Regulation: Bank Indonesia Regulation Number 15/1/PBI/2013, dated 18th February 2013, concerning the Credit Bureau.
Effective: 18th February 2013.
Since 1975, Bank Indonesia has managed credit information to support task implementation as the banking and monetary authority as well as to service the needs of the financial industry, particularly in terms of underpinning the smooth provision of funds and buttressing risk management. The provision of credit information by Bank Indonesia remains limited to standard product information, with the scope of data dominated by banks and several non-bank financial institutions.
During its development, the financial industry requires more comprehensive credit information with a wider data scope that also incorporates data external to the financial industry. According to international best practices, in general, more comprehensive credit product information is provided and managed by private credit bureaus.
To this end, Bank Indonesia acknowledged the requirement to open a private credit bureau, which has subsequently become known as the Credit Bureau (Lembaga Pengelola Informasi Perkreditan or LPIP). Through LPIP, the demand from the financial industry for more comprehensive credit information will be met, which will enhance the intermediation function of financial institutions and ultimately promote financial system stability.
Specifics of Bank Indonesia Regulation number 15/1/PBI/2013, dated 18th February 2013
a. Any party wishing to establish a Credit Bureau shall meet the following requirements:
1) LPIP shall be established in the form of a limited liability company;
2) Minimum paid up capital shall exceed Rp50 billion;
3) Maximum shareholding of any one shareholder shall not exceed 51%; and
4) Only Indonesian legal entities shall be eligible as shareholders of LPIP.
b. LPIP licensing shall be divided into two stages as follows: Approval in Principle and the Business License.
c. The business activity of LPIP shall include collecting and collating credit data and/or other data to produce credit information.
d. The requirements for LPIP management shall include at least one Director with experience and/or knowledge concerning credit information.
e. LPIP sources of data shall include credit data and/or other data from financial institutions and non-financial institutions.
f. LPIP data management shall contain adequate security measures to maintain the accuracy, currency, security and confidentiality of data. In addition, LPIP shall be required to maintain their servers and databases within the territory of the Republic of Indonesia.
g. LPIP shall be required to provide credit information with value added.
h. The parties eligible to provide credit information shall include financial institutions, non-financial institutions, other LPIP, borrowers or customers and/or other parties in the implementation of prevailing regulations.
i. The handling and resolution of complaints, especially the requirement for LPIP to have written procedures and policies in place.
j. Supervision by Bank Indonesia of LPIP shall cover on-site inspections and off-site surveillance. On-site supervision shall be performed through direct inspections, while off-site surveillance shall be achieved through analysis of reports submitted by LPIP to Bank Indonesia.
k. The kinds of reports submitted by LPIP to Bank Indonesia shall include: monthly reports, semesterly reports, annual reports, the annual business plan and other incidental reports.
l. Administrative sanctions for violations committed by LPIP based on this regulation shall include: a written warning, punitive fines and revocation of the business license.