OJK Prepares New Accounting Regulation for Sharia Banks

The Financial Services Authority (Otoritas Jasa Keuangan – “OJK”) continues to strengthen the regulatory infrastructure of sharia financial sector through the preparation of a Draft OJK Regulation (Rancangan Peraturan OJK – “RPOJK”) on Accounting Guidelines for Sharia Rural Banks (Bank Perekonomian Rakyat Syariah – “BPRS”) (“PAPSI”). This initiative is intended to ensure the availability of accounting standards that are relevant, reliable, and responsive to the evolving needs of the sharia banking industry in Indonesia.

“The preparation of the PAPSI is not merely an administrative exercise, but a strategic measure by OJK to strengthen the governance and transparency pillars of the Sharia Rural Bank industry,” stated Dian Ediana Rae, Chief Executive of Banking Supervision at OJK.

Previously, the PAPSI was governed under OJK Circular No. 9/SEOJK.03/2015 (“SEOJK 9/2020”). The guidelines serve as the financial reporting standard, providing further guidance on the Financial Accounting Standards for Entities Without Public Accountability (Standar Akuntansi Keuangan Entitas Tanpa Akuntabilitas Publik – “SAK ETAP”) and the Statements of Financial Accounting Standards (Pernyataan Standar Akuntansi Keuangan – “PSAK”) applicable to sharia transactions in BPRS operations.