Indonesia Banking Booklet 2020

Indonesia Financial Services Authority i
Indonesia
Banking
Booklet
2020
Compilation Team Members
Publisher:
Indonesia Financial Services Authority (OJK)
Department of Banking Licensing and Information
Director:
Irnal Fiscallutfi
Feriyanti Nalora
Riza Haryadi
Drafting team and contributors:

- Retno Setiasih
- Tri Wahyuni
- Anggella Aosi Nasution
- Zhafarina Isti Ramadhani and Fransiskus Henry C
- Aries Jodie S and Rina Herdiana
- Wahyu Abdi and Wythesa Ernala K. Sitepu
- Surya Prasandi and Tri Widya Kusumawanti
- Fauzi Irawan
- Rizqi Firmansyah
- Andistya Pratama
- Ayu Yeriesca
- Muslim Tendri
- Aditya Mahendra and Margareth Mutiara Tri Jojor
- Marilyn Christine
- Rija Fathul Bari
Cover and Layout Design:

PT Rene Asia Publika
Indonesia Financial Services Authority

Menara Radius Prawiro halodpip@ojk.go.id
Jl. MH Thamrin No. 2 Jakarta kontak OJK 157 ext 7001
ii Indonesia Banking Booklet 2020

FOREWORD
Foreword
T
his 2020 Indonesia Banking Booklet (IBB) constitutes a publication
media presenting brief information concerning Indonesian banking
industry in 2019 up to June 2020. This booklet is expected to enable
the users to obtain information concerning direction of the banking policies
in 2020 as well as regulations in the banking sector issued by the Otoritas
Jasa Keuangan/OJK (Financial Services Authority) amid the Covid-19
pandemic. As is known, the Covid-19 virus pandemic has hit almost all
countries in the world which has impacted the economy of each country. As
an institution that regulates and oversees the financial services industry, the
OJK has a big role in taking measures to handle the economy affected by
Covid-19, one of which is through the policies that have been issued as set
out in this booklet.
Unlike the previous editions, the 2020 edition of the IBB is designed in
different format and output to provide better ease for the users. We also
include the use of QR Code technology in some contents in this IBB so that
the users can easily get additional information about the contents being
read.
We realize that there are yet shortcomings in the presentation of the

2020 IBB in terms of contents and format, however, we still hope that the
information presented can yet provide optimal benefits to the users. The
users’ inputs and views on this IBB will enable further enhancement in the
next edition of the IBB.
Jakarta, October 2020

Indonesia Financial Services Authority iii

TABLE OF
CONTENT
ii COMPILATION TEAM MEMBERS

iii FOREWORD
iv TABLE OF CONTENTS
vii LIST OF FIGURES
ix LIST OF TABLES
ix LIST OF QR CODE
x LIST OF APPENDIX
1 CHAPTER 1
2 A. Indonesia’s Financial Services Authority
3 OJK’s Vision and Mission
4 OJK’s Function and Tasks
5 OJK’s Strategic Values
6 OJK’s Organization
6 - Composition of OJK Board of Commissioners
8 - OJK’s Organization Structure
10 B. Banking
10 Definition
13 Business Activities of the Bank
20 Business Activities Prohibited for Banks
25 CHAPTER 2
27 A. OJK’s Authority to the Banking Industry
31 B. Bank Supervision
36 C. Bank Preliminary Investigation
39 D. Bank Investigation
47 E. Integrated Supervision
47 Implementation of Article 5 of Act Number 21 of 2011 concerning OJK
50 (Financial Services Authority)
Financial Conglomerates
53 F. Roadmap Banking Industry
53 Roadmap for Indonesian Banking Development
57 Roadmap of Indonesian Sharia Banking
66 Roadmap for Sustainable Finance
72 G. ASEAN Banking Integration Framework
74 H. Basel Frame Work
83 I. Transformation of Regional Development Banks
iv Indonesia Banking Booklet 2020

TABLE OF
CONTENT
85 J. Credit Reporting System

87 K. Banking Information System for the Purpose Of Supporting Bank
Supervision Task
96 L. Consumer Education and Protection
115 CHAPTER 3
117 A. OJK’s 2020 Policy Direction
121 B. Development of OJK’s Banking Policy in 2019 up to June 2020
121 • Banking Sector Development 2019
123 • Banking Sector’s Development Up To June 2020
127 C. Financial Inclusion and Public Education
128 D. Illegal Fintech Entities
131 E. Otoritas Jasa Keuangan Regulation concerning the Operation of
Consumer and Public Services in the Financial Services Sector by
Otoritas Jasa Keuangan
133 F. Credit Information Services
137 G. Issuance of Banking Provisions
138 H. Islamic Economic Community
140 I. Provision of Capacity Building for Public Accountants Registered
to conduct Audits in the Banking Sector
143 J. Memorandum of Understanding of OJK – LPS
145 K. International Assesments
147 CHAPTER 4
149 A. Banking Regulations Issued from 2019 up to June 2020
153 B. Summary of OJK Regulations in Banking field issued from 2019 up
to June 2020
153 1. Implementation of the Internal Audit Function at Commercial
Banks
154 2. Prudential Principle in Asset Securitization Activities for
Commercial Banks
155 3. Commercial Bank Reporting Through Otoritas Jasa Keuangan
Reporting System
157 4. Reporting of Rural Banks and Sharia Rural Financing Banks
Through Otoritas Jasa Keuangan Reporting System
Indonesia Financial Services Authority v

TABLE OF
CONTENT
158 5. Assessment System for Soundness Level of Sharia Rural

Financing Banks
159 6. Mergers, Consolidations and Acquisitions of Rural Banks and
Sharia Rural Financing Banks
162 7. Reporting of Foreign Customer Information regarding Taxation
to Partner Countries or Partner Jurisdictions
164 8. Banking Synergy within One Ownership for the Development
of Islamic Banking
166 9. Earning Asset Quality and Establishment of Provision for
Earning Asset Losses for Sharia Rural Financing Banks
166 10. Obligation to Fulfill the Leverage Ratio for Commercial Banks
167 11. Amendment to OJK Regulation Number 19/POJK.03/2017
concerning Determination of the Status and Supervision
Follow-Up for Rural Banks and Sharia Rural Financing Banks
169 12. Transparency of Sharia Rural Financing Bank Financial
Condition
170 13. Submission of Reports through the Integrated Reporting
Portal
171 14. Transparency and Publication of Bank Reports
175 15. Amendment to OJK Regulation Number 32/POJK.03/2018
concerning Legal Lending Limit and Provision of Large Funds
for Commercial Banks
177 16. Implementation of Anti-Fraud Strategy for Commercial Banks
178 17. Assessment of Asset Quality for Commercial Banks
179 18. Mergers, Consolidations, Acquisitions, Integrations and
Conversions of Commercial Banksa
180 19. National Economy Stimulus as Countercyclical Policy on the
Impact of the 2019 Coronavirus Disease Spreading
182 20. Consolidations of Commercial Banks
184 21. Application of Risk Management in the Use of Information
Technology (RMIT) by Commercial Banks
185 22. Written Instructions for Handling of Bank Problems
186 23. Policies for Rural Banks and Sharia Rural Financing Banks as
an Impact of the Spreading of 2019 Coronavirus Disease
189 ATTACHMENTS
vi Indonesia Banking Booklet 2020

TABLE OF
CONTENT
LIST OF
FIGURES
6 Figure 1.1. Composition of OJK Board of Commissioners OJK 2017-
2022
8 Figure 1.2. OJK’s Organization Structure
32 Figure 2.1 Types of Risk Used in the Application of Risk Based
Supervision in Banking and Conglomerates
37 Figure 2.2. Steps of Investigation Methodology
38 Figure 2.3. Examples of deviations from banking regulations that have
indications of banking criminal offenses.
41 Figure 2.4. Benefits of SWI Regional Work Teams
42 Figure 2.5. Level of Understanding of Participants in the Disseminations
held by Task Force for Investment Alert
45 Figure 2.6. Trend of Entity Handled by the TFIA in 2019
51 Figure 2.7. Illustration of Type of Financial Conglomeration
59 Figure 2.8. The Ilustration of Roadmap of Indonesia Sharia Banking’s
Vision
68 Figure 2.9. Roadmap of Sustainable Financing 2015 - 2024
73 Figure 2.10. Ilustration of requirements for Qualified ASEAN Banks
75 Figure 2.11. The evolution of the Basel capital framework in Indonesia
76 Figure 2.12. Implementation of Basel II in Indonesia
78 Figure 2.13. Framework for Basel III Capital in Indonesia
81 Figure 2.14. Global Financial Crisis that occurred in 2007 – 2009
Background
83 Figure 2.15. Holistic Framework for Transformation Program
84 Figure 2.16. Stages of BPD Transformation Implementation
85 Figure 2.17. Framework of Credit Reporting System in Indonesia
92 Figure 2.18. Illustration of the benefits SLIK
93 Figure 2.19. Roadmap Implementation of SLIK
94 Figure 2.20. Mechanism of Request for Debtor Information through SLIK
95 Figure 2.21. Scope of Debtor Information That the Public Can Obtain
98 Figure 2.22. Pillars of SPKK period 2013 – 2027
99 Figure 2.23. Consumer and Public Protection
102 Figure 2.24. Infographics of OJK’s Customer Services
104 Figure 2.25. Infographics of IDR Standard
106 Figure 2.26. Infographic of LAPS
Indonesia Financial Services Authority vii

LIST OF
FIGURES
LIST OF
FIGURES
107 Figure 2.27. Method for Monitoring and Analyzing Consumer Protection
109 Figure 2.28. Illustration of a Case of Fund Accumulation Without Permit
110 Figure 2.29. Understanding the conditions for doing telemarketing
111 Figure 2.30. Tips for protecting personal data
112 Figure 2.31. Recognizing SIM Swap fraud mode
113 Figure 2.32. Tips for wisely choosing Fintech P2P Lending
130 Figure 3.1. Server Location of Financial Technology Peer-To-Peer
Lending
133 Figure 3.2. The Illustration of the number of SLIK’s Reporter based on
category
134 Figure 3.3. The number of IDEB’s request from public during 2019
135 Figure 3.4. Number of iDeb requests by SLIK Reporters
135 Figure 3.5. The number of IDEB’s request from public during January -
June 2020
136 Figure 3.6. The number of IDEB’s request from SLIK’s Reporters during
January - June 2020
151 Figure 4.1. Image SIKePO application Screenshot
viii Indonesia Banking Booklet 2020

LIST OF
TABLES
LIST OF
TABLES
35 Table 2.1. Matrix of Implementation of Risk Based Supervision to
Bank and Conglomerates
45 Table 2.2. Number of Public Complaints via E-Mails January 2019 up
to June 2020
89 Table 2.3. Reporting through APOLO
121 Table 3.1. Perfomance of Conventional Commercial Banks 2019
122 Table 3.2. Perfomance of Rural Banks (RBs) 2019
124 Table 3.3. CCBs’ performance period January - June 2020
125 Table 3.4. RB’s performance period January - June 2020
127 Table 3.5. OJK’s Consumer Education and Protection activities with
Directorate of Sharia Banking Regulating and Licensing
148 Table 4.1. List of OJK Regulations issued during the year 2019 until
June 2020
LIST OF
QR CODE
57 QR CODE Roadmap of Indonesian Sharia Banking
67 QR CODE Roadmap of Sustainable Finance
100 QR CODE Sikapi Uangmu Android
100 QR CODE Sikapi Uangmu IOS
105 QR CODE IDR Standard
114 QR CODE Indonesia Banking Statistics
114 QR CODE Sharia Banking Statistics
151 QR CODE Online Banking Provision Information System (SIKePO)
Indonesia Financial Services Authority ix

LIST OF
ATTACHMENTS
LIST OF
APPENDIX
190 Attachment 1. List of Provisions In Banking Field Still In Force Up to June
2020
190 B.1. Institutional Provisions
195 B.2. Provisions concerning Bank Business and Supports
Activities, and Services
198 B.3. Provisions related to Prudential Principle
207 B.4. Regulations concerning Accounting Reports and
Standards
208 B.5. Regulations concerning Bank Supervision
210 B.6. Regulations concerning Consumer Education and
Protection
210 B.7. Other Regulations
212 Attachment 2. Glossary Of Bank Performance Indicators
x Indonesia Banking Booklet 2020

Chapter
01
Chapter
About the
01 Financial Services
Authority
Indonesia Financial Services Authority 1

Chapter About the
Authority
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
Indonesia Number 21 of 2011 on
Financial Services Authority.
2 Indonesia Banking Booklet 2020

About the Chapter
Financial Services
Authority 01
Vision
To become a supervising agency
of the financial services industry, Mission
which is trustworthy, protects
the interests of consumers and 1. To realize the establishment
public, and able to develop the of all activities in the financial
financial services industry into a services sector in an orderly, fair,
national economic pillar that has transparent, and accountable
global competitive power as well manner.
as able to advance public welfare. 2. To realize a financial system
that grows in a sustainable and
stable manner.
3. To protect the interests of

consumers and public.

Chapter About the
Authority
OJK’s
Functions and Tasks
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:
Financial service Financial service Financial service

activities in the activities in the Capital activities in the
Banking sector; Market sector; and Insurance, Pension
Fund, Financing
Institution, and other
Financial Service
Institution (FSI) sectors.

About the Chapter
Financial Services
Authority 01
OJK’s
Strategic
Values
Integrity Inclusivity
means acting in an objective, fair, means being open to and
and consistent manner in accord- accepting diverse stakeholders
ance with the code of ethics and as well as widening public’s
organizational policies by uphold- opportunities and access to the
ing honesty and commitments. financial industry.
Professionalism Visionary
means working with full means having extensive insight
responsibility based on high and foresight (forward looking) as
competence to achieve the best well as thinking out of the box.
performance.
Synergy
means undertaking productive
and quality collaboration with all
stakeholders, both internal and
external.

Chapter About the
Authority
OJK’s Organization OJK is led by the Board of Commis-

sioners comprising nine members
appointed by a Presidential Decree
and hasa collective and collegial na-
ture, with the following membership
arrangement:
Figure 1.1. Composition of OJK Board of

Commissioners OJK 2017-2022
1. Wimboh Santoso, SE., MSc., Ph.D

Chairman of the Board of Commissioners of the
Financial Services Authority
2. Ir. Nurhaida, MBA

Vice Chairman of the Board of Commissioners
of the Financial Services Authority concurrently
Chairman of Ethics Committee
3. Heru Kristiyana SH., MM

Executive Head of Banking Supervision concur-
rently Member of the Board of Commissioners
of the Financial Services Authority
4. Ir. Hoesen, MM
Executive Head of Capital Market concurrently
Member of the Board of Commissioners of the

About the Chapter
Financial Services
Authority 01
5. Riswinandi
Executive Head of Non-Bank Financial
Institutions Supervision concurrently Member
of the Board of Commissioners of the Financial
Services Authority
6. Drs. Ahmad Hidayat, Akt.CA. MBA

Executive Head of Audit Board concurrently
7. Tirta Segara, SE., MBA

Financial Services Authority in charge of Con-
sumer Education and Protection
8. Dody Budi Waluyo, SE., MBA

Senior Deputy Governor, Ex-officio Member
of OJK Board of Commissioners from Bank
Indoensia
9. Suahasil Nazara, SE.,MSc., Ph.D

Senior Deputy Governor, Ex-officio Member of
OJK Board of Commissioners from Ministry of
Finance

Chapter About the
Authority
OJK’S Organization
Structure
Figure 1.2. OJK’s Organization Structure
BOARD OF COMMISSIONERS
Member 1 Member 2 Member 3 Member 4 Member 5 Member 6
Chairman Vice Chairman/ Executive Executive Head Executive Head Chairman of

Chairman Head of Bank of Capital Market of Non-Bank Audit Board
of Ethics Supervisors Supervisors Financial Industry
Committe Supervisors
EXECUTIVE OF OPERASIONAL ACTIVITIES

ADK ADK ADK ADK ADK
Sector 1 Sector 2 Sector 6 Sector 7 Sector 3
SCOM
DKB DKB
DKSK DKPS DKMS DKIR DKIK DKHK DKID DKAI DKEP
1 2
DSVL DOSM DSHM DINT DPSI DHUK OJKI DPAI DPLK DPNP DPKP
GKKT DPJK DMSP DRJK DKEU GPHK GIKD DRPK DLIK DPIP DPMK
GDST DLOG GPUT GPSI GPAF DPPS DKIP
Shared Function

About the Chapter
Financial Services
Authority 01
• ADK (Board of Commissioners)

• SCOM (Strategic Committee)
• DKSK (Deputy Commissioner for Financial System Stability)
• DSVL (Surveillance Department)
• GKKT(Integrated Financial Services Sector Policy Group)
• GDST (Integrated Data Management and Statistics Group)
• DKPS (Deputi Komisioner Penyidikan, Organisasi, dan SDM)
• DOSM (Organizational and Human Resources Department)
• DPJK (Financial Services Sector Investigation Department)
• DKMS (Deputy Commissioner for Public Relations and Logistic)
• DSHM (Board of Commissioners Secretariat and Public Relations
Department)
• DMSP (Strategic and Change Management Department)
• DLOG (Logistics Department)
• DKIR (Deputy Commissioner for International and Research)
• DINT (International Department)
• DRJK (Financial Services Sector Research Department)
• GPUT (Anti Money Laundering - Combating the Financing of Terrorism
Member 7 Member 8 Member 9 Group)
• DKIK (Deputy Commissioner for Information System and Financial)
OJK’s ex-officio’s OJK’s ex-officio’s • DKHK (Deputy Commissioner for Legal and Investigation)
Member in charge • DPSI (Information System Management Department)
of Consumer Board of Board of
• DKEU (Financial Department)
Education and Commissioners Commissioner • DHUK (Legal Department)
Protection from Bank from Ministry of • GPHK (Financial Services Sector Legal Research and Development Group)
Indonesia Finance • DKID (Deputy Commissioner for OJK Institute and Digital Financial)
• OJKI (OJK Institute)
• GIKD (Digital Financial Innovation Group)
• DKAI (Deputy Commissioner for Internal Audit, Risk Management, and
Committe of Quality Assurance)
Audit Board • DPAI (Internal Audit Department)
• DRPK (Risk Management and Quality Assurance Department)
• GPAF (Anti Fraud Handling Group)
• DKEP (Deputy Commissioner for Education and Consumer Protection)
• DPLK (Consumer Protection Department)
EXECUTIVE OF OPERASIONAL ACTIVITIES •
•
DLIK (Financial Literacy and Inclusion Department)
DKBI (Deputy Commissioner for Banking Supervision I)
• DKB2 (Deputy Commissioner for Banking Supervision II)
• DKB3 (Deputy Commissioner for Banking Supervision III)
ADK ADK • DKB4 (Deputy Commissioner for Banking Supervision IV)
Sector 4 Sector 5 • DPNP (Banking Research and Regulation Department)
• DPIP (Banking Licensing and Information Department)
• DPPS (Sharia Banking Regulation and Licensing Directorate)
• DPKP (Banking Supervision Quality Control Department)
• DPMK (Supervision and Crisis Management Development Department)
DKB DKB DKM DKM
• DKIP (Banking Special Inspection Department)
DK 1 DK 2 • DPB1 (Bank Supervision Department 1)
3 4 1 2
• DPB2 (Bank Supervision Department 2)
• DPB3 (Bank Supervision Department 3)
DPBS KR DPM1 DPM3
• DPBS (Sharia Bank Supervision Department)
DPB1 DPI1 DPI3
• KOJK (OJK Office)
• KR (OJK Regional Office)
• DKMI (Deputy Commissioner for Capital Market Supervision I)
DPB2 KOJK DPM2 DPM4 DPI2 DPI4 • DKM2 (Deputy Commissioner for Capital Market Supervision II)
• DPM1 (Capital Market Supervision Department 1A)
• DPM2 (Capital Market Supervision Department 1B)
DPB3 • DPM3 (Capital Market Supervision Department 2A)
• DPM4 (Capital Market Supervision Department 2B)
• DKII (Deputy Commissioner for Non-Bank Financial Industry Supervision I)
• DKI2 (Deputy Commissioner for Non-Bank Financial Industry Supervision II)
• DPI1 (Non-Bank Financial Industry Supervision Department 1A)
Supervision • DPI2 (Non-Bank Financial Industry Supervision Department 1B)
• DPI3 (Non-Bank Financial Industry Supervision Department 2A)
• DPI4 (Non-Bank Financial Industry Supervision Department 2B)

Chapter
01 Banking
B. Banking
Based on Act of The Republic Indonesia number 10 of
1998 concerning Amendments to Act number 7 of 1992
concerning Banking, banking is everything related to banks,
including institutions, business activities, as well as ways
and processes in carrying out their business activites.
Definition
1. Bank are business entities that collect funds from

the public in the form of deposits and channels
the funds to the public in the form of credits and/
or other forms for the purpose of enhancing the
living standard of the community.
2. Conventional Bank (CB) are banks that

conducts business activites based on
conventional principles and based on the type,
there are Conventional Commercial Banks and
Conventional Rural Banks.
3. Conventional Commercial Banks (CCB) are

Conventional Banks that provide services related
to payments flows.
4. Rural Banks (RB) are banks that not provide

services related to payment flows.

Chapter
Banking
01
5. Islamic Bank (IB) are banks that conduct

business activities based on Sharia Principles.
Based on the types, there are Islamic Commercial
Banks and Islamic Rural Banks
6. Islamic Commercial Banks (ICB) is Islamic

Banks that provides services related to payment
flows.
7. Islamic Rural Banks (IRB) is Islamic Banks that

not provides services related to payment flows.
8. Islamic Business Unit (IBU) is a working unit

from head office of Conventional Commercial
Banks that operates as a parent office from units
that conducts business activities based on Shari
Principles, or working unit in branch offices from
a overseas bank that conducts conventionally
business activites that operates as a parent office
from sub-branch office and/or islamic business
unit.
9. Sharia Principles are Islamic law principles in

banking activities based on fatwa (legal decisions)
issued by an institution that has the authority to
determine fatwa in the field of sharia.

Chapter
01 Banking
BANKING
CONVENTIONAL BANK ISLAMIC BANK
CONVENTIONAL RURAL BANKS ISLAMIC ISLAMIC RURAL

COMMERCIAL (RB) COMMERCIAL BANKS (IRB)
BANKS (CCB) BANKS (ICB)
ISLAMIC BUSINESS
UNIT (IBU)

Chapter
Banking
01
Business Activities of the Bank

3) State treasury bills and gov-
1. Business Activities
ernment securities;
that can be undertaken
by any CB are: 4) Certificates of Bank Indo-
nesia (SBI)
a. Collect funds from public in 5) Bonds;

the form of deposits, compris- 6) Commercial papers with
ing demand deposits (giro), maturity periods of up to
term deposits, certificates one year; and
of deposit, savings deposits, 7) Other commercial paper in-
and/or other equivalent forms; struments with maturity pe-
b. Extending credits; riods of up to one year.
c. Issuing promissory notes; e. Transferring money both for
d. Buying, selling, or guarantee- own interest as well as for the
ing at own risks as well as for interests of customers;
the interests and at the in- f. Placing funds at, borrowing
structions of its customers, in funds from, or lending funds to
the forms of : other banks, using notes, tele-
1) Drafts/bills of exchange, communication facilities, as
including drafts accept- well as sight drafts, checks, or
ed by banks, which validity other facilities;
periods are no longer than g. Receiving payments from
the norm in the trading of claims on securities and mak-
referred drafts; ing settlements with or be-
2) Promissory notes and tween third parties;
other commercial papers h. Providing deposit boxes for
which validity periods are safe keeping of goods and se-
no longer than the norm curities;
in the trading of referred i. Undertaking custodial activi-
notes; ties for the interests of other
parties based on contracts;

Chapter
01 Banking
j. Undertaking fund placements m. Conducting other activities

from customers to other cus- commonly undertaken by
tomers in the form of securities banks as long as they are not in
not listed at the stock exchang- conflict with the Act concerning
es; Banking and other prevailing
k. Undertaking factoring activi- legislations;
ties, credit card business, and n. Conducting activities in foreign
trust activities; currencies by complying with
l. Providing financing and/or prevailing regulations;
undertaking other activities o. Undertaking capital participa-
based on Sharia Principles, tion activities at other banks
in accordance with prevailing or companies in the financial
regulations; field, such as leasing business,

Chapter
Banking
01
venture capital, security com-

2. Business Activities that
pany, insurance, as well as set-
tlement and custodial clearing
can be undertaken by
institution, by complying with any SCB and any Sharia
prevailing regulations; Business Unit (SBU) are:
p. Conducting temporary capital
participation activities to re- a. Collecting funds in the form
solve the impact of credit fail- of Deposits, comprising De-
ure or financing failure based mand Deposits (Giro), Savings
on Sharia Principles, with the Deposits, or other equivalent
requirement to withdraw its forms based on wadi’ah agree-
participation, by complying ment or other agreement that
with prevailing regulations; are not in conflict with Sharia
Principles;
q. Conducting bank business ac-
tivities in the form of custodian- b. Collecting funds in the form
ship with management/trust. of investments, comprising
Deposits, Savings Deposits or
other equivalent forms based
on mudharabah agreement or
other equivalent agreement
that are not in conflict with
Sharia Principles;
c. Channeling yield-sharing fi-
nancing based on mudhara-
bah agreement, musyarakah
agreement, or other agree-
ment that are not in conflict
with Sharia Principles;
d. Channeling financing based
on murabahah agreement,
salam agreement, istishna
agreement, or other agree-
ment that are not in conflict

Chapter
01 Banking
with Sharia Principles; not in conflict with Sharia Prin-

e. Channeling financing based ciples;
on qardh agreement or other h. Undertaking debit card and/
agreement that are not in con- or financing card businesses
flict with Sharia Principles; based on Sharia Principles;
f. Channeling financing for leas- i. Buying, selling or guarantee-
es of movable or immovable ing at own risks third-party se-
properties to customers based curities issued based on real
on ijarah agreement and/or transactions and Sharia Prin-
lease purchase in the form ciples, such as among others
of Ijarah Muntahiya Bittamlik ijarah, musyarakah, mudhar-
(IMBT) or other agreement that abah, murabahah, kafalah, or
are not in conflict with Sharia hawalah agreement;
Principles; j. Buying securities based on
g. Undertaking debt taken-overs Sharia Principles issued by the
based on hawalah agreement government and/or BI;
or other agreement that are

Chapter
Banking
01
k. Receiving payments from 3. In addition to activities

claims on securities and mak- referred to in number two
ing settlements with or be- above, business activities
tween third parties based on listed below can only be
Sharia Principles;
conducted by SCB and
l. Conducting deposit for other Sharia Business Unit
parties based on agreement (SBU), namely:
in Sharia Principles (espe-
cially for Islamic Commercial
Banks); a. conducting foreign exchange
activities based on Sharia
m. Providing deposit boxes for
Principles;
safe keeping of goods and se-
curities based on Sharia Prin- b. conducting capital participa-
ciples; tion activities at other ICB or
financial institutions that con-
n. Transferring money, both for
duct business activities based
own interest as well as for the
on Sharia Principles;
interests of customers based
on Sharia Principles; c. conducting temporary equi-
ty participation to overcome
o. Undertaking the function of
due to the failure of financing
trustee based on wakalah
based on Sharia Principles, by
agreement;
term of withdrawing the partic-
p. Providing letter of credit or ipation;
bank guarantee facilities
d. acting as the founder and
based on Sharia Principles;
management of pension funds
q. Providing ICB other products based on Sharia Principles;
or undertaking other activities and
that are based on Sharia Prin-
e. do activities in the market cap-
ciples.
ital as long as it’s not contrary
to the Sharia Principle and reg-
ulatory provisions legislation in
the field capital market.

Chapter
01 Banking
f. organizing activities or bank dance with regulations set by

products based on Sharia Bank Indonesia; and
Principles using electronic fa- d. Undertaking fund placements
cilities in the forms of Certificates of
g. issuing, offering, and trading in BI, term deposits, certificateS
long-term securities based on of deposits and/or savings de-
Sharia Principles through the posits at other banks.
capital market, both directly as
well as indirectly;
h. issuing, offering, and trading in 5. Business Activities
long-term securities based on that can be undertaken
Sharia Principles through the by a SRB are:
capital market, both directly as
well as indirectly (ICB only) and
i. provide products or conduct a. Collecting funds from the
other ICB business activities public in the form of :
based on Sharia principles. 1) Deposit in the form
of savings deposit or
equivalent forms based
on wadi’ah agreement or
4. Business Activities other agreement that are
that can be undertaken not in conflict with Sharia
by a RB are: Principles; and
2) Investment in the form
of a term deposit or
a. Accumulation of funds from
savings deposit or other
the public in the form of de-
equivalent forms based on
posits, comprising term de-
mudharabah agreement or
posits, savings deposits, and/
other agreement that are
or other equivalent forms;
not in conflict with Sharia
b. Extending credits;
Principles.
c. Providing financing and/or
fund placements based on b. Channeling funds to the public
Sharia Principles, in accor- in the forms of:

Chapter
Banking
01
1) Yield-sharing financing sharia banking in accordance

based on mudharabah or with Sharia Principles based
musyarakah agreement; on OJK’s approvals
2) Financing based on
murabahah, salam, or
istishna agreement; 6. Business Support
Activities
3) Financing based on qardh
agreement; Business support activities are
4) Financing for leases of other activities conducted by
movable or immovable banks outside bank business
properties to customers activities. These business
based on ijarah agreement support activities are related
or lease purchase in the to human resources, risk
form of IMBT; and management, compliance,
5) Debt taken-over based on internal audit, accounting
hawalah agreement. and finance, Information
Technology (IT), logistics and
c. Fund placements at other
security.
sharia banks in the form
of trusts based on wadi’ah
agreement or investments
based on mudharabah
agreement and/or other
agreement that are not in
conflict with Sharia Principles;
d. Transferring money, both for
own interest as well as for
the interests of customers,
through the accounts of the
IRB existing at ICB, CCB, and
SBU; and
e. Providing other products or
undertaking other activities of

Chapter
01 Banking
Business Activities Prohibited For Banks

CB are prohibited from conducting
the following business activities:
a. Undertaking capital participation, except when

related to the activities referred to in Business
Activities of the Bank number 1 letter o and p in the
explanation on CB Business Activities;
b. Conducting insurance business; and
c. Undertaking other businesses outside business

activities referred to in Business Activities of the
Bank number 1.
ICB and IBU are prohibited from conducting

the following business activities:
a. Conducting business activities that are in conflict

with Sharia Principles;

Chapter
Banking
01
b. Conducting activities of selling and buying shares

directly in the capital market;
c. Undertaking capital participations, except:

1) Conducting capital participation activities at
a ICB or Financial Institution that conducts
business activities based on Sharia Principles
and conducting temporary capital participation
activities to resolve the impact of financing
failure based on Sharia Principles, with the
requirement to withdraw its participation
(specifically for ICB); and
2) Conducting temporary capital participation
activities to resolve the impact of financing
failure based on Sharia Principles, with the
requirement to withdraw its participation
(specifically for IBU);
d. Conducting insurance business activities,

except as a marketing agent of sharia insurance
products.

