Since its enactment in 2000, regulations on bank secrecy in Indonesia have undergone various changes in line with the dynamics of the financial sector. Initially, this provision was regulated in Bank Indonesia Regulation No. 2/19/PBI/2000 (“PBI 2/2000”), which affirmed the obligation of banks to maintain the confidentiality of customer information of their depositors and depositors, as well as regulating certain conditions that allow the disclosure of such information.
However, the development of the banking industry over the past two decades has demanded regulatory updates to align with the needs of more modern laws and business practices. With the enactment of Law No. 4 of 2023 on the Development and Strengthening of the Financial Sector (“Law 4/2023”), the Financial Services Authority (“OJK”) took a further step by issuing Regulation No. 44 of 2024 on Bank Secrecy (“POJK 44/2024”). This regulation officially takes effect on December 28, 2024 and replaces PBI 2/2000 which has now been revoked.
Under this new framework, the basic principle regarding the obligation to maintain the confidentiality of information remains upheld. However, the scope of parties subject to this rule is increasingly clarified, including not only conventional and sharia-based commercial banks, but also people’s economic banks in both systems (hereinafter referred to as “Banks”). In addition, POJK 44/2024 expands the obligation of confidentiality to parties related to the Bank (“Affiliated Parties”), which includes various entities directly related to banking operations, namely members of the board of directors, commissioners, sharia supervisory board, officials or employees of the bank; parties providing services to the Bank (e.g. public accountants and legal consultants); the party that directly or indirectly controls the bank; and/or other parties who, according to OJK’s assessment, affect the management of the bank.
As for this edition of SWILU, it limits the matters regulated in POJK 44/2024 by focusing on 2 main points by comparing them with the provisions regulated in PBI 2/2000, namely the Expanded Scope of Confidentiality and Expanded Exceptions to Confidentiality.
Expansion of Confidentiality Scope in POJK 44/2024
POJK 44/2024 presents significant changes in the aspect of banking confidentiality by expanding the types of information that must be kept confidential by the Bank and its Affiliated Parties. Previously, the regulations only covered information related to depositors and their deposits. However, under the new regulation, confidentiality protections now also extend to information about customers who entrust funds in the form of investments in sharia-based banks (“Investors”).
As a consequence of this expansion, if a customer has more than one role, for example as a depositor, debtor, investor, or other recipient of banking facilities, then the Bank and the Affiliated Party are obliged to maintain the confidentiality of all status and information related to the customer.
Expansion of Confidentiality Exemption to Certain Conditions
Previously in PBI 2/2000, the confidentiality obligations outlined above did not apply to eight specific conditions, particularly in the case of legal proceedings that require the sharing of confidential information. However, in POJK 44/2024, the scope of this exemption is expanded to 13 conditions for applying the confidentiality exemption, as follows:
| No | Exemption | PBI 2/2000 | POJK 44/2024 |
| 1 | Civil law proceedings related to and/or conducted between the Bank and its customers | √ | √ |
| 2 | Criminal legal proceedings *prior authorization and/or coordination with the OJK is required | √ | √ |
| 3 | Requests that are submitted by curators based on court decision on bankruptcy or liquidator for settlement of assets | √ | |
| 4 | Written requests, approvals or power of attorney from the depository customer or Investor | √ | √ |
| 5 | Requests that are submitted by legal heirs of deceased depositors and/or Investors | √ | √ |
| 6 | Exchange of information between banks | √ | √ |
| 7 | Fulfillment of mutual legal assistance in criminal matters *prior authorization and/or coordination with the OJK is required | √ | |
| 8 | Request for financial information submitted for taxation purposes | √ | √ |
| 9 | The interests of other agencies related to the implementation of state duties *prior authorization and/or coordination with the OJK is required | √ | |
| 10 | In the interests of BI duties within the monetary, macroprudential and payment system sectors | √ | |
| 11 | In line with the duties of the Deposit Insurance Corporation | √ | |
| 12 | The implementation of the inter-state authority cooperation agreement that have been signed reciprocally *prior authorization and/or coordination with the OJK is required | √ | |
| 13 | Settlements of receivables that have been submitted to the State Receivable Affairs Committee *prior authorization and/or coordination with the OJK is required | √ | √ |
For legal assistance from SW Counselors at Law, please contact:
Fanny
T. (+6221) 2222-0200
Bella
T. (+6221) 2222-0200
| AGUSTUS 2024 |
