Regulatory Alerts2009-01-29
Bank Indonesia Regulation No. 11/2/PBI/2009 Concerning the Third Amendment of Regulation No. 7/2/PBI/2005 on Asset Quality Rating for Commercial Banks
Bank Indonesia issued this regulation to amend asset quality rating rules for commercial banks, aiming to enhance financing capacity for the real sector while maintaining proper risk management during the global financial crisis. The amendments revise Article 35 to adjust loan classification thresholds for Micro, Small, and Medium Enterprises based on bank ratings, and update Article 48 to specify collateral valuation percentages and appraisal requirements for deductions from asset loss provisions. Additionally, the regulation clarifies the designation of abandoned property and introduces Article 47A to define the roles of internal and independent appraisers for collateral assessment.
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