Bank Indonesia has recently issued Regulaton Number 7/8/PBI/2005 Concerning The Debtor Information System (“Regulation”) to expedite the provision of debtor’s information and credit risk management.

The Regulation requires Commercial Banks and Non-Bank Credit Card Providers to report to the Debtor Information System. Community Credit Banks with total assets of Rp 10,000,000,000 (ten billion rupiahs) or above is also required to report to the system.

Although not mandatory, the system’s membership is open to Community Credit Banks total assets of less than Rp 10,000,000,000 (ten billion rupiahs) with  adequate infrastructure and non-Bank Financial Institutions. Non-Bank Financial Institution intending to become a Reporting Entity shall sign a membership statement.

Reporting Entities are required to submit accurate, complete, and up to date Debtor Reports to Bank Indonesia on a timely basis. The Debtor Reports should enumerate information concerning the Debtor, management and owners, facilities for Provision of Funds, collateral, guarantor and debtor’s financial statement.

The Debtor financial statement however, is required only for corporate or organizational Debtors receiving facilities for Provision of Funds in the amount of Rp 5,000,000,000 (five billion rupiahs) or more.

The Debtor Reports shall be submitted no later than the 12th (twelfth) day after the relevant Debtor Report month. The reporting process shall be conducted on-line.

A Reporting Entity having complied with the reporting requirements above may request Debtor information concerning the identity of the Debtor, owners and management, facilities for Provision of Funds received by the Debtor, collateral, guarantor, and/or collectibility. The information obtained may only be used for the needs of the Reporting Entity and is utilized within the framework of a. application of risk management, expediting the process for Provision of Funds and identification of Debtor quality for compliance with the applicable legal provisions. Request made by for Reporting Entities for Debtor Information shall be placed on line. (mma)