Chapter
01 Banking
RB are prohibited from conducting the following

business activities:
a. Receiving deposits in the form of demand

deposits (giro) and participating in payment flow;
b. Conducting business activities in foreign

currencies except as a Foreign Currency Trader
with OJK’s approval;
c. Undertaking capital participations;
d. Undertaking insurance business; and
e. Undertaking other businesses outside those

referred to in Business Activities of the Bank
number 4.

Chapter
Banking
01
SRB are prohibited from conducting the

following business activities:
a. Conducting business activities that are in

conflict with Sharia Principles;
b. Receiving deposits in the form of demand

deposits (giro) and participating in payment flow;
c. Conducting business activities in foreign

currencies except in foreign currency
exchanges with OJK’s approval;
d. Conducting insurance business activities,

except as a marketing agent of sharia
insurance products;
e. Undertaking capital participations, except in

instittions established for overcoming liquidity
problems of IRB; and
f. Undertaking other businesses outside business

activities of SRB referred to in Business
Activities of the Bank number 5.

Chapter
02
Chapter
OJK’s Authority
02 to the Banking
Industry

Chapter
02

OJK’s Authority Chapter
to the Banking
Industry 02
A. OJK’s Authority
to the 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:
The right to license is an authority

(right to license) 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
RIGHT TO
transferring bank offices, granting
LICENSE IS AN
of approvals on bank ownership and
AUTHORITY
management, granting of licenses
to banks for conducting certain
business activities.
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
RIGHT TO by the public
REGULATE

Chapter OJK’s Authority
02 to the Banking
Industry
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
RIGHT TO situation and monitoring bank
SUPERVISE) 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.

OJK’s Authority Chapter
to the Banking
Industry 02
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
RIGHT TO IMPOSE
nurturing so that banks operate in
SANCTION
accordance with sound banking
principles.
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
RIGHT TO
of Indonesia’s Police and Civil
INVESTIGATE
Servant officers in OJK. Results of
investigations shall be submitted to
public prosecutors for procecutions.

Chapter OJK’s Authority
02 to the Banking
Industry
Authority to conduct consumer

protection, which is the authority to
conduct consumer protection in the
form of prevention of consumer and
society losses, consumer complaint
services, and legal defense.
RIGHT CONDUCT
CONSUMER
PROTECTION

Bank Chapter
Supervision
02
B. Bank Supervision
In carrying out bank supervision task, at present OJK runs its supervision
system by using two approaches, namely:
Compliance Based Supervision (CBS),
which is based on the monitoring accordance with prudential prin-

of bank compliance to regula- ciple. Supervision on the fulfil-
tions that are related to bank opment of the compliance aspect is
eration and management in the an integral part of the implemen-
past with the objective of ensur- tation of risk based bank supervi-
ing that properly and correctly in sion; and
Risk Based Supervision (RBS),
is bank supervision that uses risk- to detect significant risks at early

based strategies and methodolo- stage and take approapriate and
gies that enable bank supervisors timely supervisory measures.

Chapter Bank
02 Supervision
Bank risk-based supervision/examination is performed on the following

types of risks:
Figure 2.1 Types of Risk Used in the Application of Risk Based Supervision in Banking
and Conglomerates
Credit Risk Market Risk

Risk that arises from failure on Risk that arises from a
the part of a counterparty in movement in market variables
meeting its obligation. (adverse movement) in a
portfolio owned by bank that can
cause a loss to the bank. Market
variables are among others
interest rate and exchange rate.
Credit Risk Operational Risk

Because the bank is not able Risk that is due to inadequate
to fulfill the obligations that and/or non-functioning internal
have due date. process, human error, system
failure, or existence of an external
problem that inflences bank
operation.bank.

Bank Chapter
Supervision
02
Legal Risk Reputation Risk

Risk that is due to the existence Risk that is due to among
of weaknesses in the juridical others the existence of a
aspect. Juridical aspect negative publication related
weaknesses are caused among to bank business activities
others by the existence of or negative perception on
lawsuits, absence of supporting the bank.
legislations or weaknesses
in the agreements such as
unfulfilment of agreement validity
requirement or flawed collateral
agreement.
Strategic Risk Compliance Risk

Risk that is due to inaccuracy Risk that is due to bank not
of a decision made and/or complying or not executing the
implementation of a strategic provisions of legislations and
decision as well as a failure in other prevailing regulations
anticipating changes in business
environment.

Chapter Bank
02 Supervision
Figure 2.1. continued
Rate of Return Risk Investment Risk

Risk arising from changes in Risk arising from the situation
rates of return paid by bank to in which bank participates in
the customers that are caused bearing customer business
by changes in rates of return losses financed in a yield-sharing
received by bank from funds based financing, those using the
channeling, which can influence net revenue sharing method as
the behavior of third-party fund well as those using the profit and
customers of the bank. loss sharing method.
Intra-group transaction risk Insurance Risk

Risk that is due to dependency Due to the failure of insurance
of one entity, directly or companies to fulfill obligations
indirectly, on another to policyholders as a result
entity in the same financial of insufficient risk selection
conglomerate for the purpose processes (underwriting),
of fulfilling obligations under premium setting(pricing),
written as well as unwritten reinsurance use, and/or claim
agreements, whether followed handling.
and/or not followed by fund
transfers.

Bank Chapter
Supervision
02
Table 2.1. Matrix of Implementation of Risk Based Supervision to Bank and

Conglomerates
No. Type of Risk CCB SCB/SBU Conglomerates

1 Credit Risk   
2 Market Risk   
3 Liquidity Risk   
4 Operational Risk   
5 Legal Risk   
6 Reputation Risk   
7 Strategic Risk   
8 Compliance Risk   
9 Rate Return Risk -  -
10 Equity Investment Risk -  -
11 Intra – group Transaction Risk - - 
12 Insurance Risk - - 
Information :
CCB : Conventional Commercial Banks ; SCB : Sharia Commercial Banks ; SBU : Sharia Business Unit

Chapter Bank Preliminary
02 Investigation
C. Bank Preliminary Investigation

Banks, as intermediation institu- decline in the level of public confi-
tions, are often used as the vehi- dence in the banking system.
cles and/or targets for the unlaw-
ful enrichment of selves, family Act No. 21 of 2011 concerning
members, or certain groups which Otoritas Jasa Keuangan has giv-
can ultimately lead to the banks en a mandate to OJK on the reg-
experiencing structural problems. ulation and supervision of banks.
Such actions can be done either In performing bank supervision
by Members of the Board of Com- task, OJK may find deviations from
missioners and Board of Directors, banking regulations, both those
employees, affiliated parties, own- of administrative nature as well
ers / shareholders of the bank, or as those that have indications of
other parties, in which, if no pre- banking criminal offenses. The
ventive measures (to prevent the handling of deviations from bank-
recurrence of such actions) and ing regulations that have indica-
repressive measures (on parties tions of banking criminal offens-
proven to have committed such es need to be made cautiously in
actions) are taken, may cause a order to avoid impacts that might

Bank Preliminary Chapter
Investigation
02
influence bank reputation and for on the bank’s affiliated parties and /
the purpose of creating a banking or other parties that use the bank as
system that is sound, which in turn a vehicle and/or target. In addition,
supports financial system stability. OJK has the authority to impose ad-
Information on deviations from ministrative sanctions on banks in
banking regulations that have in- accordance with prevailing legisla-
dications of banking criminal of- tions.
fenses may come from results of
bank supervision and/or other par- The investigation methodology used
ties. In the event the handling of for finding out deviations that have
these deviations needs to be fol- occurred and the related parties as
lowed up with investigations, the well regulations that have been vio-
investigations will be conducted lated involves among others:
Figure 2.2. Steps of Investigation Methodology
Undertaking of a research of preliminary supporting

documents and information received to identify
quality and quantity of the suspected banking criminal
offenses that have occurred;
Undertaking of meetings/
clarification sessions/ interviews
with the Board of Directors, bank
officers/staff or other parties
Undertaking on
the spot check of
the object of the
investigation.
Collecting additional
supporting documents related
to the indications of suspected
banking criminal offenses.

Chapter Bank Preliminary
02 Investigation
In accordance with the formulation of banking criminal offences

stipulated in Articles 46 up to 50A of Act No. 7 of 1992 concerning Banking
as amended by Act No. 10 of 1998 or Article 59 up to 66 of Act No. 21 of
2008 concerning Sharia Banking, deviations from banking regulations
that have indications of banking criminal offenses are differentiated in
their relation to:
Figure 2.3. Examples of deviations from banking regulations that have indications of
banking criminal offenses.
• False recording, deliberate

Bank elimination of or omission to make
Bank Business records in the accounting books, as
Secrecy Activities well as obscuring, changing, hiding,
deleting, or elimination records from
accounting books
Supervision License • Requesting or accepting, approving
or permitting to receive a reward for
personal gain in carrying out bank
operational activities;
• Neglecting to take measures
necessary for ensuring bank’s
• Enforcing bank or affiliated
compliance to the provisions of
parties to provide explanations
prevailing legislations
concerning deposit customers
• Giving instruction for the execution or
and their deposits without a written
non-execution of actions that cause
instruction or approval from OJK
bank not performing steps necessary
• Providing explanations that should
for ensuring bank’s compliance to the
be kept confidential
provisions of prevailing legislations.
including among others bank including among others accumulation

obligation to submit to OJK of funds from the public in the form of
information and explanations on deposits without the approval of OJK.
their businesses and obligations.
When the investigation results find the existence of suspected banking

criminal offences that have been made by affiliated parties and/or
other parties, the cases are further handed over to OJK’s work unit that
performs the investigation task.

Bank Chapter
Investigation
02
D. Bank Investigation
As mandated in Article 9 of
Act No. 21 of 2011 concerning Task Force for Investment
Otoritas Jasa Keuangan, in Alert in 2018
order to perform the supervision
• Indonesia Financial Services
task, OJK has the authority to
undertake investigations on FSIs, Authority
actors, and/or financial service • Ministry of Trade
support activities as referred to in • Ministry of Communication and
legislations prevailing in the FSS. Informatics
• Ministry of Cooperatives Small
OJK’s Investigators are
Investigation Officers of the and Medium Enterprises
Republic of Indonesia’s Police • Indonesian Investment
and/or Civil Servant Officers who Coordinating Board
are given special authority as
• Ministry of Religious Affairs
Investigators, who are employed
at OJK in order to perform • Ministry of Education and
investigations of criminal offences Culture
within the FSS in accordance with • Ministry of Home Affairs
Act No. 21 of 2011 concerning OJK. • Ministry of Research,
Technology, and Higher
OJK’s involvement in the Education
Task Force for Investment
• Indonesian Financial
Alert
Transaction Reports and
In order to create effective
Analysis Centre
coordination between supervisory
institutions in the field of • Attorney General of Indonesia
public fund accumulation and • Bank Indonesia
investment management as well
• Indonesian National Police
as with other law enforcement
officers, regulators, supervisory

Chapter Bank
02 Investigation
institutions, and Investment Management. Based

law enforcers have on the Decree of the Chairman of
established Task the Board of Commissioners, OJK
Force for Investment is mandated to carry out the task as
Alert/Satgas Waspada Investasi Chairman of SWI.
(SWI) through Chairman of Capital
Market and Financial Institution
Supervisory Agency Decree Establishment of SWI Regional
Number Kep-208/BL/2007 dated Work Teams
20 June 2007 for 2007 work The rise of activities in public fund
period that is renewed annually. accumulation and investment
management without permits or
After the handover of the tasks misuses of licenses that have
and functions of the Capital occurred in different regions
Market and Financial Institution in Indonesia necessitates the
Supervisory Agency to OJK, establishment of SWI Regional Work
Chairman of Capital Market and Teams in order to ensure optimum,
Financial Institution Supervisory efficient, and quick responses by SWI
Agency Decree Number Kep-208/ Regional Work Teams on complaints
BL/2007 dated 20 June 2007 was and/or reporting from the public.
superseded by OJK’s Board of
Commissioners Decree Number SWI Regional Work Teams are tasked
01/KDK.04/2013 dated 26 June to inventorize and analyze cases of
2013. suspected illegal investments as
well as undertake coordination with
In 2020, the SWI membership related agencies in accordance with
was re-established through the fields, including the possibility of
the Decree of the OJK Board joint investigations and reporting to
of Commissioners Number 2 local police offices.
/ KDK.02 / 2020 dated March
3, 2020 concerning the Task The establishment of SWI Regional
Force for Handling of Suspected Work Teams is expected to give
Unlawful Actions in the Field of benefits not only to certain groups
Public Fund Accumulation and but also to FSI and the Public.

Bank Chapter
Investigation
02
Figure 2.4. Benefits of SWI Regional Work Teams
Benefits for Benefits for the

FSI public
• Revive public interest and • The public can more quickly

trust in financial service obtain information related
products being offered to activities of unlawful
accumulation of public funds
• Increase income, both
and investment management
from the side of third-party
funds as well as the side of • Reduce the potential for
lending, and thus support losses due to less effective
economic growth. handling
• Provide ease to the public

in lodging reports and/or
questions related to activities
of fund accumulation and
Accessing and submitting investment management
information related to illegal without permits and have loss
investments can be made through: potential
• Avoidance from investment

Website : waspadainvestasi.ojk.go.id
activities on unclear financial
Email : waspadainvestasi@ojk.go.id
instruments
Telephone : 157

Chapter Bank
02 Investigation
Activities that have been carried out by the Task Force for Investment
Alert (TFIA) from January up to June 2020 are as follows:
1. Prevention 1) Education and Dissemination
The TFIA has conducted

a. Education, dissemination, and disemination activities in 6 cit-
briefing for the Regional Work- ies, namely Jakarta, Pekanbaru,
ing Teams of the Task Force for Surabaya, Semarang, Medan,
Investment Alert (TFIA) Educa- Bali.
tion, dissemination and briefing
activities that have been car- The level of understanding of
ried out for the TFIA’s Regional the dissemination participants
Working Teams include the fol- reached 5.84 on a scale of 1
lowing: (one) to 6 (six).
Figure 2.5. Level of Understanding of Participants in the Disseminations held by Task

Force for Investment Alert
Level of Understanding
(Scale 0 - 6)
5,89 5,94 5,71 5,95 5,61 5,96

60
50
40
30
20
10
Jakarta Pekanbaru Surabaya Semarang Medan Bali

Bank Chapter
Investigation
02
2) Briefing for TFIA’s Regional concerning illegal investments.

Working Teams Realization of this activity has
In order to provide the same exceeded the planned target.
direction and establish the 4) Resource Persons
same understanding regarding
The TFIA has acted as a re-
task execution for the TFIA’s
source person in the dissemi
Regional Working Teams, the
nation activities concerning
Task Force for Investment Alert
illegal investment alert at se
(TFIA) has held briefing activi-
veral regions organized by re
ties for members of the TFIA’s
levant agencies, including the
Regional Working Teams in 9
Police, media, and ministries.
(nine) regions based on invita-
tions from the regions’ Region- 5) Investment Alert Booth
al Offices/OJK Offices. The TFIA also provides services
concerning complaint handling
3) Public Lectures
consultations, and dissemina-
The TFIA has held public lec-
tions on various issues related
tures for students at various
to illegal investments, fintech
universities in the regions, ei-
lending and private pawning to
ther directly or via video con-
the public.
ferences during the COVID-19
pandemic period at several 6) Education through Videotron
cities including Jakarta, DI Yog or Outdoor Media
yakarta (Yogyakarta Special Re- Collaboration in displaying
gion), Pontianak, Medan, Tasik- videotrons belonging to the
malaya, Malang, and Ken dari. DKI Jakarta Provincial Govern-
This activity constitutes part ment’s Department of Commu-
of the education to the public nication and Informatics.

Chapter Bank
02 Investigation
2. Handling
3) The allegations concerning

a. Coordination carried out by regulatory violations need to
TFIA up to June 2020 be jointly handled, because
they are related to cross-
Prior to discussion meetings, authority violations.
the TFIA Secretariate conducts
studies and analyses on the b. Number of the handling of
questions and/or complaints entities that have carried out
lodged by the public to the TFIA, investment activities against
which results can be as follows: the law
1) There have been no During 2019 up to June 2020,

violations of the provisions; the TFIA has terminated 503
2) The allegations concerning illegal investment entities, 93
regulatory violations fall illegal pawning entities, and
under the authority of any 2,082 illegal peer-to-peer
member of the TFIA; or lending fintech entities.

Bank Chapter
Investigation
02
Figure 2.6. Trend of Entity Handled by the TFIA in 2019
1.600 1.494
1.400
1.200
1.000
800
600 336
400 68 21 13 62
12
200
0
P2PL Illegal Unlicensed Crypto- Forex/ Cash Others
Fintech Pawning MLM currency Future Investment
Invest- Trading
ment
Jumlah Entitas
Notes on Others comprise:

- Unlicensed offers and investments such as Franchise/E-Commerce/E-Mall/Technology
Networking, Crowdfunding with life insurance, Umrah travel packages and Umrah organizers,
Sharia Banks/Sharia Savings and Loans Cooperative, debt bailout funds, debt repayment,
dropship supplier, online shop course, payment agent, online business education, credit
card closing service, money game scheme offers, Issuance of ATM cards, Anti-Usury
Speakers and Go Private Consultants, Jabon trees, agarwood (Gaharu) trees, gold and
diamonds, cooperatives, shares, properties, plantations, EzyCloud application, weaver
ant livestock partnerships, money on behalf of the Valbury Group, advertising applications,
Equity Crowdfunding, Online arisan (informal rotating savings and credit association) that is
suspected of being fraudulent, Mentoring on Anti-Usury Business, Coal trading and mining,
investment managers.
Table 2.2. Number of Public Complaints via E-Mails January 2019 up to June 2020
Year Illegal Investments Illegal P2P Illegal Pawing

Number Reports Entities Reports Entities Report Entities
2019 73 20 8.271 412 4 2
2020 5 4 1.740 35 1 1
(up to 30
Juni 2020)
TOTAL 78 24 10.011 447 5 3

Chapter Bank
02 Investigation
In regard the Legal Process for Illegal Investment Activities, the OJK has
taken the following steps:
1 Preparation of Witness and Expert assistances
2 Establishment of a Special Task Force
3 Carrying out of investigations
4 Carrying out of assets trackings
5 Establishing a crisis center command post for handling

complaints of victims of illegal investments
6 Preparation of Witness assistance
7 Joint Press Releases
8 Preparation of data required by the Police
The follow-up plans for the above steps are:
1 Monitoring of the trial processes
2 Preparation of witnesses and experts to be present in the trial

processes
3 Continuing efforts to track assets
4 Collection of information, data and documents related to the

investigation processes
5 Monitoring of the trial processes
6 Collection of information, data and documents related to the

investigation processes

Integrated Chapter
Supervision
02
E. Integrated Supervision
Implementation of
1.
Article 5 of Act Number
21 of 2011 concerning
OJK (Financial Services
Authority)
OJK has the function of

implementing an integrated
regulatory and supervisory system
for all activities in the financial
services sector. In implementing
the integrated supervision task,
the OJK carries out a number
actions, including the holding of
periodic Integrated Supervision
Committee Meetings led by 3
(three) Members of the OJK’s
Board of Commissioners who
oversee supervisions of the
Financial Service Institutions in the for Financial Conglomerates as
Banking, Capital Market, and Non- well as other cross cutting issues.
Bank Financial Institution sectors. This is due to the significant
The Integrated Supervision role and influence of Financial
Committee Meetings discuss Conglomerates on the national
strategic issues related to economy. In addition, coordination
integrated supervision, especially between cross-sector supervisors

Chapter Integrated
02 Supervision
is getting more solid through on other financial sectors. All

intense exchanges of information, this time, each type of financial
which enables supervisory actions service sectors has its own
to be carried out immediately. regulations. Some examples
of regulations that have been
The implementations of which are integrated are OJK Regulation
undertaken through: number 27/POJK.03/2016
concerning Fit and Proper
Test For Main Parties In
Financial Service Institutions
and OJK Regulation number
13/POJK.03/2017 concerning
Use of the Services of Public
Accountants and Public
Accounting Firms in Financial
Service Activities
a. Integration of the regulation

of all FSIs from the Banking,
Capital Market, and NBFI
sectors.
OJK has made, is making, and

will continue to make efforts
to integrate financial services
sector’s regulations that are
cross-cutting. The integrated
regulation, is the regulation that
applies to at least two financial b. Integration of the licensing
sectors and sectoral regulation entire financial services sector
that have significant impacts through one door.

Integrated Chapter
Supervision
02
OJK is currently making effort c. Integration of the supervision

to integrate licensing, namely of all FSI
the licensing services through
one door supported by an Integrated supervision by OJK
information system. One of has started with the imple-
the systems that have been mentation of the supervisions
developed by OJK to support of several FSIs that are incor-
integrated licensing is the porated into conglomerates.
Sistem Perizinan dan Registrasi In this regard, OJK has issued
Terintegrasi (SPRINT). three regulations related to in-
Currently, several types of tegrated supervision of Finan-
licensing managed using cial Conglomerates, namely:
SPRINT are Bancassurance,
Agen Penjual Efek Reksa Dana/ 1) OJK Regulation no. 17/
Mutual Fund Security Sales POJK.03/2014 concerning
Agent (APERD), Registration of Implementation of Integrat-
Public Accountants and Public ed Risk Management For
Accounting Firms, and Sharia Financial Conglomerates;
Bonds.
2) OJK Regulation no. 18/
POJK.03/2014 concerning
Implementation of Integrat-
ed Management for Finan-
cial Conglomerates;
3) OJK Regulation no. 26/

Integrated Minimum Capital
Adequacy Requirement for
Financial Conglomerates

Chapter Integrated
02 Supervision
incorporated into one group due to

Financial ownership and/or control linkages.
2.
Conglomerates Based on the structures, FC can
be divided into three types, as fol-
lows:
In implementing the integrated
supervision task, the OJK has
1) Vertical Group
carried out a number of actions,
If there is clearly a direct
including the holding of Integrated
relationship between the parent
Supervision Committee Meetings
company and the subsidiary
on a monthly basis led by 3 (three)
company and both are FSI.
members of the OJK’s Board of
Commissioners who oversee the
2) Horizontal Group
supervisions of Financial Service
If there is no direct relationship
Institutions in the Banking, Capital
between the FSI’s in one FC,
Market, and Non-Bank Financial
however, these FSI’s are owned
Institution sectors. The Integrated
or controlled by the same party.
Supervision Committee Meetings
discuss strategic issues related to
3) Mixed Group
integrated supervision, especially
If there are a business group
of Financial Conglomerates.
structure that is a vertical group
This is due to the significant role
as well as a horizontal group
and influence of the Financial
within one FC. An illustration
Conglomerates on the national
of the differences between the
economy.
three types of FC is presented
in the figure below.
In accordance with OJK Regula-
tion number 18/POJK.03/2014,
The illustration of the three types
a Financial Conglomerate (FC)
of Financial Conglomerates is
comprises a number of Financial
shown in the figure below.
Service Institution (FSI) which are

Integrated Chapter
Supervision
02
Figure 2.7. Illustration of Type of Financial Conglomeration
Vertical Group
PSP Other PSP
Bank A
Insurance Securities Financing

B C D
Horizontal Group
PSP Other PSP
Bank Insurance Securities Financing

A B C D
Mixed Group
PSP PSP Lain
Bank Insurance Securities Financing

A B C D
Insurance Financing
E F
Information : (PSP: Ultimate Shareholders)

Chapter Integrated
02 Supervision
To conduct supervisions of FC, Plan (ISP) to document the

OJK has developed surveillance supervisor’s understanding of any
methods that include the Know FC, the FC’s risks, and supervisory
Your Financial Conglomerate strategy for the FC at group-wide
(KYFC), Integrated Risk Rating level.
(IRR), and Integrated Supervisory

Roadmap Chapter
Banking
Industry 02
F. Roadmap Banking Industry

Roadmap for Indonesian domestic as well as global scales.
Banking Development RP21 has also been designed
to yet observe opportunities
Roadmap for Indonesian
for the banking industry which
Banking Development/ Roadmap
are Indonesia’s potentials and
Pengembangan Perbankan
advantages in line with the effort
Indonesia (RP2I) 2015 – 2019 covers
to promote the national economy
development of Conventional
in order to achieve high and
Banks with the objective to ensure
sustainable economic growth.
banking sector development runs
in alignment with the vision of
Indonesian development, to create
1. Indonesian Banking
Indonesia that is independence,
Opportunities and Challenges
advanced, just, and prosperous.
Indonesia has a huge potential
Directions of the Indonesian
of growing and developing
banking industry’s development
into an advance country in
and strengthening incorporated
the future. This huge potential
in RP21 are designed to anticipate
requires financing support from
challenges that will face the
the whole FSS, including from
banking industry, both at the
the banking industry. In addition
to this financing need on the
domestic side, the potential for
development comes from the
region, namely implementation
of the ASEAN Economic
Community (AEC) and existence
of Foreign Bank Branch Offices
(FBBO) or banks with foreign
ownerships that can create

Chapter Roadmap
02 Banking
Industry
opportunities in supporting support of sustainable

the national economic growth. economic development. This
Furthermore, in this era of is in line with developments
rapid IT development, financial of governance and risk
technology also has a significant management as well as
role in the future development international standard
of the banking industry. implementation, from
the sides of regulations,
2. Policy Direction for Medium reporting, and supervision;
Term Banking Development
c. Implementation of risk based
2015 – 2019
integrated supervision by: (i)
Things that will be the focus
undertaking supervision on
of OJK in development of the
conglomerate companies
banking industry in the medium
in order to early detect
term and that are expected to
risks that can arise in
be able to respond to changes
the financial services
in the internal and external
system; (ii) developing and
environments of the banking
implementing risk based
industry are among others:
a. Optimizing the role of banks

in the effort to support food
security, energy and other
priority sectors, financing of
certain economic sectors,
as well as development
and implementation
of sustainable funding
principles;
b. Enhancement of bank
ownership structure in

Roadmap Chapter
Banking
Industry 02
supervision mechanism; and e. Discussion concerning

(iii) stepping up investigations the reciprocity principle
of professional compliance applicable for Indonesian
and compliance of the banks to expand their service
supporting institutions; reach in the ASEAN region
and mechanism for dispute
d. Strengthening of crisis
settlement in anticipation
management protocol and
of the emergence of cross-
inter-institution coordination
border disputes between
through enhancement of the
ASEAN countries. In
mechanism for prevention
anticipation of the rise in
and handling of crisis,
competition against banks
enhancement of recovery
from other ASEAN countries,
and resolution plan, and
OJK has encouraged
enhancement of inter-
the national banks to
institution coordination in
enhance their capacities,
relation to the handling of
in terms of capital as well
financial crisis;
as infrastructure, through
the consolidation process
in order to have stronger
competitiveness in the
ASEAN financial market;
f. Development of micro
finance products and/or
services in accordance with
business needs so that banks
can support the increase
in business funds access
for MSMA. In order to step
up the capacities of banks,

Chapter Roadmap
02 Banking
Industry
including sharia banks, in the capacity and governance

reaching communities, which of RDB, and (ii) enhancement
up to this time have not had of the owners’ commitment
or lacked financial access, in supporting the role and
the inclusive finance initiative capacity of RDB;
and Laku Pandai (branchless
i. Enhancement of the role of
banking) are undertaken;
sharia banks with expansions
g. Development of information of businesses, network,
technology infrastructure sharia financial products,
to make it more optimal and fair playing field for SCB
and yet can still maintain by developing regulations
security and reliability of the that encourage the growth
application services and of SCB in accordance with
data/information; business characteristics
and the industry’s level of
h. Strengthening the functions
preparedness; and
and role of RDB in supporting
regional economies through: j. Strengthening the capital
(i) strengthening the structure and institutional
capacity and governance structure of RB through
of RDB through RDB synergy with commercial
transformation program that banks and enhancement of
has been initiated by OJK the owners’ commitment to
through the involvement of RB’ role in supporting regional
Rural Development Bank economies. Furthermore,
Association/Asosiasi Bank in the effort to enhance the
Pembangunan Daerah quality of supervision over
(Asbanda) and Ministry of RB, OJK will implement risk
Home Affairs that will be the based supervision.
reference in strengthening

Roadmap Chapter
Banking
Industry 02
Roadmap of Indonesian
Sharia Banking
Roadmap of Indonesian
Sharia Banking (RPSI)
2015 – 2019 is a plan
for development of
the Indonesian sharia
banking sector for 2015
– 2019, which refers to Islamic Banking
MPSJKI and RP21 as well
as aligned to the Masterplan
of Indonesian Sharia Financial
Architecture of the National
Development Planning Agency. expected to increase its role
RPSI is expected to be and contribution in supporting
able to be the reference for the national economy and
sharia banking stakeholders financial system stability as well
in developing the sharia as increasing/equalizing public
banking industry so that it is welfare.
Scan the QR
Code on the top
for read RPSI
completely

Chapter Roadmap
02 Banking
Industry
RPSI Vision
2015-2019
“Realizing sharia banking sector
that gives significant contribution
to sustainable economic growth,
equitable development, and financial
system stability as well as that has
high competitiveness”.
This vision is translated into policy

directions, work program, and
implementation time plan, comprising
seven policy directions.

