percenta es are in line ith the le els of the positions he postponement period should be minimum three ears and ma be ad usted to be lon er in line ith the time hori on of risks a Bank ma postpone pa ments of deferred ariable Remunerations malus or dra back ariable remunerations that ha e been paid to parties ho become R under certain conditions nforcement of the stipulation a anuar for orei n Banks, B , and B banks b anuar for B and B banks hich are not orei n Banks mposition of sanctions a anuar , for orei n Banks, B and B banks and b anuar , for B and B banks hich are not orei n Banks f mplementation of ood orporate o ernance in the ro ision of Remunerations for Sharia ommercial Banks and Sharia Business nits his Re ulation is an enhancement of the stipulations related to remunerations contained in B Re ulation umber B concernin mplementation of ood orporate o ernance or Sharia ommercial Banks and Sharia Business nits and as such does not re oke the B Re ulation in its entiret his Re ulation on Remunerations for S Bs and SB s aims to promote prudent risk takin , information transparenc , and suitabilit ith sharia principles in the pro ision of Chapter 4 remunerations he difference bet een Re ulation concernin S B and SB Remunerations and Re ulation concernin B Remunerations lies in the
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pro isions concernin implementation of sharia principles and remunerations for Sharia Super isor Board SSB e an en a as S ariah S his Re ulation stipulates pro isions concernin ood o ernance in the pro ision of remunerations for members of S B Board of irectors, members of S B Board of ommissioners, S B emplo ees, as ell as as members of S B and SB SSB mplementation of the said ood o ernance in this Re ulation co ers the tasks and responsibilities of the Board of irectors, Board of ommissioners, and Remuneration committee, application of prudential principle in the pro ision of remunerations, application of sharia principles in the pro ision of remunerations, as ell as disclosure of remunerations Banks are obli ed to obser e the prudential principle in the pro ision of remunerations, co erin i ed Remunerations as ell as ariable Remunerations olic on i ed Remuneration obser es business scale, business comple it , peer roup, inflation rate, financial condition and capacit , as ell as compliance ith the pro isions of le islations and Remuneration aps bet een le els of positions i ed remunerations can be i en in the forms of cash and or shares or instruments based on shared issued b the Bank ean hile, ariable Remunerations should obser e business scale, business comple it , peer roup, inflation rate, financial condition and capacit , as ell as compliance ith the pro isions of le islations, promote prudent risk takin and take into consideration the performance of the Board of irectors Board of ommissioners SSB mplo ees, performance of business units, and Bank performance, as ell as
Chapter 4 Chapter risks nlike the case of i ed Remuneration, ariable Remuneration can be i en in the forms
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of cash and or shares or instruments based on shares issued b the Bank o e er, in the case of an o public Bank, pro ision of ariable Remuneration in the forms of shares or instruments based on shares issued b the Bank should be of a certain percenta e of the ariable Remunerations Banks are re uired to establish parties that are to be the material risk takers aterial risk takers are parties ho at least meet the follo in criteria, namel members of the Board of irectors and or mplo ees ho due to their duties and responsibilities make decisions that ha e si nificant impacts on the risk profile of the Bank, or members of the Board of irectors, members of the Board of ommissioners and or mplo ees ho recei e ariable Remunerations of lar e amounts hen certain conditions occur, such as the Bank sufferrin losses, there is a risk that ma ne ati el impact the Bank s finances, or such as a fraud occurrin due to a material risk taker that causes losses to the Bank, the Bank ma appl alus and or la back to the parties that are the material risk takers Banks are re uired to disclose Remuneration polic information in the report on implementation of o ernance as stipulated in the pro isions of le islations re ardin the implementation of ood corporate o ernance for sharia commercial banks and sharia business units his Re ulation is effecti e as of anuar , for B and B Banks and as of anuar , for B and B Banks, hile application of the sanctions set in this Re ulation shall come into force as of anuar , for B and B Banks and as of anuar , for B and Chapter 4 B Banks ommercial Bank nternal udit ork nit n B should establish an S as part of the implementation of Bank nternal udit unction
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mplementation Standards he S is the ork unit that is directl responsible to the resident irector he S has the tasks and responsibilities to assist the tasks of the president director and board of commissioners in performin o ersi ht b operationali in them into plannin , implementation as ell as monitorin of audit results perform anal ses and assessments in the fields of finance, accountin , operation, and other acti ities throu h direct audit and indirect super ision identif all possibilities for impro in and enhancin efficienc in the uses of human resources and funds and pro ide ob ecti e recommendations for impro ements and information on acti ities audited at all le els of mana ement n a n an n n a Banks Board of directors should nurture and reali e the compliance culture at all le els of the or ani ation and bank business acti ities and should ensure implementation of the bank compliance function Bank compliance function includes measures to a reali e implementation of the compliance culture at all le els of the or ani ation and bank business acti ities b mana e compliance risk that faces the bank c ensure that policies, stipulations, s stems and procedures de eloped b , as ell as business acti ities performed b the bank are alread in line ith pre ailin re ulations and le islations, includin Sharia rinciples for S B and SB and d ensure bank’s compliance to commitments made b the bank to and or other authori ed super isor authorities Bank should ha e a director ho super ises the
Chapter 4 Chapter compliance function and establish the compliance ork unit he director super isin the compliance
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nction and t e compliance o k nit at a and o t at as a s o ld coo dinate it t e a ia pe iso oa d in elation to implementation o compliance to a ia inciples e di ecto s pe isin t e compliance nction s o ld meet t e independence e i ement e p esident di ecto and o ice p esident di ecto a e p o ibited om oldin conc ent position as t e di ecto t at s pe ises t e compliance nction e di ecto s pe isin t e compliance nction is p o ibited om s pe isin b siness and ope ational nctions isk mana ement t at makes decisions on bank b siness acti ities t eas inance and acco ntin lo istics and p oc ements o oods se ices and inte nal a dit n a n sk ana n a Banks a Banks an nan a n a s a on entional omme cial anks s o ld implement e ecti e isk mana ement bot at bank indi id al le el as ell as bank in consolidation it s bsidia companies is isk mana ement implementation s o ld co e at least cti e o e si t b boa d o commissione s and boa d o di ecto s de ate policies p oced es and limit settin de ate isk identi ication meas in monito in and cont ol p ocesses as ell as isk mana ement in o mation s stem and e all inte nal cont ol s stem s o ld implement isk ana ement o ei t t pes o isks namel c edit isk ma ket isk li idit isk ope ational isk le al isk ep tation isk st ate ic isk and compliance isk Chapter 4 n pe o min isk p o ile anal sis bank s o ld e e to t e p e ailin e lation conce nin assessment o t e so ndness le el o and bank s o ld s bmit t e isk o ile epo ts at indi id al
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le el as ell as at consolidation le el a te l namel o t e positions o t e mont s o a c ne and eptembe n addition to t e isk o ile epo ts a bank s o ld s bmit se e al epo ts elated to isk ana ement implementation as ollo s epo t on e od cts and cti itis t e epo ts at t e occ ences o conditions t at a e t e potential to ca se si ni icant losses to bank inancial condition t e epo ts elated to isk ana ement implementation s c as amon ot e s isk ana ement epo t o li idit isk t e epo ts elated to iss ance o ce tain p od cts o e ec tion o ce tain acti ities s c as amon ot e s epo t on acti ities elated to m t al nds and epo t on implementation o ma ketin coope ation it ins ance companies ancass ance n t e implementation o isk mana ement p ocess and s stem bank s o ld establis isk ana ement ommittee ic at least comp ises ma o it o t e di ecto s and elated e ec ti e o ice s and isk ana ement o k nit ic is independent and di ectl esponsible to t e p esident di ecto o a di ecto o is speci icall tasked ank s o ld also a e itten policies and procedures for managing risks inherent in bank’s ne p od cts and acti ities b a ia omme cial anks and a ia siness nits ank s o ld implement e ecti e isk ana ement mplementation o isk ana ement o s o ld be pe o med at indi id al le el as ell as in consolidation it s bsidia companies
Chapter 4 Chapter isk ana ement o s o ld be implemented on all b siness acti ities
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hich is a unit ith the isk anagement imp ementation at the mp ementation of isk anagement shou d co er at east a cti e o ersight b board of directors board of commissioners and sharia super isor board b de uate isk anagement po icies and procedures as e as isk imit setting c de uate isk identification measuring monitoring and contro processes as e as isk anagement information s stem and d era interna contro s stem ank shou d imp ement isk anagement on the fo o ing t pes of isks a redit risk b arket risk c i uidit risk d perationa risk e ega risk f eputation risk g trategic risk h omp iance risk i ate of return risk and n estment risk e uit in estment risk c ura anks he more comp e products and acti ities are the higher the risks that face his condition re uires risk management imp ementation b an shou d imp ement isk anagement hich inc udes at east a o ersight b board of directors and board of commissioners b ade uate po icies procedures and imits name Chapter 4 risk management po icies risk management procedures and risk imit setting c de uac of processes and s stems
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name risk identification measuring monitoring and contro processes and risk management information s stem d era interna contro s stem pes of risks that shou d be managed b inc ude a credit risk b operationa risk c comp iance risk d i uidit risk e reputation risk and f strategic risk isk management imp ementation is di ided based on core capita name a an ith core capita of more than p bi ion shou d imp ement risk management for a risks b an ith core capita of more than p bi ion but ess than p bi ion shou d imp ement risk management for four t pes of risks name credit risk operationa risk comp iance risk i uidit risk and c an ith core capita of ess than p bi ion shou d imp ement risk management for three t pes of risk name credit risk operationa risk and comp iance risk he organi ation structure in risk management imp ementation is di ided based on core capita as fo o s a an ith core capita of more than p bi ion shou d estab ish (1) risk management committee and (2) risk management ork unit b an ith core capita of more than p bi ion but ess than p bi ion shou d estab ish risk management ork unit
Chapter 4 Chapter c an ith core capita of ess than p bi ion shou d appoint one e ecuti e officer
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to be in charge of risk management imp ementation or the purpose of managing risks inherent in issuances of ne products and or conducts of ne acti ities a shou d ha e ritten po icies and procedures riteria of ne products and acti ities are a has not been issued or conducted pre ious b the or b has been issued or conducted pre ious b the but de e opment has changed or enhanced a risks or certain risks of the eports re ated to risk management imp ementation are a report on action p an for risk management imp ementation b risk profi e report c report on ne products and acti ities and d other risk profi e reports i perform assessment on risk management imp ementation at and ma make ad ustment to the isk anagement imp ementation assessment d inancia ong omerates inancia industr is an industr that has high business comp e it and competition e e and as such is e posed to high risks and shou d operate prudentia and efficient n facing such condition an shou d pa attention to a risks hich direct as e as indirect ma inf uence the FSI’s business sustainability, originating from subsidiar companies re ated companies sister companies and other entities that be ong in one inancia ong omerate or the purpose of more o era risk management an inancia ong omerate shou d imp ement Chapter 4 integrated risk management hrough integrated risk management imp ementation the inancia ong omerate i get benefits such as better risk management determination of risk appetite and
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ris toleran e that are in line ith the Finan ial Conglomerate’s business complexity and hara teristi , hi h in turn ill ro u e syner y as well as enhance the Financial Conglomerate’s business a a ity an a ital In a ition, i le entation o Inte rate is ana e ent at the Finan ial on lo erate is e e te to be one o the ehi les or ontributin to the realiation o inan ial syste stability, hi h ro s sustainably an there ore be able to enhan e national o etiti eness ain ro isions ny Finan ial on lo erate shoul i le ent Inte rate is ana e ent in a o rehensi e an e e ti e anner as sti ulate in e ulation u ber A Financial Conglomerate’s structure o rises a ain ntity b subsi iary o anies an or relate o anies alon ith their subsi iary o anies y es o FSI in a Finan ial on lo erate in lu e a ban s b insuran e an re insuran e o anies se urity o anies an or inan in o anies Finan ial on lo erate shoul ha e a ain ntity, na ely a FSI hi h inte rates is ana e ent i le entation at the Finan ial on lo erate In the event the Financial Conglomerate’s stru ture o rises o arent FSI an subsi iary FSI, the ain ntity is the arent FSI In the event the Financial Conglomerate’s stru ture oes not only o rise arent FSI an Subsi iary FSI there are relate o anies , the ontrollin Sharehol er o the Finan ial on lo erate shoul a oint the ain ntity he arty a ointe as the ain
Chapter 4 Chapter ntity is the FSI that has the lar est total assets an or o ns oo is ana e ent
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implementation uality Implementation o Integrated is anagement covers at least a Active oversight by board o directors and board o commissioners o the ain ntity b Ade uate integrated ris management policies procedures and limit setting c Ade uate integrated ris identi ication measuring monitoring and control processes as well as integrated ris management in ormation system d verall internal control system on integrated ris management implementation ypes o ris s that should be managed in integrated ris management cover a credit ris b mar et ris c li uidity ris d operational ris e legal ris reputation ris g strategic ris h compliance ris i intra group transaction ris and insurance ris A Financial Conglomerate that does not own an insurance and or re insurance company has no obligation to manage insurance ris he ain ntity should appoint the ain ntity director who supervises the ris management unction to become the director who supervises the integrated ris management unction For the purpose o implementing integrated ris management in a comprehensive and e ective manner the ain ntity should establish a Integrated is anagement Committee omite ana emen isi o erintegrasi and b Integrated is anagement or nit atuan er a
ana emen isi o erintegrasi Chapter 4 he ain ntity should submit the ollowing reports a eport on F I that is appointed to be the ain ntity and F I that are the members
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o the Financial Conglomerate to no later than arch b eports in the event there is Anew inancial conglomerate together with the appointment o the ain ntity A change in ain ntity A change in members o the inancial conglomerate and or A dissolution o the inancial conglomerate o later than wor ing days a ter the re erred conditions occur c Integrated ris pro ile report periodically or the positions o end o une and ecember submitted no later than the th o the second month a ter the end o the relevant reporting month he obligation to submit integrated ris pro ile report or the irst time should be met or the ollowing report positions a une or lead entities that are categori ed as b ecember or lead entities that are non ban and non ban here are two types o sanctions in this egulation namely administrative sanction and sanction o payment penalty speci ic or late reporting Imposition o administrative sanction will speci ically be e ective starting a anuary or lead entities that are categori ed as b anuary or lead entities that are non ban and non ban n a n sk ana n n s n a n n B a Banks For the purpose o minimi ing the occurrence o ris
Chapter 4 Chapter related to the use o In ormation echnology and protecting the interests o a an and its customers the
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an should implement In ormation echnology ris management e ectively and C his implementation should be made among others by aligning In ormation Technology Strategic Plan with Bank’s business strategy ective ris management that the an should implement shall cover at least a active oversight by board o directors and board o commissioners b ade uate policies standards and procedures or the use o I c ade uate ris identi ication measuring monitoring and control processes as well as ris control in the use o I and d internal control system on the use o I olicies standards and procedures or the use o I should at least include aspects o a management b development and procurement c I operation d communication networ e in ormation security isaster ecovery lan g lectronic an ing services h use o I service providers and i provision o I services by an Further on in the implementation o ris management in the use o I a ban should ma e ad ustments to its business ob ectives policies si e and complexity his way the ban is expected to be able to manage ris s it aces in an e ective way in all operational activities supported by the utili ation o I ns a sk ana n n a n Bank a s s n s a an s ith the consideration that ris exposures o a ban Chapter 4 may arise directly rom its business activities as well as indirectly rom the business activities o subsidiary companies each ban should implement ris management in consolidation with subsidiary
219 Indonesia Banking Booklet 2018
co anies an ensure that ru ential rinci le a lie in bank business acti ities is also a lie in the subsi iary co anies This re uire ent is not a licable on subsi iary co anies that are owne or the ur ose o cre it restructuring Base on this sti ulation arious ru ent sti ulations a ong others assess ent by Public ccounting ir establish ent o PP as well as calculation o egal en ing i it shoul be calculate ul ille by the bank in i i ually as well as in consoli ation to inclu e subsi iary co anies The sa e is the case with assess ent o soun ness le el assess ent o risk ro ile eter ination o bank status as the ollow u o su er ision shoul also be con ucte in i i ually as well as in consoli ation This ru ential sti ulation oes not nee to be i le ente or any bank that owns a subsi iary co any that con ucts insurance acti ities howe er the bank is still oblige to assess an sub it the re ort on risk anage ent i le entation that is re are se arately s nan n s an s n s nan n a a a s This egulation is one or o banking su ort to the ca ital arket sector by ro i ing cre its or inancing to securities co anies an cre its or inancing with share collaterals Banks ay only ro i e cre its or inancing to co anies that are liste as security co anies an not to in i i ual ersons u to a i u o the ca ital o each Security o any or o the bank s ca ital select the s aller Banks are allowe to ro i e cre its or inancing with a itional collaterals in the or o shares that ha e been liste on the stock e change with the highest share alue o o the arket rice or the e change rate o the shares at the ti e o the cre it or inancing agree ent is signe owe er i cre it or inancing is ro i e by a bank or the ur ose o e ansion or taking o er the bank is allowe to
