Stimulating the Small-Scale Economy: OJK to Allow BPR Participation in Capital Investments

The Financial Services Authority (Otoritas Jasa Keuangan– “ OJK ”) is currently in the process of drawing up a new Draft Regulation on Banking Business Activities (“ Draft Regulation ”) in an effort to realize the mandate originally set out under Law No. 4 of 2023 on the Development and Strengthening of the Financial Sector (“ Law 4/2023 ”). The Draft Regulation will set out a comprehensive legal framework that will support the development of various banking activities by both commercial banks (“ Banks ”) and rural banks (bank perekonomian rakyat– “ BPR ”). [1]