Roadmap Chapter
Banking
Industry 02
Figure 2.8. The Ilustration of Roadmap of Indonesia Sharia Banking’s Vision
Improving the quality of

Improving the funding Improving the quantity
services and product
structure to support and quality of human
diversity
widening of the financ- resources and IT as well
ing segment as other infrastructure
3 5
Strengthening
of the capital Enhancing
and business RPSI public literacy
2 6 and prefer-
scale as well Vision
as improving ence
efficiency
1 7
Strengthening poli- Strengthening as well

cy synergy between as harmonization of
the authority and the regulations and super-
government and other vision
stakeholders

Chapter Roadmap
02 Banking
Industry
Achievements of the 2015- For this purpose, the Islamic

2019 Indonesia Sharia banking development direction
Banking Roadmap in 2019 has been formulated, known as
the Indonesia Islamic Banking
Roadmap, for 2015-2019 period,
After experiencing a relatively which presents strategic issues
high growth in previous years, in or fundamental problems that
2013-2014 the Islamic (sharia) still occur in the Islamic banking
banking faced challenges in the industry.
form of a slowing growth. In an
effort to promote the re-growth The roadmap provides guidance
of Islamic banking business on the direction to be achieved,
activities so as to contribute to the including planned initiatives to
national economy, it is important achieve established development
to formulate the Islamic banking targets and to realize the
policy direction and development. development of the national

Roadmap Chapter
Banking
Industry 02
Islamic banking industry. There are concerning Sharia Finance

7 policy directions in the Roadmap, National Committee signed
including (1) strengthening policy by President Jokowi on 3
synergy between the authorities November 2016.
and the government as well as other b. The Sharia Economic and
stakeholders, (2) strengthening Finance Research Forum
capital and business scale as (Forum Riset Ekonomi dan
well as improving efficiency, (3) Keuangan Syariah/FREKS)
improving the funding structure held annually at universities in
to support expansion of the several regions in Indonesia.
financing segment, (4) enhancing
c. Collaboration with DSN-MUI
product quality and services, (5)
(National Sharia Council
enhancing the quantity and quality
- Indonesian Religious
of human resources, IT and other
Cleric Assembly) in regard
infrastructure, (6) enhancing public
product discussions and
literacy and preferences, and (7)
fatwa recommendations
strengthening and harmonizing
through the Islamic Banking
regulations and supervision.
Working Group (Working
Group Perbankan Syariah/
In 2019, which is the last year of
WGPS). In addition, in
the Roadmap’s effective period,
regard product formulation,
work programs that have been
a Product Working Group
implemented in accordance with
has been established
the 7 policy directions above are
jointly with the Indonesian
as follows:
Sharia Banking Association
1. Strengthening policy synergy (Asosiasi Perbankan Syariah
between the authorities and Indonesia/Asbisindo).
the government as well as other d. The OJK has collaborated
stakeholders: with the Directorate General
a. Issuance of Presidential of Religious Courts at the
Decree Number 91 of 2016 Supreme Court (Badan

Chapter Roadmap
02 Banking
Industry
Peradilan Agama/Badilag concerning Development of

MA) in providing technical the Sharia Banking Office
guidance for the judges. Networks in the Context of
National Economic Stimulus
2. Strengthening capital and for Banks.
business scale as well as c. The Spin Off Roadmap has
improving efficiency: been submitted by each SBU
(Sharia Business Unit) to the
a. Strengthening of the capital OJK and a Study on Sharia
and business scale of Sharia Business Unit Separation has
banking can be viewed from been compiled.
the rises in CAR (Capital
d. Establishment of PT. Bank
Adequacy Ratio) and total
Aceh Syariah and PT. Bank
assets, Channeled Financing
NTB Syariah.
(CF), and Third-Party Funds
(TPF) which have grown e. Issuance of OJK Regulation
positively. This is indicated Number 28/POJK.03/2019
by the rise in the percentage concerning Banking Synergy
of CAR in December 2019, within One Ownership in the
namely 20.95% from context of Sharia Banking
the previous 15.02% in Development.
December 2015. Likewise,
the rises in assets, CF, and 3. Improving the funding structure
TPF, amounting to Rp537.4 to support expansion of the
T, Rp265.5 T, and Rp424.1 T financing segment:
respectively in December
2019, from previously Rp304 a. Based on data as of
T, Rp218.7 T, Rp235.9 T December 2019, the Sharia
respectively in December banking funding structure
2015. has strengthened with a
b. Issuance of OJK Regulation reasonable margin level.
Number 2/POJK.03/2016 This is indicated by the lower

Roadmap Bab
Chapter
Banking
Industry 02
OCOI (Operational Cost over

Operational Income) ratio
(83.14%), lower Net Yields
(5.79%), and increased NOM/
net operating margin (1.93%)
b. Hajj funds are required to be
placed at Sharia Banks which
are Recipient Banks for Hajj
Administration Fee Deposits
(Bank Penerima Setoran
Biaya Penyelenggara Ibadah
Haji/BPS-BPIH).
c. Publication of the Book of
Organic Agriculture Islamic
Financing Patterns “AKSI
PRO SALAM” (Indonesian
Sharia Financial Access
for Harmonious, Organic,
and Trustworthy Organic
Agriculture).
d. OJK and the Indonesian
Sharia Banking Association’s
product working group have
conducted dissemination
on earning waqf in several iB
Vaganza events in 2018.
4. Enhancing product quality and

services:
a. Issuance of OJK Regulation
Number 24/POJK.03/2015

Bab
Chapter Roadmap
02 Banking
Industry
dated 27 November 2015

concerning the products and
activities of Sharia banks
and Sharia Business Units to
simplify the licensing process.
In addition, OJK Circular
Letter (OJK CL) Number 36/
SEOJK.03/2015 and OJK CL
Number 37/SEOJK.03/2015
have also been issued as
implementation guidelines
including codification books
for SCBs (Sharia Commerial
Banks) and SBUs (Sharia
Business Units) as well as for
SRBs (Sharia Rural Banks).
Meanwhile, formulation is
being developed in order
to enhance the codification
of new products for Islamic
banking by taking into
account the many product
developments in the Islamic
banking industry.
b. The launching of the Student
Savings Product (SimPel
iB) was carried out in 2015,
which follow-ups and
progress reporting has been
submitted to the supervisors
and copies submitted to

Roadmap Chapter
Banking
Industry 02
the OJK’s Department Rektor Indonesia/FRI).

of Financial Literacy and b. Publication of OJK’s Book
Inclusion. Series on Financial Literacy
c. Collaboration has been for Higher Education - Sharia
carried out with DSN-MUI in Finance Industry.
regard of product discussions c. The conduct of a Workshop on
and fatwa recommendations Improving Service Excelence
through the Sharia Banking & Customer Maintenance for
Working Group (WGPS). Sharia Banking HR
d. Compilation of a Study d. Issuance of the Indonesian
on Sharia Restricted National Work Competency
Intermediary Account (SRIA) Standards (Standar
which has been continued Kompetensi Kerja Nasional
with an exploration of product Indonesia/SKKNI) in the field
implementations at several of Sharia Rural Financing
Sharia banks. (Decree of the Minister of
e. Publication of a book Manpower of the Republic
on standard deeds for of Indonesia Number 38 of
Murabahah and Musyarakah 2017).
(including MMQ) (2015), Ijarah e. Compilation of a study on
(2016), Mudharabah (2017), the Sharia Banking Sharing
Mudharabah Muqayyadah Platform.
(2018).
f. The routine holdings of
5. Enhancing the quantity and workshops on the Sharia
quality of human resources, IT banking products and
and other infrastructure: schemes of deeds for Islamic
bankers in various cities in
a. Establishment of a Sharia Indonesia.
Finance Working Group at
the Indonesian University 6. Enhancing public literacy and
Chancellor Forum (Forum preferences:

Chapter Roadmap
02 Banking
Industry
a. The holding of Sharia Rural (Loan to Value/Financing to

Market on 13-14 June 2015 to Value) Policy (by letter to Bank
mark the start of the national Indonesia).
campaign for the I Love Islamic b. Issuance of OJK Regulation
Finance program. Number 66/POJK.03/2016
b. The holding of Sharia Finance concerning Minimum Capital
Fair, which was a joint activity Requirement and Fulfillment
between the OJK and the of Minimum Core Capital for
Sharia banking, Sharia capital Sharia Rural Financing Banks.
market, and Sharia NBFI c. Issuance of OJK Regulation
industries. Number 59/POJK.03/2017
c. The holdings of International concerning Implementation
Seminars on Sharia Finance in of Governance in Provisions
2015 and 2016. of Remunerations for Sharia
d. Implementation of the Commercial Banks and Sharia
iB Campaign through: Business Units.
Islamic banking workshops d. Establishment of regulatory
for bloggers/netizens (iB infrastructure in the form of
Blogger Meet Up), mosque the compilation of a Taxonomy
administrators, teachers/ System for regulations related
teaching staff, and the High to Sharia banking: SIKEPO.
School Olympics. e. Issuance of OJK Regulation
e. OJK’s participations in Number 28/POJK.03/2019
activities organized by Sharia concerning SRFB Soundness
finance associations and Level Assessment System.
communities in order to jointly f. Development of a digital
disseminate Sharia finance. technology-based financial
services application called
7. Strengthening and harmonizing
OJK-Box, or abbreviated as
regulations and supervision:
OBOX, in order to optimize the
a. Adjustments to LTV/FTV supervisory process

Roadmap Chapter
Banking
Industry 02
Roadmap of Sustainable
Finance
For the purpose of

facilitating financing/fund
provision for sustainable
development as well
as adaptation to and
mitigation of climate
change, OJK with Ministry
of Environment and Forestry
has launched the Roadmap of
Sustainable Finance/Roadmap
Keuangan Berkelanjutan (RKB) RKB has received appreciations,
on 5 December 2014. This both from domestic side as well
roadmap contains presentations as international side. OJK is even
of work plan concerning the the first authority within the FSS
development of sustainable that issues a Roadmap with a
financing for all Financial Service comprehensive scope because it
Institution (FSI). The Launching of regulates the whole FSS.
Scan the QR
Code for read
RKB completely.

Chapter Roadmap
02 Banking
Industry
Figure 2.9. Roadmap of Sustainable Financing 2015 - 2024
Foundation for implementing SF : Incentive for cooperation with

1. Policy on principle of SF other institutions :
2. Policy on increase in SF Portion 1. Fiscal incentives
3. Policy on SF supervision 2. Non Fiscal incentives
2015
2017-2018
2016
Insentives (within OJK’s
control): 2019-2024
1. Prudential Incentives
2. Information Hub
3. SF Award Resilince Strenghtening :
4. Policy on Reporting Strenghtening of risk management in
GCG related to the environment and
social condition
2015-2019
Campaign, training on licing environment analysis, development of
Green Projects, FSI access to Global Public Funds, Coordination on SF
Policy.

Roadmap Chapter
Banking
Industry 02
The background for the launching capacity to growth and develop in a

of RKB is the need for strategic sustainable manner; (ii) to provide
and systematic measures in giving sources of funds required by the
direction to FSS to take an active public, which refers to RPJP and
role and give a positive contribution RPJMN that have the characteristic
to the sustainable development of 3P; and (iii) to contribute to
process (Long-Term Development the national commitment on the
Plan (RPJP) 2015-2024 and problem of global warning through
Medium-Term Development Plan business activities that prevent/
(RPJMN) 2015-2019 which stand mitigate or even adapt to climate
on 3P, namely Profit, People, and change towards a low-carbon
Planet. The RKB has the objective economy that is competitive.
of translation the sustainable The RKB states the limit on the
financing condition that the definition of sustainable financing,
Financial Services Industry’s which is overall support from
desires to achieve in relation to Financial Services Industry for
sustainable financing in Indonesia sustainable growth resulting from
in the short-term, medium-term, an alignment of economic, social,
and long-term (2015-2024). and environmental interest.
Specifically for FSI, implementation The RKB has four sustainable

of sustainable financing has the financing principles, namely:
objectives: (i) to enhance the (i) a risk management principle
resilience and competitiveness that integrates the environment
of FSI so that they can have the protection and social aspects

Chapter Roadmap
02 Banking
Industry
into the risk management of customers of FSS; and (iv)

FSS; (ii) priority economic sector enhancement of capacity and
sustainable development principle collaborative partnership principle
that is inclusive by stepping up by developing capacities of human
financing activities, particularly in resources, IT, and operational
agriculture sectors (agriculture, processes of each FSS.
livestock husbandry, and maritime),
infrastructure, industry, energy, In the implementation of RKB, three
and MSMBs; (iii) environmental focus areas are expected, namely:
and social governance and (i) a step up of fund provisions from
reporting principle, by running FSI for green projects; (ii) a step up
strong environmental governance of demand for green projects; and
and social practices, as well as (iii) enhancement of supervision and
transparency in the operational coordination in the implementation
activities of the FSS and the of financing sustainability.
In an effort to implement the RKB implementation strategy, there are

two main agendas, namely the sort – medium (2015 – 2019) and the
long term (2020 – 2024).
The sort – medium term The Long Term
is focused on laying out the basic focus is on the integration of

framework for regulation and risk management, corporate
reporting systems, increasing governance, the assessment
understanding, knowledge and of bank soundness, and the
human resources competency development of a sustainable
of Financial Services Institution, financial integrated
providing incentives and information system.
coordinating with relevant
agencies.

Roadmap Chapter
Banking
Industry 02
Overview of 2020 – 2024 Roadmap
Validity period of the 2015- points that are important in the

2019 Indonesia Islamic Banking future development of Islamic
Roadmap has ended in 2019, and banking, namely: Strengthening
as such a new Islamic banking Sharia Banking Identity, Synergy of
policy direction is needed in order Sharia Financial Ecosystems, and
to develop Islamic banking going Optimization of Supporting Factors
forward. This is incorporated in (Enablers).
the 2020-2024 Indonesia Islamic
Banking Development Roadmap, There are differences in the 2020-
with a vision of “Realizing highly 2024 Indonesia Islamic Banking
competitive Islamic banking, Development Roadmap compared
which contributes significantly to to the previous Roadmap,
the national economy and social especially in regard the strategic
development”. This roadmap is initiatives related to synergies
expected to address the various between the Islamic banking
challenges that the Sharia banks industry and the halal industry, other
have been facing so far and Islamic financial institutions, Sharia
encourage the Islamic banking social fund institutions, as well
industry to have highly competitive as other ministries and agencies.
advantage and socio-economic This is in line with the strategic
impact. policies issued by the OJK in 2020
concerning developments of the
In order to support this grand Sharia economic and financial
vision, there are 3 (three) main ecosystems.
Islamic Banking

Chapter ASEAN Banking
02 Integration
Framework
G. ASEAN Banking Integration

Framework
ASEAN Banking Integration ASEAN countries in undertaking
Framework (ABIF) is an ASEAN’s bilateral agreements related to
initiative with the objectives banks that will be present in the
to create an integration ASEAN banking market. The ABIF
mechanism and to accelerate Guidelines stipulates integration
banking integration through the principles that should be referred
provision of market access and to as well as stages that should
operational flexibility in ASEAN be followed in this integration
countries by observing the process.
fulfilment of prevailing prudential
requirements in each of the The best banks owned by the
ASEAN countries. ASEAN countries or known with
the terminology of Qualified
ABIF Guidelines has been agreed ASEAN Bank (QAB) should
upon at the end of 2014. This meet the agreed requirements,
document becomes the guide for namely:

ASEAN Banking Chapter
Integration
Framework 02
Figure 2.10. Ilustration of requirements for Qualified ASEAN Banks
Home Country Authority

Having good Having Having good Supported
Governance
Track Record
track record, adequate governance; by the home

Capital
as shown capital, and and country

among is financially authority to
others by a sound be a QAB
large market
share

Chapter Basel
02 Framework
H. Basel Framework
1. Implementation of Basel 2. Evolution of Basel Capital
Capital Framework Framework
Indonesia, as one of the Capital is one of the main
members in the G-20 forum as focusses of bank supervisory
well as other international forums, authority in implementing the
such as Financial Stability Board prudential principle. BCBS has
(FSB), Basel Committee on issued one capital framework
Banking Supervision (BCBS), concept that has become an
has given its commitment in international standard, namely:
adopting recommendations
a. In 1988, it issued the capital
produced by those forums.
concept as well as the
In line with that, and with the
calculation of Risk Weighted
transfer of bank supervision
Assets (RWA) specifically for
function from BI to OJK, the
credit risk;
implementation of OJK’s tasks
b. In 1996, it enhanced the
in the future will not be separated
capital component by adding
from efforts to adopt those
Tier 3 as well as calculation of
various recommendations. In
RWA for market risk;
the process of adopting the
various above-mentioned c. In 2006, it issued the
recommendations, OJK will document entitled
continue to adjust to the International Convergence
condition and development of on Capital Measurement and
the domestic banking industry. Capital Standard (A Revised
Framework) or better known
as Basel II;

Basel Chapter
Framework
02
d. In 2009, it issued Basel 2.5 Figure 2.11. The evolution of the Basel
capital framework in
recommendation, which
Indonesia
covers the framework
of RWA calculation for
market risk by using the Basel I
internal model, imposition 1988 Basel 1 It issued the
capital concept as well
of capital burden for as the calculation of Risk
securitization transactions, Weighted Assets (RWA)
specifically for credit risk
risk management aspect
on compensation,
concentration risk, 1996 It enhanced the capital
component by adding
reputation risk, and stress
Tier 3 as well as
testing, valuation of all calculation of RWA for
exposures recorded based market risk
on fair values, and disclosure

on securitization;
2006 Basel II
e. In 2010, in response to the
global financial crisis, BCBS
issued a recommendation
2009 Basel 2,5
on enhancement of bank
resilience, both at the micro
level as well as the macro
2010 Basel III
level, or better known as
Basel III.

Chapter Basel
02 Framework
3. Implementation of Basel II been fully implemented since

Framework in Indonesia December 2012. A number of
regulations related to Basel II
a. Basel II Framework (Pillar 1, Pillar implementation are illustrated
1, and Pillar 3) in Indonesia has as follows:
Figure 2.12. Implementation of Basel II in Indonesia
Basel II
Pilar 1. Minimum Capital Pilar 2. Supervisory Pilar 3. Market

Requirement Review Process Discipline
PBI No. II/15/PBI/2008 PBI No. I4/18/PBI/2012 PBI No. I4/14/PBI/2012

(POJK No. 34/POJK.03/2016) (POJK No. 34/POJK.03/2016) (POJK No. 32/POJK.03/2016)
Operational
Credit Risk Market Risk
Risk
Internal Basic
Standardised Standardised Internal Standardised
Approach
Rating Based
Approach Model
Indicator
Approach
AMA
Approcah Approach
SEBI No. 13/6/DPNP SEBI No. 9/33/DPNP SEBI No. 9/31/DPNP SEBI No. 11/3/DPNP
(SEOJK No. 42/ (SEOJK No. 38/ (have been revoked) (SEOJK No. 24/
SEOJK.03/2016) SEOJK.03/2016) SEOJK.03/2016)
Have been implemented

Not yet implemented

Basel Chapter
Framework
02
b. Basel 2.5 Framework stipulates: (i)_enhancement

For the purpose of the of capital quality through
implementation of the changes in component
remuneration framework and requirement on capital
in Indonesia as part of the instruments in accordance
Basel 2.5 framework, OJK with the Basel III framework;
has issued OJK Regulation (ii) the obligation to provide
No. 45/POJK.03/2015 capital ratio, which comprises
concerning Implementation core capital ratio of no lower
of Governance in Provision than 6% of RWA and ratio of
of Remunerations dated 23 main core capital of no lower
December 2015. Furthermore, than 4.5% of RWA; and (iii)
in January 2016, OJK has also the obligation to establish
made an enhancement to additional capital as the
Basel 2.5 Consultative Paper buffer above the obligation
issued in 2013 by issuing a to provide minimum capital
Consultative Paper concerning in accordance with the risk
securitization in January 2016. profile.
c. Basel III Framework Implementation of the

1) Capital Framework regulation on Basel III
On 12 December 2013, has been made in stages
BI Regulation No.15/12/ since 2014 to reach full
PBI/2013 was issued implementation in 2019, with
concerning Minimum Capital the implementation stages in
Adequacy Requirement for figure 2.12
Commercial Banks, which

Chapter Basel
02 Framework
Figure 2.13. Framework for Basel III Capital in Indonesia
2013 2014 2015 2016 2017 2018 2019
Regulation
Published
Tier 1: 6%
CET: 4,5%
Basel III
Capital
Component 0,625% 1,25% 1,875% 2,5%
Conservation Buffer
Max 0,625% Max 1,25% Max 1,875% Max 2,5%
Countercyclical Buffer
Capital Surcharge D-SIB (0-2,5%)
Meanwhile, NSFR constitutes a funds in amounts exceeding

liquidity measurement with the the required amounts during
purpose of enhancing bank a period of one year stress.
long term liquidity resilience For the purpose of LCR
by requiring any bank to implementation in Indonesia,
fund its activities with stable OJK has issued OJK Regulation

Basel Chapter
Framework
02
No.42 /POJK .03/2015 namely: Credit Risk Standard

concerning Obligation to Meet Approach, Internal Ratings-
LCR in December 2015. In Based (IRB) Approach, Credit
accordance with the prevailing Valuation Adjustment (CVA),
OJK Regulation, the obligation Operational Risk, Market Risk,
to meet LCR is made in stages Leverage Ratio and Output
in line with the BCBS timeline, Floor. The Basel III Reforms are
namely since 31 December expected to be implemented
2015 with a minimum ratio of by no later than January 1, 2022.
70% up to 31 December 2018
with a ratio of 100% (each year, 3) Leverage Framework
it is increased by 10%). In an effort to limit the formation
of excessive leverage in the
Meanwhile, in relation to NSFR banking system, BCBS has
that is in line with BCBS timeline, also introduced an additional
implementation of NSFR will ratio, namely leverage ratio, as
start in 1 January 2018. Along one non-risk based approach
this line, OJK has issued a to supplement the capital
regulation of NSFR on July 2017. ratios in line with the risk profile
that have been in effect. The
2) Finalization Basel III Reforms
purpose of the leverage ratio
(Finalizing post-crisis reforms)
is as a backstop of capital
In December 2017, BCBS ratios in line with risk profile
published the Basel III to prevent the formation of
document: Finalizing post- excessive leverage to prevent
crisis reforms which are the occurrence of worsening
refinement of Basel III. The deleveraging process that can
document revises a number endanger the whole financial
of standards included in Pillar 1 system and the economy. The
(minimum capital requirement), minimum leverage ratio that

Chapter Basel
02 Framework
has to be met is 3%, calculated requirement), namely: Credit

by dividing core (tier 1) capital Risk Standard Approach, Internal
with bank total exposure Ratings-Based (IRB) Approach,
(without weighted risk). Credit Valuation Adjustment
(CVA), Operational Risk, Market
3) Finalisasi Reformasi Basel III
(Finalising post-crisis reforms) Risk, Leverage Ratio and Output
Floor. The Basel III Reforms are
In December 2017, BCBS
expected to be implemented
published the Basel III
by no later than January 1, 2022.
document: Finalizing post-crisis
However, in response to the
reforms which are refinement of
COVID-19 virus outbreak, BCBS
Basel III. The document revises
decided to postpone Basel III
a number of standards included
implementation from January 1
in Pillar 1 (minimum capital
2022 to January 1, 2023..

Basel Chapter
Framework
02
Figure 2.14. Global Financial Crisis that occurred in 2007 – 2009 Background
BASEL III
Background: Global Financial Crisis that occurred in 2007 – 2009
Basel III - Initial Other Basel III Basel III - Post Crisis
Phase Standards Reforms
2010: “Basel III: A global Other Basel III standards 2017: “Basel III: Finalizing
regulatory framework 2010 – 2017: BCBS issued post crisis reforms”
for more resilient banks other standards standard
and banking systems”
standard • Standard on requirement • Revised Credit Risk
for minimum liquidity ratios: • Revised Credit Valuation
Improving the quality and Liquidity Coverage Ratio Adjustment (CVA) Risk
quantity of capital by: (LCR) and Net Stable funding • Revised Operational Risk
Ratio (NSFR) • Revised Market Risk (final
• Stricter definition of
• Provision on Leverage Ratio version issued at the
financial instruments that
as an additional non-risk beginning of 2019).
can be categorized as
based measure
Capital (Common Equity Tier
• Provision on provision
(CET) 1, Additional Tier (AT)
of large funds, i.e. Large
1, Tier 2)
Exposures Framework
• Minimum CAR remained
• Framework on Systemically
8%, with the additional
Important Banks:
requirement of buffers: (i)
Globaly-SIB (G-SIB) and
Capital Conservation Buffer,
Domestically-SIB (D-SIB)
(ii) Countercyclical Capital
• Provision on capital
Buffer, (iii) Capital charges
treatment of TLAC
G-SIB and D-SIB
instrument ownership, i.e.
• Additional feature of Capital
TLAC Holdings
Loss Absorption at the Point
• Provision related to Central
of Non-Viability (PONV)
Clearing Counterparty (CCP)
• Disclosure to the public, i.e.
Revised Pillar 3 Disclosure
Requirements

Chapter Basel
02 Framework
4. Regulatory Consistency easy struggle. Preparation for the

Assessment Program (RCAP) RCAP had been made since 2014,
At a meeting held at the end of starting with a self-assessment
November 2016 in Santiago, that was carried out to identify gaps
Chile, the BCBS has made a between the Basel framework
decision concerning results and the prevailing regulations.
of the Regulatory Consistency Result of the self-assessment
Assessment Program (RCAP) was then submitted to the BCBS
on Indonesian banking sector’s for the BCBS’s reference when
regulations. Indonesia’s Liquidity RCAP assessors conducted
Coverage Ratio (LCR) regulations their assessment. Based on their
are assessed as Compliant assessment result, Indonesia must
(C) and its capital framework is revamp 10 regulations, to make
assessed as Largely Compliant them comply with international
(LC). RCAP has been conducted banking standards.
on all BCBS member countries
(28 jurisdictions), including The grades that the RCAP has
Indonesia. RCAP is an awarded to Indonesia render
assessment process exercised Indonesia’s banking regulations
by the BCBS to see whether at the same level with those of
the banking regulations issued other BCBS member countries,
by a country’s authority are including for RCAP result for
consistent with the international Indonesia’s Capital framework,
banking standards issued by the which has received the same
BCBS. grade as that of the United States,
which is an even higher grade than
Indonesia has gained those the one given to the European
RCAP’s results with not so Union.

Transformation Chapter
of Regional
Development Banks 02
I. Transformation of Regional
Development Banks
The Regional Development Bank ization at the regions in a sustainable
(RDB) Transformation Program manner. This vision is going to be re-
was launched in 26 May 2016 by alized through three goals, namely: (i)
the President of Republic Indone- enhancement of the competitiveness
sia with the vision of creating RDB of RDB; (ii) strengthening institutional
to become banks with high com- resilience; and (iii) enhancement of
petitiveness, strong, as well as the contribution of RDB to regional
having significant contribution to economies. These are illustrated in
the economic growth and equal- the figure 2.15:
Figure 2.15. Holistic Framework for Transformation Program
Transformation To be a bank with high and strong competitiveness and

Vision that contributes significantly for the growth and equality
of sustainable regional economy
(2) Contributive (Regional

(2) Strong resilince
Development Agent)
Outcome
(1) High competitiveness
Business Product Management Development of Mangement Management Strenthening

process & Development of services marketing of network of portfolio of liquidity &
risk capital
Management of Management Development and Strengthening of

Foundation the organization, of information standardization of governance, risk
(Enabler) human resources & technology systems and operating management &
culture procedures compliance

Chapter Transformation
02 of Regional
Development Banks
In order to achieve this vision, of the program, each RDB will

the RDB Transformation Program enter each stage and set business
will be implemented through goals and targets in line with the
three stages/phases, namely: (i) capacity and preparedness of
Foundation Building; (ii) Growth each RDB, as depicted in the
Acceleration; and (iii) Market following figure:
Leadership In the implementation
Figure 2.16. Stages of BPD Transformation Implementation
Phase III
Market
Leadership
Phase II
Growth
Acceleration
Phase I
Fondation
Building

Credit Chapter
Reporting
System 02
J. Credit Reporting System

The Credit Reporting System (CRS) the role of OJK as the authority in
that is going to be implemented charge of collecting data from FSI
in Indonesia is a dual system and the power of private sector
concept so that in Indonesia in the in developing innovations that
future there will be a Public Credit will produce various information
Registry (PCR) managed by OJK products and services required
and a number of Private Credit by FSI. The dual CRS concept in
Bureau (PCB) managed by private Indonesia is described as follows:
parties. This concept will synergize
Figure 2.17. Framework of Credit Reporting System in Indonesia

Chapter Credit
02 Reporting
System
On the side of PCR, at present of Lembaga Pengelola Informasi

OJK is developing SLIK. SLIK Perkreditan (LPIP) regulated in BI
will be useful for supporting Regulation Number 15/1/PBI/2013
OJK’s tasks as well as assisting concerning LPIP and BI Circular
the public and FSS’s actors in Letter Number 15/49/DPKL dated
making decisions on financing 5 December 2013 concerning LPIP.
and investments. Procedures A LPIP is an institution or agency
for reporting and requesting that collects and processes credit
debtor information through SLIK data and other data to produce
are regulated in POJK No.18/ value-added credit information
POJK.03/2017 and SEOJK No.50/ such as credit profile and credit
SEOJK.03/2017 respectively scoring, customer monitoring,
concerning Reporting and credit alerts, and Small Medium
Requesting Debtor Information Enterprise (SME) grading. A
through the Financial Information LPIP can undertake cooperation
Service System. with financial and non-financial
institutions in order to widen and
On the side of PCB, a PCB in enrich the coverage of credit data
Indonesia is known with the name and other data.

