OJK and Law Enforcement Authorities in Agreement: Non-Performing Loans Not Automatically Criminal
Jakarta, CNBC Indonesia — The Financial Services Authority (OJK), the Supreme Court (MA), and the Attorney General’s Office are in agreement that non-performing loans due to business risks do not automatically fall into the criminal realm.
This shared perspective serves as a strong signal that regulators and law enforcement authorities aim to reduce the criminalisation of banking business decisions, so that bankers are not afraid to disburse credit.
This alignment of views emerged during the Banking Industry Seminar themed “Application of the Business Judgement Rule to Non-Performing Loans in Banks,” held in Jakarta on Tuesday (12/5/2026).
OJK’s Executive Head of Banking Supervision, Dian Ediana Rae, stated that the business judgement rule concept provides legal protection for business decisions made by bankers as long as they are done in good faith, with full prudence, without conflicts of interest, and for the best interests of the company.
“The Business Judgement Rule concept, in principle, provides legal protection to the Bank for business decisions taken in good faith, based on the principle of prudence, without conflicts of interest, and carried out for the best interests of the company,” Dian said in her statement on Wednesday (13/5/2026).
According to Dian, legal certainty is important to keep the banking industry professional while giving room for banking to carry out its intermediation function optimally.
She emphasised that strengthening regulations, supervision, and law enforcement that are aligned are necessary so that the banking industry remains integrity-driven without causing excessive fear in making business decisions.
At the forum, Supreme Court Criminal Chamber Judge Jupriyadi affirmed that losses due to non-performing loans do not automatically become criminal acts if all principles of the business judgement rule have been met.
He explained that the protection of the business judgement rule applies as long as the business decision is made in good faith, in accordance with procedures, without conflicts of interest, and accompanied by maximum risk mitigation efforts.
“If all those parameters are met but losses still occur, including the risk of non-performing loans, then it is a business failure and not a criminal act,” said Jupriyadi.
Jupriyadi also reminded the importance of avoiding a “chilling effect” that could make bankers afraid to make business decisions due to excessive concerns about criminal risks.
According to him, criminal law should be the last resort or ultimum remedium in resolving banking issues that have met the principles of good corporate governance.
Meanwhile, Secretary of the Deputy Attorney General for Special Criminal Acts at the Attorney General’s Office, Didik Farkhan Alisyahdi, emphasised that the business judgement rule is not a shield to protect fraudulent practices.
He stated that legal protection can be revoked if manipulation, collusion, provision of false information, neglect of prudence principles, or deviation from the original purpose of granting credit is found.
“Losses that occur are no longer considered business risks but become the result of crime,” said Didik.