Chapter 4 Chapter recei e a itional collaterals in the or o shares not liste on the stock e change li ite to shares issue
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by the co anies that recei e the cre its or inancing n a n sk ana n n n n Bank n ny bank that o erates internet banking shoul i le ent risk anage ent in internet banking acti ities e ecti ely which inclu es a acti e o ersight by boar o co issioners an boar o irector b security control an c risk anage ent es ecially or legal risk an re utation risk n or er to enhance the e ecti eness o risk anage ent i le entation the bank shoul erio ically er or e aluation an au it on internet banking acti ities sk ana n n a n a Banks a n s n a s n s s an s B ny bank nee s to ste u ru ence in the channeling o P P ib Sharia P B an B iB Sharia B because e cessi ely high growths o these cre its ha e the otential o triggering the rise in ro erty asset rices that o not re lect the actual rices bubble rices an as such can increase cre it risk or the bank with large e osure o ro erty cre it n this regar con entional as well as sharia banks shoul be able to aintain ro ucti e econo y an be able to ace challenges in the inancial sector in the uture There is a nee or a olicy that can strengthen the inancial sector’s resilience in order to ini i e otential sources o ulnerability inclu ing e cessi e growths o these cre its P iB an B iB shoul continue to obser e the characteristics o sharia banking ro ucts inclu ing atwa issue by S This olicy is i le ente through the eter ination Chapter 4 o the si es o T or P T or P iB an own Pay ent or B iB an iB To a oi the ossibility o regulatory arbitrage the sti ulations concerning T an own Pay ent also
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l to nd it di erent tre t ent or s r t n is nd in ncin rod cts co e o t e re l tin o i incl des in ncin e tended to indi id l c sto ers nd does not l on cor or te c sto ers is sti l tion onl lies to i or residenti l o ses rt ents l ts r s s n o o e e rtici tion s rin o or in t e in ncin o residenti l o se o ners i is lied on i it t e sc e e is set t no i er t n o t e residenti l o se c isition rices e osit one s o n ent in rel tion to i it sc e e is set t no lo er t n o c isition rices o t e residenti l o ses le sed to t e c sto ers e de osits ill e c lc l ted s d nce ents on t e rc ses o t e residenti l o ses t e c sto ers en t e eco e d e n det ils t e sti l tion on d nce ent o credit or o n ent in i is set s ollo s o lo er t n or rc ses o t o eel otor e icles o lo er t n or rc ses o t ree eel or ore otor e icles or non rod cti e r oses nd c o lo er t n or rc ses o t ree eel or ore otor e icles or rod cti e r oses i one o t e ollo in conditions is et is e icle t t s license or tr ns ortin eo le or oods iss ed n t ori ed rt or is re ested n indi id l or le l entit t t s cert in siness license iss ed n t ori ed rt nd ill e sed or s ortin o er tion l cti ities o siness o ned s idened t e sco e o t e sti l tion to incl de
Chapter 4 Chapter o ert o ners i credit co risin tre d o se r t o ners i
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credit l t o ners i credit o ice c o se o ners i credit s ell s s o c o se o ners i credit nd ro ert c ed cons tion credit it t e ollo in r eters
a a a s Ba k ns n e e e – e – e to o n
ote in ncin onl or d r nd istis n
e e e – e – e to o n
sk ana n a n a Bank ana s an s n i le entin ris n e ent in n e ecti e nd l nned n s o ld ill o t t e ositions o n n ers nd o icers it n reso rces o e co etenc nd e ertise in t e ris n e ent ield s ro en t e ris n e ent certi ic tes iss ed t e ro ession l erti ic tion nstit tions ners i o ris n e ent certi ic tes n n ers nd o icers is one o t e s ects o co etenc ctor ssess ent in t e it nd ro er est n s o ld re re l n or nd i le ent n reso rce de elo ent ro r or t e r ose
o en ncin co etenc nd e ertise in t e ris Chapter 4 n e ent ield e s id n reso rce de elo ent ro r s o ld e incor or ted into n siness l n is n e ent certi ic tes re set t le els sed on n or ni tion le el nd
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n a n n n a n n an n n n n s a adjusted to the bank’s organization structure, business This program constitutes part of the bank’s overall risk
Chapter 4 Chapter
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h updating and monitoring i ross order orrespondent anking j fund transfers and k document administration bank should perform procedure hen a conducting business relationships ith candidate ustomers b conducting business relationships ith alk in ustomers c the bank doubts the validit of information provided b the ustomers, authorized persons and or eneficial ners or d there is the e istence of an unnatural financial transaction related to mone laundering and or the funding of terrorism To prevent the use of banks as the media or objects for mone laundering or the funding of terrorism that involve bank internal parties, a bank should perform the screening procedure hen accepting ne emplo ees This is due to a possibilit that the use of bank services as the media for mone laundering and the funding of terrorism also involves bank o n emplo ee s Therefore, to prevent or detect the occurrence of a suspicion of mone laundering crime conducted through a banking institution, it is necessar to appl no our mplo ee , hich is among others through the screening procedure and monitoring of emplo ee profiles n implementing and T program, a should submit to the follo ing a uidelines for mplementation of and T rogram and an action plan for implementation of the said program no later than months since the effectiveness of the related regulation and b eport on data updating activit at each ear end esults of the assessment of and T program Chapter 4 implementation is taken into account in bank soundness level assessment through the management factor n the case the assessment result is score , in addition to being taken into account in the soundness
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level assessment, it is also linked to the imposition of administrative sanctions in the forms of lo ering of the soundness level and termination of the management through the it and roper Test mechanism a n n k s an ans n a n Bank n bank ma utilize oreign orkers in conducting its business activities b meeting the prevailing regulation tilization of b a bank should take into consideration the availabilit of ndonesian orkers bank ma onl utilize for the follo ing positions or e uivalent positions a members of board of commissioners or board of directors b e ecutive officers and or c e perts consultants bank is prohibited from utilizing in the fields of personnel and compliance orks bank should request OJK’s approval before appointing FW to occup positions as ommissioners, irectors and or ecutive fficers should submit a plan for utilization, hich should be stated in ank usiness lan, to should guarantee the occurrence of a transfer of kno ledge in the utilization of bligation for the transfer of kno ledge should be e ecuted through a ppointment of t o understudies for each b ducation and job training for the understudies should be in line ith the ualifications re uired for the positions held b the and mplementation of training or teaching b should be for certain time periods, particularl that for bank emplo ees, school universit students, and or general public n a n sk ana n a Banks a n s a k n a n ns an an s Ban ass an ancassurance is a cooperation activit bet een a bank
Chapter 4 Chapter and an insurance compan for the purpose of marketing insurance products through the bank This
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ooperation a tivit is lassifie into t ree business o els as follo s i eferen e ii istribution ooperation an iii ro u t ntegration n ban t at on u ts ban assuran e s oul o pl it prevailing regulations in t e fiel s of ban ing an insuran e a ong ot ers regulations on erning ris anage ent ban se re pro u t infor ation transparen an regulations issue b insuran e supervisor aut orit parti ularl t ose relate to ban assuran e n on u ting ban assuran e an ban is pro ibite to bear or s are t e ris s arising fro t e insuran e pro u ts offere ll ris s fro t e insuran e pro u ts s oul be borne b t e insuran e o panies i are the bank’s partners. n a n sk ana n n Bank s a a n s Banks’ increasing involvement in Mutual Fund relate a tivities brings benefits as ell as potentiall poses various ris s for ban s n t is regar an ban nee s to step up effe tive ris anage ent i ple entation b appl ing pru ential prin iple an prote ting customers’ interests. A bank’s activities that are related to utual Fun s in lu e t e ban a ting as investor selling agent of utual Fun se urities an usto ian an For t e purpose of supporting effe tive ris anage ent i ple entation t e follo ing are t e ain t ings a ban s oul o a nsure t at t e nvest ent anager o is a partner in a tivities relate to utual Fun s as been registere an obtaine a li ense fro t e apital ar et aut orit in a or an e it prevailing regulation b nsure t at t e relevant utual Fun s as obtain state ent of effe tiveness b t e apital ar et Chapter 4 aut orit in a or an e it prevailing regulation entif easure onitor an ontrol ris s arising fro a tivities relate to utual Fun s For t e purpose of appl ing t e pru ential prin iple
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an bank is prohibited rom conducting actions both directl as ell as indirectl hich ill cause the Mutual Funds to have the characteristics o bank products or e ample savings or deposits. n n sk ana n a Banks a s Prime Customer Service (PCS) is part of a bank’s business activities in providing services related to products and or activities ith certain privileges or rime ustomers. rime ustomers are individuals ho meet certain criteria or re uirements set b the bank in order to obtain services use acilities provided b the bank ith certain privileges compared to other customers in general. A bank that conducts should have ritten policies hich cover at least the ollo ing a. e uirements to be a rime ustomer hich set certain criteria re uirements that have to be met b customers b. cope o bank products and or activities b observing regulations and other related legislations c. cope o privileges or b et observing compliance ith regulations and other related legislations and d. ame o the ervice brand name and ategori ation o rime ustomers b setting clearl the di erences in service privileges or each categor o rime ustomers. n conducting a bank should implement isk Management on certain aspects as ollo s a. Aspect o privileged service support hich covers at least isk Management implementation on i human resources ii operation iii o ers o products and or activities iv b. Aspect o transparenc as ell as customer education and protection. n this aspect the bank should implement at least the ollo ing i
Chapter 4 Chapter providing e planation on speci ications ii ensuring clarit in relationships bet een the bank
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an Prime Customers (iii) ensurin c arit in t e aut orities of t e transaction actors (iv) submittin information perio ica ank s ou a minister ata ocuments or a reements re ate to Prime Customer activities in PCS a na n s a Banks a a a Banks an a a B s n ss n s a Commercia anks Pru entia re u ation for t e purpose of nationa economic stimu us for Commercia anks is a temporar po ic t at provi es easin it a va i it perio of t o ears in ) Ca cu ation of for Cre it isk b usin t e stan ar approac for a) resi entia ouse backe cre it b) cre it to S s uarantee b uarantee institutions or cre it insurances it t e status of ) ssessment an etermination of sset ua it for a) Cre its an ot er fun provisions in sma amounts an b) estructure cre its ) e uirements for Capita Participations b S aria Commercia anks an S aria usiness nits ) Po ic t at supports economic ro t stimu us for SC is app ie on a) Ca cu ation of for Cre it isk b usin t e stan ar approac for ( ) esi entia ouse backe financin an ( ) inancin to S s uarantee b uarantee institutions or cre it insurances it t e status of b) ssessment an etermination of asset ua it for Chapter 4 ( ) inancin an ot er fun provisions in sma amounts an ( ) estructure financin c) Capita Participations
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) Po ic to support economic ro t stimu us for S is app ie on t e assessment an etermination of asset ua it for a) inancin an ot er fun provisions in sma amounts an b) estructure financin ) etermination of t e ua ities of inancin an ot er fun provisions ma on be ma e base on t e time iness of repa ments of principa s an or mar ins s are ie s ujrah for a) inancin an ot er fun provisions e ten e b eac ank to one customer or one pro ect in t e amount of ess t an or e ua to p bi ion b) inancin an ot er fun provisions e ten e b eac ank to S customers in t e amount of ( ) ore t an p bi ion up to p bi ion for anks t at meet certain criteria ( ) ore t an p bi ion up to p bi ion for anks t at meet certain criteria ) e ua it of inancin after restructurin is set as fo o s a) e i est is Sub Stan ar for inancin t at is cate ori e as oubtfu or oss prior to restructurin b) e same or unc an e for inancin t at is cate ori e as Current n er Specia ention or Sub Stan ar prior to restructurin ) e ua it of inancin after restructurin can be Current en t ere are no arrears for t e ast t ree consecutive perio s in repa ments of principa s an or mar ins s are ie s ujrah in accor ance it t e inancin estructurin a reements
Chapter 4 Chapter ) Capita Participations for t e purpose of a) stab is ment of a compan t at i take
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over t e assets of prob em inancin from a SC t at i con uct participation it the SCB’s ownership of no higher than 20% of the company’s capital and the SCB does not o contro or b) itiona participation to rescue a subsi iar compan ic is a bank t at con ucts business activities base on s aria princip es ma be un ertaken if t e SC as t e soun ness eve Composite atin prior to un ertakin t e participation of no o er t an (C ) an as a prospect of a rise to a better Composite atin n a ition ot er re uirements for t e purpose of capita participation s a refer to prevai in re u ation concernin pru entia princip e in Capita Participation activities ) is e u ation is in force for t o ears startin from u ust n a a a Banks n bank ic is cate ori e as orei n ank ranc ffice ( ) or forei n bank t at is not is ob i e to meet i ui it Covera e atio ( C ) of in ivi ua as e as in conso i ation C as t e purpose of maintaining bank’s short term i ui it resi ience b ensurin t at t e bank as i ua it i ui assets to meet its i ui it nee s for t e ne t (t irt ) a s un er stress test scenarios C constitutes a comparison bet een i ua it i ui ssets ( ) an net cas outf o e ob i ation to fu fi C s ou be met in sta es startin from ecember up to ecember e bank s ou perform ca cu ation an reportin of C bot at in ivi ua eve as e as conso i ation Chapter 4 eve ai mont an uarter e first mont C reportin s a be ma e for t e position of ecember for banks t at are cate ori e as an an for t e position of une for banks
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that are categori ed as B and non BB foreign banks arterly C reporting shall be made for the first time for the position of arch 20 for banks that are categori ed as B and BB and for the position of September 20 for banks that are categori ed as B and non BB foreign banks a s n a nan n n as a a sas s eg lation n mber 0 20 on Special reatment of Credit or Bank inancing for Certain erritories in ndonesia ffected by at ral isasters reg lates the following matters Credit ality ating a etermination of Credit ality of Commercial Banks with ma im m ceiling of p billion is based solely on the acc racy of payment eanwhile for Credit with a ceiling abo e p billion sset ality ss rance is still referring to pre ailing reg lations namely B o B 20 2 on sset ality ating for Commercial Banks b Credit ality etermination for B is based on the acc racy of principal and or interest payments 2 ality of estr ct red Credit a Credit ality for Commercial Banks and ral Banks restr ct red as a res lt of nat ral disasters shall be established C rrent since the restr ct ring p to the period in accordance with the ecree of the Board of Commissioners b he abo e Credit estr ct ring can be made to the Credit disb rsed both before and after the disaster ro ision of ew oans to ffected ebtors a Bank dapat memberikan redit bar bagi debit r yang terkena dampak bencana alam
Chapter 4 Chapter b enetapan alitas redit bar terseb t di atas dilak kan secara terpisah dengan alitas
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redit yang telah ada sebel mnya ntry into Bank Syariah Special treatment of the affected area also applies to the pro ision of f nds based on sharia principles that incl de financing m dharabah and m syarakah recei ables m rabahah salam istisnha rent i arah loans ardh and other pro ision of f nds
a n n n n s an n n an a s ans a n Bank nan a n n eg lation mber 2 0 20 concerning mendment o eg lation mber 0 20 concerning ransparency and blication of Bank eports is iss ed with the p rpose of enhancing information disclos re as stip lated in illar of Basel and Basel rther pro ision concerning formats of the blici ed eports is stip lated in Circ lar etter mber S 0 20 concerning ransparency and blication of Con entional Commercial Bank eports nhancement of the reg lation concerning ransparency and blication of Bank eports contains among others additional scope for disclos re reporting on calc lation of i idity Co erage atio Co nterparty Credit isk nterest ate isk in the Banking Book BB as well as aterial nformation and or acts a change in the fre ency for antitati e information disclos re on risk e pos re from ann al to bi ann al as well as ad stment to capital components in the eport on Calc lation of C a. Commercial Banks or the p rpose of creating market discipline and in line with de elopment of international standards it is necessary to make an effort to step
p transparency of bank financial condition and Chapter 4 performance thro gh the p blication of bank reports to pro ide ease for assessment by the p blic and market actors n addition to step p transparency any bank is
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re ired to pro ide antitati e and alitati e information in a timely acc rate rele ant and ade ate manner to pro ide ease for information sers in assessing bank financial condition performance risk profile and risk management implementation as well as b siness acti ities incl ding determination of interest rate or the p rpose of financial condition transparency a bank is obliged to prepare and present financial reports comprising nn al eport 2 arterly Condensed inancial Statement onthly Condensed inancial Statement Consolidated inancial eport and ther blici ed eports b. ral Banks and Sharia ral Banks or the p rpose of the transparency of B and S B financial condition any B or S B sho ld prepare and present financial reports comprising nn al eport 2 Condensed inancial Statement nn al eport shall contain at least eneral information information on management ownership de elopment of B b siness management strategies and policies management report 2 nn al inancial eport comprising balance sheet profit loss report report on changes in e ity cash flow report etc blic cco ntant pinion on B nn al inancial eport a dited by the blic cco ntant ll other aspects of transparency and information ll aspects of disclos re as obliged by S applicable on B or any B with total assets p 0 billion the nn al inancial eport sho ld be a dited by a
Chapter 4 Chapter blic cco ntant and de eloped in accordance with S for ntities itho t blic cco ntability
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and B cco nting idelines or any S B with total assets of abo e p 0 billion the nn al inancial eport sho ld be a dited by a blic cco ntant he Condensed inancial Statement shall contain at least Balance Sheet rofit oss eport eport on Commitments and Contingencies blic cco nting irm inancial atios and Str ct re of anagement B and S B sho ld anno nce the Condensed inancial Statement arterly for reporting positions of end of arch ne September and ecember nno ncement of the referred condensed financial statement may be done thro gh a local daily newspaper or sticked to the b lletin board or other media that will enable the p blic to read it easily in all B S B offices or any B with total assets of p 0 billion and abo e the condensed financial statement for the position of end of ecember sho ld specifically be anno nced in a local daily newspaper and sticked to the b lletin board or other media that will enable the p blic to read it easily in all B S B offices he arterly Condensed inancial Statement sho ld be presented in comparison with the previous year’s Quarterly Condensed inancial Statement
