Internet-Based Banking Services Finally Regulated

In response to growing customer demand for the improvement of banking service, banks have now integrated various information technology systems into their services, which has resulted in the dawning of the digital-banking-service era. [1] In order to control and manage the inherent risks involved in digital banking services, the Financial Services Authority (Otoritas Jasa Keuangan– “ OJK ”) has issued Regulation on the Organization of Digital Banking Services by Commercial Banks (“ Regulation 12/2018 ”).In essence, Regulation 12/2018 sets out a number of provisions which address the implementation of both electronic banking services (“ Electronic Services ”) and digital banking services (“ Digital Services ”) (collectively referred to as “ Internet-Based Services ”) and addresses the following specific areas: