New Procedures for the Utilization of Services Offered by Public Accountants and Public Accountants’ Offices by Financial Institutions
Following the issuance of Financial Service Authority (“OJK”) Regulation No. 13/POJK.03/2017 on the Utilization of Services Offered by Public Accountants and Public Accountants’ Offices During Financial Service Activities, the OJK has now finally issued Financial Services Authority Circular Letter No. 36/SEOJK.03/2017 on Procedures for the Utilization of Services Offered by Public Accountants and Public Accountants’ Offices During Financial-Service Activities. In essence, this circular sets out a number of technical guidelines to be observed by financial institutions during the utilization of annual-financial-auditing services offered by accountants and/or public accounting firms.
BI Regulates National Payment Gateway
In a bid to create a more efficient, reliable and secure domestic payment system, as well as to facilitate the public need for non-cash transactions, Bank Indonesia has finally issued Regulation No. 19/8/PBI/2017 on the National Payment Gateway. This regulation basically sets out several important provisions regarding the organization of the National Payment Gateway (NPG), including: 1) Scope of the NPG; 2) Parties within the NPG; 3) Implementation of the NPG; 4) Mandatory Reporting; 5) The role of Bank Indonesia; and 6) Sanctions.
Sustainable Education Programs for BoDs and BoCs of Securities Companies Further Regulated
The OJK has decided to address technical provisions for sustainable education programs for the BoDs and BoCs of securities companies through the issuance of Circular No. 20/SEOJK.04/2017 of 2017 on the Organization of Sustainable Education Programs for Members of Boards of Directors and Boards of Commissioners of Securities Companies Which Are Undertaking Business Activities as Securities Underwriters and/or Broker-Dealers. In essence, the Circular requires BoDs and BoCs of securities companies to participate in sustainable education programs at least once every two years.
Provisions on Risk Management for the Utilization of Information Technology by Commercial Banks Further Regulated
In order to set out further provisions on the implementation of risk management for the utilization of information technology by commercial banks, the Financial Services Authority (OJK) has issued Circular Letter No. 21/SEOJK.03/2017, which addresses three major areas: 1) Guidelines on risk-management measures; 2) Mandatory reports which must be submitted by commercial banks regarding their utilization of information technology; and 3) Requirements for the securing of approval from the OJK for the implementation of certain plans and activities which relate to the utilization of information technology.
New Regulation on Statutory Reserves for Conventional Commercial Banks
In order to increase the effectiveness of the transmission of monetary policy, offer improved flexibility and so forth, the Members of the Board of the Bank Indonesia Governor have issued Regulation No. 19/4/PADG/2017 on Statutory Reserves in Rupiah and Foreign Currencies for Conventional Commercial Banks. This regulation redefines a number of provisions on statutory reserves in Rupiah and foreign currencies for conventional commercial banks, as previously regulated under Bank Indonesia Circular Letter No. 17/17/DKMP dated 26 June 2015 on the Calculation of Statutory Reserves in Rupiah and Foreign Currencies for Conventional Commercial Banks, as amended several times, most recently by Bank Indonesia Circular Letter No. 18/38/DKMP dated 23 December 2016.
Disclosure of Financial Information for Taxation Purposes: Next Phase Rolled Out
The Ministry of Finance has just set out a number of further provisions for the implementation of Perppu 1/2017 through the issuance of Regulation No. 70/PMK.03/2017 on Technical Guidelines for Access to Financial Information for Tax Purposes. This regulation unexpectedly addresses not only procedures for the implementation of AEoI commitments, but also procedures for the disclosure of financial information for domestic tax-enforcement purposes. The implementation of said procedures will come into effect by 2018.
Procedures for Field Examinations for Taxation-Compliance Examinations Further Regulated
The Director General of Tax has issued Regulation No. PER-07/PJ/2017 of 2017 on Guidelines for Field Examinations for the Assessment of Compliance with Tax Obligations, which sets out a number of further guidelines which have the goal of ensuring that tax examiners organize said examinations with integrity and in a professional manner. In this regard, the regulation addresses various requirements and procedures covering the notification of taxpayers, the holding of meetings with tax examiners, as well as the undertaking of field examinations.
Good Governance and Risk Management for Peer-to-Peer Lending Services
The Financial Services Authority has issued Circular Letter No. 18/SEOJK.02/2017 of 2017 on Good Governance and Information-Technology Risk Management for Technology-Based Fund-Lending Services. In essence, this circular letter addresses a number of areas pertaining to the implementation of good governance and risk management for peer-to-peer lending, including the roles and responsibilities of Boards of Directors, data-center and disaster-recovery-center good governance as regards electronic systems and information technology, transfers of technology, information-technology risk management, electronic-system security and so forth.
LPS Role in Overcoming SIB’s Problems Redefined
The Indonesian Deposit Insurance Corporation (LPS) has issued Regulation No. 1 of 2017 on the Handling of Systematically Important Banks with Solvability Problems. Redefining the role of LPS as regards this matter, this new regulation sets out a broader framework than its predecessors did by addressing the following areas: (1) Preparation stage prior to the handling of systematically important banks with solvability problems; (2) Methods that can be utilized for problem-handling purposes; (3) Procedures that must be applied when actually handling problems; and (4) Termination of said handling measures.
Provisions on Short-Term Liquidity Loans for Conventional Commercial Banks Reregulated
Bank Indonesia has issued Regulation No. 19/3/PBI/2017 on Short-Term Liquidity Loans for Conventional Commercial Banks in order to help overcome any short-term liquidity difficulties which are being experienced by conventional commercial banks and to ultimately maintain the stability of the financial system. With this goal in mind, this regulation comprehensively addresses various areas relating to the provision of loans from Bank Indonesia to banks under the abovementioned conditions. Previously, this matter was regulated under Bank Indonesia Regulation No. 14/16/PBI/2012 on Short-Term Loan Facilities for Commercial Banks.