Policy

Jakarta, 8 January 2025 – Indonesia Financial Services Authority (OJK) has issued OJK Regulation (POJK) Number 26 of 2024 concerning the Expansion of Banking Business Activities as an effort to support the growth of a healthy, innovative, and inclusive banking sector.

This POJK follows the mandate of Law Number 4 of 2023 on the Development and Strengthening of the Financial Sector (P2SK Law). This regulation aims to address industry needs by adapting to banking products developments, ensuring alignment with accepted standards and while meeting customer needs.

This POJK regulates, among other things:

1. Adjustment of the scope of Bank Subsidiaries (investee)  to align with the P2SK Law;
2. Equity participation by Rural Banks (BPR) or Sharia Rural Banks (BPR Syariah);
3. Transfer of receivables by Commercial Banks and BPR or BPR Syariah;
4. Guarantees provided by Commercial Banks;
5. Utilization of Electronic Signatures (TTE) and electronic agreements by Commercial Banks;
6. Implementation of Foreign Exchange Business Activities (KUPVA) by Banks; and
7. Sharia banking products.

This POJK officially took effect on 13 December 2024.. However, the provisions regarding Equity Participation by BPR or BPR Syariah will come into effect on 1 January 2025.

OJK will continue to supervise and evaluate the implementation of this POJK to ensure it operates effectively and delivers optimal benefits for the public and the banking industry.

Information about POJK, OJK Circular Leter (SEOJK,) infographics, and regulation summaries can be accessed through OJK’s online regulation portal application (SIKePO) to gain a comprehensive understanding of the provisions. SIKePO can be accessed via browser at sikepo.ojk.go.id or through the mobile application available for download on Google Play Store and Apple App Store.

Click here for the detail of OJK Regulation Number 26/2024 concerning the Expansion of Banking Business Activities