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Banking Sector Compliance Challenges in Indonesia: OJK Issues Regulations to Support Digital Transformation
Jakarta, December 29, 2023
The Indonesia Financial Services Authority (OJK) has issued a regulation and guideline aimed at supporting the country’s banking sector digital transformation. This move comes as a response to the increasing shift towards digital services by consumers.
New Regulation: POJK Number 21 of 2023 on Digital Services by Common Banks
The OJK has published POJK Number 21 of 2023, which replaces the previous regulation, POJK Number 12/POJK.03/2018. This new regulation is designed to provide a level playing field for banks in developing digital services, focusing on IT infrastructure and management rather than risk profiles.
“We want to ensure that all banks have equal opportunities to develop their digital services,” said Chief Executive of Banking Supervision Dian Ediana Rae. “This regulation will help us move away from a system where only certain banks with low-risk profiles can offer digital services.”
Scope and Requirements
The new regulation covers the scope and requirements of digital services, including:
- Procedures for obtaining permission
- Cooperation in implementing digital services
- IT utilization
- E-signatures
- Data privacy protection
Digital Maturity Assessment for Banks
In addition to POJK Number 21, the OJK has also issued SEOJK Number 24/SEOJK.03/2023 on Digital Maturity Assessment for Bank, which serves as a guideline for banks to assess their digital transformation progress. The assessment includes evaluation of:
- Governance
- Architecture
- Risk management
- Cyber resilience and safety
- Technology
- Data
- Collaboration
- Consumer protection
Importance of Digital Maturity Self-Assessment
The OJK has emphasized the importance of digital maturity self-assessment for banks, with assessments conducted at least once a year. This will help ensure that banks are prepared to meet the demands of the rapidly changing financial landscape.
Expected Impact
The issuance of these regulations is expected to encourage digitalization and collaboration among banks, ultimately enhancing their competitiveness and fulfilling stakeholders’ expectations.
Accessing More Information
For more information on the regulation, infographics, and summaries can be accessed through the SIKePO app.