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01 April 2010
Bank Indonesia's Circular Letter 11/35/DPNP, which was issued in December 2009, requires banks to report on their new products and activities. The circular implements the Bank Indonesia Regulation on Risk Management Application for Commercial Banks (5/8/PBI/2003) and seeks to address the ever-growing risks arising from the increased complexity of banking products and services. In essence, the circular states that all banks must report to Bank Indonesia any plan to issue a new product or engage in a new activity.
In addition to defining new products and new activities, the circular stipulates the information items that must be stated when reporting the change, and provides a standardized form for doing so. As a consequence of the requirement, banks may introduce new products or services only after receiving Bank Indonesia's confirmation. Bank Indonesia is required to issue confirmation within 60 days of the submission of the complete report and supporting documents.
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