New Provisions on Single-Presence Banking Policy

In a bid to anticipate the dynamics of economic development, as well as to enhance the sustainability and competitiveness of the national banking sector, the Financial Service Authority (“OJK”) has issued Regulation No. 39/POJK.03/2017 on Single-Presence Policy for Indonesian Banks (“Regulation 39/2017”). [1] Prior to the issuance of Regulation 39/2017, single-presence policy was already regulated under Bank Indonesia(“BI”)Regulation No. 14/24/PBI/2012 on Single-Presence Policy for Indonesian Banks (“Regulation 14/2012”). [2] In essence, Regulation 39/2017 updates several provisions which were originally set out under Regulation 14/2012. Our discussion of this new regulation will address the following matters: