The Banking Bill governs commercial (Bank Umum) and
rural (Bank Perkreditan Rakyat) banks
(Banks), and provides the procedure and
requirements for establishing Banks, the restrictions on foreign
ownership in Banks, the criteria for being appointed as senior
executives or being controlling shareholders of Banks, and
requirements regarding Bank soundness levels. The Banking Bill will
replace the current Banking Law No. 7 of 1992 (as amended).
The latest update is that the ratification of the Banking Bill
as a Law is still pending. It is expected that the newly elected
members of the House of Representatives together with Bank
Indonesia, the Financial Services Authority (OJK),
and other related parties will sit together to discuss its
application and the consequences, in particular with respect to the
limit on foreign ownership of commercial banks. The following is a
brief summary of the provisions of the Banking Bill available to
date, which may subsequently change of