Chapter 4
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a s an a n ss n an nn n n s ea i e or epor epor ou e e u issio ou e ype o ea i e or a e o o e epor ou e ou e e ou e e e ia or e or u issio or u issio u issio or u issio o y i e a or a e i repor i sys e or u i i e rou sys e epor repor i sys e or sys e o er i a a ea i e epor i u i i e o e er e i o o i ea i e or a o a ou e e si e a er e e e posi io o e repor i o Quar er y i e a or a e i repor i sys e or u i i e rou sys e epor e repor i sys e or sys e u i i e - or repor s er e i a or e ea i e or e si e posi io s a ou e e o e o u i i e ar er e er e i a u e a ea i e or ea i e or e spaper ep e er a ou e a e e o e up o o a ou e e e se o a er a o - or repor s a er e or e e o e posi io s repor i o e o o ar - or repor s
Chapter 4 Chapter u e a o or e ep e er posi io o o
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ea i e or epor epor ou e e u issio ou e ype o ea i e or a e o o e epor ou e ou e e ou e e e ia or e or u issio or u issio u issio or u issio e o e se o e e er o o a er e ar o e o e e repor i o o i o year a er - or repor s e e o or e e posi io o repor i e o o e e er e o pri o e o o i year a er e e o e repor i o er ai o a a e as or e a ou e e o Quar er y Quar er y upervisor u i i e epor epor s s roo o o a o a er er e a ou upervisor a o ea i e or e e i s or i su issio e s paper ays a er e a ou e e i e spaper Quar er y is a a e as or e a ou e e o Quar er y osure o ris e si e u i i e epor e posure i e eve ere is i or a io a is pro e o rapi a e ua a o a er er e er e
u i i e e si e a our e o e ea i e or Chapter 4 epor o s ea i e or a e o a a er e a ou e a ou e upervisor e o e e up o o e or s ou i a er a su issio ear o e o
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ea i e or epor epor ou e e u issio ou e ype o ea i e or a e o o e epor ou e ou e e ou e e e ia or e or u issio or u issio u issio or u issio a er e ea i e or a ou e e or su issio er ai o a o a er er e er e ua upervisor a ea i e or ea i e or epor s our a ou e a e o s e up o o a ou e a er e a er a e e o e o e o or ou i a er e su issio ear o e ea i e or are a ou e i y or e or u si iary su issio i y or ea o i e overseas epor o ou e o a er er e er e ri e e a ea i e or ea i e or e i a e i or i a ou e a e e spaper ays a er e a ou e e e o up o o e ar a er a u e o e o ep e er a er e a ea i e or e e er a ou e e a y i e e si e ou e y i e e o u e i oar a a i es epor o a e ia e er e a eria e si e y ea i e or or a io i i o a ou e e a or a s a er o a o er e e u ive or i ea i e Chapter 4 Chapter ea o ays a er or a e e is e e su issio
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ea i e or epor epor ou e e u issio ou e ype o ea i e or a e o o e epor ou e ou e e ou e e e ia or e or u issio or u issio u issio or u issio upervisor o a eria s i i or a io a opy o a a or a s upervisor e ep s e s ipu a e o er ise i e is a io s o e re ar repor s i su issio is o rou e o i e repor i sys e i e eve e ea i e or su issio a s o a a ur ay u ay or o er o i ays e ea i e or repor su issio s a e e e or i ay n a n ans a n n Bank s an s s s na a a y a s ou app y i or a io ra spare y o a ro u s a use o us o er erso a a a a is se i ri e po i ies a pro e ures e a s ou provi e o p e e a ear ri e i or a io i o esia o er i e ara eris i s i u i the risks) of each Bank’s Product. In the event a bank is oi o ive a or isse i a e us o er erso a a a e a s ou o ai ri e approva s ro e us o ers n n s an Bank n n n n s a Banks o esia a i ou i ui e i es e i io is e re ere e or e prepara io a prese a io o a i a ia repor s i re ers o a e e o i a ia ou i a ar u er o er i i a ia s ru e s
rese a io a is osure a u er Chapter 4 o er i i a ia s ru e s e o i io a easuri o o si eri is e i p e e a io i s ru io o spe i i a y or e a i i us ry i re ar a ers a are o
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sti u ated in IB and that there are chan es in since u to the resent the re aration and resentation of financia re orts sha sti refer to revai in . In connection ith the enact ents of u ber concernin inancia Instru ents Presentation and isc osure and u ber concernin inancia Instru ents eco nition and easurin Bank Indonesia BI) has ade ad ust ents to Indonesian Bankin ccountin uide ines IB ) and it beco es IB . IB is the reference for the re aration and resentation of bank financia re orts. onsiderin IB is the i e entation instruction of atters that are not sti u ated in IB sha sti refer to revai in . a a Bank n n n n s a a Banks an B In revision of the Indonesian haria Bankin ccountin uide ines I B ) as issued as the resu t of coo eration bet een BI and the Indonesian ccountant ssociation Ikatan kuntan Indonesia I I) hich is on a icab e for B and B . I B constitutes uide ines for the re aration and resentation of sharia bank financia re orts and is the i e entation instruction that contains further trans ations of a nu ber of re evant to the sharia bankin industr such as s ecifica for sharia transactions u bers and as e as addresses the issuance of at a u ber I II dated ece ber concernin ethod for eco nition of urabahah Inco e at haria inancia Institutions I). his revised I B is e ected to enhance the trans arenc of financia condition and financia re orts of B and B to be ore re evant co rehensive re iab e and co arab e and ore in ine ith the atest condition and deve o ent. ean hi e atters that are not
Chapter 4 Chapter sti u ated in the I B sha sti refer to revai in as e as their i e entation
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uide ines as on as the are not in conf ict ith the haria Princi es. evera ain rovisions in I B are as fo o s i) reco nition of inco e b usin the annuit ethod or ro ortiona it ethod can on be used for reco nition of financin inco e based on se in bu in . In the event the annuit ethod is used recordin of the urabahah transactions shou d use and other re evant . ean hi e in the event the ro ortiona it ethod is used recordin of the urabahah transactions shou d use u ber . ither ethod shou d be used in a t es of urabahah financin ortfo ios as e as be disc osed in accountin o icies and used consistent ii) the ob i ation to estab ish P on financia assets and non financia assets sha be in accordance ith revai in . na n n s nan a n n an a s a Bank or the ur ose of ste in u the trans arenc of B financia condition and re aration of financia re orts that are re evant co rehensive re iab e and co arab e an B shou d re are and resent financia re orts based on that are re evant for B. onsiderin the co e it of and as e as the ossibi it of difficu t in i e entation at a ediu ca e nter rises s) in a the Ikatan kuntan Indonesia I I) issued for ntities ithout Pub ic ccountabi it for s. urther ore takin into consideration the characteristics of B that have i ited business activities in accordance ith the ct on Bankin as e as based on I I the fo o in considerations are decided a. I e entation of inancia Instru ents hich re aces is considered Chapter 4 not suitab e ith the o erationa characteristics of B and i re uire hi h cost co ared to the benefits obtained b. I I inancia ccountin tandard Board –
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s a Banks an s
a 9 s an a an s
a Bank a Bank
s mudharabah Chapter 4 Chapter
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a Bank a Bank
mudharabah Chapter 4
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a Bank a Bank
Chapter 4 Chapter
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a Bank a Bank
Director’s Qardh Zakat, Infaq, Shodaqah
Chapter 4
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a Bank a Bank
e ort o or tio ste ec o o e ort o e e t tio o e ort o si ess ro tr ct re e ort o tso rci e ort o ro e tso rci e ort o or sto er D t ti e ort o e i tio o sto er D t ti e ort o i erso e t t e re o i e to s it e ort o o rces ses o e ort o o rces ses o Qardh s e ort o es i e te est e t s er ree e ort o ter e r rt e ie o ter it er or ce
s e ort co cer i e ort i stit tio co cer i rr e e t e ort co cer i t e i stit tio e e t o t e rr e e t e ort e ort co cer i co cer i t e Chapter 4 Chapter o er tio e e t eci re ort o t e
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a Bank a Bank
co cer i e ort e e o e t co cer i o ersi t o er tio e ort o s s icio s eci re ort i ci tr s ctio s co cer i e ort o c s i ci tr s ctio s e e o e t to e ter or o ersi t i ci r s ctio e ort o e orti s s icio s ses i ci e ort co cer i tr s ctio s to e ro cts cti ities
n an s n n a n s a anan n as an an sti tes t e roce res or re orti re esti e tor i or tio t ro t e i ci or tio er ice ste rties ic re re ire to e re orti e tities re o erci s s s i ci stit tio s ro i i i ro isio ci ities i ci er ice stit tio s s ro i i i ro isio ci ities e ce t icro i ce i stit tio s t er rties o eco e re orti e tities re ot er s t t ro i e s i s o ser ices se o i or tio tec o o eer to eer e i icro i ce i stit tio s i stit tio s ot er t s s c s o er si i i i t e re e i i e e t e ro s o e e orti tit s e o i e to s it t e e tor re ort i co ete cc r te c rre t co re e si e ti e er De tor re ort st e s itte o o t o ter t t e t Chapter 4 o t e o o i o t ter t e e o t e o t o t e e tor re ort o i e sis t ro co e o t e e tor re ort s itte i c es e tor t i ro isio ci ities co ter s r tors
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e ers o o r o e e t o ers s e s e tor s i ci co itio e rties o c re est e tor i or tio re t e re orti e tities e tors cre it re ot er rties i t e r e or o t e i e e t tio o e is tio s s c s o esi De osit s r ce or or tio e ter or i ci r s ctio e orti sis ce tr o er e t oc o er e ts st te i stit tio s e orce e t i stit tio s t e e e t o i cc r te i or tio co cer i e tor t e e tor i e co i t irect it t e re e t re orti e tit e e orti tit s o sett e t e e tor s co i t o ter t or i s ter t e te t e co i t is recei e t e re orti e tit ere ecess r s eci rese rc e e te e or or i s rre t i stit tio s t t e eco e re orti e tities re o erci s s s i ci stit tio s ot er s t t e ee re orti e tities o t e De tor or tio ste iste or si De it r D e t e e tio o ec e e ecti e i ci co ies ic e ot ee D re orti e tities e t e e tio o ec e e ecti e s o eco e re orti e tities o ter t Dece er rt er ore e t re it o ies r str ct re i ci o ies er s e i r str t r co ies t t e ot eco e D re orti e tities e t e e tio o ec e e ecti e st eco e re orti e tities o ter t Dece er a a n a n as k an e e e o or si er re it is i stit tio or e c t t co ects rocesses cre it t ot er t to ro ce i or tio o cre it e t so rce o is cre it t or ot er t
Chapter 4 Chapter ori i ti ot ro i ci i stit tio s s e s o i ci i stit tio s
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e ire e ts or rties t t is to est is re o ot ers e e e tit s o e t e or o i ite i i it o e i i c it o t e s o e t e st i io c re o ers i o o e rt is t i rties t t c eco e t e s re o ers o t e re o esi e e tities ice si co rises t o st es e ro i ri ci e si ess ice se e re ire e t or er o e ers o t e o r o Directors o s o e t e st t ree e ers e re ire e t or e e t re ires t t t e st o e e er o t e o r o Directors o s o e e erie ce or o e e o cre it i or tio e ers o t e o r o Directors o co c rre t ser e s Director e er o t e o r o o issio ers or ec ti e icer o o ro it co or i tio or i stit tio t e e e t o t s o c rr o t sec rit e s res to i t i t e cc r c to te co itio s et co i e ti it o t itio s o ce ser ers t ses it i t e territor o t e e ic o o esi er isio o er i c es o site s er isio o site s er isio site s er isio is co cte t ro irect e i tio i e o site s er isio is ert e si t e re orts s itte e t es o re orts t t s o e s itte i c e o t re orts se i re orts re orts si ess ot er i ci e t re orts i istr ti e s ctio s i ose i st io tio s Chapter 4 co itte re i t e or s o ritte r i e t e t si ess ice se re oc tio
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a n n n n Bank s n Bank B s n ss an o erci s s o e e o re istic si ess e c e r t i otice o ter i ter ctors t t c i e ce bank’s business sustainability; r e ti ri ci e e e t tio o ris e e t o i ri ci es re r t t s i itio to t e si ess escri e o e it s o so co t i s eci si ess or t e ic is it it t e e er si ess e si ess s i c e t e st ec ti e s r e e t o icies str te ies e e t tio o ris e e t bank’s present performance; ro ectio o i ci re ort o it ss tio s se ro ectio o r tios ot er cert i cco ts i ce e t it or e e o e ts o or i tio reso rces or iss ces o e ro cts or i e e t tio s o e cti ities or e e o e t or c es i o ice et or s t er i or tio o e c es to t e si ess e t ere re e ter i ter ctors t t si i ic t i e ce o er tio t ere re ctors t t si i ic t i e ce bank performance, based on OJK’s
Chapter 4 Chapter co si er tio or c es to t e si ess o e
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made once, no later t an end of June in t e current year b ural anks and aria ural anks ny and s ould de elop a business plan t at includes s ort term plan, medium term plan, and or lon term strate ic plan realistically eac year e business plan s ould be de eloped by t e board of directors and appro ed by t e board of commissioners, by takin notice of e ternal and internal factors t at can influence RB’s and SRB’s business sustainability; prudential principle; sound bankin principles n addition to obser in t e abo e mentioned factors, a s ould de elop t e usiness lan by obser in t e s aria principles e scope of and business plan s all include at least ecuti e summary usiness strate ies and policies ro ection of financial report ar eted ratios and financial accounts und accumulation plan und c annelin plan apital plan lan on de elopments of t e or ani ation, , and uman resources lan for implementation of ne business acti ities or plan for issuances of ne products and implementations of ne acti ities lan for de elopment and or c an es in office net orks Ot er information e periods for pro ections and plan of se eral scope of substances co ered in business plan preparation are differentiated based on core Chapter 4 capital, namely and it core capital respecti ely less t an p billion and and it core capital respecti ely of no less t an p billion
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as t e aut ity t e uest any RB and SRB t a e ad ust ents t t e Business lan ean ile unde e tain nside ati ns a RB and SRB ay a e an es t t e business lan n e e b a d di e t s s uld de el t e e t n business lan i le entati n ile t e B a d issi ne s s uld de el t e e t n business lan e si t bi annually ny RB SRB s all be i sed it t e san ti ns itten e inde and ay ent enalty en it is late in sub ittin en it d es n t sub it t e business lan t ill be i sed it t e san ti n enalty ay ent en it sub its a e ised business lan t at is in lete is n t su le ented it d u ents and in ati n in a dan e it t e s e and it ill be i sed it ad inist ati e san ti ns in t e s itten e inde l e in RB SRB s undness le el and te a y sus ensi n a a t RB SRB business a ti ities en it d es n t eet t e set e ulati ns ss ss n Bank n n ss a e ial Ban s ny ban s uld aintain and ste u ban s undness le el by i le entin udential in i le and is ana e ent in t e ndu t business a ti ities Ban s uld e assess ent s undness le el by usin t e RBBR Ris Based Ban Ratin a a b t at indi idual le el as ell as ns lidati n le el Ban s uld e sel assess ent n ban s undness le el at n less t an ea se este t e siti ns end une and end e e be Ban s uld u date ban s undness le el sel assess ent at any ti e e ui ed a t s ban s undness le el assess ent in lude Ris ile
Chapter 4 Chapter d ate e nan e ; itability ea nin s ; and
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a ital Ban s undness le el site Ratin R s all be dete ined based n a e ensi e and st u tu ed analysis n t e atin ea a t by bse in t e ate iality and si ni i an e ea a t as ell as by ta in int a count bank’s a a ity in a in si ni i ant an es in e te nal nditi n e ate ies R a e as ll s
a a s a Bank s a n s a Bank’s condition is in general extremely sound and as su is assessed t be e t e ely a able a in si ni i ant ne ati e in luen es an es in business nditi n and t e e te nal a t s Bank’s condition is in general sound and as such is assessed t be a able a in si ni i ant ne ati e in luen es an es in business nditi n and t e e te nal a t s Bank’s condition is in general adequately sound and as su is assessed t be ade uately a able a in si ni i ant ne ati e in luen es an es in business nditi n and t e e te nal a t s Bank’s condition is in general less sound and as such is assessed t be less a able a in si ni i ant ne ati e in luen es an es in business nditi n and t e e te nal a t s Bank’s condition is in general uns und and as su is assessed t be in a able a in si ni i ant ne ati e in luen es an es in business nditi n and t e e te nal a t s
b Ru al Ban s e s undness le el a RB is basi ally assessed it ualitati e a a n a i us as e ts t at in luen e t e nditi n and de el ent an RB i in lude as e ts a ital a nin sset uality ana e ent a nin s and i uidity atte s elated t t e ab e enti ned Chapter 4 assess ent a e Results assess ent a e set in u edi ates na ely S und de uately S und ess S und ns und;
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he eight o each actor is
a s a s
a
a ital
arning sset uality
anagement
ro itability
iquidity
m lementation o regulations hich sanctions are linked to B soundness le el assessment include iolations and or exceedances o the ro isions o egal ending imit nti oney aundering and re ention o the unding o errorism and iolations o the regulation concerning trans arency o bank roduct in ormation and use o customer ersonal data and actors that can lo er bank soundness le el to become nsound are internal dis utes inter entions o arties outside bank management indo dressing bank inside bank ractices other banking ractices that can endanger bank’s business sustainability. na n a s an s n a Bank egulation umber dated ril is an amendment at the same time a con ersion o Bank ndonesia egulation umber B concerning etermination o the tatus and ollo o on entional ommercial Bank u er ision and B egulation umber B on etermination o the tatus and ollo o Bank u er ision he amendments to these sti ulations is a ollo u o the issuance o ct umber ear concerning
Chapter 4 Chapter re ention and andling o inancial ystem risis hich regulates among others the sol ency handling o
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eac syste ic bank se arately ic re uires an a end ent t t e sti ulati n c ncerning t e status and ll u c ercial bank su er isi n.
a na n a s Bank s n ntensi e u er isi n ecial u er isi n riteria ank is deter ined t be ank s all deter ine a ank t nder ntensi e u er isi n be ank nder ecial en t e bank is assessed t a e u er isi n i a tential di iculties t at ig t r bank under n r al endanger its business su er isi n is c nsidered t sustainability ic eans en it be e eriencing di iculties eets ne r re t e t at ig t endanger its ll ing criteria business sustainability ic a. MCAR ≥ 8%, but less than the eans en it eets ne r rati in acc rdance re t e ll ing criteria with the bank’s risk profile that a. rati is ust be et by t e bank b. rati tatut ry eser es b. ati c re ca ital tier is in ru ia is less t an less t an a certain ercentage and based on OJK’s set by assess ent c. ati tatut ry eser es in . t e ank e eriences rupiah is ≥ 5%, but less than the unda ental li uidity rati set r ru ia tatut ry r ble s r eser e t at ust be et by . t e ank e eriences the Bank, and based on OJK’s deteri rating assess ent t e bank as de el ent it in unda ental li uidity r ble a s rt ti e. d. ati net r ble credits n n er r ing l ans is re t an t tal credit e. ank undness e el it c site rating r and r . ank undness e el it c site rating and g d g ernance rating r eri d s all deter ine status n s all deter ine
l nger t an ne year since t e date status n l nger t an Chapter 4 of OJK’s notification letter and ay nt s since t e date be e tended at st ti e it OJK’s notification letter. durati n n l nger t an year i t e banks eets t e criteria a. et r ble credits n n
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ntensi e u er isi n ecial u er isi n er r ing l ans is re t an t e t tal credit and t e settle ents are c le b. ank s undness le el is at c site ratings r and r c. ank s undness le el is at c site rating and at rating . eci ically r criteria b and c t e eri d e tensi n r s all als be su le ented it a ste u in su er is ry easures.