Banking Information System for Chapter
the Purpose Of Supporting Bank
Supervision Task 02
K. Banking Information System for

Supervision Task
1. Bank Information System related to bank business envi-
Bank Information System/Sistem ronment; and
Informasi Perbankan (SIP) is an
c. integrating data which is cur-
information system used by bank
rently scattered in different
supervisors in analyzing a bank’s
systems.
condition, performing assess-
ment of Bank Soundness Level
2. Management Information
by using Risk Based Bank Rating
System of BPR Supervision
(RBBR), speeding up access to
As an effort to improve the quality
information on bank’s financial
of BPR supervision, the develop-
condition, enhancing security
ment of BPR information system
and integrity of banking data and
leads to a more focused super-
information. SIP is developed for
visory system in terms of off-site
the purpose of supporting bank
and on site monitoring to the
supervision task through quality
conditions faced by BPR. Imple-
information, by providing the fol-
mentation of the Early Warning
lowing functions:
System (EWS) of the RB is con-
ducted to support monitoring of
a. as a business tool while at the
off-site BPR conditions, and then
same time a medium for rapid
to complete periodic BPR health
information presentation up to
rating assessments. The result
the strategic level;
of EWS analysis is intended to
b. providing information at mac- be used in determining the fo-
ro level, individual bank level, cus of inspection conducted by
as well as other information supervisors so that it is expected

Chapter Banking Information System for
02 the Purpose Of Supporting Bank
Supervision Task
to improve the effectiveness and tions. This application can be ac-

efficiency of OJK supervision on cessed by users of OJK’s internal
site. In addition, the development as well as external parties through
of Enterprise Data Warehouse the website https://pe laporan.id.
(EDW) BPR is expected to be an OJK-BI-LPS (Indonesia Deposit
effective means to monitor and Insurance Corporation) hope that
present information on the con- development of this app lication
dition of the BPR as a whole as a will enable more effective reporting
matter of determining the policy mechanism.
to be taken.
3. Aplikasi Pelaporan Online OJK
Integrated Reporting Portal (APOLO)
The Integrated Reporting Portal APOLO is a web-based application
is the gateway into the Natio that serves to provide services to
nal Metadata-Based Integrated Financial Institutions in fulfilling the
Reporting Application (Aplikasi obligation of online reporting. APO-
Pelaporan Terintegrasi Berbasis LO can be accessed by internal or
Metadata Nasional/BI-ANTASE- external users of OJK through the
NA) and the OJK’s Online Repor website https://apolo.ojk.go.id.
ting Application (Aplikasi Pelapo-
ran Online OJK/APOLO) as well APOLO facilitated reporting as fol-
as other future reporting applica- lows:

Supervision Task 02
Table 2.3. Reporting through APOLO
Type of Report Related Regulations FSI’s that are Obliged To

Report
Liquidity OJK Regulation number 42/POJK.03/2015 • Commercial Banks

Coverage Ratio concerning Requirement To Meet Liquidity BUKU 3
(LCR) Reporting Coverage Ratio For Commercial Banks • Commercial Banks
BUKU 4
• Foreign Banks
Tax Amnesty Law of Republic Indonesia number 11 of Gateway, which

Reporting (TaTy) 2016 concerning Tax Amnesty comprises 21 Banks, 18
Investment Managers,
and 19 Security Brokers-
Dealers
Reporting of OJK Regulation number 37/POJK.03/2016 All RBs/SRBs

Business Plans concerning Rural Bank and Sharia Rural
(RB/SRB) Bank’s Business Plans
Reporting - OJK Regulation Number 21/POJK.03/2014 All SCBs

of Sharia’s concerning Minimum Capital Adequacy
Minimum Capital Requirement for Sharia Commercial Banks
Adequacy (SCB)
Requirement - OJK Circular Letter Number 13/
and Risk Based SEOJK.03/2015 concerning Calculation of
Weighted Asset Operational RBWA;
- OJK Circular Letter Number 34/
SEOJK.03/2015 concerning Calculation of
Credit RBWA; and
- OJK Circular Letter Number 35/
SEOJK.03/2015 concerning Calculation of
Market RBWA
Reporting of Net POJK 50 / POJK.03 / 2017 dated 13 July • Commercial Banks

Stable Funding 2014 concerning the Obligation to Fulfill BUKU 3
Ratio theNet Stable Funding Ratio (NSFR) for • Commercial Banks
Commercial BUKU 4
• Foreign Banks
Commercial -POJK No. 32 / POJK.03 / 2016 concerning All BUK, BUS, dan UUS
Bank Publication Amendments to POJK Number 6 / POJK.03
Reporting and / 2015 concerning Transparency and
Consolidated Publication of Bank Reports
Risk -SEOJK No. 43 / SEOJK.03 / 2016
Management concerning Transparency and Publication of
the Report of BUK

Supervision Task
Type of Report Related Regulations FSI’s that are Obliged To

Report
Commercial -SEOJK No. 18 / SEOJK.03 / 2015

Bank Publication concerning Transparency and Publication of
Reporting and Reports on BUS and UUS
Consolidated -SEOJK No. 34 / SEOJK.03 / 2017
Risk concerning Transparency of Information on
Management Prime Lending Rates (SBDK)
-POJK No. 38 / POJK.03 / 2017 concerning
the Implementation of Consolidated
Risk Management for Banks that Control
Subsidiaries
-SE OJK No. 43 / SEOJK.03 / 2017
concerning Prudential Principles and
Reports in the Context of Consolidated
Implementation of Risk Management for
Banks that Control Subsidiaries
Monthly POJK No.13 / POJK.03 / 2019 All BPR

Reporting on concerning concerning Reporting of BPR
BPR and BPRS through the OJKReporting
System
-SEOJKNo. 8 / SEOJK / 2019 concerning
BPR Monthly
Reports on -POJK No. 11 / POJK.03 / 2016 concerning All BUK

KPMM and KPMM for Commercial Banks
Conventional -SEOJK No.38 / SEOJK.03 / 2016
RWA (KPK) concerning Guidelines for the Use of
Standard Methods in Calculating KPMM for
Commercial Banks by Taking Account of
Market Risk
- SEOJK No.42 / SEOJK.03 / 2016
concerning Guidelines for Calculation ATMR
for Credit Risk
- SEOJK No.48 / SEOJK.03 / 2016
concerning Guidelines for Calculating Net
Receivables for Derivative Transactions in
Calculating RWA for Credit Risk Using the
Standard Approach
Reporting -POJK No.13 / POJK.03 / 2019 All BPRS

BPRS concerning concerning Reporting of BPR
and BPRS through the OJKReporting
System
-SEOJKNo. 18 / SEOJK / 2019 concerning
BPRS Monthly Reports

Supervision Task 02
4. OJK Box (O-Box) information service in finance. In

The O-Box application is an accordance with the provisions of
application that can display legislation, OJK is authorized to
preliminary supervision regulate and develop an expanded
information consisting inter-bank information system
of quantitative as well as involving other institutions in the
qualitative information provided financial sector. Therefore, in order
by Banks through a repository. to carry out its duties and functions,
The repository will be accessed OJK deems it necessary to develop
by the supervisors via the a new system to support credit
O-Box Web. access information through SLIK.
5. Financial Information SLIK can be used to facilitate

Services System the process of providing funds,
Financial Information Services the implementation of risk
System (SLIK) is an information management, the assessment of
system managed by OJK to the quality of debtors, and improve
support the implementation the discipline of the financial
of supervisory duties and industry.

Supervision Task
Figure 2.18. Illustration of the benefits SLIK
1. Speed of time required for credit / 1. Support sustainable economics

financing approvals growth
2. Expand access for MSME debtors 2. Support Implementation of good
and the information sector to obtain governance by providing accurate
credit/financing based on financial information to state institutions (KPK,
reputation Police, Indonesia Central Bank, etc)
3. Ecourage debtors to maintain 3. Increase the rating of Indonesia’s
credit/financing reputation Ease of Doing Business (EODB) in
particular the aspects of getting
Credit
Information system
managed by OJK to support
the implementation of
supervisory and information
service in financial sector
1. Accelerate credit/financing growth Tool for effective supervision in The

2. Mitigate credit risk and reducing Financial services sector
NPL

Supervision Task 02
Figure 2.19. Roadmap Implementation of SLIK
Jan-Feb 2017 1 Jan 2018 31 Dec 2022 Obligatory

SLIK trial Full SLIK membership for
implementation all ventura capital
(SID companies,
deactivated) infrastructure financing
companies and pawn
companies
April 2017
Inauguration
of SLIK
reporting
SLIK paralel run
by SID’s
with SID until
reporter
Dec 2017) 31 Dec 2018
Obligatory
membership for
all RCBs/SRCBs
and financing
institution
SLIK starts full operation as of 1 January 2018, replacing the role of SID.
Starting from this date, provision of debtor information to the public has
transferred from BI to OJK. The public will be able to obtain this service
by coming directly to the OJK Head Office (OJK Contact Center) and
OJK Regional Office/OJK Office.

Supervision Task
Figure 2.20. Mechanism of Request for Debtor Information through SLIK
Debtor comes to OJK by bring

supporting documents and filling out
a debtor information request form
Supporting documents for

requesting iDeb are:
a. Individual person debtor

photocopy of identity card Officer in charge performs
by exhibiting the original verification of the completenes
identity, comprising KTP for
of the documents
Indonesian or passport for
foreign citizen.
b. Business enterprise debtor
photocopy of the identities
of the business enterprise
and the management by
exhibiting the original identity
of the business enterprise, Officer in charge performs
comprising tax identity request and print debtor
number (NPWP), company information
deed of incorporation, and
the latest amended articles of
association.
Officer in charge conforms by

giving explanation and handling
over result of debtor information to
the debtor as well as the receipt
Services of SLIK:
1. Gerai SLIK OJK, Menara Radius Prawiro Lt.2 KOPERBI,
Jl. MH. Thamrin No. 2 Jakarta Pusat
2. Gerai PELAKU di Kantor Regional/Kantor OJK

Supervision Task 02
Figure 2.21.Scope of Debtor Information That the Public Can Obtain
Debtor core Fund provision Owner and management of

data facilities business enterprise debtor
Quality of fund
Collaterals Guarantors provision
Operation of the SLIK application refers to

OJK Regulation number 18/POJK.03/2017
concerning Reporting and Requesting Debtor
Information through the Sistem Layanan
Informasi Keuangan (SLIK).

Chapter Consumer
02 Education and
Protection
L. Consumer Education
and Protection
Article 4 of Act Number 21 of Funds, based on legislations
2011 concerning Otoritas Jasa applicable in the Financial
Keuangan states that one of Services Sector.
the tasks of OJK is to provide
protection for the Consumers For the purpose of implementing
and/or the public. In relation to Consumer protection, OJK
Consumer protection, this Act has issued OJK Regulation
states that: Number 1/POJK.07/2013
concerning Financial Services
1. A Financial Service Institution Sector Consumer Protection
is an institution that conducts and OJK Regulation Number
activities in the Banking, Capital 18/POJK.07/2018 concerning
Market, Insurance, Pension Consumer Complaint Service
Fund, Financing Institution in Financial Services Sector
sectors and other Financial which states that Financial
Service Institutions. Services Business Actors (FSI)
2. Consumers are parties who are Commercial Banks, Rural
place their funds and/or Banks, Security Companies,
utilize services provided at Investment Advisors, Custodian
FSIs, covering among others Banks, Pensiun Funds, Insurance
customers at Banks, investors Companies, Re-insurance
at Capital Market, police holders Companies, Financing Institutions,
at the Insurance sector, as Pawn Companies, and Guarantee
well as participants in Pensiun Companies, covering those that

Consumer Chapter
Education and
Protection 02
conduct business activities in Consumer Protection Strategy

conventional manner as well as (SPKK) for the period of 2013-
based on sharia principles. This 2027 which has a vision of
regulation stipulates the obligation “creating market discipline in
of FSI to provide financial Indonesia’s financial services
education to the Consumers and/ sector, which will support
or public so that they can better financial system stability and
understand the basic features, national economic growth
rights, obligations prior to and sustainability in Indonesia “and
when utilizing financial products has a mission of” increasing
/ services. This can reduce the consumer and community trust
potential for Consumer losses due in every activity in the financial
to lack of understanding/lack of services sector, providing
clarity/erroneous information given opportunities and opportunities
by FSI. In addition, with regards for financial services institutions
Consumer protection, FSIs are to develop fairly, efficiently and
obliged to apply transparency transparently, and realizing
principle, fair treatment, reliability, consumers who have an
Consumer data/information understanding of the rights and
confidentiality and security, and obligations in associated with
complaint handling, as well as financial services institutions “.
settlements of disputes with the
consumers in a simple, quick, and In realizing the vision and
financially affordable manner mission above, SPKK period
2013-2027 consists of 4 (four)
In line with the implementation of pillars, namely: Infrastructure
the POJK Consumer Protection pillars, Regulation pillars,
for Financial Services Sector, Market conduct pillars, and Pilar
OJK formulated the Financial Education & Communications

Chapter Consumer
02 Education and
Protection
Figure 2.22. Pillars of SPKK period 2013 – 2027
TREAT CUSTOMER FAIRLY

Market Confidence & Market Dicipline
INFRASTRUCTURE REGULATION MARKET EDUCATION &

CONDUCT COMUNICATION
PILAR PILAR PILAR PILAR
I II III IV
OJK has two approaches in features, benefits and risks of

performing its function in the field financial service products and /
of FSS consumer education and or services, as well as the rights
protection, namely: and obligations of financial
consumers).
1. Preventive actions
Preventive actions are carried 2. Repressive Actions
out in the forms of regulation Repressive actions are under
and implementation in the taken in the forms of complaint
field of consumer education settlements, facilitations for
and protection. Education, dispute settlements, suspensions
which is preventive in nature, of activities or other actions,
is required as the initial step and legal defenses to protect
for enhancing financial literacy consumers. OJK undertakes
of the public so that they preventive and repressive actions
have a good understanding that are directed at financial
of financial service products inclusion and financial system
and services (including basic stability.

Consumer Chapter
Education and
Protection 02
Figure 2.23. Consumer and Public Protection
INFORMATION & EDUCATION
COMPLAINT SERVICES
PREVENTION
MARKET INTELIGENCE
SELF ASSESMENT
CONSUMER
AND PUBLIC
PROTECTION
THEMATIC SURVEILLANCE
SUSPENSIONS OF ACTIVITIES
OR OTHER ACTIVITIES
COMPLAINT SETTLEMENT
FACILITIES
HANDLING
(repressive)
LEGAL DEFENSES FOR
CONSUMERS
In addition to educating and and services provided by LJK

delivering information, OJK must meet the principles of consumer
also ensure that the products protection.

Chapter Consumer
02 Education and
Protection
3. Integrated Consumer
Services OJK (Contact Center
OJK 157)
Establishment of Integrated In order to provide consistent
Consumer Services is one of services, meet applicable
the implementation forms of the requirements, achieve Customer/
mandate of the Act concerning OJK community satisfaction, and
in its effort to provide education make continuous improvement,
and protection for the Consumers OJK’s Customer Service has
and public against violations of the implemented and achieved ISO
Act and regulations applicable in 9001: 2015 certification since
the FSS under the authority of OJK. November 24, 2016.
There are several ways to access these services, namely:

Telephone : 157
E-Mail : konsumen@ojk.go.id
Website : http://konsumen.ojk.go.id
Mobile Apps
Sikapi
Uangmu
Sikapi Uangmu Sikapi Uangmu

Consumer Chapter
Education and
Protection 02
There are three types of OJK be obtained by the community,

Consumer Services that can namely :
become a place for

Consumers to convey
information
a place for the financial

Consumer and the
community to ask
becomes a place for

Consumers to submit
complaints relating to
products and / or services
made and offered by
PUJK under the authority
of OJK.
Especially for the submission of complaints, the required

documents are as follows:
1) the evidence has submitted a complaint to the relevant PUJK
and / or the answer;
2) complete identity;
3) description of the complaint; and
4) supporting documents (if any).
Consumers and/or communities are free of charge to obtain all

the above services.

Chapter Consumer
02 Education and
Protection
Figure 2.24. Infographics of OJK’s Customer Services
Visitor Center well as submissions of complaints

In line with the development have also risen. In consideration
of Otoritas Jasa Keuangan’s of the statistics on services
Kontak 157 (Contact number 157), handled, especially services
the public’s needs for services related to information requests
concerning information, inquiry, as and receipts of complaints by

Consumer Chapter
Education and
Protection 02
walk-in visitors (consumers and/ ready to provide good services

or members of the public visiting to the consumers as well as the
OJK’s Head Office), the OJK public. However, to maintain safety
launched the Visitor Center at the and comfort in the OJK Office’s
end of 2019 in order to provide environment, visitors to the OJK
services related to receipts and Visitor Center are asked to comply
provisions of information as well with applicable rules, such as
as provision of education related prohibitions to make audio or video
to the financial services sector. recordings or to take pictures.
The OJK’s Visitor Center provides
materials and information about 4. Internal Dispute Resolution
the financial sector required by Standard (IDR Standard)
the consumers and the public OJK expects that each FSI
in the forms of videos, catalogs, can implement IDR standard
books, flyers and other media. to realize excellent consumer
There are Kontact 157 officers protection.
who are always ready to provide
information to the consumers Broadly, an IDR standard has
and/or the public who come three important benefits for
to consult on problems in the a FSI, namely: encouraging
financial services sector. To the FSI to have a guide / basis
get consultation services, the for developing a minimum
consumers and/or the public Standard Operating Procedure
can visit from 08.00 to 16.00 WIB (SOP) for the implementation of
(Western Indonesian Time). The consumer services; providing
Visitor Center Room, located on certainly in business process /
the 2nd Floor, Radius Prawiro mechanism related to IDR; and
Tower, Bank Indonesia Office encouraging good settlements
Complex, Jl. M. H. Thamrin No. 2, of complaints on the sides of
Central Jakarta is available and the FSI and Consumers.

Chapter Consumer
02 Education and
Protection
Figure 2.25. Infographics of IDR Standard

Consumer Chapter
Education and
Protection 02
Implementation of IDR Standard In implementing complaint

should be based on nine principles: handling, a FSI is obliged to
perform follow ups and settlements
of complaints within no later than
a. Visibility 20 working days, with a time
extension of no later than the next
b. Accessibility 20 working days by giving written
notices to the Consumers prior
c. Responsive
to the expirations of the set time
periods (under certain conditions).
d. Fair Treatment
e. Cost of Complaint Service The basic principles of IDR

implementation have been
f. Data Confidentiality strengthened by the enactment
of OJK Regulation Number 18
g. Focus on Consumer / POJK.07 / 2018 concerning
Consumer Complaint Services in
h. Accountability the Financial Services Sector.
i. Continuous Improvements
scan the QR Code

on the top for read
IDR completely

Chapter Consumer
02 Education and
Protection
5. Alternative Dispute Resolu-

tion Bodies (LAPS) quick, inexpensive, as well as per-
Dispute settlements through formed by human resources who
Alternative Dispute Resolution are competent and understand the
Bodies/Lembaga Alternatif FSS.
Penyelesaian Sengketa (LAPS) The banking sector already has
are made when dispute settle- the Indonesian Banking Alterna-
ments between consumers and tive Dispute Settlement Bodies/
FSI, known as IDR, do not reach Lembaga Alternatif Penyelesaian
agreements. LAPS provides Sengketa Perbankan Indonesia
dispute settlement services (LAPSPI), which has started to op-
that can be accessed easily, are erate at the beginning of 2016.
Figure 2.26. Infographic of LAPS

Consumer Chapter
Education and
Protection 02
During the period of October to development was designed by a

December 2019, a preparatory team comprising representatives
team for the establishment of an of ADRBs in the financial services
Integrated Alternative Dispute sector. It is hoped that in 2020, the
Resolution Body (Integrated ADRB) Integrated ADRB will be formed
was formed. The team comprises and be able to handle all disputes
representatives from the Financial in the financial services sector.
Services Sector associations and
the Self Regulatory Organizations 6. Market Conduct
(SROs). In the formation of the For the purpose of creating and
Integrated ADRB, the OJK has developing the FSS and enhancing
collaborated with the ADRBs in Consumer protection, OJK
the financial services sector in undertakes Consumer protection
developing a work mechanism or monitoring and analysis by using
Standard Operating Procedure the Self Assessment by FSI method
(SOP) for the Integrated ADRB. The and Thematic Surveillance).
Figure 2.27. Method for Monitoring and Analyzing Consumer Protection
Self Assesment
Method for
The consumer protection monitoring and analyzing
Monitoring
process in FSS is executed through the filling out of
and Analyzing
Consumer working papers by FSBAs as referred to in the guide
Protection for consumer protection monitoring and analyzing in
FSS.
Thematic Surveillance
The consumer protecting monitoring and analyzing
process in FSS is based on the theme of being
applicable on FSBA products and/or services that
have loss potentials for the consumers.

Chapter Consumer
02 Education and
Protection
Results of thematic surveillance link, did not include the statement

analyses, in which results of initial “registered and supervised by the
analyses are compared with results Otoritas Jasa Keuangan” and/or the
of implementation of the thematic OJK logo. In connection with these
surveillance activities, through violations, the OJK has provided
Consumer protection policy as well Coaching Letters to 18 Financial
as market intelligence results, are Service Insttutions to amend the
further discussed to come up with advertising materials in line with the
recommendations for the bank applicable provisions. In order to
supervision work unit to perform expand the reach of monitoring, the
supervisory actions (imposition of OJK has carried out development
sanctions. of SIPMI by adding social media
and online media. An advertising
Advertising Monitoring monitoring trial test with SIPMI 2.0
Through the Market Intelligence was held in December 2019.
Reporting Information System
(Sistem Informasi Pelaporan In order to step up the Financial
Market Intelijen/SIPMI), the Service Insttutions’ awareness
OJK monitors advertisements of the implementation of the
and offers related to financial Financial Service Advertising
products and services. In October Guideline launched in March 2019,
and November 2019, out of 29 the OJK has conducted the 2019
advertisements (local and national Selection of the Best Financial
print media in SIPMI), 12 were Service Advertisements. This
yet not in line with the Financial appreciation program was carried
Service Advertising Guideline. out as part of the dissemination of
All violations are in the Unclear the implementation of consumer
Advertising category, which protection so that financial service
generally still stated the clause of advertisements published can
“terms and conditions applied” be fair, clear, accurate and not
without including any specific misleading.

Consumer Chapter
Education and
Protection 02
Collection of Infographics on Consumer Protection in

the Financial Services Sector
Figure 2.28. Illustration of a Case of Fund Accumulation Without Permit

Chapter Consumer
02 Education and
Protection
Figure 2.29. Understanding the conditions for doing telemarketing

Consumer Chapter
Education and
Protection 02
Figure 2.30. Tips for protecting personal data

Chapter Consumer
02 Education and
Protection
Figure 2.31. Recognizing SIM Swap fraud mode

Consumer Chapter
Education and
Protection 02
Figure 2.32. Tips for wisely choosing Fintech P2P Lending

Chapter
02
Did you know about OJK Publication

products?
Indonesia Banking Statistics &
Sharia Banking Statistics
scan the QR Code on the top for scan the QR Code on the top for
read SPI completely read SPS completely

Chapter
03
Chapter
Development
03 of OJK’s Banking
Policy

Chapter
03
A. OJK’s 2020 Policy Direction

The OJK assesses that there are yet some downside risks that need to be
faced in order to realize the momentum for the acceleration of national
economic growth, including:
• The impacts of protectionism, such as the trade war between

the United States and China and the occurrence of Brexit, as
well as geopolitical turmoil in the Middle East, East Asia and
Latin America, have resulted in a slowdown in the overall global
economy.
• Global monetary policy has turned from contractionary to
expansionary in response to global dynamics.
• The insurance industry under supervision needs more serious
attention to improve its governance, prudence and performance.
• Transformation of the non-bank financial industry, which includes
improved risk management implementation, better governance,
and reporting of investment performance to the authorities and
the public.
• Efforts to improve the implementations of governance,
transparency and enforcement are the main focus for stepping
up market integrity and investor confidence in the capital market.
• Investment inflow portfolio has increased so that foreign exchange
liquidity is quite loose amid a decline in foreign trade activities.
These challenges will face all ease in supporting the government

sectors, without exceptions, priority sectors, the OJK will focus
including the government priority on five policies and initiatives,
sectors. To facilitate and provide including:

Chapter
03
INCREASING THE ECONOMIC SCALE OF

THE FINANCIAL INDUSTRY
a. Gradual increase in minimum capital

b. Promote acceleration of consolidations with incentive and
disincentive policies, including the exit policy
c. Accelerate reform of the non-bank financial industry
d. Tighten securities companies’ business licensing based on the
level of capital
NARROWING THE REGULATORY AND SUPERVISORY

GAPS BETWEEN FINANCIAL SERVICES SECTORS
a. Continue harmonization in the entire financial services sector

from the sides of regulation and supervision, as well as
enforcement, especially in the non-bank financial industry
b. Register the market makers on the stock exchange with small
market capitalizations to minimize the potential for stir-frying
of shares
c. Assess the adoption of the investment bank concept

Chapter
03
DIGITALIZATION OF FINANCIAL PRODUCTS AND

SERVICES AND THE UTILIZATION OF TECHNOLOGY
IN SUPPORTING REGULATORY COMPLIANCE
a. Develop a digital financial ecosystem in the financial services

and fintech start-up industries
b. Accelerate digitalization efforts in the financial services sector
by facilitating the licensing of digital-based financial products
and services
c. Simplify the licensing of digital-based financial products and
services and the potential to open licensing for virtual banking.
d. Develop technology-based regulating and supervision to
support early warning and forward-looking supervision.
e. Develop integrated inter-institutional licensing with the
utilization of technology to accelerate the licensing processes
across ministries and agencies

Chapter
03
ACCELERATION OF PROVISION OF FINANCIAL

ACCESS AND STRENGTHENING OF THE
IMPLEMENTATIONS OF MARKET CONDUCT AND
BETTER CONSUMER PROTECTION
a. Develop financial instruments that support infrastructure

projects and upstream as well as downstream industries and
empower Micro, Small and Medium Enterprises (MSMEs)
including Islamic finance-based instruments, regional bonds,
as well as green financial instruments.
b. Develop green instruments to support the Sustainable
Development Goals.
c. Build the ecosystem for MSME development, including the
utilizations of KUR (Rural Business Credit) cluster scheme
and technology as well as expansion of the Micro Waqf Bank
program
d. Facilitate Government programs in improving community
welfare.
e. Enhance public financial literacy as well as provision of financial
education as well as access to financial services to the public
from an early age.
f. Optimize the role of the Team for Regional Financial Access
Acceleration (Tim Percepatan Akses Keuangan Daerah/TPAKD)
through the utilization of technology
g. Strengthening aspect of consumer and public protection by
improving the quality of market conduct supervision.
h. Optimize the role of the Task Force for Investment Alert.

Chapter
03
DEVELOPMENT OF ISLAMIC ECONOMIC

AND FINANCIAL ECOSYSTEMS
a. Promote development of the leading halal industries in

Indonesia
b. Boost Islamic financial institutions to step up business scale
and technology adoption
c. Strengthen the synergy between the halal industry players
and the financial services industry as well as other related
stakeholders

Chapter
03
B. Development of OJK’s Banking Policy

in 2019 up to June 2020
Banking Sector
Development in 2019
In general, banking resilience to absorb risks, supported by yet
was yet maintained in the fourth growing profits and maintained
quarter of 2019, as reflected in quality of bank credit. The banking
the sufficiently solid condition intermediation function was also
of commercial bank capital with quite good, viewed from credit and
a CAR of 23.31%. This reflected deposits, which grew by 6.08%
the adequate capability of banks (yoy) and 6.54% (yoy) respectively.
Table 3.1. Perfomance of Conventional Commercial Banks 2019

Nominal qtq yoy
Indicator
Des ‘18 Sep ‘19 Des ‘19 Sep ‘19 Des ‘19 Des ‘18 Des ‘19
Total of Assets 7.751.655 7.993.250 8.212.611 0,92% 2,74% 9,18% 5,95%
(Billion IDR)
Credit (Billion IDR) 5.092.584 5.306.141 5.391.846 0,97% 1,62% 11,97% 5,88%
DPK (Billion IDR) 5.372.841 5.624.575 5.709.670 1,66% 1,51% 6,37% 6,27%
-Deposit (Billion 1.287.480 1.393.013 1.423.773 1,88% 2,21% 6,66% 10,59%
IDR)
-Saving Deposits 1.737.216 1.744.253 1.844.526 0,43% 5,75% 6,80% 6,18%
(Billion IDR)
-Time Deposits 2.348.146 2.487.308 2.441.372 2,41% -1,85% 5,90% 3,97%
(Billion IDR)
CAR (%) 22,97 23,28 23,40 65 12 (21) 43
ROA (%) 2,55 2,48 2,47 (3) (1) 10 (8)
NIM (%) 5,14 4.90 4,91 (0) 0 (18) (23)
BOPO (%) 77,86 80,50 79,39 26 (111) (78) 153
NPL Gross (%) 2,33 2,63 2,50 16 (13) (17) 17
NPL Net (%) 1,00 1,15 1,16 0 1 (11) 15
LDR (%) 94,78 94,34 94,43 (64) 10 474 (35)

Chapter
03
In line with the performance the Minimum Capital Adequacy

of Commercial Banks, the Requirement (MCAR). The rise
intermediation of Conventional in the CAR was driven by capital
Commercial Banks (CCBs) in growth in line with the growth in
2019 performed quite well, as reserves for additional capital.
reflected in credit growth of
However, credit risk recorded a
5.88% (yoy) which was offset by
rise, as evidenced by the rises
the growth in TPF of 6.27% (yoy),
in gross NPL and net NPL to
which in general improved liquidity
2.50% and 1.16%, respectively.
condition compared to that in the
Profitability of banks also
previous year.
dropped, albeit maintained with
The CCB capital resilience in 2019 banking ROA of 2.47% along
was yet solid, as reflected in the with a rise in OCOI (Operational
CAR which increased by 23.40% Cost over Operational Income) to
from the previous year, well above 79.39%.
Table 3.2. Perfomance of Rural Banks (RBs) 2019

Nominal qtq yoy
Indicator
Des ‘18 Sep ‘19 Des ‘19 Sep ‘19 Des ‘19 Des ‘18 Des ‘19
Total of Assets 135.693 144.779 149.623 3,78% 3,35% 7,74% 10,27%
(Billion IDR)
Credit (Billion IDR) 98.220 106.733 108.784 2,02% 1,92% 9,77% 10,76%
DPK (Billion IDR) 91.956 99.071 102.538 4,33% 3,50% 8,36% 11,51%
-Saving Deposits 29.491 30.800 32.132 5,70% 4,32% 10,36% 8,95%
(Billion IDR)
-Time Deposits 62.465 68.271 70.406 3,72% 3,13% 7,44% 12,71%
(Billion IDR)
CAR (%) 23,35 22,79 28,88 1 609 40 553
ROA (%) 2,48 2,29 2,31 (8) 2 (7) (17)
BOPO (%) 80,74 82,39 81,50 6 (89) 24 76
NPL Gross (%) 6,37 7,34 6,81 9 (54) 22 44
NPL Net (%) 4,74 5,55 5,22 (4) (33) 22 47
LDR (%) 76,54 77,81 79,09 (110) 128 118 255
CR (%) 18,84 15,67 17,08 51 141 (103) (176)

