The recently issued POJK 26/2024 marks a pivotal shift in Indonesia’s banking sector by formally recognizing cessie as a banking activity. Previously governed under the Civil Code, cessie has been instrumental in financial transactions, particularly in loan securitization and debt trading. However, its expanded application under POJK 26/2024 raises critical questions regarding credit exposure limits (BMPK), minimum reserve requirements (GWM), and potential regulatory loopholes that could reshape the financial landscape.

In this legal insight, Dentons HPRP lawyers — Fabiola Hutagalung (Partner), Citra Ayu Kusumawardhani (Senior Associate), and Steven Feriyanto (Associate)—explore the evolution of cessie, the regulatory implications of POJK 26/2024, and its impact on liquidity, risk management, and financial stability. Their analysis offers valuable perspectives for banking professionals, investors, and policymakers navigating the complexities of Indonesia’s evolving financial sector.

The full article can be downloaded here.

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