na n a s an s n a Banks an a a a Banks is sti ulati n is structured t bridge bet een an under n r al su er isi n t ards an under ecial ur eillance s t at t e c nditi n a t at e eriences er r ance decelerati n causing t e t be cl se t t e s ecial sur eillance criteria can be detected earlier and recei e structured su er is ry acti ns. ri r t t e enact ent t is sti ulati n a ay be directly set t be under t e ecial ur eillance status it ut g ing t r ug t e status under ntensi e u er isi n i based n su er isi n and e a inati n results t e eets t e ecial ur eillance criteria. ere re it t e enact ent t is egulati n as t e aut rity t deter ine t e su er isi n status any c nsisting n r al su er isi n intensi e su er isi n r s ecial sur eillance. e criteria r an t be set at r t be e cluded r intensi e su er isi n r s ecial sur eillance and t be set as a t at can n l nger be re abilitated s all be r ided di erently it re erence t t e date e ecti eness t e sti ulati n Chapter 4 Chapter c ncerning ini u a ital de uacy e uire ent and t e ul ill ent t e ini u c re
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ca ital ic are a. it in t e eri d starting r t e e ecti eness t is egulati n na ely e ber u t ece ber and b. since anuary . deter ines t e status ank nder ntensi e u er isi n in t e case en a as t e tential t su er a di iculty t at ay endanger business c ntinuity by taking int c nsiderati n t e criteria a. rati b. as ati and r c. s undness le el. gi es a eri d a i u year r a ank nder ntensi e u er isi n ic can be e tended r ne ti e r a eri d n l nger t an year en certain re uire ents set by t e are et. can be set t be ank nder ecial ur eillance r a eri d n l nger t an nt s in t e case ere a. t e is assessed t be e eriencing a di iculty t at endangers business c ntinuity by eeting t e criteria a erage rati and r r t e last si nt s as set by t e r b. t e eri d r e tended eri d r ank nder ntensi e u er isi n as been e ceeded e er t e criteria r a erage rati r r t e last si nt s as n t been et t be taken ut r t e intensi e su er isi n status. n t e e ent a under n r al su er isi n r intensi e su er isi n e eriences a decline in a erage rati r r t e last nt s t at eets t e criteria set by t e t e s uld be set t be ank nder ecial ur eillance r t e eri d n l nger t an nt s and s uld be r ibited r undertaking und accu ulati n and und c anneling Chapter 4 acti ities. is set t be ut t e status ank nder ecial ur eillance i it eets t e criteria n r al su er isi n and by taking int acc unt tential l sses
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and li uidity needs r t e ne t nt s. deter ines a as a t at cann t be re abilitated in t e case a. t e ank nder ecial ur eillance as e ceeded t e eri d r s ecial sur eillance and as n t et t e criteria a under n r al su er isi n b. a t at is yet in t e eri d being under s ecial sur eillance r a eri d n l nger t an nt s e er as been e eriencing a decline in a erage rati and r r t e last nt s r c. during t e eri d s ecial sur eillance t e can at any ti e deter ine t at a t be unable t be re abilitated in t e e ent based n OJK’s assessment the RB/SRB is not able to raise t e a erage rati and r r t e last nt s in rder t be under n r al su er isi n. e s all gi e a ritten n ti icati n t c ncerning t e t at cann t be re abilitated and re uest t ake a decisi n et er t rescue r n t t rescue t e rele ant . n t e e ent decides n t t rescue t e ill re ke t e business license t e rele ant a ter recei ing a n ti icati n r . ettle ent t e ic business license as been re ked s all be er r ed by .
s n B B Supervision statuses of RB/SRB Normal Supervision Intensive Supervision Special Surveillance
. undness redicate is still s und r RB . site rating e er as t e Under normal supervision tential t be set under intensi e but assessed to have su er isi n Action significant problems e ers t legislati ns t at r ide r > Plan SRB s undness le el assess ent syste based n s aria rinci les Threshold criteria is based on implementation stages of determination of supervision statuses of RB/SRB
Stage I Stage II Since the effectiveness of OJK Since January 1, 2020 Regulation up to 31 December 2019 Chapter 4 Chapter
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n s an Bank a na n o obtain an o er ie o ban strate i oli ies an b siness a ti ities that are strate i an ris it is ne essar to n erta e an e amination o a ban in eneral manner as ell as in s e i i manner relate to arties that ha e roles in the ris s that a e the ban in the on t o its b siness a ti ities Ob e ti es o the e amination are to obtain a om rehensi e i t re o the bank’s business development and Finan e to obtain on i en e in the re orts s bmitte b the ban to OJK, to ensure Bank’s compliance with OJK Re lation an other e islations an to e amine the tr th o alle e ban in riminal transa tions n this OJK Re lation OJK ma on t erio i as ell as a ho e aminations on a arent om an o the Ban b S bsi iar om anies o the Ban arties relate to the Ban arties a iliate ith the Ban e ebtors o the Ban n e amination o a ban ill be on te b an e aminin team o at least ersons hi h ma onsist o OJK em lo ees other arties assi ne b OJK ho meet the re irements set orth in the OJK Re lation or a ombination o both Res lts o the e amination that has been on te b the e aminin team ill be in or orate in an amination Res lt Re ort/ a oran asil emeri saan hi h has been on irme re io sl ith the ban to be s bmitte to the ban or a Re resentati e O i e o the ban omi ile abroa he ontains ste s or im ro ement or re inement o the in in s o the e amination to be n erta en b the Ban an re orte ba to OJK an s Banks
his OJK Re lation ontains ro isions on ernin the Chapter 4 obli ation o an s stemi ban to re are the lan or re entin an o er omin inan ial roblems that ma o r in a S stemi Ban b re arin a Re o er lan
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ith the e istence o the ecover lan, the e orts to resolve a bank s inancial problems have been started since the time when the bank is in normal condition but si ni icant problems alread e ist n stemic Bank is obli ed a to prepare and submit an recover plan to OJK ubmission o the should be si ned b the president director, the president commissioner and the ontrollin hareholder, a ter prior approval b the Board o ommissioners and the shareholders in the hareholder eneral eetin he irst submission shall be no later than ecember , or Banks desi nated as stemic Banks be ore this OJK e ulation becomes e ective, and si months a ter bein determined to be as a stemic Bank or an Bank desi nated as a stemic Bank on or a ter the OJK e ulation becomes e ective b to have debt or investment instruments that have capital characteristics he ul ilment o such debt or investment instruments shall be done no later than ecember , or Banks desi nated as stemic Banks be ore this OJK e ulation becomes e ective, and months a ter respective s are received in ull b OJK or Banks desi nated as stemic Banks on or a ter the OJK e ulation becomes e ective c to per orm implementation, evaluation and testin stress testin , as well as updatin o the he should be implemented when the speci ied tri er level is met valuation and testin should be conducted periodicall , at least once a ear or under certain conditions which will have si ni icant e ects on the Bank
Chapter 4 Chapter pdatin o the should be made periodicall , at least once a ear
260 Indonesia Banking Booklet 2018
ach stemic Bank should have an uide which contains the roles and responsibilities o the parties concerned with the and an implementation procedure, which is prepared b takin into account the principles o ood overnance at the Bank B Bank his OJK e ulation stipulates the provision concernin the procedure or establishin a brid e bank Brid e Bank is a commercial bank established b the ndonesia eposit nsurance orporation to be used as a resolution vehicle b acceptin the trans er o a portion or all o the assets and or liabilities o the bank bein handled b the , which then conduct bankin business activities, and trans er its ownership to another part eneral principles or the establishment o a Brid e Bank a Brid e Bank ma onl be established and conduct business activities a ter obtainin a license rom ndonesia Financial ervice uthorit b one Brid e Bank ma be used to receive trans ers o assets and or liabilities o more than one bank c Brid e Banks ma use the in rastructure o the Ori inal Bank o ice networks, human resources, in ormation technolo , work procedures, etc d Brid e Bank ma onl accept the trans er o a portion or all o the assets and or liabilities o the Ori inal Bank that has certain criteria he orm o the Brid e Bank can be a Brid e Bank that conducts business activities as a onventional ommercial Bank b Brid e Bank that conducts business activities as a haria ommercial Bank he provision o the establishment license or a Brid e Bank can be undertaken in two sta es, namel Chapter 4 a pproval in principle, which is an approval to undertake preparation or the establishment o the Brid e Bank and b Business icense, which is a license allowin the
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conduct o business activities b the Brid e Bank a ter preparation o the establishment o the Brid e Bank has been completed nder inancial s stem crisis condition, the ma simultaneous submit re uests or approval in principle and business license or the Brid e Bank n conductin its business activities, an ntermediar Bank should compl with all re ulations applicable on banks e cept stipulations speci icall provided in this OJK e ulation, namel a upervision status bank under intensive supervision or bank under special surveillance shall not be ranted, however, the bank is still re uired to implement supervisor measures set b the OJK b alculation o core capital ul ilment shall not be applied in re ard e istin business activities products and o ice networks he Brid e Bank is no lon er an Brid e Bank in the event that sells the Brid e Bank s shares to another part or trans ers all o the Bank s assets and or liabilities to another bank or part here are alternatives or trans errin assets and or obli ations rom an Ori inal Bank to a Brid e Bank, as ollows
lternative a Brid e Bank, which conducts business activities in the orm o a onventional ommercial Bank, receives a trans er o assets and or liabilities rom an Ori inal Bank, which is a onventional ommercial Bank or b Brid e Bank, which conducts business activities in the orm o a haria ommercial Bank, receives a trans er o assets and or liabilities rom an Ori inal Bank, which is a haria ommercial Bank lternative
Chapter 4 Chapter Brid e Bank, which conducts business activities in the orm o a onventional ommercial Bank,
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receives a trans er o assets and or liabilities rom more than one Ori inal Banks, which are onventional ommercial Banks or lternative Brid e Bank, which conducts business activities in the orm o a haria ommercial Bank, receives a trans er o assets and or liabilities rom more than one Ori inal Banks, which are haria ommercial Banks lternative a Brid e Bank, which conducts business activities in the orm o a onventional ommercial Bank, receives a trans er o assets and or liabilities rom one or more onventional ommercial Banks that own haria Business nits b Brid e Bank, which conducts business activities in the orm o a haria ommercial Bank, receives a trans er o assets and or liabilities rom haria Business nits owned b one or more onventional ommercial Banks that own haria Business nits
s a n na s ans s ss an a s an na Bank a B Bank
alternative alternative
B B B B
BB BB BB
. BBv or Bv BBv or or more Bv . BB or B
alternative alternative
B B B B B
BB BB BB Chapter 4 For an ori inal bank that is a BB or or more B B and a B that owns B s, then . BBv receives trans er rom Bv, dan . BB receives trans er rom B owned b Bv
Ketr . ote B Kv Bank B mum onventional Konvensional , B ommerci Bank mumal ariah ,Bank , B Kv B Bank haria erantara ommercial Konvesional , B Bank erantara ariah
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Bank , B haria Business nit , BB onventional Brid e Bank , and BB haria Brid e Bank
a n n n n ns a n an n nan a a an n s n lon with enthusiasm o the overnment to increase Financial iterac and nclusion, which is incorporated into overnment e ulation umber o concernin ational trate or Financial nclusion, OJK has issued a re ulation that obli es banks to per orm Financial iterac and nclusion activities his re ulation is e pected to enhance the ndonesian public’s knowledge, understanding, and access to inancial institutions, products, and services ach bank that has ustomers has the obli ation submit a report on the plan or education and implementation o education each ear n ns a n s bank is obli ed settle each complaint lod ed b onsumers and or onsumer representatives he bank should have and implement a mechanism or onsumer complaint servicin and settlement, which covers a rocedure or complaint servicin and settlement, which at least covers the ollowin implementation o the principles o accessibilit , independence, airness, e icienc , and e ectiveness implementation o the receipts o onsumer complaints throu h various wa s, amon others ace to ace meetin s, e mails, and letters, however, not includin complaints submitted throu h noti ications in the mass media the bank should immediatel ollow up and settle complaints no later than twent workin da s
Chapter 4 Chapter under certain conditions, the bank ma e tend the period up to no lon er than the ne t
264 Indonesia Banking Booklet 2018
twent working da s t e certain conditions re erred to in point d are a bank o ice t at recei es t e co plaint is not t e sa e bank o ice w ere t e proble co plained occurs and t ere is a co unication proble between t e two bank o ices b t e inancial transaction co plained b t e onsu er re uires special investigation on bank’s documents; and or c t ere are ot er atters outside t e bank’s control, such as the existence of in ol e ent o a t ird part outside t e bank in t e inancial transaction conducted b t e onsu er procedure or co unicating wit t e onsu ers, w ic co ers at least a procedure or co plaint ser icing and settle ent in a or at t at is easil understood and accessed b t e onsu ers and b an o er or settle ent, in t e e ent, based on results o t e anal sis and e aluation per or ed b t e bank, t e co plaint is caused b an error on t e part o t e bank keeping con idential in or ation concerning onsu ers w o a e lodged co plaints to an part , e cept a to b or t e purpose o settling t e co plaints c w en obliged b t e pro isions o legislations and or Chapter 4 d at t e appro al o t e onsu er b e bank s ould pro ide co plaint ser icing and settle ent wit t e ollowing re uire ents appl treat ents t at are balanced and
265 Indonesia Banking Booklet 2018
ob ective on each com laint; rovide ade uate o ortunities to onsumers for giving ex lanations on the substances of the com laints; and rovide o ortunities to other arties, ho have interests on the com laints, for giving ex lanations in the settlement of the com laints if an ; c he bank is rohibited from charging costs on com laint servicing and settlement d he bank should administer com laint servicing and settlement he administration should contain information concerning at least consumer identit ; substances of the com laint; and actions taken to settle the com laint e he bank should rovide information on the statuses of onsumer com laints through various communication facilities rovided b , such as among others through ebsites, letters, e mails, or tele hones f he bank and onsumers can monitor rogress of the andling statuses of om laints lodged b the onsumers to through the inancial ervices ector – ntegrated onsumer ervice stem g ma re uest or access rogress of the andlings of om laints lodged b the onsumers to the a k n s an s n connection ith the effort to give the o ortunit for banks to market roducts and or services in a fair, efficient, and trans arent manner that ma reduce the otential for losses to the onsumers due to misunderstanding vagueness errors on information rovided, regulates the marketing of bank roducts services everal matters sti ulated are 1) ensure that the onsumers have good intentions; 2) main oints of the sti ulation concerning
Chapter 4 Chapter information on roducts and or services; 3) sti ulation concerning information contained in
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4) 5) 6) an a n s In the context of stepping up bank’s awareness of the n n a ns s na a a an n a n Financial Services Sector is to step up banks’ awareness
Other Regulation’s a n ns ns an a n s kn n n s a nan a s
Chapter 4
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scope of isclosure regulate the obligation of the rating institutions to have websites an to isclose all infor ation that shoul be publici e n the list of acknowle ge rating institutions an ratings perfor s up ating base on results of assess ent an onitoring on the fulfil ent of the set assess ent aspects ating institutions can be taken out fro the list of rating institutions an ratings acknowle ge b base on results of OJK’s assessment, in the event a rating institution is no longer eeting the set assess ent aspects or co its other violations an or at the re uest of the rating institution he re oval of a rating institution at its own re uest can be one b eeting certain proce ure an the rating institution has settle all its obligations he list of rating institutions an ratings acknowle ge by OJK is publicized through OJK’s website. A bank is still oblige to perfor assess ent an is full responsible for the use of the rating results of an rating institution acknowle ge b erti i ation nstitutions or Rural an s haria Rural an s a he ob ectives of the establish ent of ertification Institutions are to ensure ualit of the certification s ste to ensure i ple entation of the certification s ste an to enhance the ualit an professional capacit of S hu an resources b e uire ents that have to be et b ertification Institutions are have vision an issions for enhancing an eveloping hu an resources to support the reali ation of S in ustries that are soun strong an efficient have organs co prising at least ertification
Chapter 4 Chapter oar ational urriculu o ittee an anage ent
