OJK Circular No. 16/SEOJK.03/2017 on Submission of Foreign Customer Tax Information for Automatic Exchange of Information under the Common Reporting Standard

To:

1. Board of Directors of commercial banks;
2. Board of Directors of securities companies; and
3. Board of Directors of life insurance companies,
   which conduct business operations both conventionally and based on Sharia principles.

COPY
CIRCULAR LETTER OF THE FINANCIAL SERVICES AUTHORITY NUMBER 16/SEOJK.03/2017 CONCERNING SUBMISSION OF FOREIGN CUSTOMER TAX INFORMATION IN THE FRAMEWORK OF AUTOMATIC EXCHANGE OF INFORMATION AMONG COUNTRIES USING THE COMMON REPORTING STANDARD (COMMON REPORTING STANDARD)

In relation to Financial Services Authority Regulation Number 25/POJK.03/2015 concerning Submission of Foreign Customer Tax Information to Partner Countries or Partner Jurisdictions (State Gazette of the Republic of Indonesia Year 2015 Number 291, Supplement to the State Gazette of the Republic of Indonesia Number 5773) hereinafter referred to as POJK on Submission of Foreign Customer Tax Information, and Competent Authority Agreements (CAAs) signed by the Indonesian Government, both bilaterally and multilaterally, and in order to implement the automatic exchange of information among countries (Automatic Exchange of Information/AEOI) using the Common Reporting Standard, it is necessary to regulate the implementation regarding the submission of foreign customer tax information in the framework of automatic exchange of information among countries using the Common Reporting Standard in the Financial Services Authority Circular Letter as follows:

I. GENERAL PROVISIONS

1. Common Reporting Standard, hereinafter abbreviated as CRS, is the standard for the automatic exchange of financial information for tax purposes, including commentaries prepared by the Organisation for Economic Cooperation and Development (OECD) together with member countries of the Group of Twenty (G20).

2. Financial Institution, hereinafter abbreviated as FI, is an FI as referred to in Law Number 21 of 2011 concerning the Financial Services Authority.

3. Reporting FI is an FI that has the obligation to report information on Foreign Customers related to taxes to the Indonesian tax authority, in accordance with the criteria as referred to in the CRS CAA.

4. Non-Reporting FI is an FI that is exempted from the obligation to report information on Foreign Customers related to taxes to the Indonesian tax authority, in accordance with the criteria as referred to in the CRS CAA.

5. Participating Jurisdiction is a partner country or partner jurisdiction that is published in a list issued by the Indonesian tax authority and will provide information on Foreign Customers related to taxes.

6. Reportable Jurisdiction is a partner country or partner jurisdiction that is published in a list issued by the Indonesian tax authority and has the obligation to mutually provide information on Foreign Customers related to taxes.

7. Participating Jurisdiction Indicia are indicators used to identify that a Foreign Customer originates from a Participating Jurisdiction.

8. Controlling Person is the beneficial owner as referred to in Financial Services Authority regulations regarding the implementation of anti-money laundering and counter-terrorist financing programs for the financial services sector.

9. Reportable Person, hereinafter referred to as Reported Party, is a Foreign Customer and/or Controlling Person originating from a Reportable Jurisdiction.

10. Reportable Account, hereinafter referred to as Account Required to be Reported, is:
    a. accounts at Banks; b. insurance policies at Life Insurance Companies and Sharia Life Insurance Companies; and/or
    c. sub-account numbers for securities at Securities Companies and Custodian Banks;
    owned by one or more Reported Parties.

11. Determination Date, hereinafter referred to as Determination Date, is the date as determined in the CRS CAA as a reference for Reporting FIs to classify customers in order to identify and report Accounts Required to be Reported, namely July 1, 2017, or other dates to be agreed upon by Indonesia and partner countries or partner jurisdictions, referring to a list of Determination Dates published by the Indonesian tax authority.

