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Financial Sector: Digital Banks Will Soon Become a Reality for Indonesians


Digital banks will soon become a reality for Indonesians. Chief Executive of Banking Supervision of Indonesia s Financial Services Authority (in Indonesian:
Otoritas Jasa Keuangan, or OJK) Heru Kristiyana recently confirmed that this supervisory agency is currently drafting regulations for the establishment of digital banks in Indonesia.
According to Kristiyana, the OJK will open opportunities for the establishment of digital banks in the following (three) ways:
· In the form of a (business) unit of an existing conventional bank,
· In the form of a conventional bank that is converted into a digital bank,
· A bank that is established as a digital bank since its inception. ....

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Bank Indonesia Cuts Interest Rate, Zero DP Requirements for Property & Vehicles


At its latest monetary policy meeting, which ended on 18 February 2021, the central bank of Indonesia (Bank Indonesia) decided to cut its benchmark interest rate (BI 7-Day Reverse Repo Rate), again, by 25 basis points (bps) to 3.50 percent, touching a historically low level.
By doing so, Bank Indonesia reconfirmed its accommodative policy stance. However, it is also a clear signal that the negative impact of the COVID-19 crisis on the Indonesian economy is far from over, despite several ministers (including Coordinating Minister of Economic Affairs Airlangga Hartarto) expecting to see the return of positive economic growth, on an annual basis, in the first quarter of 2021. ....

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