Transition of Authority from Bank Indonesia to OJK on the Supervision of Indonesian Banks
In 2011, the Indonesian Financial Services Authority (Otoritas Jasa Keuangan - "OJK") replaced Bank Indonesia ("BI") as the supervisory body for financial institutions (which includes Indonesian banks and domestic branch offices of foreign banks) further to Law No. 21 of 2011 ("Law No. 21"). Since the issuance of Law No. 21, the OJK has been restating, and in some cases revising, certain BI regulations. This article provides an overview of new provisions contained in key OJK regulations concerning bank compliance as issued in the first half of 2016, and the practical implications the restated regulations have on Indonesian banks and domestic branch offices of foreign banks.