29 September 2021

With the rise of digital banking and demand for financial technology in Indonesia, the Indonesian Financial Services Authority (Otoritas Jasa Keuangan or “OJK”) recently issued the highly anticipated OJK Regulation 12/POJK.03/2021 on Conventional Banks (“New Regulation”). The enactment of the New Regulation marks a leap forward for digital banks, mainly because the former legislative regime merely regulated digital banking services, which were seen as only an extension of existing conventional bank activities. The New Regulation now provides clear guidance for the establishment of stand-alone digital banks.

This is an extract of an article by Soemadipradja & Taher, our network firm in Indonesia. To read the full article from the Soemadipradja & Taher website www.soemath.com, please click here.