Regulatory AlertsImplementation of Corporate Governance for Rural Banks
The Financial Services Authority (OJK) issued Circular Letter No. 12/SEOJK.03/2024 to refine the implementation rules for corporate governance at Rural Banks (BPR) in alignment with POJK No. 9 of 2024. The regulation mandates specific self-assessment procedures for BPR governance that correspond with risk-based health rating principles. It also establishes standardized formats for transparency reports, assessment worksheets, and general conclusions while repealing previous circulars from 2016 and 2020.
Regulation /
Search for Regulations / Implementation of Corporate Governance for Rural Banks
Sector: Banking
Sub-Sector: Rural Banks (BPR)
Type of Regulation: OJK Circular Letter
Regulation Number: 12/SEOJK.03/2024
Effective Date: 10/18/2024
Attachment 1 SEOJK 12-SEOJK.03-2024 Implementation of Corporate Governance for Rural Banks.pdf Abstract SEOJK 12-SEOJK.03-2024 Implementation of Corporate Governance for Rural Banks.pdf FAQ SEOJK 12-SEOJK.03-2024 Implementation of Corporate Governance for Rural Banks.pdf
Page Content
Circular Letter of the Financial Services Authority of the Republic of Indonesia Number 12/SEOJK.03/2024 concerning the Implementation of Corporate Governance for Rural Banks.
Abstract: As a follow-up to the issuance of POJK No. 9 of 2024 concerning the Implementation of Corporate Governance for Rural Banks and Sharia Rural Banks, it is necessary to refine the implementation provisions to align with existing legislation. The legal basis for this OJK Circular Letter is: Law No. 7 of 1992 as amended several times, lastly with Law No. 4 of 2023; Law No. 21 of 2011 as amended with Law No. 4 of 2023; and POJK No. 9 of 2024. This Circular Letter of the Financial Services Authority regulates further explanations, including the application of Good Corporate Governance at BPRs, and requires changes to the method of assessing governance implementation (self-assessment) in line with the principles of assessing BPR health levels based on risk.
Notes: The transparency report on the implementation of governance refers to Attachment I, which is an integral part of this Circular Letter of the Financial Services Authority. The assessment worksheet for governance implementation refers to Attachment II, which is an integral part of this Circular Letter of the Financial Services Authority. The general conclusion of the governance implementation assessment refers to Attachment III, which is an integral part of this Circular Letter of the Financial Services Authority. This Circular Letter of the Financial Services Authority takes effect on the date of determination, October 18, 2024. Upon the entry into force of this OJK Circular Letter: Circular Letter of the Financial Services Authority Number 5/SEOJK.03/2016 concerning the Implementation of Corporate Governance for Rural Banks; and Circular Letter of the Financial Services Authority Number 24/SEOJK.03/2020 concerning Amendments to Circular Letter of the Financial Services Authority Number 5/SEOJK.03/2016 concerning the Implementation of Corporate Governance for Rural Banks, are repealed and declared invalid.
Attachment I: 11 pages. Attachment II: 65 pages. Attachment III: 1 page.