New Provisions on Conversion of BUK to BUS: Arrangements on Operational Transitional Period Introduced

The Financial Services Authority (Otoritas Jasa Keuangan– “ OJK ”) has introduced an updated legal framework that addresses the conversion of the activities of conventional commercial banks (bank umum konvensional– “ BUK ”) to those of sharia commercial banks (bank umum syariah– “ BUS ”) through the issuance of Circular No. 6/SEOJK.03/2023 (“ Circular 6/2023 ”), which has been in force since 21 February 2023. Previously, these matters were dealt with under Circular of the OJK No. 2/SEOJK.03/2017 (“ Circular 2/2017 ”), which bore the same title and has now been repealed and replaced.