Statutory Reserves for Commercial Banks Reregulated
Bank Indonesia has issued Regulation No. 15/15/PBI/2013 on Rupiah and Foreign Currency Statutory Reserve Requirements for Conventional Commercial Banks ("PBI 15/2013") which sets out the statutory reserve requirements (Giro Wajib Minimum – “GWM") in Rupiah and foreign currencies that must be satisfied on a daily basis by commercial banks and the branch offices of foreign banks. PBI No. 15/15/PBI/2013 is of relevance to commercial banks, as well as the branch offices of foreign banks. In addition to setting GWM levels, PBI No. 15/15/PBI/2013 also provides for dispensation for banks in satisfying their GWM and compliance examination requirements. PBI No. 15/15/PBI/2013 also amends provisions on oversight authority in the banking industry, which recently transferred to the Financial Services Authority (“OJK”) from BI. Bank statutory reserves data used for calculating commercial bank’s Loan to Debt Ratio reserves are based on the OJK’s quarterly reports. If BI has different statutory reserve calculations from the OJK and the respective bank, the OJK calculation will prevail (previously, BI calculations were carried out by BI). To ensure commercial banks compliance with PBI 15/2013, BI is authorized to carry out examinations on the following matters: 1. Direct examination of the respective banks; 2. Enter a joint examination with the OJK to carry out a joint examination; or 3. Use OJK’s examination results. PBI No. 15/15/PBI/2013 revoked and replaces BI Regulation No. 12/19/PBI/2010 as lastly amended by BI Regulation No. 15/7/PBI/2013, and has been in force since 31 December 2013. To find out more about the above regulation, please contact us.