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In order to accommodate market needs by still observing prudential and sharia principles, BI has issued a regulation
in the form of Circulation Letter SE which governs the regulation on on Qardh product with Gold collateral
Gold Mortgage, and the regulation which governs gold ownership financing product for Sharia Banks and Sharia
Business Units.
8. Sharia Principle in the Activities of Collecting and Distributing Funds as well as Sharia Bank Services
Business activities of funds collection, funds distribution and bank service provision based on the sharia
principle performed by banks are banking services. In implementing the referred banking services, banks must
comply with sharia principles. The compliance with sharia princles shall be implemented by way of meeting
basic regulations of the Islamic laws among others the principles of justice and balance ‘adl wa tawazun,
benefits maslahah, universalism alamiyah and also not containing gharar, maysir, riba, zalim and haram unlawful
objects. Compliance with the Sharia Principles shall be performed
as follows: a. Collecting funds by using agreements among others
Wadi’ah Mudharabah; b. Distributing fundsfinancing by using agreements
among others Mudharabah, Musyarakah, Murabahah, Salam, Istishna’, Ijarah, Ijarah Muntahiya
Bittamlik and Qardh; c. Providing services by using agreements among
others Kafalah, Hawalah and Sharf. In the event of disputes between Banks and Customers,
the other settlement means that might be performed among others are through discussion, banking mediation,
sharia arbitration or judiciary.
C. Regulation on Prudentiality 1. Core Capital of Commercial Banks
Complexity of the increasing business activities of Banks is potentially causing the increasing of risks faced by
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Banks. Such increasing risks needs to be followed by additional capital required by Banks to bear the possibility
of arising losses. Therefore, Banks must have a minimum core capital required to support their business operations.
Core capital comprises of paid-up capital and additional reserve capital at least in the amount of Rp 100 billion.
2. Minimum Capital Adequacy Requirement KPMM Conventional Commercial Bank
In line with the efforts to create a sound banking system, which is able to develop and compete both nationally
and internationally and to anticipate the global dynamic economy and financial system, BI shall govern the
compliance with KPMM as follows: a. Banks must provide minimum capital in accordance
with their risk profiles, in order not only to be able to absorb loss potential from credit risk, market risk and
operational credit, but also other risks such as liquidity risk and other risk that material. Minimum capital
adequacy according to risk profile is determined at the lowest as follows:
• 8 from ATMR for Banks with risk profile of
ratingranking 1. • 9 up to less than 10 from ATMR for Banks with
risk profile of ranking 2. • 10 up to less than 11 from ATMR for Banks
with risk profile of ranking 3. • 11 up to 14 from ATMR for Banks with risk
profile of ranking 4 or 5. Determination on risk profile ranking refers to
BI regulation on the assessment of commercial bank soundness level.
b. To calculate minimum capital according to risk profile, Banks must have Internal Capital Adequacy
Assessment Process ICAAP, which covers i active supervision of the Board of Commissioners and Board
of Directors; ii assessment of capital adequacy; iii monitoring and reporting;, and iv internal control.
BI will perform review to ICAAP or called Supervisory Review and Evaluation Process SREP.
c. Branch Office KC from Banks with overseas
