Indonesia imposes extra capital surcharge on biggest banks

Indonesia's banking watchdog has instructed the biggest banks to set aside more capital this year in an effort to reduce risks to the financial sector. The Financial Services Authority (OJK) said on its website it will rank systemically important banks (SIBs) based on their size, interconnectedness with the financial system, and the complexity of their business.
Under new regulations SIBs are required from January 1 to set aside "capital surcharges" of between 0.25 percent and 0.625 percent of risk-weighted assets, depending on how systemically important the institutions are. The surcharge will gradually increase each year until 2019 when it reaches 1 percent to 2.5 percent of the institution's risk-weighted assets.