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have and implement tasks based on competency and commitment for arranging, determining, and developing certification system. an e re ank secrecy refers to everything that is connected with e planations on depositors and their deposits. planations on customers other than depositors and their deposits do not constitute e planations that banks should keep confidential. his regulation is applicable also in regard affiliated parties. he regulation on bank secrecy does not apply a. in regard ta purposes b. in regard settlement of bank receivables that have been handed over to Agency for the anagement of tate eceivables and Auctions adan rusan iutang dan elang egara or ommittee for the anagement of tate eceivables anitia rusan iutang egara c. in regard the interest of ustice in criminal cases d. in regard the interest of ustice in civil cases between a bank and its customers e. in regard information e changes between banks f. at the written re uests, consents or authorizations of the depositors g. at the re uest of legal heir of a deceased depositor and h. in regard investigations related to money laundering. mplementation of the provisions in letters a, b, and c should first obtain written instructions or permissions to disclose bank secrecy from the leadership of OJK, while implementation of the provisions in letters d, e, f, g, and h does not re uire such instructions or permissions. Chapter 4 u ission o usto er n or ation relate to a es or the purpose of supporting the effort to prevent ta avoidance, ta evasion, and for stepping up the
269 Indonesia Banking Booklet 2018
compliance of ndonesian itizens domiciling in other countries to the fulfilment of ndonesian ta regulations and vice versa, cooperation and coordination is re uired between the ndonesian overnment and the governments of other countries or urisdictions. he form of coordination undertaken to support this effort is an activity of the e changes of financial information of ta payers with other countries through a mechanism of international agreement, both bilateral as well as multilateral. One of the parties that has an important role in the submission of such information are , which are the places for deposits or investments and financial services for the customers who are ta payers of artner ountries or artner Jurisdictions. here are three types of these e changes of information, namely a. information e change based on re uest, in which there is a prior re uest on certain ta payers b. spontaneous information e change, in which one of the countries has the initiative to report certain ta payers and c. automatic information e change, in which submission of the financial information of ta payers is not based on re uests or initiatives but rather based on the fulfilment of ta payer criteria stated in agreements between countries performed through an agreed system, submitted periodically and continuously. Automatic information e change may be conducted when there are voluntary statements from customers, who are the ta payers of artner ountries or artner Jurisdictions. An agreement between countries for the purpose of conducting automatic information e changes covers among others procedure for conducting due diligence, types of information e changed, reporting periods periodic , and timing for
Chapter 4 Chapter report submission. he government has enacted a inister of inance egulation umber
270 Indonesia Banking Booklet 2018
K. dated July , which enables to submit financial information of customers, who are ta payers of artner ountries or artner Jurisdictions, to the ta authority in ndonesia and ta authorities in artner ountries based on voluntary written consents from the customers, who are ta payers of artner ountries or artner Jurisdictions, to the . , which meet the criteria of having the obligation to submit foreign customer information in accordance with automatic information e change agreements , should a. perform identification of customers or candidate customers to ensure that the customers or candidate customers concerned meet the criteria of foreign customers or foreign candidate customers b. re uest re uired information and or documents for the purpose of verifying whether the customers or candidate customers meet the criteria of foreign customers or foreign candidate customers c. re uest the foreign customers or foreign candidate customers to submit statements of consents, instructions or provide written and voluntary authorizations to the for providing information of the foreign customers and or foreign candidate customers to the ndonesian ta authority to be forwarded to the ta authorities of the artner ountries or artner Jurisdictions and d. perform screening of foreign customers, who own account balances or values of at least the same as set in the automatic information e change agreements. nformation on foreign customers submitted shall cover at least customer information and financial information of customers who have account balances Chapter 4 or values in accordance with the automatic information e change agreements. uthorit on ri inal n estigations in inan ial er i es e tor
271 Indonesia Banking Booklet 2018
ased on OJK egulation umber OJK. concerning riminal nvestigations in inancial ervices ector, a few points are e plained as follows a. OJK has the authority to conduct riminal nvestigations in b. the authority on criminal investigations in is executed by OJK’s Investigators; c. OJK’s investigators comprise: nvestigating Officers of the epublic of Indonesia’s Police assigned to OJK; and/or ivil ervant Officers assigned to OJK and are given special authority as nvestigators. d. OJK’s investigators have the authority to conduct investigations in accordance with the provisions concerning nvestigation stipulated in Act umber of concerning OJK and nvestigation in accordance with the provisions stipulated in Act umber of concerning riminal aw and other Acts that give authorities to RI’s Police nvestigators and e. any party may submit a report and or information concerning suspicion of rime in inancial ervices ector by submitting it in writing and or directly come to the OJK. se o the er i es o u li ountants an u li ounting ir s in inan ial er i e ti ities his regulation is an integrated OJK egulation that regulates the use of the services of ublic Accountants As and ublic Accounting irms A , which was previously regulated by sector. his OJK egulation regulates the financial services sector concerning a. Obligation to use A and A that are already registered at the OJK and have the competencies in line with the business comple ities. b. Appoint A and A through the hareholder eneral eeting by considering the proposal of the board of commissioners as a form
Chapter 4 Chapter of good governance implementation. c. nhance the role of audit committee to be more
272 Indonesia Banking Booklet 2018
intensive in the process o recommending PA and PA to the board o commissioners pre audit as ell as in evaluating results o the post audit per ormance o PA and PA d o limit the use o audit services on annual historical inancial in ormation rom the same PA or a maximum o consecutive accounting years and in regard PA it shall depend on results o the evaluation o the Audit ommittee on the implementation o the provision o audit services by PA and/or PA e Obligation to submit annual periodic report on appointments o PA and/or PA and evaluation results o the Audit ommittee on the implementation o the provision o audit services by PA and/or PA o line to the related upervision or nit at OJK In addition to the inancial services sector the OJK Regulation also regulates PA and PA concerning: a eet the independency condition in the provision o services to Parties hich onduct inancial ervice Activities during the audit period and the assignment period re ers to the code o ethics o the public accounting pro ession b ubmit online to OJK the annual periodic report in the orm o recapitulation o services provided to Parties hich conduct inancial ervice Activities and incidental report in the orm o data changes o PA and/or PA c Report o line to the relevant upervision or nit at OJK hen there is in ormation concerning signi icant violations / ea nesses and/or conditions / predicted conditions that may eopardi e the business continuity o Parties hich onduct inancial ervice Activities le entation o ustaina le inan e or Chapter 4 inan ial er i e nstitutions ssuers an u li o anies his OJK Regulation is issued as a speci ic and binding regulation for all financial services sector’s actors in
273 Indonesia Banking Booklet 2018
or er to ateriali e a financial s ste t at a lies t e rinci les of sustaina le finance ustaina le inance is a co re ensive su ort of t e financial services sector to create sustaina le econo ic gro t ar oni ing econo ic social an environ ental interests e egulation is also an i le entation of ct u er ear concerning nviron ental rotection an anage ent to evelo an i le ent environ ental econo ic instru ents inclu ing sociall an environ entall concerne olicies in t e an ing ca ital ar et an non an financial in ustr sectors ectives of t e i le entation of ustaina le inance are a to rovi e t e necessar fun ing sources to ac ieve sustaina le evelo ent o ectives an cli ate c ange relate fun ing in a e uate a ount to en ance t e resilience an co etitiveness of s ssuers an u lic o anies t roug etter anage ent of social an environ ental ris s evelo ing financial ro ucts an or services t at a l t e rinci les of ustaina le inance so as to e a le to contri ute ositivel to t e financial s ste sta ilit c to re uce social ine ualities re ucing an reventing environ ental egra ation aintaining io iversit an ro oting efficient use of energ an natural resources an to evelo financial ro ucts an or services t at a l t e rinci les of ustaina le inance n con ucting t eir usiness activities s ssuers an u lic o anies are re uire to a l t e rinci les of sustaina le finance ic inclu e rinci le of res onsi le invest ent rinci le of sustaina le usiness strategies an ractices rinci le of social an environ ental ris s
Chapter 4 Chapter anage ent rinci le of governance
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rinci le of infor ative co unication rinci le of inclusivit rinci le of riorit sector evelo ent rinci le of coor ination an colla oration
a le tages o ustaina le inan e i le entation
o e
an o er ial an an oreign an an Rural an ural an s ase on usiness ctivit inclu ing aving core ca ital e uivalent to an an ic ave core ca ital e uivalent to or a ital ar et ssuers ot er t an ssuers it s all scale assets an
ssuers it e iu scale assets u lic o an ecurities co anies t at a inister clients Chapter 4 securities accounts an ssuers it e iu scale assets
275 Indonesia Banking Booklet 2018
o e
ssuers it s all scale assets securities co anies t at o not a inister client securities accounts on an inan ial nstitution inancing co anies s aria financing co anies venture ca ital fir s s aria venture ca ital fir s infrastructure finance co anies insurance co anies s aria insurance co anies
reinsurance co anies reinsurance co anies n onesian ort inancing nstitutions ousing secon ar finance co anies ocial ecurit inistering o ies o anies of a ns o s guarantee
co anies an s aria guarantee co anies ension fun s it total assets of at least Chapter 4 Chapter one trillion
276 Indonesia Banking Booklet 2018
o e ru ia
n t is regulation are o lige to evelo a ustaina le inance ction lan to e su itte annuall to t t e sa e ti e as t e su ission of usiness lan of an t at is o lige to su it a usiness lan as art of t e usiness lan or in a se arate ocu ent an no later t an anuar for an t at is not o lige to su it a usiness lan ustaina le inance ction lan is evelo e ase on t e riorities of eac an at least contains evelo ent of ustaina le inancial ro ucts an or ervices inclu ing en ance ent of financing ortfolios invest ents or lace ents in financial instru ents or ro ects in line it t e a lication of ustaina le inance Development of the FSI’s internal capacity; or Adjustments to the FSI’s organization, risk anage ent an governance an or o erational roce ure stan ar o erating roce ure in line it t e rinci le of ustaina le inance a lication ustaina ilit e ort t at is re are se aratel fro t e nnual e ort or as art of an inse ara le art of t e nnual e ort e ustaina ilit e ort s all e su itte no later t an t e revailing ea line for t e annual re ort su ission for eac ssuer an u lic o an irst ti e su ission of t e Chapter 4 ustaina ilit e ort s all e for t e re orting erio
277 Indonesia Banking Booklet 2018
a le erio s o ustaina ilit Re orts Re orting Re orting inan ial er i e erio s nstitutions anuary up to ommercial anks ased on usiness Decem er Activity and as ell as foreign anks anuary up to and ommercial anks, Decem er financing companies, sharia financing companies, venture capital companies, sharia venture capital companies, infrastructure financing companies, insurance companies, sharia insurance companies, re insurance companies, sharia re insurance companies, Indonesian port Financing Institutions, housing secondary financing companies, Social Security rganizing Agencies adan enyelenggara aminan Sosial, Issuers other than Issuers ith small scale assets and Issuers ith medium scale assets, as ell as u lic ompanies anuary up to s ased on usiness activity , Decem er including S s that have core capitals e uivalent to , security companies that administer customer security accounts, and Issuers ith medium scale assets anuary up to and as ell as S s that Decem er have core capitals e uivalent to or , Issuers ith small scale assets, security companies that do not administer customer security accounts, pa n companies, guarantor companies, and sharia guarantor companies anuary up to Any pension fund ith a total assets of no Decem er less than p , , , , one trillion rupiah
Chapter 4 Chapter
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279
APPENDIXES Indonesia Banking Booklet 2018
this page is intentionally left blank Appendixes
282 Indonesia Banking Booklet 2018
1. List of OJK Regulations Conversion Results from BI Regulation No Conversion of Regulation Previous Regulation Number Title Number Title 1 4/POJK.0 Assesment of BI Assesment of 3/2016 Commercial Bank Regulation Commercial Bank Soundness Level 13/1/PBI/ Soundness Level 2011 2 5/POJK.0 Bank Business BI Bank Business Plan 3/2016 Plan Regulation 12/21/PBI/ 2010 3 6/POJK.0 Business BI Business Activities 3/2016 Activities and Regulation and Office Office Networks 14/26/PBI/ Networks Based Based On Bank 2012 On Bank Core Core Capital Capital 4 7/POJK.0 Prudential BI Prudential 3/2016 Principle In The Regulation Principle In The Conduct Of 11/26/PBI/ Conduct of Structured 2009 Structured Product Product Activities Activities For For Commercial Commercial Banks Banks 5 8/POJK.0 Prudential BI Prudential 3/2016 Principle In The Regulation Principle In The Conduct Of 12/9/PBI/ Conduct Of Overseas 2010 Overseas Financial Financial Product Product Agency Agency Activities Activities By By Commercial Commercial Banks Banks 6 9/POJK.0 Prudential BI Prudential 3/2016 Principle For Regulation Principle For Commercial 13/25/PBI/ Commercial Banks Banks That 2011 That Outsource Outsource Part Of Part Of The The Implementation of Implementation Works To Other of Works To Parties Other Parties 7 11/POJK. Commercial Bank BI Commercial Bank 03/2016 Minimum Capital Regulation Minimum Capital Adequacy 15/12/PBI/ Adequacy Requirement 2013 Requirement
8 18/POJK. Implementation BI Implementation of Appendixes 03/2016 of Risk Regulation Risk Management Management For 5/8/PBI/ For Commercial Commercial 2006 Banks Banks BI Amandement to BI Regulation Regulation 11/25/PBI/ 5/8/PBI/2003 2009 concerning
283 Indonesia Banking Booklet 2018
No Conversion of Regulation Previous Regulation Number Title Number Title Implementation of Risk Management For Commercial Banks 9 55/POJK. Implementation BI Implementation of 03/2016 of Good Regulation Good Corporate Corporate 8/4/PBI/ Governance for Governance For 2006 Commercial Banks Commercial BI Amandement to BI Banks Regulation Regulation No. 8/14/PBI/ 8/4/PBI/2006 2006 concerning Implementation of Good Corporate Governance for Commercial Banks 10 56/POJK. Commercial Bank BI Commercial Bank 03/2016 Share Ownership Regulation Share Ownership 14/8/PBI/ 2012 11 57/POJK. Implementation BI Circular Implementation of 03/2016 of Risk Letter Risk Management Management At 13/29/ At Commercial Commercial DPNP Banks That Provide Banks That Prime Customer Provide Prime Service Customer Service 12 64/POJK. Change in BI Change in 03/2016 Convential Bank Regulation Conventional Bank Business 11/15/PBI/ Business Activities Activities Into 2009 Into Sharia Bank Sharia Bank 13 65/POJK. Implementation BI Implementation of 03/2016 of Risk Regulation Risk Management Management For 13/23/PBI/ For Sharia Sharia 2011 Commercial Banks Commercial and Sharia Banks and Sharia Business Units Business Units 14 36/POJK. Prudential BI Prudential 03/2017 Principles in Regulation Principles in Capital 15/11/PBI/ Capital Participation 2013 Participation Activities Activities 15 37/POJK. Utilization of BI Utilization of 03/2017 Foreign Workers Regulation Foreign Workers and Transfer of 9/8/PBI/ and Transfer of Knowledge 2017 Knowledge
Appendixes Program in Program in Banking Sector Banking Sector
284 Indonesia Banking Booklet 2018
No Conversion of Regulation Previous Regulation Number Title Number Title 16 38/POJK. Implementation BI Implementation of 03/2017 of Risk Regulation Risk Management Management at 8/6/PBI/ at Consolidation Consolidation 2006 Level at Banks that Level at Banks Conduct Control that Conduct Over Subsidiary Control Over Companies Subsidiary Companies 17 39/POJK. Single Ownership BI Single Ownership 03/2017 in Indonesian Regulation in Indonesian Banking 14/24/PBI/ Banking 2012 18 40/POJK. Credits or BI Director Credits to Security 03/2017 Financing to Decree Companies and Security 24/32/KEP/ Credits with Share Companies and DIR Collaterals Credits or BI Director Share as Financing with Decree Collaterals of Share Collaterals 26/68/KEP/ Additional Credit DIR 19 41/POJK. Requirements BI Requirements and 03/2017 and Procedure Regulation Procedure for for Bank 2/6/PBI/ Bank Examination Examination 2000 20 42/POJK. Obligation BI Director Obligation to 03/2017 concerning the Decree Develop and Preparation and 27/162/KEP Implement Bank Implementation of /DIR Credit Policies for Bank Credit or Commercial Banks Financing Policy for BI Circular Obligation Commercial Banks Letter concerning the 27/7/UPPB preparation and Implementation of Bank Credit for Commercial Banks 21 43/POJK. Follows ups of BI Director Follows up of the 03/2017 the Decree Implementation Implementation 23/82/KEP/ Supervision and of Bank DIR Development of Supervision Bank BI Circular Follows up of the Letter Implementation 23/22/UPP Supervision and
B Development of Appendixes Bank 22 44/POJK. Restrictions on BI Director Restrictions on the 03/2017 the Provisions of Decree Provisions of Credits or 30/46/KEP/ Credits by Financing by DIR Commercial Banks Commercial for Financing
285 Indonesia Banking Booklet 2018
No Conversion of Regulation Previous Regulation Number Title Number Title Banks for Land Procurement Procurement and/or Land and/or Land Preparation Preparation BI Circular Restrictions on the Letter Provisions of 30/2/UK Credits by Commercial Banks for Financing Procurement and/or Land Preparation BI Circular Reporting on the Letter Provisions of 31/2/UK Credits by Commercial Banks for Financing Procurement and/or Land Preparation 23 45/POJK. Special BI Special Treatments 03/2017 Treatments on Regulation on Bank Credits Bank Credits or 8/15/PBI/ for ertain Areas in Financing for 2017 Indonesia Affected ertain Areas in by Natural Disaster Indonesia Affected by Natural Disasters 24 46/POJK. Implementation BI Implementation of 03/2017 of Commercial Regulation Commercial Bank Bank Compliance 13/2/PBI/ Compliance Function 2011 Function 25 47/POJK. Obligation BI Obligation 03/2017 concerning the Regulation concerning the provisions of 5/14/PBI/ provisions of Funds for 2003 Funds for Education and Education and Trainings for the Trainings for the Development of Development of Human Resources Human Resources of Rural Banks of Rural Banks and Sharia Rural Banks 26 48/POJK. Transparency of BI Transparency of 03/2017 Rural bank Regulation Rural bank Financial 15/3/PBI/ Financial Condition 2013 Condition 27 49/POJK. Legal Lending BI Legal Lending 03/2017 Limits of Rural Regulation Limits of Rural
Appendixes Banks 11/13/PBI/ Banks 2009
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2. List of Banking That are Still in Force TOPIC REGULATION NUMBER*)
A. Regulations Concerning Institusional Arrangement 1 - Commercial Bank - OJK Regulation Establishment No.6/POJK.03/2016 concerning - Commercial Bank Business Activities and Office Ownership Networks Based On Bank Core - Commersial Bank Capital Management - BI Regulation No. - Commersial Bank Branch 15/14/PBI/2013 dated 24 Office Opening December 2013 concerning - Commercial Bank Branch Amendment to BI Regulation Office Closing No. 11/10/PBI/2009 - Sharia Business Unit concerning Sharia Business Opening Units - BI Regulation No. 14/8/PBI/2012 dated 13 July 2012 concerning Commercial Bank Share Ownership - BI Regulation No. 13/27/PBI/2011 dated 28 December 2011 concerning Amendment to BI Regulation No. 11/1/PBI/2009 dated 27 January 2009 concerning Commercial Banks - BI Regulation No. 11/10/PBI/2009 dated 19 March 2009 concerning Sharia Business Units - BI Regulation No. 11/1/PBI/2009 dated 27 January concerning Commercial Banks 2 - Sharia Commercial Bank - BI Regulation No. Establishment 15/13/PBI/2013 dated 24 - Sharia Commercial Bank December 2013 Amendment to Ownership BI Regulation No. - Sharia Commercial Bank 11/3/PBI/2009 concerning Management Sharia Commercial Banks. (it - Sharia Commercial Bank revokes Article 26 verse (1) of BI Branch Office Opening Regulation No. 14/6/PBI/2012) - Commercial Bank Branch - BI Regulation No. Office Closing 11/3/PBI/2009 dated 29 January 2009 concerning Sharia
Commercial Banks Appendixes 3 - Rural Bank Establishment - OJK Regulation No. - Rural Bank Ownership 44/POJK.03/2015 dated 29 - Rural Bank Management December concerning and Human Resources Competency Certification For - Rural Bank Branch Office Members of Board of Directors Opening and Members of Board of
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TOPIC REGULATION NUMBER*) - Rural Bank Branch Office Commissioners of Rural Banks Closing and Sharia Rural Banks - OJK Regulation No. 20/POJK.03/2014 dated 21 november 2014 concerning Rural Banks 4 - Sharia Rural Bank (SRB) - OJK Regulation No. Establishment 44/POJK.03/2015 dated 29 - Sharia Rural Bank December 2015 concerning Ownership Competency Certification For - Sharia Rural Bank Members of Board of Directors Management and Human and Members of Board of Resources Commissioners of Rural Banks - Sharia Rural Bank Branch and Sharia Rural Banks Office Opening - BI Regulation No. - Sharia Rural Bank Branch 11/23/PBI/2009 dated 1 July Office Closing 2009 concerning Sharia Rural Banks 5 Sole Ownership In Banks In OJK Regulation No. Indonesian 39/POJK.03/2017 dated 12 July 2017 concerning Sole Ownership In Banks In Indonesia 6 Commercial Bank Share - OJK Regulation No. Ownership 56/POJK.03/2016 dated 9 December 2016 concerning Commercial Bank Share Ownership - BI Director Decree No. 32/50/KEP/DIR dated 14 May 1999 concerning Requirements and Procedure For Purchasing Commercial Bank Shares 7 Fit and Proper Test For Main - OJK Regulation No. Parties In Financial Service 27/POJK.03/2016 Institutions dated 27 July 2016 concerning Fit and Proper Test For Main Parties In Financial Service Institutions - BI Regulation No. 12/23/PBI/2012 dated 29 December 2010 concerning Fit and Proper Test - BI Regulation No. 15/13/PBI/2013 dated 24 December 2013 Amendment to BI Regulation No. 11/3/PBI/2009 concerning Appendixes Sharia Commercial Banks. (it revokes Article 26 verse (1) of BI
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TOPIC REGULATION NUMBER*) Regulation No. 14/6/PBI/2012) - BI Regulation No. 14/9/PBI/2012 dated 26 July 2012 concerning Rural Bank Fit and Proper Test - BI Regulation No. 14/6/PBI/2012 dated 18 June 2012 concerning Sharia Bank and Sharia Business Unit Fit and Proper Test 8 Commercial Bank and Rural - BI Director Decree No. Bank Meger, Consolidation, 32/51/KEP/DIR dated 14 Mei and Acquisition 1999 concerning Requirements and Procedures for Commercial Bank Merger, Consolidation, and Acquisition - BI Director Decree No. 32/52/KEP/DIR dated 14 May 1999 concerning Requirements and Procedures for Rural Bank Merger, Consolidation, and Acquisition 9 Change of Commercial Bank BI Regulation No. 10/9/PBI/2008 Business License to Rural concerning Change of Bank Business License In The Commercial Bank Business Context Of Consolidation License to Rural Bank Business License In The Context of Consolidation 10 Incentives In The Context Of - BI Regulation No. Bank Consolidation 9/12/PBI/2007 dated 21 September 2007 concerning Amendment to BI Regulation No. 8/17/PBI/2006 concerning Incentives In The Context Of Bank Consolidation - BI Regulation No. 8/17/PBI/2006 concerning Incentives In The Context of Bank Consolidation 11 Foreign Bank Branch Office - OJK Regulation No. and Foreign Bank 55/POJK.03/2016 dated 9 Representative Office December 2016 concerning Opening Implementation of Good Corporate Governance For Commercial Banks
- BI Letter Decree No. Appendixes 32/37/KEP/DIR dated 12 May 1999 concerning Requirements and Procedures for Opening of Branch Office of Banks Domiciled Overseas
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TOPIC REGULATION NUMBER*) 12 Change in Bank Name - BI Regulation No. and/or Logo 13/27/PBI/2011 dated 28 December 2011 concerning Amendment to BI Regulation No. 11/1/PBI/2009 dated 27 January 2009 concerning Commercial Banks - BI Regulation No. 11/3/PBI/2009 dated 29 January 2009 concerning Sharia Commercial Banks - BI Regulation No. 11/1/PBI/2009 dated 27 January 2009 concerning Commercial Banks 13 - Commercial Bank - BI Regulation No. Liquidation 13/27/PBI/2011 dated 28 - Revocation of Branch December 2011 concerning Office Business License of Amendment to BI Regulation Bank Domiciled Overseas No. 11/1/PBI/2009 dated 27 - Revocation of Commercial January 2009 concerning Bank Business License at Commercial Banks The Request of - BI Regulation No. Shareholders (Self 11/1/PBI/2009 dated 27 Liquidation) January 2009 concerning Commercial Banks - BI Letter Decree No. 32/53/KEP/DIR concerning Procedures for Commercial Bank Revocation of Business License, Dissolution and Liquidation - Government Regulation No. 25 of 1999 dated 3 May 1999 concerning Bank Business License Revocation, Dissolution, and Liquidation 14 Rural Bank Liquidation and - BI Regulation No. Business License Revocation 13/6/PBI/2011 dated 24 January 2011 concerning Handling Follow Up on Sharia Rural Bank Under Special Supervision Status - BI Regulation No.11/20/PBI/2009 dated 4 June 2009 concerning Handling Follow Up on Rural Bank Under Special Supervision - BI Letter Decree No. 32/54/KEP/DIR dated 14 May Appendixes 1999 concerning Procedures for RB Business License Revocation, Dissolution, and
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TOPIC REGULATION NUMBER*) Liquidation. 15 Change In Conventional OJK Regulation No. Bank Business Activities to 64/POJK.03/2016 concerning Sharia Bank Change in Conventional Business Activities to Sharia Bank 16 Human Resources - OJK Regulation No. Development 47/POJK.03/2017 dated 12 July 2017 concerning Obligation for Provisions of Education and Training Funds for Human Resources Development at Rural Banks and Sharia Rural Banks - BI Letter Decree No. 31/310/KEP/DIR/1999 concerning Provisions of Funds for Human Resources Development of Commercial Bank
B. Regulations Concerning Bank Business Activities, Support Activities, and Services 1 Business Activities and OJK Regulation No. Office Networks Based on 6/POJK.03/2016 dated 27 January Commercial Bank Core 2016 concerning Business Capital Activities and Office Networks Based on Bank Core Capital 2 Rural Bank Business OJK Regulation No. Activities and Office 12/POJK.03/2016 dated 17 Network Areas Based on February 2016 concerning RB Core Capital Business Activities and Office Network Areas Based on Core Capital 3 Derivative Transactions - BI Regulation No. 10/38/PBI/2008 dated 16 December 2008 concerning Amendment to BI Regulation No. 7/31/PBI/2005 dated 13 September 2005 concerning Derivative Transactions - BI Regulation No. 7/31/PBI/2005 dated 13 September 2005 concerning Derivative Transactions 4 Certificate of Deposit OJK Regulation No.
10/POJK.03/2015 concerning Appendixes Issuance of Certificates of Deposit By Banks 5 Non-Office Based Financial OJK Regulation Services in The Context of No.19/POJK.03/2014 concerning Financial Inclusion (Laku Non-Office Based Financial Pandai)
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TOPIC REGULATION NUMBER*) Services in The Context of Financial Inclusion (Laku Pandai) 6 Credit Restructuring BI Regulation No. 14/15/PBI/2012 concerning Commercial Bank Asset Quality 7 Bank Business Activity in The - OJK Regulation No. Form of Custodianship With 25/POJK.03/2016 dated 15 July Management (Trust) 2016 concerning Amendment to OJK Regulation No.27/POJK.03/2015 concerning Bank Business Activity in The Form of Custodianship With Management (Trust) - OJK Regulation No. 27/POJK.03/2017 dated 11 December 2015 concerning Bank Business Activity in The Form of Custodianship With Management 8 Guidelines for Development OJK Regulation of Bank Credit Policies No.42/POJK.03/2017 dated 12 July 2017 concerning Obligation to Develop and Implement or Finance Bank Credit Policies for Commercial Banks 9 Standard for Operating OJK Regulation Information Technology for No.75/POJK.03/2016 dated 28 Rural Banks and Sharia Rural December 2016 concerning Banks Standard for Operating Information Technology for Rural Banks and Sharia Rural Banks 10 Sharia Bank and Sharia OJK Regulation No. Business Unit Products and 24/POJK.03/2015 dated 8 Activities December 2015 concerning Sharia Bank and Sharia Business Unit Products and Activities 11 Sharia Principles in Sharia - BI Regulation No. Bank Fund Accummulation 10/16/PBI/2008 dated 25 and Fund Channeling September 2008 concerning Activities, as well as Amendment to BI Regulation Provision of Services No. 9/19/PBI/2007 concerning Implementation OF Sharia Principles in Sharia Bank Fund Accummulation and Fund Channeling Activities, as well as Provision of Services - BI Regulation No. 9/19/PBI/2007 dated 17 December 2017 concerning Appendixes Implementation Sharia Principles in Sharia Bank Fund
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TOPIC REGULATION NUMBER*) Accummulation and Fund Channeling Activities, as well as Provision of Services 12 Obligation concerning the OJK Regulation No. Fulfilment of Net Stable 50/POJK.03/2017 dated 13 July Funding Ratio for 2017 concerning Obligation Commercial Banks concerning the Fulfilment of Net Stable Funding Ratio for Commercial Banks
C. Regulations Concerning Prudential Principle 1 Commercial Bank Core - OJK Regulation No. Capital 6/POJK.03/2016 dated 27 January 2016 concerning Business Activities and Office Networks Based on Core Capital - BI Regulation No. 9/16/PBI/2007 dated 3 December 2007 concerning Amendment to BI Regulation No. 7/15/PBI/2005 concerning Commercial Bank Core Capital Minimum Amount - BI Regulation No. 7/15/PBI/2005 concerning Commercial Bank Core Capital Minimum Amount 2 Rural Bank Core Capital - OJK Regulation No. 5/POJK.03/2015 concerning Rural Bank Minimum Capital Adequacy Requirement and Fulfilment of Minimum Core Capital - BI Regulation No. 8/18/PBI/2006 dated 5 October 2006 concerning Rural Bank Minimum Capital Adequacy Requirement 3 Conventional Commercial - OJK Regulation Bank Minimum Capital No.34/POJK.03/2016 dated 26 Adequacy Requirement September 2016 concerning (MCAR) Amendment to OJK Regulation No. 11/POJK.03/2016 concerning Commercial Bank
Minimum Capital Adequacy Appendixes Requirement - OJK Regulation No. 11/POJK.03/2016 dated 2 February 2016 concerning Commercial Bank Minimum Capital Adequacy Requirement
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TOPIC REGULATION NUMBER*) 4 Sharia Commercial Bank and OJK Regulation No. Sharia Business Unit 21/POJK.03/2014 dated 18 Minimum Capital Adequacy November 2014 concerning Requirement (MCAR) Sharia Commercial Bank Minimum Capital Adequacy Requirement 5 Rural Bank Minimum Capital - OJK Regulation No. Adequacy Requirement 5/POJK.03/2015 concerning Sharia Rural Bank Minimum Capital Adequacy Requirement and Fulfilment of Minimum Core Capital - Article 2, Article 3, Article 4, and Article 5 BI Regulation No. 8/22/PBI/2006 dated 5 Occtober 2006 concerning Rural Bank Minimum Capital Adequacy Requirement and Fulfilment of Minimum Core Capital 6 Sharia Rural Bank Minimum - OJK Regulation No. Capital Adequacy 66/POJK.03/2016 dated 28 Requirement December 2016 concerning Sharia Rural Bank Minimum Capital Adequacy Requirement and Fulfilment of Minimum Core Capital - Article 2, Article 3, Article 4, and Article 5 BI Regulation No. 8/22/PBI/2006 dated 5 October 2006 concerning Sharia Rural Bank Minimum Capital Adequacy Requirement Based on Sharia Principles 7 Integrated Minimum Capital OJK Regulation No. Adequacy Requirement for 26/POJK.03/2015 concerning For financial Conglomerates Integrated Minimum Capital Adequacy Requirement for Financial Conglomerates 8 Determination of OJK Regulation No. Systemically Important Bank 46/POJK.03/2015 concerning and Capital Surcharge Determination of Systemically Important 9 Conventional Commercial - BI Regulation No. Bank Legal Lending Limit 8/13/PBI/2006 dated 5 October 2006 concerning Amendment to BI Regulation No. 7/3/PBI/2005 dated 20 January concerning Commercial Bank Legal Appendixes Lending Limit - BI Regulation No. 7/3/PBI/2005
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TOPIC REGULATION NUMBER*) dated 20 January 2005 concerning Commercial Bank Legal Lending Limit 10 Rural Bank Legal Lending OJK Regulation No. Limit 49/POJK.03/2017 dated 12 July 2017 concerning Rural Bank Legal Lending Limit 11 Sharia Rural Bank Maximum BI Regulation No. 13/5/PBI/2011 Limit for Fund Channeling dated 24 January 2011 concerning Sharia Rural Bank Maximum Limit for Fund Channeling 12 Restrictions on the OJK Regulation No. Provisions of Credits or 44/POJK.03/2017 dated 12 July Financing by Commercial 2017 concerning Restrictions on Banks for Land Procurement the Provisions of Credits or and/or Land Preparation Financing by Commercial Banks for Land Procurement and/or Land Preparation 13 Commercial Bank Asset BI Regulation No. 14/15/PBI/2012 Quality concerning Assessment of Commercial Bank Asset Quality 14 Rural Bank Earning Asset - BI Regulation No. Quality 13/26/PBI/2011 dated 28 December 2011 concerning Amendment to BI Regulation No. 8/19/PBI/2006 concerning Rural Bank Earning Asset Quality and Establishment of Provision for Earning Asset Write-off - BI Regulation No. 8/19/PBI/2006 concerning Rural Bank Earning Asset Quality and Establishment of Provision for Earning Asset Write-off 15 Sharia Commercial Bank and OJK Regulation No. Sharia Business Unit Asset 16/POJK.03/2014 dated 18 Quality November 2014 concerning Assessment of Sharia Commercial Bank and Sharia Business Unit Asset Quality 16 Sharia Rural Bank Asset BI Regulation No. 13/14/PBI/2011 Quality dated 24 March 2011 concerning
Asset Quality Assessment for Appendixes Sharia Rural Banks 17 Commercial Bank Provision BI Regulation No. 14/15/PBI/2012 for Earning Asset Write-Off concerning Assessment of Commercial Bank Asset Quality
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TOPIC REGULATION NUMBER*) 18 Conventional Rural Bank - BI Regulation No. Provision for Earning Asset 13/26/PBI/2011 dated 28 Write-Off December 2011 concerning Amendment to BI Regulation No. 8/19/PBI/2006 Rural Bank Earning Asset Quality and Establishment of Provision for Earning Asset Write-Off - BI Regulation No. 8/19/PBI/2006 Rural Bank Earning Asset Quality and Establishment of Provision for Earning Asset Write-Off 19 Sharia Commercial Bank and OJK Regulation No. Sharia Business Unit 16/POJK.03/2014 dated 18 Provision for Asset Write-Off November 2014 concerning Assessment of Sharia Commercial Bank and Sharia Business Unit Asset Quality 20 Sharia Rural Bank Provision BI Regulation No. 13/14/PBI/2011 for Asset Write-Off dated 24 March 2011 concerning Asset Quality Assessment for Sharia Rural Banks 21 Prudential Principle for OJK Regulation No. Commercial Banks that 36/POJK.03/2017 dated 12 July Outsource Part of The 2017 concerning Prudential Implementation of Works to Principle for Commercial Banks Other Parties that Outsource Part of The Implementation of Works to Other Parties 22 Prudential Principle for OJK Regulation No. Commercial Banks that 9/POJK.03/2016 dated 27 January Outsource Part of The 2016 concerning Prudential Implementation of Works to Principle for Commercial Banks Other Parties that Outsource Part of The Implementation of Works to Other Parties 23 Prudential Principle in Asset BI Regulation No. 7/4/PBI/2005 Securitization Activities dated 20 January 2005 concerning Prudential Principle in Asset Securitization Activities for Commercial Banks 24 Prudential Principle in The OJK Regulation No. Conduct of Structured 7/POJK.03/2016 dated 27 January Product Activities for 2016 concerning Prudential Commercial Banks Principle in The Conduct of Structured Product Activities for Commercial Banks 25 Prudential Principle in The OJK Regulation No. Conduct of Overseas 8/POJK.03/2016 dated 27 January Appendixes Financial Product Agency 2016 concerning Prudential Principle in The Conduct of
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TOPIC REGULATION NUMBER*) Activities By Commercial Overseas Financial Product Banks Agency Activities By Commercial Banks 26 Implementation of Good - OJK Regulation No. Corporated Governance 55/POJK.03/2016 dated 9 (GCG) for Commercial Banks December 2016 concerning Implementation of Good Corporate Governance for Commercial Banks - OJK Regulation No. 45/POJK.03/2015 dated 28 December 2015 concerning Implementation of Good Corporate Governance in The Provision of Remunerations for Commercial Banks 27 Implementation of GCG for - OJK Regulation No. Sharia Commercial Banks 59/POJK.03/2017 dated 18 and Sharia Business Units December 2017 concerning Implementation of Good Corporate Governance in The Provision of Remunerations for Sharia Commercial Banks and Sharia Business Units - BI Regulation No. 11/33/PBI/2009 dated 7 December 2009 concerning Implementation of Good Corporate Governance for Sharia Commercial Banks and Sharia Business Units 28 Implementation of OJK Regulation No. Integrated Good Corporate 4/POJK.03/2015 concerning Governance for Rural Banks Implementation of Integrated Good Corporate Governance for Rural Banks 29 Implementation of OJK Regulation No. Integrated Good Corporate 18/POJK.03/2014 dated 21 Governance for Financial November 2014 concerning Conglomerates Implementation of Integrated Good Corporate Governance for Financial Conglomerates 30 Implementation of OJK Regulation No. Commercial Bank 46/POJK.03/2017 dated 12 July Compliance Function 2017 concerning Implementation
of Commercial Bank Compliance Appendixes Function 31 Implementation of Risk OJK Regulation No. Management for 18/POJK.03/2016 dated 22 March Commercial Banks 2016 concerning Implementation of Risk Management for Commercial Banks
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TOPIC REGULATION NUMBER*) 32 Implementation of Risk OJK Regulation No. Management for Sharia 65/POJK.03/2016 dated 28 Commercial Banks and December 2014 concerning Sharia Business Units Implementation of Risk Management for Sharia Commercial Banks and Sharia Business Units 33 Implementation of Risk OJK Regulation No. Management for Rural 13/POJK.03/2015 concerning Banks Implementation of Risk Management for Rural Banks 34 Implementation of OJK Regulation No. Integrated Risk 17/POJK.03/2014 dated 21 Management for Financial November 2014 concerning Conglomerates Implementation of Integrated Risk Management for Financial Conglomerates 35 Implementation of Risk OJK Regulation No. Management in The Use of 38/POJK.03/2016 dated 7 Information Technology December 2016 concerning Implementation of Risk Management in The Use of Information Technology By Commercial Banks 36 Implementation of OJK Regulation No. Consolidated Risk 38/POJK.03/2017 dated 12 July Management for Bank that 2017 concerning Implementation Exercises Control Over of Consolidated Risk Subsidiary Companies Management for Bank that Exercises Control Over Subsidiary Companies 37 Credits or Financing to OJK Regulation No. Security Companies and 40/POJK.03/2017 dated 12 July Credits or Financing with 2017 concerning Credits or Share Collaterals Financing to Security Companies and Credits or Financing with Share Collaterals 38 Risk Management - BI Regulation No. Certification for Commercial 12./7/PBI/2010 dated 19 April Bank Managers and Officers 2010 concerning Amendment to BI Regulation No. 11/19/PBI/2009 dated 4 June 2009 concerning Risk Management Certification for Commercial Bank Managers and Officers - BI Regulation No. 11/19/PBI/2009 dated 4 June 2009 concerning Risk Management Certification for Appendixes Commercial Bank Managers and Officers
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TOPIC REGULATION NUMBER*) 39 Implementation of Anti OJK Regulation No. Money Laundering and 12/POJK.01/2017 dated 12 March Prevention of The Funding 2017 concerning Implementation of Terrorism Program in of Anti Money Laundering and Financial Services Sector Prevention of The Funding of Terrorism Program in Financial Services Sector 40 Utilization of Foreign OJK Regulation No. Workers and Transfer of 37/POJK.03/2017 dated 12 July Knowledge Prrogram in 2017 concerning Utilization of Banking Sector Foreign Workers and Transfer of Knowledge Program in Banking Sector 41 Implementation of Risk BI Regulation No. 11/36/DPNP Management on Bank dated 31 December 2009 Activities Related to Mutual concerning Amendment to BI Funds Regulation No. 7/19/DPNP dated 14 June 2005 concerning Implementation of Risk Management at Banks that Conduct Activities Related to Mutual Funds 42 Implementation of Risk OJK Regulation No. Management at Commercial 57/POJK.03/2016 dated 9 Banks that Provide Prime December 2016 concerning Customer Service (PCS) Implementation of Risk Management at Commercial Banks that Provide Prime Customer Service 43 National Economic Stimulus - OJK Regulation for Commercial Banks, No.11/POJK.03/2015 dated 24 Sharia Commercial Banks, August 2015 concerning and Sharia Business Units Prudential Stipulation in The Context of National Economic Stimulus for Commercial Banks - OJK Regulation No.12/POJK.03/2015 dated 24 August 2015 concerning Prudential Stipulation in The Context of National Economic Stimulus for Sharia Commercial Banks, and Sharia Business Units 44 Requirement to Meet OJK Regulation No. Liquidity Coverage Ratio for 42/POJK.03/2015 dated 23
Commercial Banks December 2015 concerning Appendixes Requirement to Meet Liquidity Coverage Ratio for Commercial Banks 45 Special Treatments on Bank OJK Regulation No. Credits or Financing for 45/POJK.03/2017 dated 12 July ertain Areas in Indonesia 2017 concerning Special
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TOPIC REGULATION NUMBER*) Affected by Natural Treatments on Bank Credits or Disasters Financing for ertain Areas in Indonesia Affected by Natural Disasters
D. Regulations Concerning Reports and Accounting Standards 1 Transparency of Bank - OJK Regulation No. Financial Condition 32/POJK.03/2016 dated 12 August concerning Amendment to OJK Regulation No. 5/POJK.03/2015 concerning Transparency and Publication of Bank Reports - OJK Regulation No. 6/POJK.03/2015 dated 1 April 2015 concerning Transparency and Publication of Bank Reports 2 Transparency of Rural Bank OJK Regulation No. Financial Condition 48/POJK.03/2017 dated 12 July 2017 concerning Transparency of Rural Bank Financial Condition 3 Transparency of Sharia Rural BI Regulation No. 7/47/PBI/2005 Bank Financial Condition dated 14 November 2005 concerning Transparency of Sharia Rural Bank Financial Condition 4 Transparency of Bank BI Regulation No. 7/6/PBI/2005 Product Information and dated 20 January 2005 Use of Customer Personal concerning Transparency of Bank Data Product Information and Use of Customer Personal Data 5 Commercial Bank Reports - BI Regulation No. 14/12/PBI/2012 dated 15 October 2012 concerning Commercial Bank Head Office Reports - BI Regulation No.13/8/PBI/2011 dated 4 February 2011 concerning Commercial Bank Daily Reports 6 Rural Bank Reports BI Regulation No. 7/51/PBI/2005 dated 14 December 2005 concerning RB Monthly Reports 7 Information of Credit - OJK Regulation No. 18/POJK.03/2017 dated 26 April 2017 concerning Reporting and Requesting of Debtor Information through
Appendixes Sistem Layanan Informasi Keuangan - BI Regulation 15/1/PBI/2013
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TOPIC REGULATION NUMBER*) dated 18 February 2013 concerning Lembaga Pengelola Informasi Perkreditan (Credit Bureau)
E. Regulations Concerning Bank Supervision 1 Bank Business Plan OJK Regulation No. 5/POJK.03/2016 dated 27 January 2016 concerning Bank Business Plan 2 Rural Bank and Sharia Rural OJK Regulation No. Bank Business Plan 37/POJK.03/2016 dated 30 November 2016 concerning Rural Bank and Sharia Rural Bank Business Plan 3 Assessment of Commercial OJK Regulation No. Bank Soundness Level 4/POJK.03/2016 dated 27 January 2016 concerning Assessment of Commercial Bank Soundness Level 4 Assessment of Sharia OJK Regulation No. Commercial Bank (SCB) 8/POJK.03/2014 dated 11 June Soundness Level 2014 concerning Assessment of Sharia Commercial Bank and Sharia Business Unit Soundness Level 5 Assessment of Rural Bank BI Letter Decree No. Soundness Level 30/12/KEP/DIR dated 30 April 1997 concerning Procedure for Assessment of RB Soundness Level 6 Assessment of Sharia Rural BI Regulation No. 9/17/PBI/2007 Bank Soundness Level dated 4 December 2007 concerning Assessment System of Rural Bank Soundness Level Based on Sharia Principles 7 Determination of Bank - OJK Regulation No. Status and Supervision 19/POJK.03/2017 dated 8 May Follow Up 2017 Determination of the Status and Follow Up of the Supervision of Rural Banks and Sharia Rural Banks - OJK Regulation No. 15/POJK.03/2017 dated 4 April 2017 concerning
Determination of the Status Appendixes and Follow Up of Commercial Bank Supervision 8 Follows ups of the OJK Regulation No. Implementation of Bank 43/POJK.03/2017 dated 12 July Supervision 2017 concerning Follows ups of
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TOPIC REGULATION NUMBER*) the Implementation of Bank Supervision 9 Requirements and OJK Regulation No. Procedure for Bank 41/POJK.03/2017 dated 12 July Examination 2017 concerning Requirements and Procedure for Bank Examination 10 Recovery Plans for Systemic OJK Regulation No. Banks 14/POJK.03/2017 dated 12 July 2017 concerning Recovery Plans for Systemic Banks 11 Bridge Bank OJK Regulation No. 16/POJK.03/2017 dated 4 April 2017 concerning Bridge Bank
F. Regulations Concerning Consumer Education and Protection 1 Consumer Protection OJK Regulation No. 1/POJK.07/2013 dated 26 July 2013 concerning Consumer Protection in Financial Services Authority 2 Alternative Dispute OJK Regulation No. Resolution Institutions for 1/POJK.07/2014 dated 16 January the Financial Services Sector 2014 concerning Alternative Dispute Resolution Institutions for the Financial Services Sector 3 Financial Literacy and OJK Regulation Inclusion No.76/POJK.07/2016 dated 28 December 2016 concerning Raising Financial Literacy and Inclusion in the Financial Services Sector among Consumers and/or the Public
G. Other Regulations 1 Bank Secrecy BI Regulation No.2/19/PBI/2000 dated 7 September 2000 concerning Requirements and Procedure for Giving Written Orders or Permits for Disclosing Bank Secrecy 2 Authority on Criminal OJK Regulation No. Investigations in Financial 22/POJK.01/2015 dated 28 Services Sector December concerning Criminal Investigations in Financial Services Sector 3 Use of the Services of Public OJK Regulation No. Accountants and Public 13/POJK.03/2017 concerning Use Accounting Firms in of the Services of Public
Appendixes Financial Service Activities Accountants and Public Accounting Firms in Financial Service Activities
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TOPIC REGULATION NUMBER*) 4 Implementation of OJK Regulation No. Sustainable Finance for 51/POJK.03/2017 dated 18 July Financial Service 2017 concerning Implementation Institutions, Issuers, and of Sustainable Finance for Public Companies Financial Service Institutions, Issuers, and Public Companies Explanation: *) The list of the banking regulation above is OJK Regulation, BI Regulation, and BI Letter Decree that still in force.
3. Entity’s Termination by Task Force Investment Alert Task force for Investment Alert has discontinued the business activities of 80 entities. Discontinuation of these entities activities is intended to give legal assurance to the public that these entities did not have licenses and had the potential to cause looses to the public. The following is a list of the name of those 80 entities. No Name of Entity Type of Offer 1 Number One Community Money Investment 2 PT Inti Benua Indonesia Money Investment 3 PT Compact Sejahtera Group Money Investment (Compact 500) 4 PT Inlife Indonesia Money Investment 5 Koperasi Segitiga Bermuda Money Investment (Profit Win 77) 6 PT Cipta Multi Bisnis Group Money Investment 7 PT Mi One Global Indonesia Money Investment 8 Starfive2u.com Money Investment 9 PT Kovesindo Money Investment 10 PT Finex Gold Berjangka Money Investment 11 Group Matic 170 Money Investment 12 PT Nusa Profit Money Investment 13 PT Duta Profit Money Investment 14 PT Sentra Artha Money Investment 15 PT Sentra Artha Futures Money Investment 16 www.Lautandhana.net Money Investment 17 www.assetamazon.com Money Investment
18 PT CMI Futures Money Investment Appendixes 19 PT Global Ventura Pratama/Gold Indo Money Investment Financial/GIF Financial 20 PT Indo Snapdeal Money Investment
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o ame o Entity Ty e o er 21 Questra World/Questra World Money Investment Indonesia 22 Wujudkan Impian Bersama Money Investment (WIB)/PT Global Mitra Group 23 Seven Star Internasional Money Investment Investment 24 PT Ayudee Global Nusantara Money Investment 25 PT Rofiq Hanifah Sukses/RHS Money Investment Group 26 PT Maju Aset Indonesia Money Investment 27 CV Usaha Mikro Indonesia Money Investment 28 PT Investindo Amazon Money Investment 29 EA Veow Forex Investment 30 FX Magnet Profit Forex Investment 31 Swiss Forex International Forex Investment 32 PT Maju Mapan Pradana/Fast Furious Forex Index Forex Investment Commodity/F3/FFM 33 Smart Banking Exchange/PT Forex Investment Solarcity Kapital Indonesia 34 PT Dunia Koin Digital Cryptocurrencies 35 Tractorventure/Tracto Venture Cryptocurrencies Network 36 PT. Purwa Wacana Tertata/Share Profit System Cryptocurrencies Coin/SPS Coin.co 37 PT Bitconnect Cryptocurrencies Indonesia/Bitconnect 38 Dinar Dirham Indonesia/ Cryptocurrencies www.dinardirham.com 39 PT Alfikal Property Property Investments 40 PT Miracle Bangun Indo/Program Gotong Royong Property Investments Bersama Kita Sukses 41 PT Crown Indonesia Makmur Property Investments 42 PT Multi Sukses Internasional Marketing of Beauty and Health Products 43 PT Maestro Digital Komunikasi Marketing of Beauty and Health Products 44 PT Mahakarya Sejahtera Marketing of Beauty and Indonesia/PT. Multi Sukes Health Products International Appendixes 45 Alpari Investment Brokers 46 Forex Time Limited Investment Brokers
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o ame o Entity Ty e o er 47 SMC Profit Time Deposits 48 Ahmad Zulkhairi Associates LPP Time Deposits (AZA)/Bank Aza 49 Helvetia Equity Aggregator Asset Management 50 The Peterson Group Asset Management 51 Koperasi Karya Putra Alam Semesta (KPAS)/Investment Debt Write-Offs Management Consortium 52 UN Swissindo Debt Write-Offs 53 Tifia Markets Limited Investment Brokers 54 Koperasi Serba Usaha Agro Cassava Nusantara (Agro Investments in Cassava Investy) 55 PT Royal Sugar Company Investments in Brown Sugar 56 PT Grand Nest Production/PT Investments in Swallow GNP Corporindo 57 PT Monspace Mega Indonesia Investments in Shares and Cryptocurrencies 58 CV Mulia Kalteng Sinergi Investments in Gold 59 PT Konter Kita Satria Investment in Mobile Phone Credits 60 PT Akmal Azriel Bersaudara Investments in Motor Vehicle Credits 61 Ucoin Cash Investments in Ucoin Products 62 Koperasi Harus Sukses Bersama Investments Capital Participations 63 PT Mandiri Financial Investments in Shares 64 FX Primus Id Investments in Money and Precious Metals 65 PT Smart Global Indotama Digital Transactions 66 PT Global Mitra Group Technology Services (IT) and Exports-Imports 67 Car Club Indonesia/PT Carklub Motor Vehicle Credits and Pratama Indonesia Health Products 68 Koperasi Budaya Karyawan Bank Bumi Daya Cabang Commercial Papers
Pekanbaru Appendixes 69 PT Istana Bintang Universal Entrepreneurship and e- commerce 70 PT Papan Agung Solution Home Ownership 71 PT Azra Fakhri Servistama Cash Custodianship
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o ame o Entity Ty e o er 72 Komunitas Arisan Mikro Online Arisan (Informal Indonesia/K3 Plus Rotating Savings & Credit Program) 73 PT Indiscub Ziona Ripav Marketplace e-commerce 74 PT Raja Walet Facial Soap Distributor Indonesia/bitconnect 75 IFC Market Corp Trading, Forex, Broker 76 FBS Indonesia Foreign Exchange, Precious Metals, and Cryptocurrency 77 XM Global Limited Cryptocurrency, Precious Metals, and Shares 78 Ayrex Online Binary Option Trading 79 ATM Smart Card ATM can be used without owning a balance in the account 80 PT First Anugerah Karya Umrah Travel Wisata/Firts Travel
In addition, throughout the year 2017, the Task Force for Investment Alert has legally processed 12 entities as follows: o ame o Firm 1 Pandawa Group Depok 2 PT Cakrabuana Sukses Indonesia (PT CSI) Cirebon 3 Dream for Freedom (D4F)/NESI/Loketnesia/Promonesia 4 Wein Group Kupang 5 PT Compact Sejahtera Group, Compac 500 or Koperasi Bintang Abadi Sejahtera or ILC 6 UN Swissindo 7 PT Crown Indonesia Makmur 8 PT Inti Benua Indonesia 9 Royal Sugar Company 10 Talk Fusion 11 First Travel 12 PT Mi One Global Indonesia
Explanation: Entities number 1 up to 4 have been under legal processes in 2017, however discontinuation of their business activities were applies in 2016. Meanwhile, in regard the other
Appendixes 8 entities, discontinuation of business activities and legal processes were applied in the same year, namely 2017.