Chapter
03
During 2019 the RB industry However, credit risk recorded

demonstrated a better a rise, as reflected by the rises
intermediation function compared in gross NPL and net NPL to
to the previous year, with credit and 6.81% and 5.22%, respectively.
TPF recorded double digit growths Profitability of banks also recorded
of 10.76% (yoy) and 11.51% (yoy) a drop, although it was maintained
respectively. The higher growth in with ROA ratio of 2.31% amidst the
TPF relative to credit growth kept rise in the OCOI ratio to 81.50%.
RB liquidity maintained with LDR at
79.09% level. RB assets also grew
by 10.27% (yoy) along with the rise Banking Sector’s
in TPF. Development Up To June
2020
CAR in December 2019 recorded Amid the global and domestic
a quite significant rise by 28.88% economic conditions affected by
compared to the previous year’s the Covid-19 pandemic, banking
23.35%. This rise was influenced resilience in the second quarter
by the required formation of a of 2020 was generally maintained,
special Provision for Earning Asset as reflected in the sufficiently
Losses of 0.5% for earning assets solid condition of bank capital with
with the quality of under special CAR of 22.54%. This reflected
attention category which became banks’ adequate capability
effective as of 1 December 2019 to absorb risks. The banking
(OJK Regulation Number 33/ intermediation function was also
POJK.03/2018 concerning Earning quite good viewed from credit,
Asset Quality and Establishment of which continued to grow, although
Provision for Earning Asset Losses experiencing a slowing, by 1.49%
for Rural Banks). The high CAR (yoy) as well as TPF with a growth
ratio reflected the adequately solid of 7.95% (yoy). The higher growth
resilience of rural banks’ capital for of TPF than the growth of credit,
absorbing risks. has resulted the LDR to return to

Chapter
03
the range of 88.64%. However, the second quarter of 2020

it is necessary to pay attention to performed quite well, while
the rise in credit risk and the drop CCBs’ resilience was yet solid, as
in profitability in this period in line reflected in CAR of 22.55%, which,
with the deceleration in economic despite on a downward trend, was
activities as an impact of the yet far above the threshold. The
Covid-19 pandemic. intermediation function of CCBs
was also sufficiently good, as
In line with the performance reflected in LDR of 89.10%, which
of Commercial Banks, the was driven by a higher growth in
intermediation of Conventional TPF compared to its growth in the
Commercial Banks (CCBs) in previous year.
Table 3.3. CCBs’ performance period January - June 2020

Nominal qtq yoy
Indikator
Jun ‘19 Mar ‘20 Jun ‘20 Mar ‘20 Jun ‘20 Jun ‘19 Jun ‘20
Total of Assets 7.920.038 8.443.255 8.314.082 2,81% -1,53% 7,66% 4,98%
(Billion IDR)
Credit (Billion IDR) 5.255.085 5.483.646 5.316.379 1,70% -3,05% 9,84% 1,17%
DPK (Billion IDR) 5.532.926 5.924.944 5.967.088 3,77% 0,71% 7,27% 7,85%
-Deposit (Billion 1.367.355 1.563.497 1.539.537 9,81% -1.53% 6,73% 12,59%
IDR)
-Saving Deposits 1.736.841 1.832.289 1.877.861 -0,66% 2,49% 5,81% 8,12%
(Billion IDR)
-Time Deposits 2.428.731 2.529.159 2.549.690 3,60% 0,81% 8,66% 4,98%
(Billion IDR)
CAR (%) 22,63 21,67 22,55 (174) 88 62 (8)
ROA (%) 2,51 2,57 1,94 10 (63) 8 (56)
NIM (%) 4,90 4,31 4,46 (60) 15 (20) (44)
BOPO (%) 80,24 88,84 89,94 945 (390) 77 471
NPL Gross (%) 2,47 2,74 3,10 25 36 (16) 63
NPL Net (%) 1,14 0,98 1,13 (17) 15 (5) (1)
LDR (%) 94,98 92,55 89,10 (188) (346) 222 (588)

Chapter
03
However, credit risk recorded a June 2020’s CAR recorded a

rise, as reflected by the rise in rise to 30.80% from the previous
gross NPL to 3.10%. Profitability year. This rise was influenced by
also recorded a drop albeit was the required establishment of a
maintained with a banking ROA of special Provision for Earning Asset
1.94% and OCOI of 84.94%. Losses of 0.5% for earning assets
with the quality of under special
During the second quarter of 2020, attention category which became
the RB industry demonstrated a effective as of 1 December 2019
fairly good intermediation function (OJK Regulation Number 33/
performance, with credit and TPF POJK.03/2018 concerning Earning
still recorded growths of 5.59% Asset Quality and Establishment of
(yoy) and 5.37% (yoy) respectively. Provision for Earning Asset Losses
Table 3.4. RB’s performance period January - June 2020

Nominal qtq yoy
Indikator
Jun ‘19 Mar ‘20 Jun ‘20 Mar ‘20 Jun ‘20 Jun ‘19 Jun ‘20
Total of Assets 139.512 149.659 146.866 0,02% -1,87% 8,99% 5,27%
(Billion IDR)
Credit (Billion IDR) 104.616 111.445 110.468 2,45% -0,88% 10,96% 5,59%
DPK (Billion IDR) 94.962 102.975 100.063 0,43% -2,83% 10,04% 5,37%
-Saving Deposits 29.138 31.547 30.376 -1,82% -3,71% 9,19% 4,25%
(Billion IDR)
-Time Deposits 65.824 71.428 69.686 1,45% -2,44% 10,42% 5,87%
(Billion IDR)
CAR (%) 22,78 91,54 30,80 266 (74) 6 802
ROA (%) 2,37 2,28 1,98 (3) (30) (11) (39)
BOPO (%) 82,34 82,96 84,78 146 182 60 244
NPL Gross (%) 7,25 7,95 8,44 114 49 10 119
NPL Net (%) 5,56 6,25 6,58 103 33 18 100
LDR (%) 78,91 77,86 79,09 (123) 123 131 18
CR (%) 15,17 14,97 16,66 (211) 169 (76) 149

Chapter
03
for Rural Banks). The high CAR in gross NPL and net NPL to
ratio reflected the adequately solid 8.44% and 6.58%, respectively.
resilience of rural banks’ capital for Profitability also also recorded a
absorbing risks. drop, although it was maintained
with ROA ratio of 1.98% amidst
However, credit risk recorded the rise in the OCOI ratio to
a rise, as reflected by the rises 84.78%.

Chapter
03
C. Financial Inclusion and Public

Education
There have been changes made in DPPS no longer has the authority
the organizational structure at the nor main task and function
OJK in 2019, which included the concerning Islamic banking
transfer of authority related to public education. However, the DPPS still
education concerning Islamic maintains coordination related to
banking from the Directorate of education activities to the public
Sharia Banking Regulating and by acting as a resource person in
Licensing (Direktorat Pengaturan activities with the Islamic banking
dan Perizinan Perbankan Syariah/ theme organized by the EPK
DPPS) to the OJK’s Consumer compartment. The following are
Education and Protection (Edukasi the EPK compartment’s activities
dan Perlindungan Konsumen/ which had been supported by
EPK) compartment. As such, the resource persons from the DPPS:
Table 3.5. OJK’s Consumer Education and Protection activities with Directorate of Sharia
Banking Regulating and Licensing
No. Activities Location Time
1. Expo iB Vaganza Balikpapan 5-7 April 2019
2. Narsum ToT Bagi Hakim dan Hotel 101 Tugu 14-15
Panitera Pengadilan Agama di Yogyakarta August 2019
Yogyakarta
3. Narsum Expo iB Vaganza Palembang 23 August 2019
Palembang Icon Mall
4. Kuliah Umum UIN Sunan 10 September
Literasi dan Inklusi Keuangan Kalijaga 2019
Yogyakarta
5. Expo iB Vaganza Solo Paragon 22-24
Mall November 2019
6. Knowledge Sharing Perbankan Virtual Zoom 23 April 2020
Syariah

Chapter
03
D. Illegal Fintech Entities

recommendations and to
confirm with the OJK on
CH
TE existing accounts that are
FIN
L
suspected of being used for
GA
H
ILE illegal peer-to-peer lending
T EC
FIN fintech activities.
2) Submitting requests to
Bank Indonesia to prohibit
the fintech payment system
to facilitate illegal peer-
to-peer lending fintech
entities.
d. Submitting information reports
The Task Force for Investment to Bareskrim Polri (National
Alert has continously made efforts Police’s Criminal Investigation
to eradicate illegal peer-to-peer Agency) for law enforcement
lending fintech entities by: processes.
a. Making announcements e. Increasing the role of the
concerning illegal peer-to-peer Indonesian Joint Funding
lending fintech entities to the Fintech Association (Asosiasi
public. Fintech Pendanaan Bersama
b. Regularly submitting requests Indonesia/AFPI) in handling
for blockages of websites and illegal peer-to-peer lending
applications to the Ministry fintech entities.
of Communication and f. Continuously providing
Informatics of the Republic of education and dissemination
Indonesia and Google LLC. to the public in the use of legal
c. Cutting off financial access peer-to-peer lending fintech
from illegal peer-to-peer entities.
lending fintech entities:
1) Submitting appeals to In regard efforts concerning
banks to refuse account continuous prevention and
openings without OJK’s protection for the public, the Task

Chapter
03
Force for Investment Alert also been discontinued until the

makes the following efforts: situation makes the activities
possible again.
a. Collaborate with the Ministry
of Communication and Infor-
In addition, through dissemination
matics of the Republic of In-
activities to the public, the Task
donesia in regularly crawling
Force for Investment Alert provid-
illegal fintech data through
ed tips for taking out borrowings
cyber patrols.
through peer-to-peer lending,
b. Periodically convey confirma-
namely:
tions on illegal fintech entities
that are not registered with a. Borrow from peer-to-peer
the OJK based on information lending fintech entities regis-
received from the results of tered with the OJK.
cyber patrols. b. Borrow according to your
c. Collaborate with private out- needs and abilities
door media and radio media, c. Borrow for productive (earning)
as well as media belonging purposes
to the DKI Jakarta Provincial d. Understand the benefits, costs,
Government’s Department interests, tenors, penalties, and
of Communication and Infor- risks.
matics.
d. Establish an “Investment Alert The Task Force for Investment
Booth” as a facility of public Alert have discontinued 1,493
consultation regarding illegal (one thousand four hundred ninety
investments attended by three) illegal peer-to-peer lending
members of the Task Force for fintech entities in 2019 and 589
Investment Alert, so that the (five hunded eighty nine) in the first
public can obtain information semester of 2020. Thus, from 2019
directly from the relevant up to mid-2020, the Task Force for
agencies. However, due to Investment Alert have discontinued
the condition of the COVID-19 an accumulation of 2,082 (two
pandemic, activities of the thousand eighty two) illegal peer-
“Investment Alert Booth” have to-peer lending fintech entities.

Chapter
03
Figure 3.1. Server Location of Financial Technology Peer-To-Peer Lending
Rincian Hongkong
Unknown 530 1%
Malaysia Russia
USA 170
2% Federation
UK 5
0%
Thailand 1 Lain-lain
Singapore 94
China
6% 3%
Russia Federation 7
Philipines 1 Singapore Unknown
Netherlands 3 8% 44%
Malaysia 22
Lithuania 1
Korea 2
Israel 2
Ireland 1
Indonesia 272
Hong Kong 9 USA
Germany 7 14% Indonesia
France 2 22%
China 70
Canada 4
Bulgaria 1
British 1
Australia 2
1.270
entitas
Data from the Indonesian Ministry of Communication and Information Technology, the Task Force
for Handling Alleged Unlawful Actions in the Field of Community Fund Collection and Investment
Management
Throughout 2018 up to May 2020, entities operating without licenses

the Task Force for Investment Alert from the OJK and announced
has terminated a total of 2,486 the terminations through Press
peer-to-peer lending fintech Releases.

Chapter
03
E. Otoritas Jasa Keuangan Regulation

concerning the Operation of
Consumer and Public Services in the
Financial Services Sector by Otoritas
Jasa Keuangan
This OJK Regulation is one of the lic services provided through the
Otoritas Jasa Keuangan (OJK)’s OJK strengthens legal certainty
follow-up efforts in implementing for Financial Service Institutions,
the mandates of Article 28, Arti- consumers, and the public regard-
cle 29, and Article 31 of the Act ing the tools, mechanisms and re-
on OJK, concerning the authority quirements for the implementation
given to the OJK to provide infor- of consumer and public services
mation and education to the public by the OJK. With this regulation,
on the characteristics of the finan- it is hoped that all parties in the
cial service sector and its services financial services sector can work
and products, as well as to provide together in strengthening con-
services concerning complaints. sumer protection in the financial
In addition, this regulation also fur- services sector.
ther stipulates the provisions re-
garding consumer and public ser- Regulatory Substance:
vices by the OJK, which is one of The Otoritas Jasa Keuangan Reg-
the content materials in OJK Reg- ulation concerning the Operation
ulation Number 1/POJK.07/2013 of Consumer and Public Services
concerning Consumer Protection in the Financial Services Sector by
in the Financial Services Sec- the Otoritas Jasa Keuangan stipu-
tor. The existence of a regulation lates the objectives and services
concerning consumer and pub- that can be utilized by consumers

Chapter
03
and the public. The provisions re- met by the consumers/public

garding these services cover: when submitting complaints
1. Various media that can be used that have indications of viola-
by the consumers/public in tions;
conveying information or ques- 5. Mechanism for resolving com-
tions; plaints that have indications of
2. Obligations of financial ser- disputes/violations;
vice institutions in supporting 6. The integrated consumer ser-
services provided by the OJK vice system in the financial ser-
and the timeframe for fulfilling vices sector and the timing of
these obligations; its effectiveness; and
3. The formal requirement and 7. Sanctions imposed on Finan-
materials of complaints that cial Service Institutions that vi-
have indications of disputes; olate the provisions in this OJK
4. Requirements that must be Regulation.

Chapter
03
F . Credit Information Services

Since the full operation of the Currently, four Savings and Loans
Financial Information Service Cooperatives have voluntarily
System (Sistem Layanan Informasi registered to become SLIK reporters,
Keuangan/SLIK) in January 2018, three of which are cooperatives that
the OJK has started providing distribute Kredit Usaha Rakyat (Rural
debtor information service (iDeb) Business Credit). Currently, SLIK
to the public and financial service reporters consist of Commercial
institutions. Banks (conventional and Islamic),
RBs, SRFBs, Financing Institutions,
The number of SLIK reporters at and other FSIs (except Micro Finance
the end of December 2019 came to Institutions), as well as Savings and
2,070. Loans Cooperatives.
Figure 3.2. The Illustration of the number of SLIK’s Reporter based on category
1.758 1.709
2.000
1.000
135 130 226 223 4 4 3 4
0
BU BPR/S LEMBAGA IJKL Non IJK
(BUK, BUS, UUS) PEMBIAYAAN
January 2019 December 2019
Source : Diolah dari Statistik Layanan Informasi Keuangan dapat diunduh melalui
link berikut: https://www.ojk.go.id/id/kanal/perbankan/Pages/Sistem-Layanan-
Informasi-Keuangan-SLIK.aspx

Chapter
03
In general, objective of the public in Throughout 2019, the OJK, through

accessing the debtor information SLIK service outlets at the Head
service is to find out the history Office and Regional Offices/ OJK
of the collectability of all loans Offices in the regions, has served
a debtor has in the previous 24 as many as 98,709 iDeb requests
months. from the public.
Figure 3.3. The number of IDEB’s request from public during 2019
15.000
10.928
9.923 10.064 9.091
10.000
6.725 7.074 7.431 7.176 7.225 7.949
9.489
5.000
5.634
Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 sept-19 Okt-19 Nov-19 Des-19
Source : Diolah dari Statistik Layanan Informasi Keuangan dapat diunduh

melalui link berikut https://www.ojk.go.id/id/kanal/perbankan/Pages/
Sistem-Layanan-Informasi-Keuangan-SLIK.aspx
The OJK also provides access OJK has served more than 69.6
for SLIK Reporters to obtain million iDeb requests from SLIK
iDeb data. Throughout 2019, the Reporters.

Chapter
03
Figure 3.4. Number of iDeb requests by SLIK Reporters
6.406.111 6.429.527
6.309.283 6.347.279
5.540.511 6.086.645
5.899.852 6.097.335
5.260.219
5.174.205
5.088.533
4.982.910
Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 sept-19 Okt-19 Nov-19 Des-19
Throughout January – June 2020, The OJK also provides access

the OJK, through SLIK service for SLIK Reporters to obtain iDeb
outlets at the Head Office and data. Throughout January – June
Regional Offices/ OJK Offices in 2020, the OJK has served more
the regions, has served as many than 35,9 million iDeb requests
as 36.474 iDeb requests from the from SLIK Reporters.
public.
Figure 3.5. The number of IDEB’s request from public during January - June 2020
12.000
9.765 9.817
10.000
8.000 7.240
6.000 4.534
4.000 2.522 2.596
2.000
-
January February March April May June
2020 2020 2020 2020 2020 2020

Chapter
03
Figure 3.6. The number of IDEB’s request from SLIK’s Reporters during January - June 2020
9 .000.000
7.594.576 7.709.567
8.000.000
7.000.000 6.457.481
6.000.000 5.074.073 5.338.173
5.000.000 3.796.077
4.000.000
3.000.000
2.000.000
1.000.000
-
January February March April May June
2020 2020 2020 2020 2020 2020
Source : Diolah dari Statistik Layanan Informasi Keuangan dapat diunduh melalui
link berikut: https://www.ojk.go.id/id/kanal/perbankan/Pages/Sistem-Layanan-
Informasi-Keuangan-SLIK.aspx

Chapter
03
G. Issuance of Banking Provisions

The OJK has a mandate to create out by SCBs and Commercial
a financial services sector that is Banks that have ownership
stable, continuously growing, and relationships, covering vertical
contributive. This effort is realized ownership relationship (synergy
through the issuance of provisions between parent companies
in the banking sector that are able and subsidiaries), horizontal
to provide adequate confidence ownership relationship (synergy
to all stakeholders, provide ample between sister companies), or a
room for the industry to develop, combination of the two. Areas in
and at the same time support which Commercial Bank resources
national economic development. can be synergized include, among
Regulatory harmonization is also others, HR, IT, and office networks.
continuously carried out so that This OJK Regulation is a strategic
OJK provisions remain relevant to initiative of the OJK in reforming the
current conditions and are able to business processes of the Islamic
answer future challenges. banking industry, particularly in
addressing the implementation of
Throughout 2019, the OJK has the Act on Islamic Banking related
issued 18 OJK Regulations in to the obligation to separate SBUs
the banking field, 3 of which are from SCBs by 2023.
specific for Islamic banking.
Meanwhile, the other two OJK
First, OJK Regulation Number Regulations that concern
28/POJK.03/2019 concerning islamic banking are enacted
Banking Synergy within One for harmonizing the existing
Ownership for Development regulations, namely OJK Regulation
of Islamic Banking. This OJK Number 20/POJK.02/2019
Regulation expands the space for concerning the Assessment
cooperation that can be carried System for the Soundness Level

Chapter
03
of Sharia Rural Financing Banks laboration with various stake-

and OJK Regulation Number holders in this ecosystem must
29/POJK.03/2019 concerning be carried out continuously and
Quality of Earning Assets and intensified. In this case, the Is-
Establishment of Provision for lamic Economic Community (IEC)
Earning Asset Losses for Sharia is a strategic partner of the OJK
Rural Financing Banks. in building these synergy and col-
laboration. The IEC is a forum for
The entire banking provisions Islamic economic and financial
issued in 2019 are presented in actors that was establihed in 1991,
Section 4. covering various elements from
the Government or related author-
H. Islamic ities, academics and halal industry

players such as: the fashion in-
Economic dustry, Muslim clothing, halal food,

pharmaceuticals, to the tourism
Community sector.
One of the OJK’s 2017-2022 stra- The synergy between the OJK and
tegic policy directions is to pro- the IEC has long been established
mote enhancement in the role and is closely knit. In terms of man-
of the Islamic financial sector in agement, position of the General
supporting the provision of devel- Chairperson of the IEC for the last
opment resources. This has been few periods was entrusted with
pursued through the integration of the Chairman of the OJK, namely
the Islamic financial sector, includ- the current Chairman of the OJK,
ing islamic banking, into the Islam- Prof. Wimboh Santoso Ph.D, and
ic economic ecosystem in order Chairman of the OJK for the period
to be able to realize its enormous 2012-2017, Prof. Muliaman Hadad,
potential. Ph.D. Thus, various OJK’s policies
on Islamic finance can be commu-
For this reason, synergy and col- nicated and implemented more

Chapter
03
quickly and effectively to all stake- the Islamic financial sector. Some
holders. On the other hand, the of the OJK’s and the IEC’s collab-
IEC can also provide thoughts and orative programs in 2019 included
feedback to the OJK in accelerat- provision of assistance to the Micro
ing the development of the Islamic Waqf Bank (BWM) program which in-
economy and finance. volved Islamic banking, the drafting
of an Islamic fintech code of ethics,
Not only that, the OJK and the IEC as well as the organizing of educa-
have also collaborated in orga- tion and dissemination activities to
nizing work programs to promote the public in order to introduce and
the growth and development of enhance Islamic financial literacy.

Chapter
03
I. Provision of Capacity Building for

Public Accountants Registered to
conduct Audits in the Banking Sector
1. Role of Public Accounting Firms the prevailing norms and provisions,
and Public Accountants in the particularly in the banking industry,
Banking Sector will help ensure that banks constant-
ly strive to do better and to be more
Based on Act Number 5 of 2011 con-
prudent in conducting their business
cerning Public Accountants, Public
activities. Furthermore, sound banks
Accountants have an extremely im-
will be able to support the realization
portant role in supporting a healthy and
of a financial system that grows in a
efficient national economy as well as
sustainable and stable manner.
in enhancing transparency and quality
of information in the financial field in The enactment of OJK Regulation
the entire economy sector. Specifically Number 13/POJK.03/2017 dated 27
in the financial services sector, Public March 2017 concerning Uses of the
Accountants have a central role in pro- Services of Public Accountants and
tecting interest of the public which in- Public Accounting Firms in Financial
cludes various stakeholders, especially Service Activities (OJK Regulation
funds/savings owners, investors, policy 13), stipulates that prior to provid-
holders, the Government, financial ser- ing services to parties that conduct
vice institutions, and the general pub- financial service activities, Public
lic. Accountants and Public Accounting
Firms must first be registered with
Examinations by Public Accountants
the OJK.
that are carried out in accordance with
The enactment of OJK Regulation Number 13/POJK.03/2017 dated 27

March 2017 concerning Uses of the Services of Public Accountants and
Public Accounting Firms in Financial Service Activities (OJK Regulation 13),
stipulates that prior to providing services to parties that conduct financial
service activities, Public Accountants and Public Accounting Firms must first
be registered with the OJK.

Chapter
03
2. Capacity Building Program 13 is expected to be able to

for Public Accountants in the promote Public Accountants to
banking sector have competence and knowledge
in the field of financial services
The role of Public Accounting Firms and industries that use Public
and Public Accountants registered Accountants. To maintain and
with the OJK in ensuring the improve competence and
quality of information for the wide knowledge, Public Accountants
stakeholders requires professional are required to take part in a special
competence and independence. Continuing Professional Education
Public Accountants are required for Public Accountants, organized
to always maintain, improve by the institution recognized by the
and develop their professional Otoritas Jasa Keuangan, namely
competence through a continuous the professional association
learning process. Development of Public Accountants set by
of professional competence for the Minister of Finance (in this
Public Accountants is expected case, the Indonesian Institute of
to take place along with the rapid Public Accountants), at least in
development of the financial accordance with the number of
services industry, particularly Continuing Professional Education
banking. Credit Units that must be met
every year as set by the Otoritas
The enactment of OJK Regulation Jasa Keuangan.
PPL for Public Accountants registered in the OJK Banking sector has been held
in collaboration with IAPI since 2014.

Chapter
03
3. Public Accountants/Public Total Public Accountants (PAs) with

Accounting Firms in the active status and registered in the
Banking sector registered Banking sector as of December
with the OJK 2017 position were 344 persons
(Conventional Banking PAs) and 88
Based on OJK’s administrative
record in the Banking sector, as persons (Islamic Banking PAs). In
of December 2017 position there 2018, apart from the registrations
were 221 Public Accounting Firms of new PAs/PAFs there were also
(PAFs) registered with the OJK, re-registrations up to 27 March
of which 176 PAFs had Public 2018 for PAs/PAFs registered with
Accountants (PAs) registered in the OJK prior to the enactment of OJK
Banking sector. As of December Regulation 13. As of December 2018
2018 position there were 224 PAFs position, the total active PAs in the
registered with the OJK, with 192 banking sector were 390 persons
PAFs having PAs registered in the
(Conventional Banking PAs) and
banking sector. Meanwhile, as of
99 persons (Islamic Banking PAs).
the position of December 2019
Meanwhile, at December 2019
there were 271 PAFs registered with
position, the total PAs active in the
the OJK, with 225 PAFs having PAs
registered in the banking sector. banking sector were 442 persons
Furthermore, as of the position of (Conventional Banking PAs) and
June 2020 there were 282 PAFs 136 persons (Islamic Banking PAs).
registered with the OJK, of which Furthermore, as of June 2020
228 PAFs had PAs registered in the position, the total PAs active in the
banking sector. banking sector were 448 persons
AP Competency 2017 2018 2019 June 2020

Conventional Banking 344 390 464 471
Sharia Banking 88 99 146 152
AP Sharia Banking must first or simultaneously have a Registered Certificate

(STTD) AP for the Conventional Banking Sector.

Chapter
03
(Conventional Banking PAs) and are 1,436 Banks (87.61% of total

142 persons (Islamic Banking PAs). Banks), namely all commercial
The Financial Service Institutions banks as well as each RB/SRFB,
in the Banking Sector that are with total assets of more than IDR
required to be audited by PAFs/PAs 10 billion.
registered with the OJK (clients)
Public Accountants who wish to be registered with the OJK can submit
online registration applications through the Integrated Licensing and
Registration System (Sistem Perizinan dan Registrasi Terintegrasi/
SPRINT) (http: \\ sprint.ojk.go.id)
J. Memorandum of
Understanding of OJK - LPS
The Otoritas Jasa Keuangan Santoso and Chairman of the
(OJK) and the Indonesia Deposit IDIC’s Board of Commissioners,
Insurance Corporation (IDIC) Halim Alamsyah.
have signed a Memorandum
of Understanding concerning A. BACKGROUND
coordination and cooperation in
Compilation of the Memorandum
the context of implementation
of Understanding (MoU) of the
of the functions and tasks
OJK-IDIC was a renewal of the
of the OJK and IDIC at the
2014 MoU of the OJK-IDIC which
Financial System Stability
has expired on 18July 2017.
Committee (FSSC) meeting on
Monday, 28 January 2019. The B. PURPOSE
signing of the Memorandum of
Understanding was performed The renewal aims to facilitate
by Chairman of the OJK’s Board and optimize cooperation and
of Commissioners, Wimboh coordination in implementation

Chapter
03
of the functions and tasks of 7. Settlement follow-up actions

the OJK and IDIC, as well as to for Banks which business
adjustment to Act Number 9 licenses have been revoked;
of 2016 concerning Financial 8. Establishment and
System Crisis Prevention and termination of Intermediary
Management (Act on FSCPM), Banks;
Otoritas Jasa Keuangan’s 9. Handling or settlement of
provisions, and Indonesia banks with “publicly listed”
Deposit Insurance Corporation’s status and issuance of
provisions. securities; and
10. Implementation of other
C. SCOPE functions and tasks
The scope of the MoU of the
OJK-IDIC, namely: D. UPDATES OF MoU of OJK-
IDIC
1. Implementation of deposit 1. To improve coordination be-
insurance and supervision tween OJK and IDIC, among
at Banks others in the context of
2. Follow-up of results of a. handling of Systemic
supervision and analyses Banks
of Banks; b. settlement of Banks Oth-
3. Settlement of Banks other er Than Systemic Banks
than Systemic Banks with c. establishment and ter-
the status of Bank Under mination of Intermediary
Intensive Supervision Banks
(BUIS) and Banks Under d. handling or settlement of
Special Supervision (BUSS) banks with the status of
4. Handling of Systemic “Tbk” and issuance of se-
Banks with BUIS and BUSS curities
statuses; 2. Handling of Systemic Banks
5. Settlement of Banks other handed over by FSCPM to
than systemic Banks that IDIC based on the Act on
cannot be rehabilitated; IDIC and the Act on FSCPM
6. Handling of Systemic Banks 3. The IDIC may carry out due
handed over by FSCPM to diligence, both on Systemic
IDIC;

Chapter
03
Banks as well as Non-Sys- temic Banks, with BUIS

temic Banks with BUIS sta- and BUSS statuses
tus, with certain terms and 6. Provision of support by the
conditions OJK to the IDIC in the im-
4. Step up the scope of data plementation of the Bank-
and information exchange in ing Restructuring Program
a more comprehensive man- 7. Establishment of the Co-
ner ordination Forum in order
5. Acceleration of the time peri- to facilitate exchange of
od for conveying information information and imple-
between the OJK and IDIC mentation of the tasks and
related to Systemic Banks authorities of each agency.
and Banks Other Than Sys-
K. International Assessments
1. RCAP of Net Stable Funding (28 jurisdictions), including
Ratio (NSFR) dan Large Indonesia. Based on the results
Exposures (LEX) of the RCAP, BCBS will issue
grades consisting of compliant,
The Regulatory Consistency
largely compliant, materially
Assessment Program (RCAP)
non-compliant and non-
is an assessment process
compliant grades.
conducted by BCBS with the aim
of finding out the consistency of
In 2016, Indonesia achieved
regulations issued by a country’s
the grades of compliant for the
authorities with international
RCAP framework for Liquidity
banking standards issued by
Coverage Ratio (LCR) and
BCBS. RCAP is carried out on
largely compliant for Capital.
all BCBS member countries

Chapter
03
Since 2018, the OJK has been 2. Implementation of Financial

preparing to implement RCAP Stability Institute- Executives
framework for Net Stable Meeting of East Asia Pacific
Funding Ratio (NSFR) and Large Central Banks (FSI-EMEAP)
Exposures (LEX) by establishing Policy Implementation
a task force and conducting Meeting (PIM)
self-assessments aimed at
On 16-17 October 2019, the OJK
identifying gaps between the
hosted the FSI-EMEAP PIM with
Basel framework and applicable
the theme “Expected Credit
provisions. In October 2019, the
Loss Provisioning: Implications
OJK held an on-site assessment
for Regulation and Supervision”.
meeting with the RCAP NSFR
This activity was held in Jakarta
and LEX assessor team which
and attended by 35 senior
resulted in preliminary grading
officials from banking authorities
and the RCAP NSFR and LEX
of several countries.
draft reports. The final results
of the RCAP NSFR and LEX
One of the topics discussed
Indonesia assessment will
at the meeting was the impact
be determined at the Basel
and challenges of the expanded
Committee meeting in the first
scope of the assessment of
quarter of 2020.
the implementation of the
International Financial Reporting
Standards (IFRS) 9 which has
an impact on the levels of bank
income and capital.

