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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
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the Rural BankSharia Rural Bank; or b. Less than 25 of the paid-up capital of the Rural Bank
Sharia Rural Bank, but directly or indirectly control the bank management andor policy.
10. Establishment of Bank Offices
Banks must state plans for opening, changing status, changing of address andor closing Bank offices for the
next 1 year in the bank business plan. Submission of the plan shall be accompanied by a study in accordance with
the regulation concerning Commercial Banks. BI has the right to instruct Banks to postpone the plans
in opening, changing status, andor changing addresses of banks, if according to BI assessment, there are among
others an impairment in the soundness level and financial condition of banks, andor an increase in the risk profiles
of banks. Banks should clearly state the name and type of bank
office in the respective bank office.
Branch Offices of Commercial Banks Domestic
a. Opening a branch office should obtain approval from BI.
b. Board of Directors or Acting Director shall submit a request for the opening of a branch office to BI
accompanied by supporting documents pursuant to the regulation concerning Commercial Banks.
c. Approval or rejection of bank application shall be given no longer than 20 working days after receipt of
the complete documents. d. The opening of any branch office should be
conducted no longer than 30 working days as of the issuance date of BI’s approval.
Overseas a. The opening of a branch office, a representative
office and other type of offices either an operational or non-operational office overseas should obtain BI’s
approval. This approval must be performed within one year as of the issuance of BI’s approval, and can
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be extended not to exceed one year based on a justifiable reason.
b. The opening of an overseas office should also get approval from the authority of the country concerned.
c. Approval can be granted by BI if it has become a foreign exchange bank at least for 24 months; has
already stated the opening plan in the bank business plan; has met requirements of soundness level, risk
profile and capital adequacy, and has an address or a clear operational office domicile.
d. Approval or rejection of Bank application shall be given no longer than 20 days after receipt of the
complete documents.
Branch Offices of Rural Banks a. A Rural Bank Branch Office can only be opened in the
same province of its Head Office. b. The opening of a Branch Office can only be performed
with BI’s permission. c. Areas of DKI Jakarta and Regency or City of Bogor,
Depok, Tangerang, Bekasi and Karawang are determined as one area of Province for the needs of
Branch Offices opening and it is also applicable for the opening of a Rural Bank Branch Office in the referred
area due to a merger or consolidation.
d. Within the last 12 months the bank in question is categorized as a sound bank.
e. Within the last 3 months has Capital Adequacy Ratio CAR no less than 10.
f. Has a reliable information technology.
Branch Offices of Sharia Commercial Banks Domestic
a. Opening a branch office should get approval from BI. b. Board of Directors or Acting Director shall submit
a request for the opening of a branch office to BI accompanied by supporting documents.
c. Approval or rejection of bank application shall be given no longer than 30 working days after receipt of
the complete documents. d. The opening of branch offices should be conducted
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no longer than 30 working days as of the issuance date of BI’s approval.
Overseas a. The opening of a branch office, a representative
office and other types of office overseas can only be conducted with BI’s approval.
b. The opening of an overseas office should also get approval from the authority of the country concerned.
c. Approval can be granted by BI if it has become a foreign exchange bank at least for 24 months; has
already stated the opening plan in the bank business plan; has met requirement of bank soundness level,
capital adequacy and risk profile, and has an address or a clear operational office domicile.
d. Approval or rejection of Bank application shall be given no longer than 30 days after receipt of the
complete documents
Branch Offices of Sharia Rural Banks a. Opening a branch office of Sharia Rural Bank can only
be done with BI’s approval. b. The opening of a branch office must meet
requirements at a minimum: • Located in the same Province as its head office;
• Already stated in the annual working plan of; • Supported by a reliable information system
technology; and • Paid-up capital shall be added by no less than
75 from the Sharia Rural Bank capital adequacy in accordance with the location of the branch
office opening. c. In particular for any Sharia Rural Bank which have a
headoffice in the areas of DKI Jakarta and Regency City of Bogor, Depok, Tangerang and Bekasi, other
than being able to open Branch Offices in the same Province as its head offices, the bank in question may
also open branch offices in DKI Jakarta and Regency City of Bogor, Depok, Tangerang and Bekasi.
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Sharia Busines Unit UUS a. Conventional Commercial Banks that conduct
business activities based on sharia principles must open Sharia Business Units UUS.
b. The opening of a UUS can only be done with BI’s approval in the form of a business license. The UUS
working capital shall be set and maintained at no less than Rp. 100 billion.
c. UUS can be separated from Coventional Comercial Banks by:
• Establishing new Sharia Commercial Banks BUS;
or
• Transfer UUS rights and obligations to the existing
BUS by fulfilling the prevailing requirements.
11. Conversion of a Bank’s Name and Logo
Conversion of a Bank’s name must be performed in compliance with the provisions stipulated in the
applicable laws and regulations, including regulations issued by Ministry of Industry, Ministry of Law and Human
Rights. In the event the relevant institutions have already issued approval documents on the conversion of the
Bank’s name, the said documents shall be submitted to BI along with the application of request for the conversion of
the Bank’s name. The said application shall be submitted by the Bank to
BI no later than 30 working days after the conversion of name with reasons for the conversion of name, and the
deed of byelaw already approved by the authorized agency.
BI shall grant approval no later than 30 working days after the completed documents have been received. The
Conversion of any Bank’s name must be announced in a newspaper that has a national circulation no later than 10
days after the date of BI’s appoval.
Change of a Bank logo must be reported to BI no later than 30 working days prior to the change and implementation
of the logo taking place, by enclosing documents, among
