OJK Embraces Digital Bank with New Regulations
From 30 October 2021, digital banks in Indonesia will be regulated under two new regulations issued by the OJK, Indonesia’s Financial Services Authority. The two regulations, OJK Regulation No. 12/POJK.03/2021 on Commercial Banks (“Regulation 12”) and OJK Regulation No. 13/POJK.03/2021 on Administration of Commercial Bank Products (“Regulation 13”), revoke several regulations, including Bank Indonesia Regulation No. 11/1/PBI/2009, as amended by Bank Indonesia Regulation No. 13/27/PBI/2011 and OJK Regulation No. 6/POJK.03/2016, as amended by OJK Regulation No. 17/POJK.03/2018.
Regulation 12 and Regulation 13 signals the government’s wholehearted support in facilitating growth and innovation in the digital banking sector. The regulations govern establishment, activities, and reporting requirements, among others, which we will discuss in more detail below.