Chapter
04
Chapter
OJK’s Regulations
04 in Banking field

Chapter Banking Regulations
04 Issued from 2019 up to
June 2020
In line with the Republic of Indonesia’s Act number 21 of 2011 concerning

the Otoritas Jasa Keuangan, the Otoritas Jasa Keuangan (OJK) has the
authority to regulate or stipulate provisions on the aspects of business
and activities of the banking industry. This authority is implemented in
the forms of OJK’s Regulations and OJK’s Circular Letters (OJK CL).
A. Banking Regulations Issued from 2019

up to June 2020
Throughout 2019 up to June 2020, the OJK has issued 23 OJK
Regulations in the banking field as follows:
Table 4.1. List of OJK Regulations issued during the year 2019 until June 2020
No. OJK Regulation Concerning Date

1 1/POJK.03/2019 Implementation of Internal Audit Function 29-01-2019
in Commercial Banks
2 11/POJK.03/2019 Prudential Principle In Asset Securitization 28-03-2019
Ativities For Commercial Banks
3 12/POJK.03/2019 Commercial Bank Reporting Through 05-04-2019
Otoritas Jasa Keuangan Reporting System
4 13/POJK.03/2019 Rural Bank and Sharia Rural Financing Bank 02-05-2019
Reporting through Otoritas Jasa Keuangan
Reporting System
5 20/POJK.03/2019 concerning Sharia Rural Financing Bank 09-09-2019
Soundness Level System
6 21/POJK.03/2019 Mergers, Consolidations, and Acquisitions 13-09-2019
of Rural Banks and Sharia Rural Financing
Banks
7 25/POJK.03/2019 Reporting of Foreign Customer Information 16-10-2019
regarding Taxation to Partner Countries or
Partner Jurisdictions
8 28/POJK.03/2019 Banking Synergy Within One Ownership 19-11-2019
For Development of Islamic Banking

Banking Regulations Chapter
Issued from 2019 up to
June 2020 04
No. OJK Regulation Concerning Date
9 29/POJK.03/2019 Sharia Rural Financing Bank Earning Asset 29-11-2019

Quality and Establishment of Provision for
Earning Asset Write-Offs
10 31/POJK.03/2019 Requirement to Meet Leverage Ratio for 02-12-2019
Commercial Banks
11 32/POJK.03/2019 Amendment to OJK Regulation Number 19/ 12-12-2019
POJK.03/2017 concerning Rural Bank and
Sharia Rural Financing Bank Determination
of Status and Supervision Follow Up.
12 35/POJK.03/2019 Transparency of Sharia Rural Financing 13-12-2019
Bank Financial Condition
13 36/POJK.03/2019 Submission of Reports through the 18-12-2019
Integrated Reporting Portal
14 37/POJK.03/2019 Transparency and Publication of Bank 19-12-2019
Reports
15 38/POJK.03/2019 Amendment to OJK Regulation Number 19-12-2019
32/POJK.03/2018 concerning Legal
Lending Limit and Limit on Provision of
Large Funds for Commercial Banks
16 39/POJK.03/2019 Implementation of Anti Fraud Strategy for 19-12-2019
Commercial Banks
17 40/POJK.03/2019 Assessment of Commercial Bank Asset 19-12-2019
Quality
18 41/POJK.03/2019 Mergers, Consolidations, Acquisitions, 23-12-2019
Integrations, and Conversions of
Commercial Banks
19 11/POJK.03/2020 National Economy Stimulus as 16-03-2020
Countercyclical Policy on the Impact of the
2019 Coronavirus Disease Spreading
20 12/POJK.03/2020 Consolidations of Commercial Banks 17-03-2020
21 13/POJK.03/2020 Amendment to OJK Regulation Number 38/ 31-03-2020
POJK.03/2016 concerning Implementation
of Risk Management In The Use Of
Information Technology By Commercial
Banks
22 18/POJK.03/2020 Written Instructions for Handling of Bank 21-04-2020
Problems
23 34/POJK.03/2020 Policies for Rural Banks and Sharia Rural 02-06-2020
Financing Banks As The Impact of The
Spreading of 2019 Coronavirus Disease

June 2020
Online Banking Provision

Information System
(SIKePO)
It is a application for banking

provisions that are arranged in a
systematic and comprehensive manner based on certain topics.
SIKePO functions as a digital library of banking provisions that
provide comprehensive, up-to-date, systematic, accurate, fast, and
easy to use database.
Before SIKePO was developed, the search for various banking

provisions required by users could not be done easily and
quickly because that the provisions were relatively scattered and
had not been grouped according to certain topics
With the presence of SIKePO, users are expected to be able to:

1. find banking provisions in an effective and efficient manner;
2. understand the banking provisions
comprehensively; and
3. know the track record data
of the effectiveness
of any provision.

Banking Regulations Chapter
Issued from 2019 up to
June 2020 04
SIKePO can be accessed by

anyone using the internet network.
Users can easily access SIKePO
through the browser by clicking
https://SIKePO.ojk.go.id or by
scanning the QR code on the side.
Figure 4.1. Image SIKePO application Screenshot

June 2020
The features available in SIKePO effectiveness of the provisions

include: and other interrelated provision.
1. Codification of provisions 2. Search for provision

It is a terminology concerning This feature lists the available
the classification of each provisions. Provisions can be
article of any provision based searched through the search
on certain topic and sub-topics. engines based on the provision
The codification feature in type, number or title, year
SIKePO can be accessed of issue, and classification.
and viewed by users through Provision can be downloaded in
the available drop-down full. In addition, this feature is also
menus and also through a includes an executive summary
simple search. This page also and frequently asked questions
contains a track record of the concerning each provision.

Summary of OJK Regulations in Chapter
Banking field issued from 2019
up to June 2020 04
B. Summary of OJK Regulations in

Banking field issued from 2019 up to
June 2020
1. Implementation of the IAWU, which include indepen-
Internal Audit Function dence, objectivity, competence
at Commercial Banks and integrity.
c. Development of the internal
It is necessary to enhance the
audit charter, annual audit plan,
provisions regarding implemen-
and scope of internal audit ac-
tation of the internal audit func-
tivities.
tion as stipulated in BI Regulation
d. Banks must make adjustments
Number 1/6/PBI/1999 in order to
to their internal audit charters
accommodate the development
no later than 1 June 2019. Re-
of governance practices and best
sponsibilities of the Board of
practices concerning the internal
Directors, Board of Commis-
audit function issued by The Basel
sioners and the Audit Commit-
Committee on Banking Supervi-
tee in carrying out the internal
sion as well as the professional
audit function.
practice standards of internal au-
e. Relationship and cooperation
dit. published by The Institute of
between IAWU and other con-
Internal Auditors.
trol work units and external au-
ditors.
Main Provisions
f. The obligation of IAWU to com-
a. Bank obligation to have an in-
municate regularly with the
ternal audit function as well
OJK is in order to improve the
as the structure, authority and
effectiveness and efficiency of
main tasks of the Internal Audit
the internal audit function.
Work Unit (IAWU).
g. The IAWU’s function in any
b. Professional ethics for the
business group, for a bank as a

Chapter Summary of OJK Regulations in
04 Banking field issued from 2019
up to June 2020
parent company and for a bank

Regulatory Track Record
as a subsidiary company.
h. The use of external party ser- OJK Regulation Number 1/
vices in conducting internal au- POJK.03/2019 revokes BI
dits for special expertise and Regulation Number 1/6/PBI/1999
that are temporary in nature. - Assignment of the Compliance
i. The obligation to submit reports Director and Implementation of
Standards for Execution of the
on the implementation of the in-
Internal Audit Function (CCBs
ternal audit function to the OJK, and SCBs)
namely:
1. report on the appointment or Information obtained from
dismissal of the head of the
IAWU;
2. special report regarding any
internal audit findings that
2. Prudential Principle in
are predicted to endanger a
Asset Securitization
Bank’s business continuity;
Activities for
3. report on results of the inde-
Commercial Banks
pendent external review con-
ducted once in 3 (three) years,
OJK Regulation Number 11/
namely for the period from
July up to June of the follow-
Prudential Principle in Asset
ing third year; and
Securitization Activities for
4. report on the implementation
Commercial Banks. It is necessary
and main results of the inter-
to enhance BI Regulation number
nal audits.
7/4/PBI/2005 concerning
j. The OJK Regulation applies to
Prudential Principle in Asset
conventional commercial banks,
Securitization Activities for
including branch offices of
Commercial Banks to comply with
banks domiciling abroad, as well
Basel 3 standards.
as sharia commercial banks and
sharia business units.

up to June 2020 04
Main Provisions is met, namely between 15% -

a. In asset securitization, a Bank 1,250%.
may carry out the following
d. Amendment in the submission
activities:
of reports to the OJK to online
1. Initial creditor (Originator); submission through the OJK
2. Provider of supporting credit reporting system.
(Credit Enhancement);
3. Provider of liquidity facility;
3. Commercial Bank
4. Service provider (Servicer);
Reporting Through
5. Investors; and/or
6. Custodian bank
Reporting System
b. Amendment in the provision
concerning Banks that can
In order to support the
carry out asset securitization
effectiveness of the supervisory
activities, namely Banks of the
function in the banking sector, a
categories of BUKU 1, BUKU
method for online submissions of
2, BUKU 3, and BUKU 4 can
reports by banks to the OJK that
carry out activities as referred
is efficient and fast is required
to in letter a number 1) up to
through the OJK Reporting
number 5). Meanwhile, Banks
System.
that can conduct activities as
Custodian Banks as referred
Main Provisions
to in letter a number 6) are
a. Bank obligation to prepare
Banks of the categories of
and submit reports to the OJK
BUKU 3 and BUKU 4.
in a complete, accurate, up-
c. Application of risk weight in to-date, comprehensive and
the calculation of RBWA for timely manner.
securitization exposure that is
b. The reports consist of:
lower than Basel 2, as long as
1. daily reports;
the due diligence/disclosure
2. weekly reports;
requirement for this exposure

up to June 2020
3. monthly reports; problems. Banks are required

4. quarterly reports; to submit reports online no
5. semesterly reports; later than 1 (one) working day
6. annual reports; and after any technical problem at
7. other reports the OJK is resolved.
c. Each of these reports has
g. A bank experiencing a force
reporting deadlines divided
majeure shall notify the
into a number of periods.
OJK in writing to obtain a
d. Bank obligation to postponement in the reporting
make amendments on deadline.
misinformation in reports
h. Banks are subject to
based on bank findings, public
administrative sanctions
accountant audit results, and/
for violations of this OJK
or OJK’s findings.
Regulation, including fines for
e. Reports and/or report late submissions of reports
amendments are submitted and misinformation based on
online through the OJK the findings of the banks or the
Reporting System with a OJK. Any incorrectly related
deadline for submission until entries shall be imposed with
the end of the sixth month sanctions only once.
after the reporting data period.
i. The procedure for submissions
Submissions of reports and/
of reports and impositions
or report amendments after
of administrative sanctions
the deadlines shall be done
for the types of reports that
offline.
are obliged to be submitted
f. The OJK will inform the through the OJK Reporting
banks in the event that the System shall refer to this OJK
OJK experiences technical Regulation.

up to June 2020 04
b. RB and SRFB reports include:

1. RB Monthly reports;
2. SRFB Monthly reports;
New Regulation of the 3. RB and SRFB business
plans and reports on
realizations of the business
Information obtained from plans based on provisions
of the OJK Regulation; and
4. other reports submitted
by RBs and SRFBs online
4. Reporting of Rural
based on provisions of the
Banks and Sharia
OJK Regulation.
Rural Financing Banks
c. The obligation to submit RB
Through Otoritas Jasa
and SRFB reports through
Keuangan Reporting
the Otoritas Jasa Keuangan
System
Reporting System may be
exempted for:
In order to regulate the obligation
of RBs and SRFBs to prepare 1. RBs and SRFBs that have
and submit reports to the OJK, only been operating for a
a method for submitting reports maximum period of 3 (three)
through the OJK Reporting System months since the start of
is required. operational activities; and/
Main Provisions or
a. The obligation of RBs and 2. RBs and SRFBs that
SRFBs to prepare and submit experience technical
RB and SRFB reports to problems.
the OJK through the OJK d. The obligation of RBs and
Reporting System in a SRFBs to appoint and convey
complete, accurate, up-to- the names of persons in
date, comprehensive, and charge of the RB and SRFB
timely manner. reports to the OJK.

up to June 2020
e. The obligation of RBs and

SRFBs to submit amendments
to misinformation in RB and OJK Regulation Number
SRFB reports that have been 13/ POJK.03/2019 revokes
submitted to the OJK. BI Regulation Number 7/51/
PBI/2005 - Monthly Reports of
f. Deadline for submission of
Rural Banks and BI Regulation
RB and SRFB monthly reports Number 7/9/PBI/2005 -
is no later than the 10th of Monthly Reports of Sharia Rural
the following month after the Financing Banks
relevant reporting month.
Information obtained from
Meanwhile, deadline for
submission of amendments to
RB and SRFB Monthly Reports
5. Assessment System
is no later than the 15th day of
for Soundness Level of
the following month after the
Sharia Rural Financing
relevant reporting month.
Banks
g. Submissions of RB monthly
reports through the OJK This OJK Regulation is a
Reporting System shall be conversion of Bank Indonesia
carried out starting from the Regulation Number 9/17/PBI/2007
position of May 2019 report, concerning the Assessment
while submissions of SRFB System for the Soundness Level of
monthly reports through the Rural Banks Conducting Business
OJK Reporting System shall Based on Sharia Principles (BI
be carried out starting from Regulation on SRFB Soundness
the position of October 2019 Level) which does not have any
report. changes in substance. This OJK
Regulation stipulates assessment
of the soundness level of SRFBs
which includes assessments
of the factors of capital, asset

up to June 2020 04
quality, profitability, liquidity and and SRFB industry, among others

management. With the enactment through Mergers, Consolidations
of this OJK Regulation, BI and Acquisitions, provisions are
Regulation Number 9/17/PBI/2007 required to form the basis for the
concerning the Assessment implementation mechanisms and
System for the Soundness Level of procedures that can be applied by
Rural Banks Conducting Business RBs and SRFBs.
Based on Sharia Principles is
declared no longer valid. Main Provisions
a. Merger, consolidation and
acquisition of a RB or SRFB can
be carried out at the initiative
of the RB or SRFB or by the
OJK Regulation Number 20/ instruction of the OJK, while
POJK.03/2019 amends PBI No. still being required to obtain
9/17/PBI/2007 - Rating System approval from the OJK.
for Rural Bank Soundness
b. A merger or consolidation can
Based on Sharia Principles
be carried out between a RB
and a RB, a RB with a SRFB, or
a SRFB with a SRFB. A RB may
Information obtained from only merge or consolidate with
a SRFB in the event that the
entity resulting from the merger
or consolidation becomes a
6. Mergers, Consolidations SRFB.
and Acquisitions of Rural c. The mechanism for conducting
Banks and Sharia Rural the merger or consolidation is
Financing Banks as follows:
1. The RB/SRFB submits
documents comprising of
In order to strengthen the resilience
the deed plan and draft;
and competitiveness of the RB
2. The OJK reviews the

up to June 2020
preparatory documents performance report;

for implementation of the 5. Submission of approval
merger or consolidation, in or notification of merger
regard completeness and or consolidation to the
accuracy of the documents, competent authorities; and
financial condition, fit 6. After obtaining a merger
and proper test of the or consolidation approval,
prospective main party and the RB/SRFB is obliged
examination of prospective to submit documents
shareholders, examination comprising a closing
of capital deposits, and balance sheet, an opening
examination of information balance sheet, and a report
technology readiness; on the implementation
3. The RB/SRFB performs of the merger or
follow-up actions, such consolidation.
as announcement of d. The criteria for an acquisition
a summary deed plan, of a RB/SRFB that results in a
submission of objections transfer of control is if the share
from creditors, submission ownership meets the following
of shareholder rights, criteria:
implementation of a 1. become the shareholder
Shareholders General with the largest share
Meeting (SGM), and ownership in the RB/SRFB;
submission of the deed of or
merger or consolidation; 2. the share ownership
4. The OJK issues its approval does not exceed that of
or rejection based on the largest shareholder
examinations of the minute however it controls the
of the SGM, deed of merger management and/or
or consolidation, evidence policies of the RB/SRFB
of announcements, and either directly or indirectly.
the RB/SRFB’s latest

up to June 2020 04
e. The mechanism for carrying out the acquisition;

implementing the acquisition is 5. The RB/SRFB performs a
as follows: follow-up by incorporating
1. The RB/SRFB submits the acquisition plan into
documents comprising of the acquisition deed;
the plan and draft of the 6. submission of approval
deed of the acquisition; or notification of
2. The OJK reviews the amendmends to the
preparatory documents articles of association to
for implementation of the competent authorities;
the acquisition, in regard and
completeness and 7. after obtaining the
accuracy of the documents acquisition approval, the
as well as sources of funds RB/SRFB is obliged to
to be used to take over the submit a report on the
RB/SRFB; implementation of the
3. The RB/SRFB performs acquisition.
follow-up actions, such f. Under certain conditions,
as announcement of the OJK may instruct a RB/
a summary deed plan, SRFB to carry out a merger,
submission of objections consolidation, or acquisition.
from creditors, submission
of shareholder rights, Regulatory Track Record
and implementation of
a Shareholders General
POJK.03/2019 amends SK Dir
Meeting (SGM); No. 32/52/KEP/DIR concerning
4. The OJK issues its approval Requirements and Procedures
or rejection based on for Mergers, Consolidations and
a review of document Acquisitions of Rural Banks.
completeness and a fit
and proper test of the party Information obtained from

up to June 2020
7. Reporting of Foreign c) Sharia Rural Financing

Customer Information Banks
regarding Taxation to 2. FSIs in the capital market
Partner Countries or sector:
Partner Jurisdictions a) Securities Companies;
and
As mandated by Act Number 9 b) Custodian Banks
of 2017 concerning Enactment of 3. FSIs in the insurance sector:
Government Regulations in Lieu a) Life Insurance Compa-
of Law Number 1 of 2017 into Law nies and Sharia Life In-
concerning Access to Financial surance Companies; and
Information for Taxation Purposes, b) General Insurance Com-
Financial Service Institutions (FSIs) panies and Sharia Gen-
have a role to submit reports on eral Insurance Compa-
foreign customer information nies.
to the Directorate General of b. Financial information reported
Taxes (DGT) through the OJK. includes the identity of the fi-
This OJK Regulation supports nancial account holder, finan-
the implementation of automatic cial account number, the identi-
exchange of financial information ty of the Reporting FSI, financial
(AEOI) by FSIs in the banking, account balance or value, and
capital market and insurance income related to the financial
sectors. account.
c. Reporting FSIs are still obliged
Main Provisions to submit reports of zero result
a. Reporting FSIs include: in the event that there are no fi-
1. FSIs in the banking sector: nancial accounts that must be
a) Commercial Banks (in- reported in one calendar year.
cluding Sharia Commer- d. Reports of foreign customer
cial Banks); information shall be submitted
b) Rural Banks; and online through the foreign cus-

up to June 2020 04
tomer information submisssion the DGT or at the Reporting

system (sistem penyampaian FSI’s initiative through SiPINA.
informasi nasabah asing/SiPI- h. The sanction that shall be im-
NA) no later than 60 (sixty) days posed on Reporting FSIs that
prior to the expiration of the do not submit reports shall be
AEOI periods agreed by the in the form of written warnings.
Government of Indonesia and
i. At the time the OJK Regula-
the governments of the partner
tion concerning Reporting of
countries or partner jurisdic-
Foreign Customer Information
tions.
regarding Taxation to Partner
e. Each Reporting FSI is obliged Countries or Partner Jurisdic-
to appoint 1 (one) offier respon- tions comes into force, the
sible for report submissions. If OJK Regulation Number 25/
necessary, the responsible offi- POJK.03/2015 and OJK CL
cer can appoint 1 (one) execut- Number 16/SEOJK.03/2017 are
ing officer. revoked and declared no lon-
f. To be able to submit reports, ger valid.
each Reporting FSI must regis-
ter with SiPINA. Registration is
performed online by attaching a Regulatory Track Record
system registration application
letter, information on the re- OJK Regulation Number 25
sponsible officer and executing / POJK.03 / 2019 revokes
OJK Regulation Number 25 /
officer, and other documents or
POJK.03 / 2015 concerning
information if required.
Submission of Information for
g. If there is an error of information Foreign Customers regarding
in the report that has been sub- Taxation to Partner Countries or
mitted through SiPINA, the Re- Partner Jurisdictions.
porting FSI can make amend-
mens. Amendments shall be Information obtained from
made based on requests from

up to June 2020
8. Banking Synergy within Islamic Banking on 19 November

One Ownership for the 2019 as an effort to enhance the
Development of Islamic efficiency of the Islamic banking
Banking industry through optimization of
Backdrop of the development of this Commercial Banks’ resources
regulation is as an implementation by Sharia Commercial Bank
of the OJK strategic policy in s(SCBs) which have ownership
2019 regarding reformation of relationship. The issuance of this
the industry’s business process OJK Regulation is also expected
and implementation of the Act to step up the competitiveness
on Islamic Banking regarding of SCBs in providing services to
the obligation to separate SBUs CCBs’ customers and expand
from the SCBs by 2023. This access to Islamic banking services
regulation stipulates cooperation for members of the public who are
between SCBs and CCBs which not yet familiar with, use, and/or
have ownership relations through receive Islamic banking services
optimization of CCBs’ resources (financial inclusion). This OJK
to provide added value for both the Regulation expands the scope of
SCBs and CCBs. The exception cooperation that can be conducted
for the synergy that can be carried by SCBs and Commercial Banks
out concerns SCB capital and that have ownership relationships,
management. This OJK Regulation both vertical ownership
was promulgated on 19 November relationships (synergy between
2019 and came into force from the parent and subsidiaries), horizontal
date of promulgation. ownership relationships (synergy
between sister companies), or
The Otoritas Jasa Keuangan a combination of the two. Areas
issued the OJK Regulation Number of commercial bank resources
28/POJK.03/2019 concerning that can be synergized include,
Banking Synergy within One among others, HR, IT, and office
Ownership for the Development of networks. Examples of synergies

up to June 2020 04
in the HR field include the use business activities based on

of the independent committee the BUKU category and/or core
members at a Commercial Bank to capital of its parent Commercial
concurrently serve as independent Bank while still meeting other
parties on the SCB committees requirements as regulated in
and the use of human resources of each of these business activities.
the Commercial Bank as additional However, Banking Synergy
members of the SCB committees. does not eliminate the SCB
An example of synergies in the responsibility concerning the risks
IT field includes the use of the from activities that are synergized
Commercial Bank data centers with the Commercial Bank. The
(DC) and disaster recovery centers banking synergy stipulated in this
(DRC) by the SCB. Meanwhile, OJK Regulation does not include
an example of synergies in the the use of the Commercial Bank
office networks field includes the capital for calculating the SCB
opening a SCB office network maximum limit for fund channeling
at the same address as the and the uses of the Commercial
commercial bank office network Bank management (Directors,
(co-location or office sharing). Board of Commissioners, Sharia
This OJK Regulation even allows Supervisory Board, committees
SCB customers to be served that must be formed by the
in the Commercial Bank office SCB, and Executive Officers)
network through cooperation for concurrent positions as the
in the Commercial Bank Sharia SCB management. To be able to
Services. The activities that can be implement Banking Synergy, the
provided in the commercial bank SCB and Commercial Bank must
office network range from fund include a Banking Synergy plan in
accummulation, financing, and their respective business plans
provision of other banking services and submit an application for
based on sharia principles. In approval to the OJK. It is sufficient
addition, a SCB can also conduct to submit one application for
approval by the SCB (one door).

up to June 2020
for Earning Asset Losses, and

financing restructuring. This OJK
Regulation was promulgated in
New Regulation of the Jakarta on 29 November 2019 and
Otoritas Jasa Keuangan came into force from 1 December
2019.
Information obtained from Regulatory Track Record

POJK.03 / 2019 revokes PBI No.
10/18 / PBI / 2008 concerning
9. Earning Asset Quality Restructuring of Financing for
and Establishment of Sharia Banks and Sharia Business
Provision for Earning Units and PBI No. 13/9 / PBI /
Asset Losses for Sharia 2011 concerning Amendments to
Rural Financing Banks PBI Number 10/18 / PBI / 2008
concerning Restructuring of
Financing for Sharia Banks and
Backdrop of the development
Sharia Business Units.
of this regulation is the need for
adjustments to the determination
of the quality of financing and
preventive steps an early warning
system for SCB Non-Performing 10. Obligation to Fulfill
Financing for both the supervisors the Leverage Ratio for
and the SCB concerned, as well as Commercial Banks
harmonization within the Financial
Information Service System. This Development of this OJK
regulation stipulates among others Regulation was to comply with
the adjustment of the classification Basel III standards: Finalizing post-
of asset quality into 5 categories, crisis reforms (Basel III Reforms)
assessment of financing quality into in 2017. The leverage ratio is a
3 pillars, calculation of Provision simpler measurement of capital

up to June 2020 04
and is not based on risk (non-risk submitted for the first time for
based capital). the position at the end of March
2020.
Main Provisions
a. Banks are required to provide
adequate Core Capital Regulatory Track Record
based on the Total Exposure
recorded in the report of
New Regulation of the
financial position as well as
the report of commitments
and contingencies. Provision
of adequate Core Capital is Information obtained from
calculated using the Leverage

Ratio.
b. The Leverage Ratio is measured
11. Amendment to OJK
by comparing the Core Capital
Regulation Number
(Tier 1) to the bank’s Total
19/POJK.03/2017
Exposure, with the minimum
concerning
value that must be maintained by
Determination of the
the bank is 3% (three percent).
Status and Supervision
c. The reports on the fulfilment of Follow-Up for Rural
the obligation on the Leverage Banks and Sharia Rural
Ratio consist of: Financing Banks
1. Report of Leverage Ratio
Total Exposure; and OJK Regulation Number 32/
2. Report of Leverage Ratio POJK.03/2019 concerning
calculation. Amendment to Otoritas Jasa
d. The application of the Leverage Keuangan Regulation Number
Ratio starts on 1 January 2020 19/POJK.03/2017 concerning
and the report on the obligation Determination of the Status and
to fulfill the Lever Ratio is Supervision Follow-up for Rural

up to June 2020
Banks and Sharia Rural Financing assessment, namely Direcctor

Banks. This OJK Regulation was Decree Number 30/12/KEP/
developed in order to regulate DIR concerning Procedure for
changes related to adjustment Assessment of the Soundness
to the supervision measures for Levels of Rural Banks, until the
RBs and SRFBs under normal enactment of the new provision
supervision which have significant concerning the assessment of
problems, as well as adjustment the soundness levels of rural
to the assessment system of RB banks.
soundness level which is used as
c. Administrative sanctions
one of the criteria for RBs under
imposed on RBs and SRFBs that
intensive supervision.
violate the obligation to submit
action plans for RBs and SRFBs
Main Provisions include:
under normal supervision which
a. Supervision measures on have significant problems are
RBs and SRFBs under normal removed to adjust to the removal
supervision which have of the provision as referred to in
significant problems are number 3.
removed in the context of
simplification of the supervision d. The term fit and proper test
process. contained in the administrative
sanctions is harmonized with
b. The assessment system of RB the term reassessment for the
soundness level, which is used main party as stipulated in the
as one of the criteria for RBs OJK Regulation Number 34/
under intensive supervision POJK.03/2018 concerning
since 1 January 2020, continues Reassessment for Main Parties
to use the prevailing predicates of Financial Service Institutions.
for the soundness level

up to June 2020 04
parency of Rural Bank Financial

Condition (OJK Regulation on RB
Transparency). This OJK Regu-
OJK Regulation Number 32 lation stipulates, among others,
/ POJK.03 / 2019 amend
amendments in the timing and
POJK.03 / 2017 concerning scope of submission of SRFB an-
Determination of Status and nual reports, addition to the media
Follow-Up Supervision for Rural for the announcement of quar-
Banks and Sharia Rural Banks. terly published financial reports,
and amendment in the nominal
Information obtained from values of the sanctions. This OJK
Regulation was stipulated on 18
December 2019 and takes effect
from 1 January 2020. And, this OJK
12. Transparency of Sharia Regulation revokes BI Regulation
Rural Financing Bank Number 7/47/PBI/2005 concern-
Financial Condition ing Transparency of Sharia Rural
Banks
Backdrop of the amendments of
the provisions in this OJK Regula-
tion is the need for harmonization Regulatory Track Record
with several related provisions, in-
cluding OJK Regulation Number
13/POJK.03/2019 concerning Re-
POJK.03 / 2019 revokes PBI No.
porting of Rural Banks and Sharia
7/47 / PBI / 2005 concerning
Rural Financing Banks through the Transparency of Islamic Rural
Otoritas Jasa Keuangan Reporting Banks Financial Condition.
System, Statement of Financial
Accounting Standards (SFAS) 101,
and OJK Regulation Number 48/
POJK.03/2017 concerning Trans-

up to June 2020
13. Submission of Reports mechanism and procedure of

through the Integrated each authority.
Reporting Portal d. OJK can deactivate registered
users of the Integrated
In order to simplify the reporting Reporting Portal based on
mechanism, it is necessary to certain considerations.
regulate the submissions of e. This OJK Regulation comes into
reports through the Integrated effect since its promulgation,
Reporting Portal which regulates namely on 18 December 2019.
the obligation to submit reports
f. The types, formats and
by banks through a one-door
procedures for preparing and
mechanism to the Authorities.
submitting reports from the
authorities are stipulated,
Main Provisions
among others, in:
a. The OJK Regulation applies to
all banks, namely conventional 1. Otoritas Jasa Keuangan
commercial banks, sharia Regulation concerning
commercial banks, rural banks, commercial bank reporting
and sharia rural financing through the Otoritas Jasa
banks. Keuangan Reporting
System;
b. Banks submit reports through
2. Otoritas Jasa Keuangan
the Authority Reporting
Regulation concerning the
Systems found on the
reporting of rural banks
Integrated Reporting Portal.
and sharia rural financing
c. Banks register the persons banks through the Otoritas
in charge and/or officers for Jasa Keuangan Reporting
reporting in the Authority System;
(OJK, BI, and IDIC) Reporting 3. Otoritas Jasa Keuangan
Systems according to the Regulation concerning

up to June 2020 04
business plans of rural banks POJK.03/2016. Backdrop of this

and sharia rural financing replacement was the disclosure
banks; and/or of pillar 3 according to the Basel
4. Bank Indonesia regulation Committee of Banking Supervision
concerning commercial document, harmonization with
bank integrated reports. provisions in the Capital Market
sector for banks that are Issuers
and/or Public Companies, and the
application of SFAS 71 - Financial
Instruments.
Otoritas Jasa Keuangan Main Provisions
a. Banks are required to prepare,
announce and submit
Publication Reports.
b. Information published and
reported by banks in general
14. Transparency and consists of:
Publication of Bank
Reports Next page
POJK ini menggantikan POJK

