Reporting Through the Financial Services Authority Reporting System and Financial Condition Transparency for People's Economic Banks and Sharia People's Economic Banks

The Financial Services Authority of Indonesia issued POJK No. 23 of 2024 to mandate the digitalization of reporting and enhance financial transparency for People's Economic Banks (BPR) and Sharia People's Economic Banks (BPRS). This regulation consolidates and replaces three prior reporting and transparency rules while simplifying report content to align with prudential principles and technological advancements. It establishes an effective date of January 1, 2025, repeals specific administrative fines and governance provisions, and imposes sanctions for late or non-compliant submissions prior to that date.

Indonesia

Otoritas Jasa Keuangan (Financial Services Authority)

Regulation / Regulation Search / Reporting Through the Financial Services Authority Reporting System and Financial Condition Transparency for People's Economic Banks and Sharia People's Economic Banks

Sector: Banking

Sub-Sector: BPR; Sharia Banking

Regulation Type: Financial Services Authority Regulation (POJK)

Regulation Number: 23 of 2024

Effective Date: 1/1/2025

Appendix 1 POJK 23 of 2024 Reporting Through the Financial Services Authority Reporting System and Financial Condition Transparency for BPR and BPRS.pdf Abstract POJK 23 of 2024 Reporting Through the Financial Services Authority Reporting System and Financial Condition Transparency for BPR and BPRS.pdf FAQ POJK 23 of 2024 Reporting Through the Financial Services Authority Reporting System and Financial Condition Transparency for BPR and BPRS.pdf

Page Content Financial Services Authority Regulation of the Republic of Indonesia Number 23 of 2024 concerning Reporting Through the Financial Services Authority Reporting System and Financial Condition Transparency for People's Economic Banks and Sharia People's Economic Banks Abstract: To improve the efficiency of supervision of people's economic banks and Sharia people's economic banks through the digitalization of report submissions and in line with technological developments in the business activities of the people's economic bank and Sharia people's economic bank industry, which need to present reports that are complete, accurate, current, and comprehensive in accordance with applicable legislation, as well as to improve the transparency of the financial conditions of people's economic banks and Sharia people's economic banks that reflect their performance, it is necessary to establish a Financial Services Authority Regulation concerning Reporting Through the Financial Services Authority Reporting System and Financial Condition Transparency for People's Economic Banks and Sharia People's Economic Banks. The legal basis for this Financial Services Authority Regulation (POJK) is: Law No. 7 of 1992 as amended several times, most recently by Law No. 4 of 2023; Law No. 21 of 2008 as amended several times, most recently by Law No. 4 of 2023; and Law No. 21 of 2011 as amended by Law No. 4 of 2023. The Financial Services Authority Regulation (POJK) concerning Reporting Through the Financial Services Authority Reporting System and Financial Condition Transparency for People's Economic Banks and Sharia People's Economic Banks is an improvement over POJK No. 13/POJK.03/2019 concerning Reporting by Rural Banks and Sharia Financing Banks Through the Financial Services Authority Reporting System; POJK No. 48/POJK.03/2017 concerning Financial Condition Transparency of Rural Banks; and POJK No. 35/POJK.03/2019 concerning Financial Condition Transparency of Sharia Financing Banks. This is driven by the simplification of reporting regarding the content or substance of reports, provided it does not conflict with prudential principles, and as an effort to digitize reporting. Note: This Financial Services Authority Regulation takes effect on December 1, 2024. This Financial Services Authority Regulation was promulgated on November 29, 2024, and established on November 25, 2024. In the event of violations of the following provisions: a. Periodic Reports up to the position for November 2024; and b. Incidental Reports up to November 30, 2024, BPR and Sharia BPR shall be subject to sanctions based on the respective provisions of applicable legislation. Upon the effective date of this Financial Services Authority Regulation, the following provisions: a. late payment fines and/or failure to submit Reports in accordance with applicable legislation for BPR and Sharia BPR; and b. fines for errors and/or inconsistencies in Reports in accordance with applicable legislation for BPR and Sharia BPR, are repealed and declared invalid. Upon the effective date of this Financial Services Authority Regulation, the administrative sanction provisions as referred to in: a. Article 105 of Financial Services Authority Regulation Number 9 of 2024 concerning the Implementation of Governance for People's Economic Banks and Sharia People's Economic Banks; b. Article 33 of Financial Services Authority Regulation Number 13/POJK.03/2015 concerning the Implementation of Risk Management for Rural Banks; and c. Article 29 of Financial Services Authority Regulation Number 23/POJK.03/2018 concerning the Implementation of Risk Management for Sharia Financing Banks, are repealed and declared invalid. Upon the effective date of this Financial Services Authority Regulation: a. Financial Services Authority Regulation Number 48/POJK.03/2017 concerning Financial Condition Transparency of Rural Banks; b. Financial Services Authority Regulation Number 13/POJK.03/2019 concerning Reporting by Rural Banks and Sharia Financing Banks through the Financial Services Authority Reporting System; and c. Financial Services Authority Regulation Number 35/POJK.03/2019 concerning Financial Condition Transparency of Sharia Financing Banks, are repealed and declared invalid. Explanation: 16 pages.