OJK Adjusts Provisions on the Governance of Commercial Banks

In an effort to improve the stability of commercial banks and to ensure that they are able to grow sustainably, the Financial Services Authority (Otoritas Jasa Keuangan– “ OJK ”) recently issued Regulation No. 17 of 2023 on the Application of Governance for Commercial Banks (“ Regulation 17/2023 ”), which has been in force since 14 September 2023 and which simultaneously repeals and replaces Regulation No. 55/POJK.03/2016 of 2016 (“ Regulation 55/2016 ”), which bore the same title. [1] However, it should also be noted that a total of 19 other existing Regulations of the OJK will remain valid, provided that they do not contradict any of the provisions set under the framework of Regulation 17/2023. [2]