No.6/POJK.03/2015 tentang
This OJK Regulation replaces
Transparency and Publication of
Bank Reports and its amendment
in OJK Regulation Number 32/

up to June 2020
Report 1. Finance and Performance 2. Risk and Capital

Description Information
Periodization • Monthly (January, • Quarterly (March,

February, April, May, June, September)
July, August, October, • Annual (December)
November)
• Quarterly (March, June,
September, December)
• Annual (December)
Scope • Financial reports, • Information on capital

• performance reports, • Information on risks
and/or (credit, market,
• general information operation, liquidity,
• additional information legal, reputation,
for SCBs and SBUs strategic, and
• additional information compliance),
for banks that are parts • Additional risk
of business groups for SCBs/SBUs
(investment and yield
risks)
• governance
Media for • Website Bank website

announcements • Optional: printed or
electronic newspapers
(quarterly period)
Media for OJK Online Reporting -

submissions to Application (APOLO)
the OJK In the event APOLO is not
yet available, submissions
are made off-line to bank
supervisors
Maintenance in 5 years 5 years

website

up to June 2020 04
3. Material 4. Base Lending Rate 5. Other Reports

Information or
Facts
Incidental • Reporting to the OJK Annual (December)

is monthly
• Updated in the
website whenever
there is a change
Information that Lowest interest rate Reports of banks that

can influence are parts of business
stakeholders’ groups
decisions
Bank website Bank website -
APOLO APOLO APOLO

In the event APOLO In the event APOLO is not In the event APOLO
is not yet available, yet available, submissions is not yet available,
submissions are are made off-line to bank submissions are
made off-line to supervisors made off-line to bank
bank supervisors supervisors
n/a n/a n/a

up to June 2020
c. For banks that are issuers or public sector.

companies, harmonization with the c) Conveyed through the
Capital Market regulations is appli- Electronic Reporting Sys-
cable as follows: tem (ERS).
1. Financial Reports and Perfor-

d. Sanctions for late reporting con-
mance Information – Quarterly
sist of:
The deadlines for publications and
1. Offline (as long as APOLO is
submissions to the OJK are as fol-
not yet available): 1 million rupi-
lows:
ah per working day, with a max-
a) 3 months after the reporting imum of 30 million rupiah.
period in case of having un- 2. Through APOLO: subject to
dergone audits by PAs; sanctions in accordance with
b) 2 months after the reporting OJK Regulation on APOLO.
period in case of having un- 3. Through Electronic Reporting
dergone limited reviews by System (ERS): subject to sanc-
PAs; or tions in accordance with OJK
c) 1 month after the reporting Regulation on ERS.
period in case of not being
e. Any bank that does not make an-
audited/reviewed..
nouncement on its website and/
2. Financial Reports and Perfor-
or does not submit complete re-
mance Information - Annual and
ports will be subject to an admin-
Material Fact Information Re-
istrative sanction in the form of a
ports
written warning.
a) The scope of information
f. This OJK Regulation comes into
meets the provisions in
effect as of data position of 1 July
Banking and Capital Market
2020, and as such the obligation
sectors.
to prepare, announce, and submit
b) The deadlines for publication
the first Publication Reports in
and submissions to the OJK
accordance with this OJK Regu-
shall comply with the provi-
lation are as follows:
sions in the Capital Market

up to June 2020 04
Report Name First Data 15. Amendment to OJK

Position Regulation Number 32/
Material Information 1 July 2020 POJK.03/2018 con-
or Fact Report cerning Legal Lending
Monthly periodic 31 July 2020 Limit and Provision of
report
Large Funds for Com-
Quarterly periodic 30 September
mercial Banks
report 2020
Annual periodic 31 December
report 2020 In order to reduce the potential for
bank business failure as a result of
g. This OJK Regulation also re- the concentration of provision of
vokes the Indonesian Bank- funds, it is necessary to improve
ing Accounting Guideline (Pe- the provisions in accordance with
doman Akuntansi Perbankan international standards, includ-
Indonesia/PAPI) in Bank Indo- ing provisions concerning Prime
nesia Circular Letters Number Banks, central counterparties and
11/4/DPNP and Number 11/33/ reporting.
DPNP as of 1 January 2020,
with the enactment of SFAS 71.
Main Provisions
a. Deletion of the exemption of
LLL on placements with Prime
OJK Regulation Number 37 / Banks.
POJK.03 / 2019 revokes OJK b. Adjustments to the provisions
Regulation Number 6 / POJK.03 regarding the exemptions of
/ 2015 concerning Transparency
LLL calculation as follows:
and Publication of Bank Reports
as amended by OJK Regulation 1). The part of provision of funds
Number No. 32 / POJK.03 / that can be exempted from
2016 concerning Amendments the LLL calculation is the
to POJK No. 6 / POJK.03 / 2015
provision of funds that has
concerning Transparency and
the guarantee of the central
Publication of Bank Reports.
government of the Republic
of Indonesia.

up to June 2020
2). The part of provision of funds guarantees from Prime

guaranteed by Standby let- Banks, other than related
ters of Credit (SBLC) issued parties, which are currently
by a Prime Bank, which is a ongoing and have been ef-
related party to the bank, is fective before the enactment
exempted from the LLL cal- of this OJK Regulation can
culation for a maximum of continue until maturity.
90% of the bank’s total capi- 2. In the case of the provision
tal as long as it meets certain of funds in the form of place-
requirements. ments with each Prime Bank
c. Additions to the provisions con- and provision of funds to bor-
cerning: rowers which obtain guaran-
1. Procedure for calculating tees from Prime Banks, other
exposures to central coun- than the related parties, that
terparties in accordance do not have maturity, the LLL
with Basel standards related exemption will remain valid
to the large exposure frame- no later than 18 months after
work. this OJK Regulation comes
2. Coverage of report filling into effect.
concerning provision of
funds to 20 borrowers, other
than related parties, which Regulatory Track Record
receive the largest amounts
of provisions of funds.
d. Additions of the transitional POJK.03 / 2019 amending OJK
provisions, namely: Regulation Number 32 / POJK.03
1. Exemptions from LLL on / 2018 - Maximum Limit of
provision of funds in the form Lending and Provision of Large
Funds for Commercial Banks.
of placements at each Prime
Bank and provision of funds
to borrowers which obtain

up to June 2020 04
16. Implementation of An- b. The implementation of the an-

ti-Fraud Strategy for ti-fraud strategy contains at least
Commercial Banks 4 (four) pillars consisting of pre-
vention; detection; investigation,
In order to improve data accuracy reporting and sanctions; as well
and accelerate report submissions as monitoring, evaluation, and fol-
concerning the implementation of low-up.
anti-fraud strategies at banks, it is c. In order to control the risk of fraud,
necessary to enhance the format banks are required to implement
of the report on the implementa- risk management in accordance
tion of the anti-fraud strategy as with the provisions, which con-
well as the procedure for submis- tains at least strengthening of the
sions of bank reports to the OJK, following aspects:
so that the reports may bring add- 1) active supervision of the Board
ed value. For this purpose, provi- of Directors and the Board of
sions concerning the implemen- Commissioners;
tation of anti-fraud strategies need 2) policies and procedures;
to be enhanced in a OJK Regula- 3) organizational structure and
tion. accountability;
4) control and monitoring.
Main Provisions 5) Requirement concerning sub-
a. Types of actions classified as missions by Banks to the Otori-
fraud consist of: tas Jasa Keuangan of:
1) deception; a) anti-fraud strategies ac-
2) fraud; cording to the format in this
3) embezzlement of assets; OJK Regulation (Attach-
4) information leakage; ment I); and
5) banking crime; and b) reports and/or amendments
6) other actions which can be to reports on the implemen-
equated with fraud in accor- tation of anti-fraud strategy
dance with the provisions of online through the OJK on-
the legislations. line reporting application

up to June 2020
(APOLO), which consist of: among others by maintaining asset

• semesterly report on the quality and calculating Reserve for
implementation of an- Losses from Value Impairment (RLVI).
ti-fraud strategy no later This OJK Regulation is an enhance-
than the 15th of the follow- ment of Bank Indonesia Regulation
ing month after the end of Number 14/15/PBI/2012 concern-
the reporting month; and ing Assessment of Asset Quality for
Commercial Banks.
• reports on frauds that have
significant impacts no lat-
Main Provisions
er than 3 (three) working
a. Changes in the nominal limit
days after a bank becomes
threshold for credit and provision
aware of the occurrence of
of funds which are assessed only
frauds. based on the accuracy of principal
and/or interest payments.
Regulatory Track Record b. Change in the limit on the amount
of earning assets in determining
the collateral valuer category as a
OJK Regulation Number 39
reduction in the RLVI calculation.
/ POJK.03 / 2019 revokes
c. Additional condition concerning
PBI No. 13/28 / DPNP / 2011 -
Implementation of Anti-Fraud the quality of securities deter-
Strategy for Commercial Banks. mined to be in the current cate-
gory, namely the secrities must be
actively traded on stock exchang-
Information obtained from es classified as the main stock ex-
changes in other countries.
d. Additional provision concerning
17. Assessment of Asset the asset quality of debt securities
Quality for Commercial and/or sukuk (sharia-compliant
Banks bond-like instruments) that are of-
To maintain business sustainabili- fered without going through public
ty, a bank needs to manage credit offerings.
risk exposure at an adequate level, e. The provision concerning Tak-

up to June 2020 04
en-Over Assets follow the finan- 18. Mergers,

cial accounting standards. Consolidations,
f. The Taken-Over Assets can Acquisitions,
only be executed if the credit is Integrations and
already classified as non-per- Conversions of
forming. Commercial Banks
g. Deletion of the provision con-
cerning receivable write-offs, In line with the increasingly dynamic
with the consideration of its rel- and complex banking industry
evancy and by referring to finan- challenges ahead, it is necessary
cial accounting standards. to strengthen banks, among others
h. The restructuring report is sub- by urging banks to consolidate
mitted through the OJK report- through mergers, consolidations,
ing system, and the sanctions acquisitions, and integrations
concerning reporting refer to with other banks in order to step
the OJK Regulation Number up competitiveness. This OJK
12/POJK.03/2019 concern- Regulation is an enhancement to
ing Commercial Bank Report- Director Decree Number 32.51/
ing through the Otoritas Jasa KEP/DIR dated 14 May 1999
Keuangan Reporting System. which is no longer relevant and
i. This OJK Regulation came into needs to be aligned with the
force as of 1 January 2020. provisions of the legislations (Act
on Limited Liability Companies,
Regulatory Track Record Act on Prohibition of Monopolistic
Practices, and OJK Regulation
OJK Regulation Number 40 / concerning business mergers or
POJK.03 / 2019 revokes PBI No. business consolidations of public
14/15 / PBI / 2012 concerning companies and acquisitions of
Asset Quality Assessment for
public companies).
Commercial Banks
Main Provisions
a. General provisions stipulate the

up to June 2020
principles for the executions of 19. National Economy

mergers, consolidations, acqui- Stimulus as
sitions, integrations and conver- Countercyclical Policy
sions of commercial banks. on the Impact of the
b. Requirements and procedures 2019 Coronavirus
for mergers or consolidations. Disease Spreading
c. Requirements and procedures
for acquisitions. The spreading of the 2019
d. Requirements and procedures coronavirus disease (COVID-19)
for integrations. has direct as well as indirect
e. Requirements and procedures impacts on the performance and
for conversions. capacity of debtors including
f. Imposition of administrative micro, small and medium business
sanctions. (MSME) debtors that have the
potential to disrupt banking
performance and financial system
Rekam Jejak Peraturan stability, which in turn can affect
economic growth. Therefore,
OJK Regulation Number 41 to promote optimization of the
/ POJK.03 / 2019 revokes
banking intermediation function,
SK Dir No. 32/50 / KEP / DIR
concerning Requirements and maintain financial system stability,
Procedures for Purchasing and support economic growth,
Commercial Bank Shares and an economic stimulus policy
SK Dir No. 32/51 / KEP / DIR is needed as a countercyclical
concerning Requirements policy against the impacts on the
and Procedures for Merger,
spreading of the COVID-19.
Consolidation and Acquisition
of Commercial Banks.
Main Provisions
a. This OJK Regulation applies to
informasi diperoleh dari
CCBs, SCBs, SBUs, RBs, and
SRFBs.
b. Banks can implement policies

up to June 2020 04
that support economic growth current after restructuring

stimuli for debtors affected by during the validity period
the spreading of COVID-19, of this OJK Regulation.
including MSME debtors, while This provision concerning
still paying attention to the restructuring can be applied
prudential principle. by Banks regardless of
c. Debtors affected by the credit/financing ceiling limits
spreading of COVID-19, or the types of debtors.
including MSME debtors, are e. The procedures for restructuring
debtors which have difficulty of credit/financing are as
meeting obligations to the stipulated in the OJK regulation
Banks because the debtors concerning assessment of
or debtors’ businesses are asset quality, among others
affected by the spreading of through:
COVID-19, either directly or
1. lower interest rates;
indirectly in the economic
2. extension of maturity period;
sectors, including tourism,
3. reduction of principal
transportation, hotel, trades,
arrears;
manufacturing, agriculture, and
4. reduction of interest arrears;
mining industries.
5. addition to credit/financing
d. The stimulus policy referred to
facilities; and/or
consists of:
6. conversion of credit/
1. Assessment of the quality financing into Temporary
of credit/financing/other Equity Participation.
provisions of funds shall only f. Banks can provide new
be based on the accuracy of credit/financing/provisions of
their principal and/or interest funds to debtors which have
payments with a ceiling of up received special treatments
to IDR 10 billion; and in accordance with this OJK
2. Improvement of the quality Regulation with determination
credit/financing to become of the quality of credit/financing/

up to June 2020
other provisions of funds applied ience and competitiveness of the

separately from the quality of banking industry so as to support
previous credit/ financing/other national economic stability and
provisions of funds. growth, as well as an effort to boost
the banking industry to reach a
g. Banks shall submit periodic
more efficient level towards higher
reports concerning the
economies of scale, so that banks
implementation of this OJK
are not only resilient in the domes-
Regulation for the purpose of
tic sphere, but is also competitive
monitoring by the Supervisors
at regional and global levels.
starting with data position of the
end of April 2020.
Main Provisions
h. This regulation comes into force a. Commercial Bank Consolida-
from the time of promulgation tion
up to 31 March 2021.
A bank’s Controlling Sharehold-
er (CS) can own 1 (one) bank or
Regulatory Track Record several banks by meeting the
bank consolidation scheme,
through:
Otoritas Jasa Keuangan 1. Merger, consolidation, or in-
tegration;
2. Acquisition followed by
Information obtained from merger, consolidation, or in-
tegration;
3. Establishment of a Bank
20. Consolidations of Business Group (BBG)
Commercial Banks for banks that are already
owned;
Consolidations of Commer- 4. Establishment of a BBG due
cial Banks constitute an effort to to separation of SBUs; or
strengthen the structure, resil- 5. Establishment of a BBG due

up to June 2020 04
to an acquisition. Parent Company or the bank

b. Fulfillment of the minimum core that is an operator of the Par-
capital for commercial banks ent Company, with the ap-
and minimum CEMA (Capital proval of the OJK
Equivalency Maintained Assets) 3. Stipulation concerning the lim-
for branch offices of banks do- its on capital participations of
miciling abroad. regional government-owned
banks in a SCB resulting from
Minimum core capital and
the Separation of SBUs is ex-
minimum CEMA that must
empted from the provision con-
be met is no less than
cerning limits on capital partici-
R p.3,0 0 0,0 0 0,0 0 0,0 0 0.0 0
pations as stipulated in the OJK
(three trillion rupiah) no later
Regulation concerning business
than 31 December 2022.
activities and office networks
c. Establishment of BBG. based on bank core capital.
d. Fulfillment of Minimum Core
Capital for banks in a consoli-
dation scheme and for banks
owned by local governments.
e. Other stipulations include: OJK Regulation Number 12 /

POJK.03 / 2020 revokes PBI
1. Parties that are exempted
No. 7/15 / PBI / 2005 - Minimum
from the provisions stipu-
Core Capital for Commercial
lated in the OJK Regulation Banks and PBI No. 9/16 / PBI
concerning share ownership / 2007 - Amendment to Bank
of commercial banks, Indonesia Regulation Number
2. Banks that meet the bank 7/15 / PBI / 2005 concerning
Minimum Core Capital Amount
consolidation scheme by
for Commercial Banks.
being within a BBG can carry
out the same business activ-
ities as the business activ- Information obtained from
ities of the bank that is the

up to June 2020
21. Application of Risk the OJK is in accordance with

Management in the the OJK Regulation on RMIT.
Use of Information e. Banks’ obligation to ensure that
Technology (RMIT) by data used in electronic systems
Commercial Banks located outside the territory
of Indonesia is not used for
This OJK regulation was issued
purposes other than the
in order to support the use of
stipulated criteria. Violations
integrated Electronic Systems so
of this obligation is subject to
that banks can improve operational
administrative sanctions.
effectiveness and efficiency as
f. Revocation of Bank Indonesia
well as provide better banking
Circular Letter Number 9 /30/
services to customers.
DPNP dated 12 December
2007 concerning Application
Main Provisions
of Risk Management in the Use
a. Deletion of restrictions on
of Information Technology by
the use of data in electronic
Commercial Banks.
systems located outside the
territory of Indonesia. Regulatory Track Record
b. Addition of 1 (one) electronic
system criteria that can be
located outside the territory of OJK Regulation Number 13
Indonesia, namely electronic / POJK.03 / 2020 amend
OJK Regulation Number 38
systems for services to global
/ POJK.03 / 2016 concerning
customers. the Implementation of Risk
c. OJK’s authority to request Management in the Use
Banks to locate the electronic of Information Technology
systems in the territory of by Commercial Banks.
Indonesia. Information obtained from
d. Banks’ obligation to continue
implementing the action plans
that have been submitted to

up to June 2020 04
22. Written Instructions Main Provisions

for Handling of Bank a. The scope of the stipulation
Problems applies to Banks, namely
conventional commercial banks
Article 23 paragraph (2) of
(CCBs), sharia commercial
Government Regulation in Lieu of
banks (SCBs), rural banks (RBs),
Law Number 1 of 2020 concerning
sharia rural financing banks
Policies concerning State Finance
(SRFBs), and branch offices of
and Financial System Stability
banks domiciling abroad.
for Handling 2019 Corona Virus
b. OJK’s authority to give written
Disease (COVID-19) Pandemic
instructions to banks to:
andor in the Context of Facing
1. undertake mergers,
Threats that Endanger the National
consolidations, acquisitions
Economy and/or Financial System
and/or integrations; and/or
Stability gives the authority to the
2. accept mergers,
OJK to issue Written Instructions
consolidations, acquisitions
to Banks for undertaking mergers,
and/or integrations.
consolidations, acquisitions, and/
c. Written orders are issued to
or integrations, or for accepting
Banks that meet the criteria
mergers, consolidations,
based on OJK’s assessments.
acquisitions, and/or integrations,
d. Any Bank that is given a written
with the aim of:
instruction is oblige to prepare
a. maintaining financial system an action plan, as well as
stability in the midst of the implement and maintain the
2019 Corona Virus Disease smooth process of the merger,
(COVID-19) pandemic; and/or consolidation, acquisition and/
b. facing the threats of an or integration in accordance
economic and/or financial with the action plan.
system stability crisis. e. In the execution of a Written
Instruction by a Bank to

up to June 2020
conduct or accept a merger,

consolidation, acquisition and/
or integration:
1. There are several New Regulation of the
adjustments to the process Otoritas Jasa Keuangan
of merger, consolidation,
acquisition, and/or
integration.
2. Based on OJK’s approval,
a CCB or SCB may be
exempted from the 23.Policies for Rural
provisions concerning sole Banks and Sharia Rural
ownership in Indonesian Financing Banks as an
banks, share ownership of Impact of the Spreading
commercial banks, and/or of 2019 Coronavirus
deadline for fulfillment of Disease
minimum core capital. The spreading of the COVID-19
3. In regard any RB or SRFB, in the territory of Indonesia
the office network can still be has a significant impact on the
maintained in accordance performances of RBs and SRFBs
with the regions of the RB where increases in the potential
or SRFB existing office for credit risk and weakening
networks. of cash inflows can disrupt the
performances of RBs and SRFBs
as well as can affect the growth
of the RB and SRFB industry.
Therefore, to promote optimization
of the performance of the RB and
SRFB industry, it is necessary
to adopt a policy regarding the
provisions applicable to RBs and

up to June 2020 04
SRFBs in response to the impact Requirement for RBs and

of the spreading of COVID-19 SRFBs at the reporting
while still observing the prudential position for March 2020;
principle. 3. Provision of funds in the
form of interbank fund
placements at another RB or
Main Provisions
SRFB to overcome liquidity
a. RBs and SRFBs can implement
problems at the other RB or
policies on the provisions
SRFB is exempted from the
applicable to RBs and SRFBs in
provision concerning the
response to the impact of the
Legal Lending Limit or the
spreading of COVID-19. These
Maximum Limit for Funds
policies concern:
Channeling. Interbank fund
1. General Provision for placements may be made
Earning Asset Losses for to all RBs which are related
earning assets with current as well as unrelated parties
quality can be established at a maximum of 30% (thirty
at 0% (zero percent) or less percent) of the capital of the
than 0.5% (zero point five RB and SRFB; and/or
percent) of earning assets 4. Provision of funds for
with current quality as education and training
stipulated in OJK Regulation for human resource
concerning Earning Asset development in 2020 can
Quality and Establishment of be allocated at less than 5%
Provision for Earning Asset (five percent) of the realized
Losses for Rural Banks; HR costs in the previous
2. The percentage of the value year
of Taken-Over Collaterals as b. RBs and SRFBs shall
a reduction factor of core perform documentation and
capital in the calculation administration of each applied
of Minimum Capital policy.

up to June 2020
c. For any RB and SRFB that Provision for Earning Asset

implements a policy concerning Losses and Taken-Over Assets
provision of funds in the form of are retroactive as of 1 April
fund placements by the bank 2020.
at another RB or SRFB to deal
e. This provision is in force from
with liquidity problems at the
the time of promulgation until
other RB or SRFB, the RB and
31 March 2021.
SRFB shall submit reports
on the provision of funds in
the form of fund placements Regulatory Track Record
between banks to resolve
liquidity problems no later than
the 10th (ten) of the following New Regulation of the
month after the provision of
funds.
d. Implementations of the policies Information obtained from
for RBs and SRFBs related to

APPENDIX
Appendix

APPENDIX
List of Provisions In Banking Field

Still In Force Up to June 2020
TOPIC PROVISION NUMBER *)
B.1. Institutional Provisions

1 - Commercial Bank - OJK Regulation Number 17/POJK.03/2018
Establishment dated 15 August 2018 concerning
- Commercial Bank Ownership Amendment to Otoritas Jasa Keuangan
- Commersial Bank Regulation Number 6/POJK.03/2016
Management concerning Business Activities and Office
- Commercial Bank Branch Networks based on Bank Core Capital
Office Opening - OJK Regulation Number 6/POJK.03/2016
- Commercial Bank Branch concerning Business Activities and Office
Office Closure Networks based on Bank Core Capital
- Sharia Business Unit - BI Regulation Number 15/14/PBI/2013
Opening dated 24 December 2013 concerning
Amendment to BI Regulation Number
11/10/PBI/2009 concerning Sharia
Business Units
- BI Regulation Number 14/8/PBI/2012 dated
13 July 2012 cocerning Commercial Bank
Share Ownership
- BI Regulation Number 13/27/PBI/2011
dated 28 December 2011 concerning
11/1/PBI/2009 dated 27 January 2009
concerning Commercial Banks
dated 19 March 2009 concerning Sharia
Business Units
27 January 2009 concerning Commercial
Banks

APPENDIX

2 - Sharia Commercial Bank - BI Regulation Number 15/13/PBI/2013 dated
Establishment 24 December 2013 concerning Amendment
- Sharia Commercial Bank to BI Regulation Number 11/3/PBI/2009
Ownership concerning Sharia Commercial Banks
- Sharia Commercial Bank (also revoking Artile 26 paragraph (1) of BI
Management Regulation Number 14/6/PBI/2012)
- Sharia Commercial Bank - BI Regulation Number 11/3/PBI/2009
Branch Office Opening dated 29 January 2009 concerning Sharia
- Commercial Bank Branch Commercial Banks
Office Closure
3 - Rural Bank (RB) Establishment - OJK Regulation Number 44/POJK.03/2015
- RB Ownership dated 29 December 2015 concerning
- RB Management and Human Competency Certification for Members of
Resources Board of Directors and Members of Board of
- RB Branch Office Opening Commissioners of Rural Banks and Sharia
- RB Branch Office Closure Rural Financing Banks
- OJK Regulation Number 20/POJK.03/2014
dated 21 November 2014 concerning Rural
Banks
4 - Sharia Rural Financing Bank - OJK Regulation Number 44/POJK.03/2015
(SRFB) Establishent dated 29 December 2015 concerning
- SRFB Ownership Competency Certification for Members
- SRFB Management and of the Board of Directors and Members of
Human Resources Board of Commissioners of Rural Banks and
- SRFB Branch Office Opening Sharia Rural Financing Banks
- SRFB Branch Office Closure - OJK Regulation Number 3/POJK.03/2016
dated 27 January 2016 concerning Sharia
5 Sole Ownership In Banks In - OJK Regulation Number 39/POJK.03/2017
Indonesian dated 12 July 2017 concerning Sole
Ownership in Banks In Indonesian
6 Commercial Bank Share - OJK Regulation Number 56/POJK.03/2016
Ownership dated 9 December 2016 concerning
Commercial Bank Share Ownership
dated 23 December 2019 conerning
Mergers, Consolidations, Acquisitions,
Integrations, and Conversions of
Commercial Banks

APPENDIX

7 Fit and Proper Test of the - OJK Regulation Number 34/POJK.03/2018
Main Party of Financial Service dated 27 December 2018 conerning
Institution Reassessment of the Main Party of
Financial Service Institution
dated 27 July 2016 concerning Fit and
Proper Test of the Main Party of Financial
Service Institution
Amendment to BI Regulation Number 11/3/
PBI/2009 concerning Sharia Commercial
Banks (also revoking Article 26 paragraph
(1) of BI Regulation Number 14/6/PBI/2012)
8 Mergers, Consolidations, and - OJK Regulation Number 41/POJK.03/2019
Acquisitions of Commercial dated 23 December 2019 concerning
Banks Mergers, Consolidations, Acquisitions,
Integrations and Conversions of
Commercial Banks
- OJK Regulation Number12/POJK.03/2020
dated 16 March 2020 concerning
Consolidations of Commercial Banks
9 Mergers, Consolidations, and OJK Regulation Number 21/POJK.03/2019
Acquisitions of Rural Banks and dated 13 September 2019 concening Mergers,
Sharia Rural Financing Banks Consolidations, and Acquisitions of Rural
Banks and Sharia Rural Financing Banks
10 Change in Commercial Bank BI Regulation Number 10/9/PBI/2008
Business License to Rural Bank concerning Change in Commercial Bank
Business License in the context Business License to Rural Bank Business
of Consolidation License in the context of Consolidation

APPENDIX

11 Incentives in the Context of - BI Regulation Number 9/12/PBI/2007
Bank Consolidations dated 21 September 2007 concerning
PBI/2006 concerning Incentives in the
Context of Bank Consolidations
concerning Incentives in the Context of
Bank Consolidations
dated 16 March 2020 concerning
Consolidations of Commercial Banks
12 Foreign Bank Branch - OJK Regulation Number 55/POJK.03/2016
Offices and Foreign Bank dated 9 December 2016 concerning
Representative Office Opening Application of Good Corporate Governance
for Commercial Banks
- Director Decree Number 32/37/KEP/
DIR dated 12 May 1999 concerning
Requirements and Procedures for Opening
Branch Office, SubBranch Office and
Representative Office of Bank domiciling
Overseas
13 Change of Bank Name and/or - BI Regulation Number 13/27/PBI/2011
Logo dated 28 December 2011 concerning
concerning Commercial Banks.
dated 29 January 2009 concerning Sharia
Commercial Banks.
Banks.