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ankin ases t at Alrea y ave ermanent e al Force inkrac t t ro o t o ase ecision 1. 1. In period of 2011 to 2014, Head Decision of the District of Credit Section and Head of Court of Cirebon Credit Sub-Section of a RB wew Regency No: allegad to have made or caused 221/Pid.B/2017/PN.Sbr. false records through the Court ruling: processing of credit provisions Five year imprisonment by using and amending for each individual and documents/photocopies of a fine of Rp. 10 billion in documents owned by other exchange of five-month parties, of as many as 120 prison time. fictitious debtors with a total ceiling of Rp. 2,263,500,000. The loan disbursement funds were used by the suspects to fund their businesses which involve provision of fund lending to te public 2. In the period of 2012 until March 2015. Head of Credit Section was alleged to have misuses credit installment payments/full repayments of 59 debtor accounts totaling Rp. 125,286,700. Such action caused such installment payments/full repayments of credits not to be recorded in the books or in the reports, transactions or accounts of a Bank. Head of Credit Section used the funds from debtors to cover credits in arrears in the first case. 2. The president Director of a RB Verdict of the District deliberately provided credit Court Lubuk Pakam No: facilities to 34 debtors amounting 1632/Pid.Sus/2017/PN to Rp. 3,210,000,000,- which Lbp
deviated from the banking Court ruling: Appendixes regulations. imprisonment of the defendant for six years, a fine of Rp. 10 billion in exchange of two- month prison time.
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o ase ecision 3. The President Director of a RB Decision of the Sleman deliberately created or caused the District Court No: provision of fictitious credits 457/Pid.sus/2017/PN resulting in bank’s bookkeeping not Smn to be in accordance with the actual Court ruling: situation and not to be in Five years accordance with the principles of imprisonment and a sound banking practice. fine of Rp. 10 billion in exchange of three- month prison time. 4. During the period from March 18, Verdict of Tanjung 2013 up to January 28, 2016, a Karang District Court junior bank credit administration No: analysts extended employee credit 1267/Pid.B/2017/PN.Tjk facilities to 75 debtors. In the Court verdict: process of granting such credit Defendant was facilities, irregularities were found in sentenced to five year regard banking regulations with a imprisonment and a total deviation of Rp. 2.330 million fine of a Rp. 10 billion. as follows: 1. Processing redit disbursement of seven debtors with a total ceiling Rp. 765 million directly through the banking system 2. Increasing credit limits for 47 debtors with a total of Rp. 515 million without the knowledge of the relevant debtors 3. Not repaying the debit balances of old credits with additional credit limits (top up) of 12 debtors with a total amount of 807 million, causing the debtors to be recorded as having two credit facilities when actually each of them only gets the benefit of one facility 4. Receiving credit repayment funds from nine debtors with a total amount of Rp. 257 million, but the funds were not deposited into debtors’ accounts to pay off the credits, instead the funds Appendixes were used for personal benefit of the person concerned
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o lar Terminolo ies in ankin In stry
Terminolo y E lanation
ternati e ispute n epen ent bo ies t at pro i e out of court ispute eso ution o ies sett e ent ser ices
ac ines iperate it a co puter syste t at are acti ate by t e use of bank co e agnetic car s n ungan unai roug t e use of t e ac ines custo ers can sa e an iri oney it ra cas transfer fun s bet een accounts an ot er routine transactions ooperation acti ities bet een a bank an an insurance ancassurance co pany for t e purpose of arketing insurance pro ucts t roug t e bank A written document that describes bank’s shortterm one year an e iu ter t ree years business acti ity p an inc u ing a p an for stepping up business ank business p an perfor ance as e as strategies for rea i ing t e bank business p an in accor ance it t e set targets an ti e by yet obser ing fu fi ent of t e pru entia regu ations an i p e entation of risk anage ent ritten state ent of capabi ity pro i e by a bank to a party recei ing t e guarantee t at t e bank i pay a ank uarantee certain ti e if t e party for o t e bank akes t e guarantee oes not fu fi an ob igation ank n onesia e c earing syste t at co ers ebit c earings an ationa earing cre it c earings ic fina sett e ents are perfor e yste at nationa e e n infor ation syste use by bank super isors in con ucting ana yses on bank con ition assess ent of ank nfor ation ank oun ness e e by using t e risk approac isk yste ase ank ating acce erates access to infor ation on bank financia con itions steps up t e security an integrity of banking ata an infor ation
eneficiary party t at recei es benefits fro properties fun s
or s notes an ot er ritten e i ences t at can i yet pro e t e a i ity of transactions ic contain e p anations or instructions to pay
apita onser ation n a itiona capita t at functions as a buffer at t e uffer occurence of osses uring crisis perio
n a itiona capita ic functions to re uce negati e i pact on t e financia syste stabi ity an apita urc arge t e econo y in t e e ent of a fai ure on t e part of a bank t at as syste ic i pact t roug a step up in t e bank capacity to absorb osses ecurities eno inate in rupia issue by as s ort ertificate of ank ter ebt ackno e ge ents an constitute one of t e n onesia e ices of pen arket peration Appendixes ertificate of ertificates issue base on aria rincip es by a nterbank o o ity or a in aria nterbank oney arket transactions ra e base on t at are proofs of se ing buying it eferre aria rincip es pay ents on co o ity tra ing at t e bourse i ritten instruction fro a custo er to a bank for t e eck e ue it ra a of a certain a ount of fun s to be pai to t e custo er or t e bearer
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Terminolo y E lanation
An a reement between a bank and members o the oard o irectors members o the oard o ommissioners or em o ees in which the member o awback the oard o directors members o the oard o ommissioners or m o ees a ree to return ariab e emunerations recei ed as on as certain criteria is met as determined b the ank An e chan e o dra ts and or ectronic inancia ata between c earin artici ants both on beha o the earin participants as well as on behalf of the participants’ customers which ca cu ation resu t shou be sett ed at a certain time A uarantee handed o er b a debtor to a bank or the o atera ur ose o credit or inancin aci it e tension A bank that conduct business acti ities in the con entiona manner and or based on sharia rinci es ommercia ank and in conductin its acti ities ro ides ser ices in a ment ows An e ression o consumer dissatis action due to a inancia oss and or otentia oss or the onsumer om aint which is sus ected to ha e been caused b an error or ne i ence on the art o the inancia er ice nstitution Monitoring of a bank’s compliance to regulations re ated to bank o eration and mana ement in the ast om iance ased with the ob ecti e o ensurin that the bank has u er ision o erated and been mana ed ro er and correct based on rudentia rinci e rotection or the onsumers with the co era e o the onsumer rotection inancia er ice nstitutions beha ior arties that ace their unds and or uti i e ser ices ro ided at a com risin amon others customers at a ank in estors at the a ita arket o ic ho ders onsumers at an insurance com an and artici ants in a ension und based on the e is ations in the inancia er ices ector A ontro in hareho der can be a e a entit an ontro in indi idua erson and or a business rou that owns hareho der shares or share e ui a ence in an and has the ca acit to e ercise contro o er the An additiona ca ita that unctions as an antici ati e measure a ainst osses in the e ent o e cessi e ounterc c ica u er bankin credit rowth which has the otentia o disru tin the inancia s stem stabi it
redit nstitutions a encies that co ect and rocess credit ureau emba a data and other data to enerate credit in ormation in en e o a n ormasi accordance with the sti u ations re u ations about erkreditan
ard issued b a bank or credit card ro ider com an i in the ri ht to indi idua ersons that meet certain re uirements whose names are s eci ied on the cards redit ard to use cards as a a ment instrument on credit basis or ac uirin oods or ser ices or or withdraw cash within Appendixes the credit imits set b the bank or credit card ro ider com an
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Terminolo y E lanation
n criminal offence e ent as stipulate in the cts that regulate the anking haria anking apital Market ension un s Micro inance nstitutions nsurance n onesian port inancing nstitutions ocial ecurit rgani ing gencies ank n onesia as rimes in inancial long as it is relate with an inter ention in the er ices ector implementation of OJK’s task in the regulating and super ising of banks as well as the ct concerning ther inancial er ices nstitutions as refere to in aw of the epublic of n onesia number of on inancial er ices uthorit bank that acts as custo ian custo ian is a part that pro i es safe keeping ser ices of a securities an other properties relate to securities as well as other ser ices usto ian ank inclu ing recei ing i i en s interest an other rights as well as settling securit transactions an representing account hol ers which are its customers cti ities in the forms of i entification erification an monitoring con ucte b a bank to ensure that customers’ transactions are in line with the customers’ profiles is re uire to be performe when i ustomer ue con ucting business relationship with a can i ate illigence customer ii con ucting business relationship with a alk in ustomer an authori e part an or beneficial owner or i there is an usual financial transaction that is relate to mone laun ering an or the fun ing of terrorism car issue b a bank that can be use to pa for transactions an or with raw fun s charge to the ebit ar acount of the concerner car hol er using ersonal entification umber nformation on ebtor un ro ision acilities ebtor nformation recei e b the ebtor an other relate information presente un er the ebtor eport recei e b from the eporting ntit eposit which with rawl ma onl be ma e at a eposit certain time base on the agreement between the epositor an bank ispute between a onsumer an a on a fun placement acti it b the onsumer in the an or ispute utili ation of ser ice an or a pro uct of the after un ergoing a process of omplaint settlement b the financing facacilit from which is eci e b ommittee for inancial stem tabilit an mergencing guarantee b the o ernment to a bank e periencing inancing acilit li ui it problem which has s stemic impact an crisis potential but still meets sol enc le el eeper action performe b a bank when con ucting a relationship with a customer that is nhance ue categori e as high risk inclu ing oliticall pose illigence Appendixes erson against the possibilit of mone laun ering an the fun ing of terrorism inancial s that belong within one group interlinke b onglomerate ownership an or control series of processes or acti ities for enhancing inancial ucation inancial iterac
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Terminolo y E lanation
aila ilit of access at arious institutions to financial products and ser ices in accordance with the needs and inancial nclusion capacities of the pu lic for the purpose of enhancing pu lic welfare Knowledge skills and elie e that influence attitude and eha ior for enhancing decision making and inancial iterac financial management ualit for the purpose of achie ing welfare n institution that conducts acti ities in the anking inancial er ice sector apital arket nsurance ension und nstitution inancing nstitution and Other inancial er ice nstitutions inancial er ice nstitutions comprise ommercial anks ural anks ecurit ompanies n estment d isors ustodian anks ension unds nsurance inancial er ice ompanies e insurance ompanies inancing nstitutions nstitutions awn ompanies and uarantee ompanies which conduct usiness acti ities oth in the con entional manner as well as ased on sharia principles atio etween the alues of inancing e tended a inancial o alue ank against the alue of the collateral in the form of propert at the time of the e tension of the inancing ased on the latest e aluation result he process of assessing fulfillment of the re uirements concerning the capa ilit and appropriateness of it and roper est prospecti e ain art as mandated the legislations applica le in each financial ser ices sector
iro a i inimum funds that should e maintained a ank inimum which amount is set ank ndonesia in a certain tatutor eser e percentage of hird art unds
igh ualit i uid ssets comprise cash and or financial assets that can easil e con erted into cash igh ualit i uid with a little or without a decrease in alue for the ssets purpose of meeting a bank’s liquidity needs for the period of ne t thirt da s under stress scenarios fund pro ision agreement for the purpose of transfering the right to use or enefits of a certain good Ijarah or ser ice ased on lease transaction without eing followed a transfer of ownership of the good fund pro ision agreement for the purpose of Ijarah Muntahiyah Bit transfering the right to use or enefits of a certain good Tamlik (IMBT) or ser ice ased on lease transaction with the option of goods ownership transfer
ndonesia eposit nsurance legal entit that operates guarantee acti ities on orporation em aga customers’ deposits. en amin impanan
nkracht ecisions that ha e permanent legal power
ntegrated icensing n application used for su mitting arious t pes of Appendixes and egistration licensing processes at OJK from all actors of the stem istem financial ser ices industr under the authorit of OJK eri inan dan
312 Indonesia Banking Booklet 2018
Terminolo y E lanation egistrasi erintegrasi n e olution methodology on a financial conglomerate performed by integrated super isors based on analyses ntegrated isk ating of information obtained from indi idual super isors and other information by carefully obser ing the o erall risks group ide . financing agreement on goods by ay ordering the manufacture of certain goods ith certain criteria and Istishna’ conditions agreed bet een the parties ho places the order or buyer mustashni’ and the seller or the party ho manufactures the goods shani’ . t is also called as nderstanding he onglomerate hich means a comprehensi e understanding of the condition of the inancial onglomerate in order to no our inancial pro ide information and materials for analyses by onglomerate ntegrated uper isors in the conduct of risk profile assessment and condition le el of the inancial onglomerate. he comparison bet een igh uality iquid ssets iquidity o erage and net cash outflo during the ne t thirty atio days under stress scenarios. list administreted by containing parties ho recei e the predicate of not passing the fit and proper ist of ersons ho test ho are stakeholders controlling shareholder o ot ass members of board of commissioners members of board of director and e ecuti e officers. he parent inancial er ice nstitution of the inancial onglomerate or the inancial er ice nstitution ain ntity assigned by the controlling stakeholder of the inancial onglomerate. arties that o n manage e ercise o ersight and or ain arties of ha e significant influence o er the inancial er ice nstitution. olicies that allo banks under certain criteria to Malus suspend partial or entire payments of deffered ariable remuneration. he beha ior of a inancial er ice nstitutions in designing preparing and con eying information arket onduct making offers making agreements on products and or ser ices as ell as dispute settlements and complaint handling. cooperation contract for a business bet een the first party malik shahibul mal or a haria bank that pro ides the entire capital and the second party (‘amil mudharib or ustomer that acts as the fund manager Mudharabah by sharing the business profits according to the deals set in the ontract hile the losses ill be fully borne by the haria ank unless the second party commits a illful misconduct negligence or iolation against the
agreement. Appendixes financing agreement for an item by stating the Murabahah purchase price to the buyer and the buyer pays the item at a higher price as the agreed profit. cooperation contract bet een t o parties or more for a particular business here each party pro ides a Musyarakah portion of funds under the condition that the profits ill be shared according to the agreement hile the losses
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Terminolo y E lanation ill be borne in accordance ith the portion of funds of the respecti e party. number that constitutes the sum of the absolute alue for the amount of the net difference of assets and liabilities in the balance sheet for each foreign currency et oreign urrency added by the net difference of claims and obligations osition hich are both commitments as ell as contingencies in the off balance sheet accounts for each foreign currency here all are stated in rupiah. mount of a ailable stable funding compared to amount of required stable funding . his standard et table unding is intended to reduce funding risk for a longer period atio of time by requiring a bank to fund its acti ities ith adequate stable fund sources for the purpose of mitigating risk of funding pressure in the future.
on ffice ased cti ities in the pro ision of banking ser ices and or inancial er ices for other financial ser ices conducted not thorugh office the purpose of net orks but through cooperation ith other parties inancial nclusion and require the support of information technology aku andai facilities.
series of actions by n estigators in sub ects and according to ays stipulated in the ct to seek and n estigation gather proofs and ith those proofs shed light on the crimes that ha e occurred in the financial ser ices sector and use those proofs to find the suspects. Investigating Officers of the Republic of Indonesia’s olice and or i il er ant fficers gi en special authority as n estigators assigned at to conduct n estigators riminal n estigations in the inancial er ices ector as refered to in a of the epublic of ndonesia number of on inancial er ices uthority. secret number gi en to a card holder credit card ersonal card debit card etc. hich code may be gi en by dentification the bank or financing company or self determined by umber the card holder. rofit haring rofit sharing ratio bet een a ustomer and haria ation isbah agi ank asil fund loan agreement to a ustomer under the Qardh condition that the ustomer is obliged to return the funds recei ed at the agreed time. eco ery lan is a plan for resol ing financial eco ery lan problems that may occur in a bank. er ices to send money from one account o ner to the other account o ner or the same account o ner from emittance one city to another city or to the same city in rupiah currency or foreign currencies. ank super ision that uses strategies and methodologies that are based on risks that enables isk ased bank super isors to make early detection of significant uper ision risks and take appropriate and timely super isory measures.
Appendixes arty that o ns and puts assets into the custody of and ettlor to be managed by the rustee.
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Terminolo y E lanation
haria ertificate of hort ter securities based on haria rinciples hich an Indonesia I are de oniated in rupiah and issued b I
Isla ic la principles in ban ing activities based on haria rinciples fat a issued b the institution that has the authorit to set fat a in the sharia field s ste that provides credit infor ation hich is the iste a anan result of the processing of debtor reports of both Infor asi er reditan individuals and business entities develop to support I the i ple entation of supervisor tas s and infor ation services in the field of finance Some FSI’s are institutionally and/or legally separated, ister o pan ho ever are o ned and or controlled b the sa e controlling shareholder ritten agree ents set unilaterall b an inancial ervice Institutions and contain standard clauses tandard gree ents concerning the contents for ats as ell as ethod for preparing and are used for a ing offers of products and services to onsu ers in large ecurities in the for of letters of indebtedness deno inated in rupiah as ell as foreign currencies tate ecurit hich interest and principal pa ents are guaranteed b the nitar tate of the Republic of Indonesia in accordance ith the validit periods tate securities hich are issued based on sharia tate haria ecurities principles and deno inated in rupiah as proofs of parts of participations in SBSN’s assets. ban hich due to the si es of its asset capital and obligations idth of net or s or co ple it of transactions in ban ing services as ell as lin ages ith ste ic an other financial sectors a cause failures on the part of so e or all other ban s or the financial services sector both operationall and financiall if the ban e periences a disruption or failure ban as the part given the authorit b the ettlor rustee to anage properties funds for the interest of the part ho receives the benefits na el the eneficiar re ard that given or as ed for a ob that has been Ujroh done n agree ent for the custod of goods or one bet een the part ho o ns the goods or one and Wadi’ah the entrusted part ith the purpose of safe eeping securit as ell as eeping the goods or one intact sers of ban services ho do not have accounts at the al In usto er concerned ban not including parties ho receive I orders fro or are tas ed b b ban custo ers to conduct transactions for the interest of the custo ers
Appendixes
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