Implementation of Corporate Governance for Sharia Economic People's Banks

Financial Services Authority Circular Letter Number 15/SEOJK.03/2025 regarding the Implementation of Corporate Governance for Sharia Economic People's Banks

Abstract: This Financial Services Authority Circular Letter is drafted to strengthen the implementation of corporate governance at Sharia Economic People's Banks (BPRS), where previously the Financial Services Authority Regulation Number 9 of 2024 regarding the Implementation of Corporate Governance for Economic People's Banks and Sharia Economic People's Banks (POJK Corporate Governance) was issued on July 1, 2024, and the Financial Services Authority Regulation Number 25 of 2024 regarding the Implementation of Sharia Corporate Governance for Sharia Economic People's Banks (POJK Sharia Corporate Governance) was issued on November 29, 2024. The issuance of POJK Sharia Corporate Governance is part of the implementation of the 2023-2027 Roadmap for the Development and Strengthening of Sharia Banking (RP3SI) and the 2024-2027 Roadmap for the Development and Strengthening of the BPR and BPRS Industry (RP2B). This Financial Services Authority Circular Letter constitutes the implementing provisions of POJK Corporate Governance and POJK Sharia Corporate Governance, and serves as an improvement to Financial Services Authority Circular Letter Number 13/SEOJK.03/2019 regarding the Implementation of Corporate Governance for Sharia Financing Banks and Financial Services Authority Circular Letter Number 9/SEOJK.03/2022 regarding Amendments to Financial Services Authority Circular Letter Number 13/SEOJK.03/2019. The legal basis for this Financial Services Authority Circular Letter is: Law Number 4 of 2023; POJK Number 9 of 2024, POJK Number 25 of 2024, as well as regulations regarding the assessment of competence and propriety applied to the Sharia Supervisory Board (DPS), namely POJK Number 27/POJK.03/2016, SEOJK Number 39/SEOJK.03/2016, and SEOJK Number 15/SEOJK.03/2024. This Financial Services Authority Circular Letter regulates among others: a. DPS, covering the implementation of the assessment of competence and propriety of the DPS, duties and responsibilities, working relationships with the Board of Directors and Board of Commissioners, support for the implementation of DPS duties, remuneration, and reports on DPS supervision results. b. Functions related to Sharia governance, covering the duties and responsibilities of the Sharia compliance function, Sharia risk management function, and Sharia internal audit function, as well as working relationships with the DPS. c. External review of Sharia governance implementation, covering the scope, appointment of parties conducting the review, and reports on the results of the Sharia governance implementation review. d. Follow-up actions regarding non-compliance with Sharia Principles. e. Assessment of governance implementation covering Good Corporate Governance and Sharia Governance at BPRS.

Note: This Financial Services Authority Circular Letter takes effect on the date of establishment. This Financial Services Authority Circular Letter was established on June 30, 2025. Upon the effectiveness of this Financial Services Authority Circular Letter: a. Financial Services Authority Circular Letter Number 13/SEOJK.03/2019 regarding the Implementation of Corporate Governance for Sharia Financing Banks; and b. Financial Services Authority Circular Letter Number 9/SEOJK.03/2022 regarding Amendments to SEOJK Number 13/SEOJK.03/2019 regarding the Implementation of Corporate Governance for Sharia Financing Banks, are repealed and declared invalid.