OJK Raises GCG Bar: Banks Now Required to Conduct Self-Assessments in Line with 16 Governance Indicators

In an effort to clarify the application of Good Corporate Governance (“ GCG ”) by Conventional Commercial Banks (Bank Umum Konvensional– “ BUK ”), Sharia Commercial Banks (Bank Umum Syariah- “ BUS ”) and Sharia Business Units (Unit Usaha Syariah- “ UUS ”) (collectively referred to as “ Banks ”), the Financial Services Authority (Otoritas Jasa Keuangan- “ OJK ”) has now decided to issue Circular No. 14/SEOJK.03/2025 on the Implementation of Governance by Commercial Banks (“ Circular 14/2025 ”), which officially came into effect on 24 June 2025. [1]