APPENDIX

14 - Commercial Bank Liquidation - BI Regulation Number 13/27/PBI/2011
- Revocation of Business dated 28 December 2011 concerning
Licenses of Branch Offices of Amendment to BI Regulation Number
Banks Domiciling Overseas 11/1/PBI/2009 dated 27 January 2009
- Revocation of Business concerning Commercial Banks.
License at the Request - BI Regulation Number 11/1/PBI/2009 dated
of Commercial Bank 27 January 2009 concerning Commercial
Shareholders (Self Banks.
Liquidation) - Director Decree Number 32/53/KEP/DIR
concerning Procedures for Revocations
of Business Licenses, Dissolutions, and
Liquidations of Commercial Banks.
- Government Regulation Number 25 of 1999
dated 3 May 1999 concerning Revocations
of Business Licenses, Dissolutions, and
Liquidations of Banks.
15 RB liquidation and business - BI Regulation Number13/6/PBI/2011 dated
license revocation 24 January 2011 concerning Follow Up of
the Handling of Sharia Rural Financing
Banks Under Special Supervision Status
dated 4 June 2009 concerning Follow
Up of the Handling of Rural Banks Under
Special Supervision
- Director Decree Number 32/54/KEP/DIR
dated 14 May 1999 concerning Procedures
for Revocations of Business Licenses,
Dissolutions, and Liquidations of RBs
16 Change in Conventional Bank - OJK Regulation Number 64/POJK.03/2016
Business Activities into Sharia concerning Change in Conventional
Bank Business Activities Bank Business Activities into Sharia Bank
Business Activities

APPENDIX

17 Development of Human - OJK Regulation Number 47/POJK.03/2017
Resources dated 12 July 2017 concerning
Requirement on Provision of Funds for
Education and Training for Development
of Human Resourcces of Rural Banks and
- Director Decree Number 31/310/KEP/
DIR/ 1999 concerning Provision of Funds
For Development of Human Resources of
Commercial Banks
18 Transformations of Village Credit OJK Regulation Number 10/POJK.03/2016
Agencies into RBs dated 2 February 2016 concerning Fulfillment
of Rural Bank Provisions and Transformation
of Village Credit Agency Given The Rural Bank
Status
19 Transformations of Micro OJK Regulation Number 62/POJK.03/2016
Finance Institutions into RBs dated 28 December 2016 concerning
and Sharia Micro Finance Transformations of Conventional Micro
Intitutions into SRFBs Finance Institutions into Rural Banks and
Sharia Micro Finance Intitutions into Sharia
Rural Fnancing Banks
B.2. Provisions concerning Bank Business and Supports Activities, and Services
1 Business Activities and Office - OJK Regulation Number 17/POJK.03/2018
Networks Based On Commercial dated 15 August 2018 concerning
Bank Core Capital Amendment to Otoritas Jasa Keuangan
Regulation Number 6/POJK.03/2016
concerning Business Activities and Office
Networks based on Bank Core Capital
dated 27 January 2016 concerning
Business Activities and Office Networks
based on Bank Core Capital

APPENDIX

2 RB Business Activities and OJK Regulation Number 12/POJK.03/2016
Office Network Regions based dated 17 February 2016 concerning RB
on Core Capital Business Activities and Office Network
Regions based on Core Capital
3 Derivative Transactions - BI Regulation Number 10/38/PBI/2008
7/31/PBI/2005 dated 13 September 2005
concerning Derivative Transactions
13 September 2005 concerning Derivative
Transactions
4 Certificate of Deposit OJK Regulation Number 10/POJK.03/2015
concerning Issuances of Certificates of
Deposit by Banks
5 Officeless Financial Services OJK Regulation Number 19/POJK.03/2014
In The Context of Financial concerning Officeless Financial Services
Inclusion (Laku Pandai) In The Context of Financial Inclusion (Laku
Pandai)
6 Credit Restructuring OJK Regulation Number 40/POJK.03/2019
Assessment of Commercial Bank Asset
Quality
7 Bank Business Activity In The - OJK Regulation Number 25/POJK.03/2016
Form Of Custodianship With date 15 July 2016 concernng Amendment
Management (Trust) to OJK Regulation Number 27/
POJK.03/2015 concerning Bank Business
Activity In The Form Of Custodianship With
Management (Trust)
Bank Business Activity In The Form Of
Custodianship With Management (Trust)
8 Guideline for Compilation of - OJK Regulation Number 42/POJK.03/2017
Bank Credit Policies dated 12 July 2017 concerning Requirement
to Compile and Implement Bank Credit or
Financing Policies for Commercial Banks

APPENDIX

9 Standard for Operating - OJK Regulation Number 75/POJK.03/2016
Information Technology for dated 28 December 2016 concerning
Rural Banks and Sharia Rural Standard for Operating Information
Financing Banks Technology for Rural Banks and Sharia
10 Sharia Bank and Sharia OJK Regulation Number 24/POJK.03/2015
Business Unit Products and dated 8 December 2015 concerning Sharia
Activities Bank and Sharia Business Unit Products and
Activities
11 Sharia Principles In Sharia Bank - BI Regulation Number 10/16/PBI/2008
Fund Accummulation and Fund dated 25 September 2008 concerning
Channeling Activities Amendment to BI Regulation Number 9/19/
PBI/2007 concerning Implementation
of Sharia Principles in Sharia Bank Fund
Accummulation and Fund Channeling
Activities, As Well As Provision of Services
Implementation of Sharia Principles in
Sharia Bank Fund Accummulation and
Fund Channeling Activities, As Well As
Provision of Services
12 Requirement to Fulfill Net Stable OJK Regulation Number 50/POJK.03/2017
Funding Ratio for Commercial dated 13 July 2017 concerning Requirement
Banks to Fulfill Net Stable Funding Ratio for
Commercial Banks
13 Operation of Digital Banking OJK Regulation Number 12/POJK.03/2018
Services by Commercial Banks dated 6 August 2018 concerning Operation
of Digital Banking Services by Commercial
Banks
14 Banking Synergy Within One OJK Regulation Number 28/POJK.03/2019
Ownership For Development of dated 19 November 2019 concerning
Islaamic Banking Banking Synergy Within One Ownership For
Development of Islamic Banking

APPENDIX

B.3. Provisions related to Prudential Principle
1 Commercial Bank Core Capital - OJK Regulation Number 17/POJK.03/2018
dated 15 August 2018 concerning
Amendment to Otoritas Jasa Keuangan
Regulation Number 6/POJK.03/2016
concerning Business Activities and Office
Networks based on Bank Core Capital
Business Activities and Office Networks
based on Bank Core Capital
PBI/2005 concerning Commercial Bank
Core Capital Minimum Amount
concerning Commercial Bank Core Capital
Minimum Amount
2 RB Core Capital - OJK Regulation Number 5/POJK.03/2015
concerning Rural Bank Minimum Capital
Adequacy Requirement and Fulfilment of
Minimum Core Capital
dated 5 October 2006 concerning
Rural Bank Minimum Capital Adequacy
Requirement
3 Commercial Bank Minimum - OJK Regulation Number 34/POJK.03/2016
Capital Adequacy Requirement dated 26 September 2016 concerning
Amendment to OJK Regulation Number
11/POJK.03/2016 concerning Commercial
Bank Minimum Capital Adequacy
Requirement
dated 2 February 2016 concerning
Commercial Bank Minimum Capital
Adequacy Requirement

APPENDIX

4 Minimum Capital Requirement OJK Regulation Number 21/POJK.03/2014
for Sharia Commercial Banks dated 18 November 2014 concerning Sharia
and Sharia Business Units Commercial Bank Minimum Capital Adequacy
Requirement
5 RB Minimum Capital Adequacy - OJK Regulation Number 5/POJK.03/2015
Requirement concerning Rural Bank Minimum Capital
Adequacy Requirement and Fulfilment of
- Articles 2, 3, 4, and 5 of BI Regulation
Number 8/18/PBI/2006 dated 5 October
2006 concerning Rural Bank Minimum
Capital Adequacy Requirement
6 SRFB Minimum Capital - OJK Regulation Number 66/POJK.03/2016
Requirement dated 28 Desember 2016 concerning
Sharia Rural Bank Minimum Capital
Adequacy Requirement and Fulfilment Of
- Articles 2, 3, 4, and 5 of BI Regulation
Number 8/22/PBI/2006 dated 5 October
2006 concerning Minimum Capital
Adequacy Requirement for Sharia Rural
Banks Based On Sharia Principles
7 Integrated Minimum Capital OJK Regulation Number 26/POJK.03/2015

Adequacy Requirement for concerning Integrated Minimum Capital
Financial Conglomerates Adequacy Requirement for Financial
Conglomerates
8 Determination of Systemically OJK Regulation Number 2/POJK.03/2018
Important Banks dan Capital dated 26 March 2018 concerning
Surcharges Determination of Systemically Important
Banks dan Capital Surcharges

APPENDIX

9 Bank Legal Lending Limit OJK Regulation Number 15/POJK.03/2018
or Maximum Limit of Funds dated 15 August 2018 concerning Bank Legal
Channeling to Promote the Lending Limit or Maximum Limit of Funds
Growth of the Tourism Sector Channeling to Promote Growth in Tourism
and to Increase Foreign Sector and to Increase Foreign Currency
Currency Reserve Reserve
10 Legal Lending Limit and Limit - OJK Regulation Number 38/POJK.03/2019
on Provision of Large Funds for dated 19 December 2019 concerning
Commercial Banks Amendment to OJK Regulation Number
32/POJK.03/2018 concerning Legal
Lending Limit and Limit on Provision of
Large Funds for Commercial Banks
Legal Lending Limit and Limit on Provision
of Large Funds for Commercial Banks
concerning Commercial Bank Legal
Lending Limit
Bank Legal Lending Limit
11 Rural Bank Legal Lending Limit OJK Regulation Number 49/POJK.03/2017
dated 12 July 2017 concerning Rural Bank
Legal Lending Limit
12 Sharia Rural Financing Bank BI Regulation Number 13/5/PBI/2011 dated
Legal Lending Limit 24 January 2011 concerning Sharia Rural
Financing Bank Maximum Limit For Funds
Channeling

APPENDIX

13 Limits on Credit or Financing - OJK Regulation Number 16/POJK.03/2018
Extensions by Commercial dated 15 August 2018 concerning
Banks for Provision of Lands Amendment to OJK Regulation Number
and/or Land Preparations 44/POJK.03/2017 concerning Limits
on Credit or Financing Extensions by
Commercial Banks for Provision of Lands
and/or Land Preparations
concerning Limits on Credit or Financing
Extensions by Commercial Banks
for Provision of Lands and/or Land
Preparations
14 Commercial Bank Asset Quality OJK Regulation Number 40/POJK.03/2019
Assessment of Commercial BankAsset
Quality
15 Assessment of Commercial OJK Regulation Number 14/POJK.03/2018
Bank Asset Quality in order dated 15 August 2018 concerning Assessment
to Promote the Growth in the of Commercial Bank Asset Quality in order to
Housing Sector and to Increase Promote the Growth in the Housing Sector
Foreign Currency Reserve and to Increase Foreign Currency Reserve
16 RB Earning Asset Quality OJK Regulation Number 33/POJK.03/2018
dated 27 December 2018 concerning Rural
Bank Earning Asset Quality and Establishment
of Provision for Earning Asset Losses
17 Sharia Commercial Bank and - OJK Regulation Number 19/POJK.03/2018
Sharia Business Unit Asset dated 20 September 2018 concerning
Quality Amendment to OJK Regulation Number
16/POJK.03/2014 concerning Assessment
of Sharia Commercial Bank and Sharia
Business Unit Asset Quality
dated 18 November 2014 concerning
Assessment of Sharia Commercial Bank
and Sharia Business Unit Asset Quality

APPENDIX

18 Sharia Rural Financing Bank OJK Regulation Number 29/POJK.03/2019
Earning Asset Quality and dated 29 November 2019 concerning Sharia
Establishment of Provision for Rural Financing Bank Earning Asset Quality
Earning Asset Write-Offs and Establishment of Provision for Earning
Asset Write-Offs
19 Commercial Bank Provision for BI Regulation Number 14/15/PBI/2012
Earning Asset Write-Offs concerning Assessment of Commercial Bank
Asset Quality
20 Conventional RB Provision for OJK Regulation Number 33/POJK.03/2018
Earning Asset Write-Offs dated 27 December 2018 concerning Rural
Bank Earning Asset Quality and Establishment
of Provision for Earning Asset Losses
21 Sharia Commercial Bank and OJK Regulation Number 16/POJK.03/2014
Sharia Business Unit Provision dated 18 November 2014 concerning
for Asset Write-Offs Assessment of Sharia Commercial Bank and
Sharia Business Unit Asset Quality
22 Prudential Principle in Capital OJK Regulation Number 36/POJK.03/2017
Participation Activities of dated 12 July 2017 concerning Prudential
Commercial Banks Principle in Capital Participation Activities
23 Prudential Principle For OJK Regulation Number 9/POJK.03/2016
Commercial Banks That dated 27 January 2016 concerning Prudential
Outsource Part Of The Principle For Commercial Banks That
Implementation of Works To Outsource Part Of The Implementation of
Other Parties Works To Other Parties
24 Prudential Principle In Asset OJK Regulation Number 11/POJK.03/2019
Securitization Ativities For dated 28 March 2019 concerning Prudential
Commercial Banks Principle In Asset Securitization Ativities For
Commercial Banks

APPENDIX

25 Prudential Principle In The - OJK Regulation Number 6/POJK.03/2018
Conduct Of Structured Product dated 19 April 2018 concerning
Activities For Commercial Banks Amendment to OJK Regulation Number
7/POJK.03/2016 concerning Prudential
Principle In The Conduct Of Structured
Product Activities For Commercial Banks
Prudential Principle In The Conduct
Of Structured Product Activities For
Commercial Banks
26 Prudential Principle In The OJK Regulation Number 8/POJK.03/2016
Conduct Of Overseas Financial dated 27 January 2016 concerning Prudential
Product Agency Activities By Principle In The Conduct Of Overseas
Commercial Banks Financial Product Agency Activities By
Commercial Banks
27 Implementation of Good - OJK Regulation Number 55/POJK.03/2016
Corporate Governance (GCG) dated 9 December 2016 concerning
For Commercial Banks Implementation of Good Corporate
Governance For Commercial Banks
Implementation of Good Corporate
Governance in The Provision Of
Remunerations for Commercial Banks
28 Implementation of GCG For - OJK Regulation Number 59/POJK.03/2017
Sharia Conmmercial Banks and dated 18 December 2017 concerning
Sharia Business Units Implementation of Good Corporate
Governance in Provision of Remunerations
For Sharia Commercial Banks and Sharia
Business Units
Implementation of Good Corporate
Governance For Sharia Conmmercial
Banks and Sharia Business units
29 Implementation of Integrated OJK Regulation Number 4/POJK.03/2015
Good Corporate Governance for concerning Implementation of Integrated
Rural Banks Good Corporate Governance for Rural Banks

APPENDIX

Good Corporate Governance for dated 5 December 2018 concerning
Sharia Rural Financing Banks Implementation of Integrated Good Corporate
Governance for Sharia Rural Financing Banks
Good Corporate Governance for dated 21 November 2014 concerning
Financial Conglomerates Implementation of Integrated Good Corporate
Governance for Financial Conglomerates
32 Implementation of Commercial OJK Regulation Number 46/POJK.03/2017
Bank Compliance Function dated 12 July 2017 concerning Implementation
of Commercial Bank Compliance Function
33 Implementation of Risk OJK Regulation Number 18/POJK.03/2016
Management For Commercial dated 22 March 2016 concerning
Banks Implementation of Risk Management For
Commercial Banks
Management For Sharia dated 28 December 2016 concerning
Commercial Banks and Sharia Implementation of Risk Management For
Business Units Sharia Commercial Banks and Sharia
Business Units
35 Implementation of Risk OJK Regulation Number13/POJK.03/2015
Management For Rural Banks concerning Implementation of Risk
Management For Rural Banks
Management For Sharia Rural dated 5 December 2018 concerning
Financing Banks Implementation of Risk Management For
Risk Management For Financial dated 21 November 2014 concerning
Conglomerates Implementation of Integrated Risk
Management For Financial Conglomerates

APPENDIX

38 Implementation of Risk - OJK Regulation Number 13/POJK.03/2020
Management In The Use of dated 31 March 2020 concerning
Information Technology Amendment to OJK Regulation Number
38/POJK.03/2016 dated 7 December
2016 concerning Implementation of Risk
Management In The Use Of Information
Technology By Commercial Banks
Implementation of Risk Management In
The Use Of Information Technology By
Commercial Banks
39 Implementation of Consolidated OJK Regulation Number 38/POJK.03/2017
Risk Management For Banks dated 12 July 2017 concerning Implementation
That Exercise Control Over of Consolidated Risk Management For
Subsidiary Companies Banks That Exercise Control Over Subsidiary
Companies
40 Credit or Financing Extended OJK Regulation Number 40/POJK.03/2017
to Securities Companies and date 12 July 2017 concerning Credit or
Credit or Financing With Share Financing Extended to Securities Companies
Collaterals and Credit or Financing With Share Collaterals
41 Risk Management Certification - BI Regulation Number 12/7/PBI/2010 dated
For Commercial Bank Members 19 April 2010 concerning Amendment to BI
of Management and Officers Regulation Number 11/19/PBI/2009 dated 4
June 2009 concerning Risk Management
Certification For Commercial Bank
Members of Management and Officers
dated 4 June 2009 concerning Risk
Management Certification For Commercial
Bank Members of Management and
Officers
42 Implementation of Anti Money OJK Regulation Number 12/POJK.01/2017
Laundering and Combating the dated 21 March 2017 concerning
Financing of Terrorism Program Implementation of Anti Money Laundering
in Financial Services Sector and Combating the Financing of Terrorism
Program in Financial Services Sector

APPENDIX

43 Utilization of Foreign Workers OJK Regulation Number 37/POJK.03/2017
and Transfer of Knowledge dated 12 July 2017 concerning Utilization of
Program in Banking Sector Foreign Workers and Transfer of Knowledge
Program in Banking Sector
44 Implementation of Risk BI Circular Letter Number 11/36/DPNP dated
Management On Bank Activities 31 December 2009 concerning Amendment
Related To Mutual Funds to BI Circular Letter Number 7/19/DPNP dated
14 June 2005 concerning Implementation
of Risk Management at Banks That Conduct
Activities Related To Mutual Funds
Management At Commercial dated 9 December 2016 concerning
Banks That Provide Prime Implementation of Risk Management At
Customer Service Commercial Banks That Provide Prime
Customer Service
46 National Economic Stimulus - OJK Regulation Number 11/POJK.03/2015
For Commercial Banks, Sharia dated 24 August 2015 concerning
Commercial Banks, and Sharia Prudential Stipulation In The Context
Business Units Of National Economic Stimulus for
Commercial Banks
dated 24 August 2015 concerning
Prudential Stipulation In The Context Of
National Economic Stimulus for Sharia
Commercial Banks and Sharia Business
Units
47 Requirement To Meet Liquidity OJK Regulation Number 42/POJK.03/2015
Coverage Ratio For Commercial dated 23 December 2015 concerning
Banks Requirement To Meet Liquidity Coverage
Ratio For Commercial Banks
48 Special Treatment for Bank OJK Regulation Number 45/POJK.03/2017
Credit or Financing for Certain dated 12 July 2017 concerning Special
Areas in Indonesia Affected by Treatment for Bank Credit or Financing for
Natural Disasters Certain Areas in Indonesia Affected by Natural
Disasters

APPENDIX

49 Implementation of Internal Audit OJK Regulation Number 1/POJK.03/2019
Function in Commercial Banks dated 29 January 2019 concerning
Implementation of Internal Audit Function in
Commercial Banks
50 Requirement to Meet Leverage OJK Regulation Number 31/POJK.03/2019
Ratio For Commercial Banks dated 2 December 2019 concerning
Requirement to Meet Leverage Ratio for
Commercial Banks
51 Implementation of Anti Fraud OJK Regulation Number 39/POJK.03/2019
Strategy and Prevention of dated 19 December 2019 concerning
Banking Crime Implementation of Anti Fraud Strategy for
Commercial Banks
52 National Economy Stimulus as OJK Regulation Number 11/POJK.03/2020
Countercyclical Policy on the dated 16 March 2020 concerning National
Impact of the 2019 Coronavirus Economy Stimulus as Countercyclical Policy
Disease Spreading on the Impact of the 2019 Coronavirus
Disease Spreading
53 Policies for Rural Banks and OJK Regulation Number 34/POJK.03/2020
Sharia Rural Financing Banks As dated 2 June 2020 concerning Policies for
The Impact of The Spreading of Rural Banks and Sharia Rural Financing Banks
2019 Coronavirus Disease As The Impact of The Spreading of 2019
Coronavirus Disease
B.4. Regulations concerning Accounting Reports and Standards

1 Transparency of Bank Financial OJK Regulation Number 37/POJK.03/2019
Condition dated 19 December 2019 concerning
Transparency and Publication of Bank Reports
2 Transparency of RB Financial OJK Regulation Number 48/POJK.03/2017
Condition dated 12 July 2017 dated Transparency of
Rural Bank Financial Condition
3 Transparency of SRFB Financial OJK Regulation Number 35/POJK.03/2019
Condition dated 13 December 2019 concerning
Transparency of Sharia Rural Financing Bank
Financial Condition
4 Transparency of Bank Product BI Regulation Number 7/6/PBI/2005 dated
Information and Use of 20 January 2005 concerning Transparency
Customer Personal Data of Bank Product Information and Use of
Customer Personal Data

APPENDIX

5 Commercial Bank reports - BI Regulation Number 14/12/PBI/2012
Commercial Bank Head Office Reports
4 February 2011 concerning Commercial
Bank Daily Reports
6 RB and SRFB reports OJK Regulation Number 13/POJK.03/2019
dated 2 May 2019 concerning Rural Bank
and Sharia Rural Financing Bank Reporting
through Otoritas Jasa Keuangan Reporting
System
7 Credit Information - OJK Regulation Number 18/POJK.03/2017
dated 26 April 2017 concerning Reporting
of and Request for Debtor Information
through Financial Information Services
System
dated 18 February 2013 concerning Credit
Information Management Institution
8 Commercial Bank Reporting OJK Regulation Number 12/POJK.03/2019
Through Otoritas Jasa dated 5 April 2019 concerning Commercial
Keuangan Reporting System Bank Reporting Through Otoritas Jasa
Keuangan Reporting System
9 Submission of Reports through OJK Regulation Number 36/POJK.03/2019
the Integrated Reporting Portal dated 18 December 2019 concerning
Submission of Reports through the Integrated
Reporting Portal
B.5. Regulations concerning Bank Supervision

1 Bank Business Plan OJK Regulation Number 5/POJK.03/2016
dated 27 January 2016 concerning Bank
Business Plan
2 Rural Bank and Sharia Rural OJK Regulation Number 37/POJK.03/2016
Financing Bank Business Plans dated 30 November 2016 concerning Rural
Bank and Sharia Rural Financing Bank
Business Plans

APPENDIX

3 Assessment of Commercial OJK Regulation Number 4/POJK.03/2016
Bank Soundness Level dated 27 January 2016 concerning
Assessment of Commercial Bank Soundness
Level
4 Assessment of Sharia OJK Regulation Number 8/POJK.03/2014
Commercial Bank Soundness dated 11 June 2014 concerning Assessment of
Level Sharia Commercial Bank and Sharia Busines
Unit Soundness Levels
5 Assessment of Rural Bank Director Decree Number 30/12/KEP/DIR
Soundness Level dated 30 April 1997 concerning Procedure For
Assessment of RB Soundness Level
6 Assessment of Sharia Rural OJK Regulation Number 20/POJK.03/2019
Financing Bank Soundness dated 9 September 2020 concerning Sharia
Level Rural Financing Bank Soundness Level
System
7 Determination of Bank Status - OJK Regulation Number 32/POJK.03/2019
and Supervision Follow Up dated 12 December 2019 concerning
Amendment to OJK Regulation Number 19/
POJK.03/2017 concerning Rural Bank and
Sharia Rural Financing Bank Determination
of Status and Supervision Follow Up
dated 8 May 2017 concerning Rural
Bank and Sharia Rural Financing Bank
Determination of Status and Supervision
Follow Up
dated 4 April 2017 concerning Commercial
Bank Determination of Status and
Supervision Follow Up
8 Follow Up of Bank Supervision OJK Regulation Number 43/POJK.03/2017
Implementation dated 12 July 2017 concerning Follow Up of
Bank Supervision Implementation
9 Requirement and Procedure of OJK Regulation Number 41/POJK.03/2017
bank Examination daed 12 July 2017 concerning Requirement
and Procedure of Bank Examination

APPENDIX

10 Recovery Plans For Systemic OJK Regulation Number 14/POJK.03/2017
Banks dated 4 April 2017 concerning Recovery Plans
For Systemic Banks
11 Intermediary Banks OJK Regulation Number 16/POJK.03/2017
dated 4 April 2017 concerning Intermediary
Banks
B.6. Regulations concerning Consumer Education and Protection

1 Consumer Protection - OJK Regulation Number 18/POJK.07/2018
dated 10 September 2018 concerning
Consumer Complaint Services in Financial
Services Sector
dated 26 July 2013 concerning Consumer
Protection in Financial Services Sector
2 Alternative Dispute Resolution OJK Regulation Number 1/POJK.07/2014
Bodies in Financial Services dated 16 January 2014 concerning Alternative
Sector Dispute Resolution Bodies in Financial
Services Sector
3 Financial Literacy and Inclusion OJK Regulation Number 76/POJK.07/2016
Enhancement of Financial Literacy and
Inclusion in The Financial Services Sector for
Consumers and/or the Public
B.7. Other Regulations

1 Bank Secrecy BI Regulation Number 2/19/PBI/2000 dated
7 September 2000 concerning Requirement
and Procedure for Issuance Written Orders or
Permits For Disclosing Bank Secrecy
2 Authority On Criminal OJK Regulation Noumber 22/POJK.01/2015
Investigations in Financial dated 28 December 2015 concerning Criminal
Services Sector Investigations in Financial Services Sector

APPENDIX

3 Uses of the Services of Public OJK Regulation Number 13/POJK.03/2017
Accountants and Public concerning Uses of the Services of Public
Accounting Firms in Financial Accountants and Public Accounting Firms in
Service Activities Financial Service Activities
4 Sustainable Finance OJK Regulation Number 51/POJK.03/2017
Implementation for Financial dated 18 July 2017 concerning Sustainable
Service Institutions, Issuers and Finance Implementation for Financial Service
Public Companies Institutions, Issuers and Public Companies
5 Reporting of Foreign Customer OJK Regulation Number 25/POJK.03/2019
Information regarding Taxation dated 16 October 2019 concerning Reporting
to Partner Countries or Partner of Foreign Customer Information regarding
Jurisdictions Taxation to Partner Countries or Partner
Jurisdictions
6 Bank Coaching OJK Regulation Number 18/POJK.03/2020
dated 21 April 2020 concerning Written
Instructions for Handling of Bank Problems

APPENDIX
Glossary Of Bank Performance

Indicators
No. Terminology Explanation
1, Capital Adequacy Ratio (CAR) Capital adequacy ratio obtained from
calculation (capital / RBWA) x100%.
RBWA = Risk-Based Weighted
Assets.
2 Return on Asset (ROA) One form of profitability ratios for
measuring a company's capability to
generate profits against the average
total assets owned by a bank.
3 Operational Cost over Efficiency measurement based
Operational Income (OCOI) on the ratio of operational cost to
operational income.
4 Net Interest Margin (NIM) It is an indicator of bank profitability
obtained from the ratio of Net
Interest Income to the average Total
Earning Assets (BI CL Number 13/24/
DPNP dated 25 October 2011).
5 Net Operating Margin (NOM) It is an indicator of profitability
for Islamic Banking which is
measured by the ratio between
funds channeling income after
yield sharing and then deducted by
operational costs to the average
earning assets.

APPENDIX

6 Cash Ratio (CR) Comparison between liquid assets
and current liabiities as stipulated
in the provisions of legislations
governing the assessment
procedure for the soundness
level of RBs and the assessment
system for the soundness level of
RBs based on sharia principles
(OJK Regulation Number 19/
POJK.03/2017 concerning RB and
SRFB Determination of Status and
Supervision Follow Up).
7 Non Performing Loan The portions of credit/financing
(NPL) atau Non Performing which quality are of substandard,
Financing (NPF) Gross doubtful, or non-performing
categories as referred to in the
provisions of legislations regarding
the assessment of commercial bank
asset quality and OJK regulation
regarding the assessment of
the quality of assets of sharia
commercial banks and sharia
business units over total credit.
8 Non Performing Loan The portions of credit/financing
(NPL) atau Non Performing which quality are of substandard,
Financing (NPF) Net doubtful, or non-performing
categories after being deducted
with Reserve for Losses from Value
Impairment (RLVI) over total credit

APPENDIX

9 Loan to Deposit Ratio (LDR) The ratio of credit/financing
atau Financing to Deposit extended to third parties in Rupiah
Ratio (FDR) and foreign currencies, excluding
credit to other banks, over third party
funds, which include giro (demand
deposits), savings deposits and
term deposits in Rupiah and foreign
currencies, excluding interbank
funds (BI Regulation Number 15/15/
PBI/2013).

APPENDIX
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APPENDIX
Indonesia Banking
Booklet 2020
Menara Radius Prawiro www.ojk.go.id
Jl. MH Thamrin No. 2 official.ojk
Jakarta - 10350
@OJKINDONESIA
halodpip@ojk.go.id
@OJKINDONESIA
kontak OJK 157 ext 7001
fax (021) 386 032 Jasakeuangan

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Indonesia Financial Services Authority i

Drafting team and contributors:

Cover and Layout Design:

Indonesia Financial Services Authority

ii Indonesia Banking Booklet 2020

We realize that there are yet shortcomings in the presentation of the

Jakarta, October 2020

Department of Banking Licensing and Information

Indonesia Financial Services Authority iii

ii COMPILATION TEAM MEMBERS

iv Indonesia Banking Booklet 2020

85 J. Credit Reporting System

Indonesia Financial Services Authority v

158 5. Assessment System for Soundness Level of Sharia Rural

vi Indonesia Banking Booklet 2020

Indonesia Financial Services Authority vii

viii Indonesia Banking Booklet 2020

Indonesia Financial Services Authority ix

x Indonesia Banking Booklet 2020

Indonesia Financial Services Authority 1

Indonesia Financial Services

2 Indonesia Banking Booklet 2020

3. To protect the interests of

Indonesia Financial Services Authority 3

Financial service Financial service Financial service

4 Indonesia Banking Booklet 2020

Indonesia Financial Services Authority 5

OJK’s Organization OJK is led by the Board of Commis-

Figure 1.1. Composition of OJK Board of

1. Wimboh Santoso, SE., MSc., Ph.D

2. Ir. Nurhaida, MBA

3. Heru Kristiyana SH., MM

6 Indonesia Banking Booklet 2020

6. Drs. Ahmad Hidayat, Akt.CA. MBA

7. Tirta Segara, SE., MBA

8. Dody Budi Waluyo, SE., MBA

9. Suahasil Nazara, SE.,MSc., Ph.D

Indonesia Financial Services Authority 7

Member 1 Member 2 Member 3 Member 4 Member 5 Member 6

Chairman Vice Chairman/ Executive Executive Head Executive Head Chairman of

EXECUTIVE OF OPERASIONAL ACTIVITIES

GDST DLOG GPUT GPSI GPAF DPPS DKIP

8 Indonesia Banking Booklet 2020

• ADK (Board of Commissioners)

Indonesia Financial Services Authority 9

1. Bank are business entities that collect funds from

2. Conventional Bank (CB) are banks that

3. Conventional Commercial Banks (CCB) are

4. Rural Banks (RB) are banks that not provide

10 Indonesia Banking Booklet 2020

5. Islamic Bank (IB) are banks that conduct

6. Islamic Commercial Banks (ICB) is Islamic

7. Islamic Rural Banks (IRB) is Islamic Banks that

8. Islamic Business Unit (IBU) is a working unit

9. Sharia Principles are Islamic law principles in

Indonesia Financial Services Authority 11

CONVENTIONAL BANK ISLAMIC BANK

CONVENTIONAL RURAL BANKS ISLAMIC ISLAMIC RURAL

12 Indonesia Banking Booklet 2020

Business Activities of the Bank

a. Collect funds from public in 5) Bonds;

Indonesia Financial Services Authority 13

j. Undertaking fund placements m. Conducting other activities