INDONESIA Law and Practice Contributed by: Emir Nurmansyah, Monic N. Devina, D. Meitiara P. Bakrie and Ruth A. Mendrofa, ABNR Counsellors at Law
the EIT Law. Under the Banking Law (Law No 7 of 1992, as last amended by Law 4/2023), banks are prohibited from disclosing information on their customers to third parties, except in spe - cific circumstances as mandated by law – ie, for: • taxation purposes; • debt settlement; • criminal proceedings; • civil lawsuits between banks and customers; • interbank information exchange; and • inheritance. Moreover, banks and other financial institutions (players in capital markets, insurance, pension funds, finance companies and others) are pro - hibited from providing third parties with data or information on their own customers except where: • customers provide written consent; or • the provision of the data or information is required by law. Open Banking Implementation In light of banking secrecy provisions, banks, in particular, face challenges in implementing open banking. Some major banks have launched an application programming interface (API), while others are still adapting to customer behav - iour that is moving away from physical cash payments and towards a digital economy cul - ture. The market has seen some collaborative approaches between banks and fintechs; there are numerous instances of banks that have opened up their APIs to allow their systems to be integrated with technology providers and to facilitate financial transactions. As part of a drive to encourage open banking, the BI prioritises standardisation and implemen - tation of the open API to enable the interlinking
of payment service providers and other play - ers; this is implemented under Regulation of the Board of Governors No 23/15/PADG/2021 on the Implementation of the National Standard for Open Application Programming Interface in Pay - ments ( “BI Reg, 23/15” ). The BI developed SNAP along with the industry stakeholders to cover: • the technical and security standards, data standards and technical specifications, as published on the developer’s site; and • the SNAP governance guidelines for intercon - nected and interoperable open API payments. In implementing open banking, customer data is the main concern. BI addresses customer data protection (including customer consent and dis - pute resolution), risk management and technical aspects as issued under Regulation of the Board of Governors No 20 of 2023 on Procedures for the Implementation of BI Consumer Protection: BI Regulation No 3 of 2023 on BI Consumer Pro - tection. Currently, only the banking and insurance sec - tors already have umbrella laws pertaining to fraud – namely OJK Regulation No 12 of 2024 on the Implementation of Anti-Fraud Strategies for Financial Services Institutions ( “OJK Reg, 12” ), and OJK Circular Letter No 46/SEOJK.05/2017 Concerning Fraud Control and Implementation of Anti-Fraud Strategies and Anti-Fraud Strat - egy Reports for Insurance Companies, Sharia Insurance Companies, Reinsurance Companies, Sharia Reinsurance Companies or Sharia Units ( “OJK CL 46” ). 12. Fraud 12.1 Elements of Fraud
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