The multiple-license system is meant to better protect both banks and consumers and to make sure that companies have the adequate capabilities to conduct their businesses. Only those that have a large amount of capital and healthy prospects will be given multiple licenses, after which they have all the freedom to operate, constrained only by the prevailing banking laws. In addition, Indonesian banks are currently the only ones that work with single licenses, making it difficult for them to expand overseas.

"The amount of capital will be a reference for Bank Indonesia to apply the multiple licenses for banks," noted Muliaman Darmansyah Hadad, deputy governor for Bank Indonesia.

The central bank said it would ensure that the new ruling will not overlap with other existing regulations.