New Technical Rules for the Implementation of the Prudential Principle for Bank Liabilities in Foreign Currencies

Formulated as a new technical regulation for Regulation of Bank Indonesia (“ BI ”) No. 21/1/PBI/2019 on Offshore Bank Loans and Other Bank Liabilities in Foreign Currencies (“ Regulation 1/2019 ”), BI's Board of Governors has issued Regulation No. 21/3/PADG/2019 (“ Regulation 3/2019 ”), which has been given the exact same title as Regulation 1/2019. [1] These matters were previously addressed under Circular of BI No. 9/1/DInt on Offshore Bank Loans, as amended several times, most recently through the issuance of Circular of BI No. 16/4/DKEM (“ Previous Regulation ”), which now has been repealed and replaced by Regulation 3/2019. [2] In essence, Regulation 3/2019 addresses the following specific matters: