Expertise: Banking & Finance

Bank Indonesia Regulations on Foreign Exchange Transactions

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By Andini H. Dewi B ank Indonesia (BI) recently issued several regulations related to foreign exchange transactions by Indonesian banks, which update existing regulations issued by BI. Below is a brief summary of the new regulations: 1. Bank Indonesia Regulation No. 16/16/PBI/2014 dated September 17, 2014 regarding Foreign Exchange Transactions against Rupiah with Domestic Parties … Bank Indonesia Regulations on Foreign Exchange Transactions

SSEK Advises Woori Bank on Acquisition of Stake in Listed Indonesian Bank

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SSEK acted as Indonesian counsel to Woori Bank of South Korea in its purchase of a 33 percent stake in Indonesia’s Bank Himpunan Saudara 1906 for 713.1 billion Rupiah, about US$61 million. Securing approval from Indonesia’s central bank, Bank Indonesia, for the purchase took about 18 months amid an evolving regulatory environment for bank acquisitions … SSEK Advises Woori Bank on Acquisition of Stake in Listed Indonesian Bank

Primary Parties in Non-Banking Finance Institutions

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Indonesia’s Financial Services Authority (Otoritas Jasa Keuangan or “OJK”) has introduced a new concept, known as Primary Parties in Non-Banking Finance Institutions, along with certain requirements that such Primary Parties must fulfill. Primary Parties, according to recent OJK regulations, are those who manage or supervise and have significant influence over Non-Banking Finance Institutions, i.e. insurance companies, pension … Primary Parties in Non-Banking Finance Institutions

OJK at Full Power After Taking Over Banking Supervision from Bank Indonesia

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Bank Indonesia, Indonesia’s central bank, officially transferred its banking microprudential supervisory powers to the Financial Services Authority (OJK) on December 31, 2013. Agus Martowardojo, the governor of Bank Indonesia, signed the Record of Transfer (Berita Acara Serah Terima) to Muliaman D. Hadad, the Chairman of the OJK’s Board of Commissioners. The OJK now has the … OJK at Full Power After Taking Over Banking Supervision from Bank Indonesia

Microfinance Institutions Move Out of Regulatory Black Hole

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Microfinance Institutions (“MFIs”) play an important role in Indonesia, dispensing financial support to people and small businesses that might not have qualified in the traditional banking system. Until recently MFIs largely operated without a comprehensive regulatory framework to guide their operations, and with little supervision. After a long wait the Government has issued a framework … Microfinance Institutions Move Out of Regulatory Black Hole

Indonesian Banks Get New Ownership Rules

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Indonesia’s central bank, Bank Indonesia (“BI”), has issued a regulation designed to improve the competitiveness of the banking system by streamlining bank ownership through consolidation and enhancing supervision, particularly in the area of good corporate governance. BI Regulation No. 14/24/PBI/2012 regarding Single Ownership in Indonesian Banks was issued on December 26, 2012. It addresses what … Indonesian Banks Get New Ownership Rules

New BI Regulation on the Share Ownership of Commercial Banks

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Long awaited by the banking industry and having gone through a lengthy process within Bank Indonesia (BI) itself, where several share purchase transactions were put on hold by BI, BI has issued a new regulation on the ownership of commercial banks, as contained in BI Regulation No. 14/8/PBI/2012 regarding the Share Ownership of Commercial Banks … New BI Regulation on the Share Ownership of Commercial Banks