Act of the Republic of Indonesia Number 7 of 1992 Concerning Banking
What are the guiding principles of banking laws in Indonesia?
This document presents amendments to the following articles of Indonesia's Act Number 7 of 1992, concerning banking:
- Article 1 several definitions including those of banking, commercial bank, and rural bank have been modified;
- Article 6 (letter k) regarding purchasing collaterals through auctions has been deleted;
- Article 6 (letter m) has been modified to include banking based on Syariah principles in accordance with the stipulations laid by Bank Indonesia;
- Article 7 (letter c) provisions of this articles regarding equity participation have been changed;
- Article 8 modifications have been brought in is article to include Syariah banking and financing practices.
Other articles that have been modified include:
- Article 11, concerning legal lending limits;
- Article 12(A), provisions relating to purchase of collateral have been added;
- Article 13, concerning Syariah principles;
- Article 16 on acceptance of public deposits;
- Articles 19, and 20 pertaining to bank branches;
- Articles 21, 22, 27 and 28 relating to legal and structural forms of banks, including ownership;
- Other articles relating to banking supervision, such as 29, 31, 33 and 37.
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