To strengthen Indonesia’s financial sector, the Indonesian Government established the Bank Restructuring Programme (the Programme). The Programme aims to enhance the stability and efficiency of Indonesia’s banking sector through strategic reforms and regulatory adjustments.

On 23 June 2023, the Government introduced new regulations to govern financial institutions’ contribution to the Programme.* The new regulations require that from 1 January 2025, all banks operating in Indonesia must pay premium toward the operation of the Programme. Each bank’s contribution is calculated based on certain criteria, including asset value and risk profile. Failure to pay the contribution can result in administrative sanctions.

*The Government of the Republic of Indonesia Regulation Number 34 Year 2023 concerning Premium Amount for the Funding of Bank Restructuring Program.