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Fit and proper test in order to reassess a PSP, member of Board Commissioners and Board of Directors and
Executive Oicers shall be conducted in the event there are indications of integrity, inancial feasibility,
inancial reputation andor competency issues covering:
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BI shall perform the fit and proper test based on evidence, data and information obtained from the supervision
results or other information. The fit and proper test shall be conducted with the following measures:
a. Clarification of evidence, data and information to the parties taken the tests;
b. Determination and communication of temporary result of the fit and proper tests to the parties taken the
tests; c. Responses from the tested parties toward temporary
result of the fit and proper tests; and d. Determination and notification of final result of the fit
and proper tests to the parties taken the tests. Mechanism of fit and proper test procedures for PSP,
members of Board of Commissioners, members of Board of Directors and Executive Officers is as follows:
BI determines the final result of the fit and proper test with categories of Qualified or Disqualified.
Parties that have been determined “Disqualified” are prohibited to become:
a. PSP or having shares in the banking industry; andor b. Members of Board of Commissioners, Board of
Directors, or Executive Officers in the banking industry.
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Sanctions of prohibition are also applicable for parties that got Disqualified category at the time of assessment,
but the persons in question have already held a position as a PSP, member of Board of Commissioners, Board of
Directors, andor Executive Officers in other bank. In the event Banks are under status of handling and
rescue by LPS, fit and proper tests will only be performed to candidates of members of the Board of Commissioners
andor Board of Directors. Request for approval of candidates for members of the Board of Commissioners
andor Board of Directors in question shall be submitted to LPS.
8. Fit and Proper Test in Sharia Banks and Sharia Business Units
Referring to the regulation stipulated in PBI No. 146 PBI2012 on Fit and Proper Test for Sharia Banks and Sharia
Business Unit, BI shall perform fit and proper test to: a. Candidates for PSP, candidates for Board of
Commissioners members, candidates for Board of Directors members, candidates for UUS Directors, and
candidates for Head of Foreign Bank Representative Oices prior to carrying out their functions and
duties in Sharia Banks, UUS or Foreign Bank Representative Oices.
b. PSP, members of Board of Commissioners, members of Board of Directors, Candidates for UUS
Director, and Candidates for the Head of Foreign Bank Representative Oices prior to carrying out
their functions and duties in Sharia Banks, UUS or Foreign Bank Representative Oices.
c. Parties that had not held position or not served as the parties as referred to in letter b anymore, who
are indicated involved in or responsible for the conducts or acts but still in the process of it and
proper tests in Sharia Banks, UUS or Foreign Bank Representative Oices.
Based on the administrative reviews and interview result, BI shall determine inal result of it and proper
test with a category of: a. Qualiied; or
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b. Disqualiied. Parties that have been given Disqualiied grade, but
already had approval and been appointed as members of the Board of Commissioners and members of Board
of Directors of Sharia Bank in accordance with RUPS decision, then the parties in question are prohibited
to act as Members of the Board of Commissioners and Members of Board of Directors in the relevant Sharia
Banks. Furthermore, Sharia Banks must make a follow- up to the consequences of the Disqualiied Grades,
no longer than 3 three months as of the date of notiication from BI. Besides, Sharia Banks must report
the follow-up actions to BI within seven 7 days at the longest.
The parties that have already been given Disqualiied grades may serve again as PSP, Members of Board of
Commissioners, Members of Board of Directors, UUS Directors, and Head of Foreign Bank Representative
Oices if such parties have been undergoing sanctions, passing the sanction time, and also have
irst taken the Fit and Proper Test. In the event Sharia Banks are under the handling or
rescuing by LPS, the it and proper tests will only be conducted to candidates for members of the Board
of Commissioners and candidates for members of the Board of Directors. If Conventional Commercial Banks
that have UUS are under the handling or rescuing of LPS, the it and proper test will only be conducted to
candidates for UUS Director.
9. Merger, Consolidation and Acquisition of Banks Commercial Banks
Merger, Consolidation, and Acquisition can be conducted at the initiative of the relevant banks, at
the request of BI and or at the initiative of specialized agencies. Merger, Consolidation and Acquisition
should obtain a prior approval from BI. Merger or consolidation can be done between a
conventional bank and a Sharia Bank if the merged or consolidated bank becomes a Bank based on sharia
principles or a conventional bank that has branch
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oices based on sharia principles. Acquisition of Commercial Banks can be done by
individuals or legal entities, either from the purchase of part of the banks shares or the entire shares directly
or through stock exchange market resulting to the shifting of bank control to the acquiring party. Stocks
purchase that considered causing the shifting of bank control, i.e. if the shareholding:
a. Becomes 25 of or more than the paid-up capital; or
b. Less than 25 of the paid-up capital but directly or indirectly controls the management andor policy
of banks.
Rural BanksSharia Rural Banks Merger, Consolidation, and Acquisition of Rural Banks
Sharia Rural Banks can be done at the initiative of the Rural BanksSharia Rural Banks in question or at the request of
BI. Merger, Consolidation and Acquisition should have a prior approval from BI.
Merger or Consolidation can only be done inter-Rural Bank or inter-Sharia Rural Bank. Merger or Consolidation
between a Rural Bank and a Sharia Rural Bank can be conducted only if the merger or consolidation between
the two Banks resulted in a Sharia Rural Bank. Merger or consolidation of Rural BanksSharia Rural Banks
can be done: a. Inter-Rural BankSharia Rural Bank domiciled in the
same province; or b. Inter-Rural BankSharia Rural Bank domiciled in
different provinces provided that the merged consolidated Rural BankSharia Rural Bank offices
located in the same province.
Acquisition of Rural BanksSharia Rural Banks can be done by individuals or legal entities through stocks acquisition
resulted in the shift of Rural BanksSharia Rural Banks control. Stocks purchase that considered resulting in
a control shift of Rural BanksSharia Rural Banks, if the shareholding:
a. Becomes 25 of or higher than the paid-up capital of
