Proposal to Synchronize POJK and the P2SK Law Regarding Foreign Ownership

The President Director of PT Nusantara Bona Pasogit, Hendi Apriliyanto, stated that there is a lack of synchronization between Regulation of the Financial Services Authority (POJK) Number 7 of 2024 on Rural Banks and Sharia Rural Banks, and Law Number 4 of 2023 on the Development and Strengthening of the Financial Sector (P2SK).

“We kindly request that the POJK be revised to align with the provisions in the P2SK Law,” he told Hukumonline.

According to Hendi, adjustments are needed in Article 35 paragraph (1) and paragraph (2); Article 100 paragraph (1), paragraph (2), and paragraph (3); Article 130 paragraph (1); and Article 131 paragraph (1) of POJK 7/2024. This lack of synchronization is considered to potentially diminish the presence and role of banks; hence regulatory changes are necessary.

Article 23 paragraph (1) of the Banking Law states that Rural Banks (Bank Perekonomian Rakyat/BPR) can only be established and owned by Indonesian citizens, Indonesian legal entities, or regional governments. However, POJK 7/2024 removes this BPR ownership by Indonesian citizen, allowing foreign investors to own BPR through limited liability companies.