Bank Indonesia Regulation No.10/27/PBI/2008 - Second Amendment to Regulation No.6/9/PBI/2004 Regarding Supervision of Bank Status

BANK INDONESIA REGULATION
NUMBER: 10/27/PBI/2008
CONCERNING
SECOND AMENDMENT TO BANK INDONESIA REGULATION NUMBER:
6/9/PBI/2004 REGARDING FOLLOW-UP TO THE SUPERVISION AND STIPULATION OF THE STATUS OF BANKS BY THE GRACE OF THE ALMIGHTY GOD THE GOVERNOR OF BANK INDONESIA, Considering : a. whereas in relation to the global economic crisis affecting the stability of the financial system, it is necessary to make efforts to maintain the public trust in banking; b. whereas with regard to above-mentioned matter, it is deemed necessary to amend Bank Indonesia Regulation regarding Follow-Up to the Supervision and Stipulation of the Status of Banks; In view of : 1. Law Number 7 Year 1992 regarding Banking (State Gazette of the Republic of Indonesia Year 1992 Number 31, Supplement to the State Gazette of the Republic of Indonesia Number 3472) as amended by Law Number 10 Year 1998 (State Gazette of the Republic of Indonesia Year 1998 Number 182, Supplement to the State Gazette of the Republic of BANK INDONESIA

Indonesia Number 3790);
2. Law Number 23 Year 1999 regarding Bank Indonesia
(State Gazette of the Republic of Indonesia Year 1999 Number 66, Supplement to the State Gazette of the Republic of Indonesia Number 3843) as amended by Law Number 3 Year 2004 (State Gazette of the Republic of Indonesia Year 2004 Number 7, Supplement to the State Gazette of the Republic of Indonesia Number 4357);
3. Law Number 21 Year 2008 regarding Islamic Banking
(State Gazette of the Republic of Indonesia Year 2008 Number 94, Supplement to the State Gazette Number 4867); HAS DECIDED:
To stipulate : BANK INDONESIA REGULATION REGARDING SECOND AMENDED TO BANK INDONESIA REGULATION NUMBER 6/9/PBI/2004 REGARDING FOLLOW-UP TO THE SUPERVISION AND STIPULATION OF THE STATUS OF BANKS.
Article I
The provisions of Article 9 of Bank Indonesia Regulation Number 6/9/PBI/2004 regarding Follow-up to the Supervision and Stipulation of the Status of Banks (State Gazette of the Republic of Indonesia Year 2004 Number 33, Supplement to the State Gazette of the Republic of Indonesia Number 4378) as amended by Bank Indonesia Regulation Number 7/38/PBI/2005 (State Gazette of the

Republic of Indonesia Year 2005 Number 93, Supplement to the State Gazette of the Republic of Indonesia Number 4539) shall be amended so as to read as follows:
Article 9
(1) Bank Indonesia shall announce Banks placed under special supervision:
a. having Capital Adequacy Ratio of or less than 6% (six percent); b. having Capital Adequacy Ratio of more than 6% (six percent) and less than 8% (eight percent) and failing to submit a capital increase plan;
c. having Capital Adequacy Ratio of more than 6% (six percent) and
less than 8% (eight percent) and failing to implement capital increase plan; d. having Capital Adequacy Ratio of more than 6% (six percent) and less than 8% (eight percent) and Bank Indonesia does not approve its revised capital increase plan; and/or e. being granted an extension of time as intended in Article 8 paragraph (2). (2) The announcement as intended in paragraph (1) shall include announcement on corrective actions that must be taken by Banks as intended in Articles 5 and 7. (3) Bank Indonesia shall also announce the following:

a. Banks as intended in paragraph (1) sub-paragraphs a, b, c, and d that has taken actions as intended in Articles 5 and 7; and/or b. Banks that have passed the extension of time as intended in paragraph (1) sub-paragraph e, which have met the criteria of having Capital Adequacy Ratio of 8% (eight percent) or more, and/or having a Statutory Reserve ratio in Rupiah as stipulated for Statutory Reserve of Banks or more. (4) Bank Indonesia may not announce the matters as intended in paragraphs (1), (2), and (3) by taking the public interest into account.
Article II
The provisions in this Bank Indonesia Regulation shall come into force as of the date of its stipulation. For public cognizance, hereby ordering the promulgation of this Bank Indonesia Regulation by placing it in the State Gazette of the Republic of Indonesia. Stipulated in Jakarta On October 30, 2008 THE GOVERNOR OF BANK INDONESIA, [Signed] BOEDIONO Promulgated in Jakarta On October 30, 2008 THE MINISTER OF LAW AND HUMAN RIGHTS

OF THE REPUBLIC OF INDONESIA,
[Signed]
ANDI MATTALATTA
STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2008 NUMBER 161 DPNP

BANK INDONESIA
ELUCIDATION ON
BANK INDONESIA REGULATION
NUMBER: 10/27/PBI/2008
REGARDING
SECOND AMENDMENT TO BANK INDONESIA REGULATION NUMBER:
6/9/PBI/2004 REGARDING FOLLOW-UP TO THE SUPERVISION AND STIPULATION OF THE STATUS OF BANKS
I. GENERAL
The current global financial crisis has affected various countries including Indonesia. It has directly and indirectly affected the stability of the Indonesia financial system including its banking system. One of its impacts is the increased potential of public doubts about the banking system which may be indicated among other things by the increased public panic in responding to the crisis. Meanwhile, the public trust is one of the main prerequisites for creating a stable banking system. With due observance of the above-mentioned matters, it is necessary to take certain measures in order to maintain the public trust in banking. In line with the aforementioned matters, it is considered necessary to revise the provisions regarding follow-up to the supervision and stipulation of the status of banks.
II. ARTICLE BY ARTICLE
Article I
Article 9

Paragraph (1)
This announcement shall constitute a transparency of Bank Indonesia’s policies as a part of the public accountability for the implementation of its regulatory and supervisory duties as mandated by Law Number 23 Year 1999 regarding Bank Indonesia as amended by Law Number 3 Year 2004. The announcement shall be made at the homepage of Bank Indonesia at the following address http://www.bi.go.id Point a up to point d The provisions regarding Capital Adequacy Ratio shall be based on the applicable provisions of Bank Indonesia regarding Capital Adequacy Ratio for Commercial Banks. Point e Self-explanatory. Paragraph (2) Self-explanatory. Paragraph (3) The announcement shall be made at the homepage of Bank Indonesia at the following address http://www.bi.go.id. Provisions regarding Statutory Reserve shall be based on the applicable provisions of Bank Indonesia regarding Statutory Reserve. Paragraph (4) Referred to as the public interest in this paragraph shall be the interest for preventing public panic in responding to the

financial crisis and in an effort to maintain the stability of the entire financial system.
Article II
Self-explanatory.
SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2008 NUMBER 4913