II. REPORTING FIs
Reporting FIs consist of:

1. Commercial Banks are Commercial Banks as referred to in Law Number 7 of 1992 concerning Banking as amended by Law Number 10 of 1998 concerning Amendments to Law Number 7 of 1992 concerning Banking, including branch offices of banks located abroad, and Sharia Commercial Banks as referred to in Law Number 21 of 2008 concerning Sharia Banking;
2. Securities Companies are Parties conducting business activities as Underwriters of Securities, Securities Trading Brokers, and/or Investment Managers as referred to in Law Number 8 of 1995 concerning Capital Markets;
3. Custodian Banks are Commercial Banks that have received approval from the Financial Services Authority as Custodian Banks; and
4. Life Insurance Companies and Sharia Life Insurance Companies are insurance companies conducting life insurance or Sharia life insurance business as referred to in Law Number 40 of 2014 concerning Insurance.

III. FOREIGN CUSTOMERS

1. Criteria for Foreign Customers based on Reporting FIs:
   a. for Commercial Banks, namely individual or corporate customers originating from a Participating Jurisdiction and meeting the criteria for Foreign Customers who have accounts and/or use services at Commercial Banks as referred to in Chapter II to Chapter V of Appendix I, which is an integral part of this Financial Services Authority Circular Letter; b. for Securities Companies conducting business activities:

1. as Underwriters of Securities, are Foreign Customers originating from a Participating Jurisdiction, whether individuals or corporations, who use the services of Underwriters of Securities;
2. as Securities Trading Brokers, are Foreign Customers originating from a Participating Jurisdiction, whether individuals or corporations, who use the services of Securities Trading Brokers; and/or
3. as Investment Managers, are Foreign Customers originating from a Participating Jurisdiction, whether individuals or corporations, who invest in investment products managed by Investment Managers;
   as referred to in Chapter II to Chapter V of Appendix I, which is an integral part of this Financial Services Authority Circular Letter;
   c. for Custodian Banks, are Foreign Customers originating from a Participating Jurisdiction, whether individuals or corporations, who invest funds and/or Securities for management by Investment Managers for the benefit of customers who are direct customers of the Custodian Bank as referred to in Chapter II to Chapter V of Appendix I, which is an integral part of this Financial Services Authority Circular Letter; and/or
   d. for Life Insurance Companies and Sharia Life Insurance Companies, are Foreign Customers originating from a Participating Jurisdiction, whether individuals or corporations, who are policyholders or participants as referred to in Chapter II to Chapter V of Appendix I, which is an integral part of this Financial Services Authority Circular Letter.

2. Identification of Customers of Reporting FIs
   The identification process for Customers of Reporting FIs is conducted by referring to Appendix I, which is an integral part of this Financial Services Authority Circular Letter.

3. Statement of Consent, Instructions, or Grant of Authority
   In the event that a Foreign Customer agrees to provide information related to taxes to the Indonesian tax authority for submission to the tax authority of a Participating Jurisdiction, the Foreign Customer submits a written and voluntary statement of consent, instructions, or grant of authority to the Reporting FI, which shall contain at least:
   a. For Individual Foreign Customers:

1. Customer name;
2. Type and number of identity documents, including passports, Limited Stay Permit Cards (KITAS) or Permanent Stay Permit Cards (KITAP);
3. Place and date of birth of the customer;
4. Domicile address and/or correspondence address of the customer;
5. Partner country or partner jurisdiction of the customer's domicile;
6. Written and voluntary statement of consent, instructions, or grant of authority regarding the opening and/or submission of data and information, including tax-related data and information, to the Indonesian tax authority for submission to the tax authority of a Participating Jurisdiction in accordance with the CRS CAA;
7. Place and date of signing the consent statement;
8. Customer's signature; and
9. Customer's Tax Identification Number (TIN), if available.
   b. For Corporate Foreign Customers:
10. Company name according to the articles of association;
11. Articles of association and company registration number or company domicile letter;
12. Domicile address and/or correspondence address of the company;
13. Partner country or partner jurisdiction of the customer's domicile for tax purposes;
14. Name of the company's Controlling Person;
15. Type and identity number of the Controlling Person;
16. Place and date of birth of the Controlling Person;
17. Domicile address and/or correspondence address of the Controlling Person;
18. Partner country or partner jurisdiction of the Controlling Person's domicile for the Controlling Person's tax purposes;
19. Written and voluntary statement of consent, instructions, or grant of authority regarding the opening and/or submission of data and information, including tax-related data and information, to the Indonesian tax authority for submission to the tax authority of a Participating Jurisdiction based on the CRS CAA;
20. Place and date of signing the consent statement;
21. Customer's signature; and
22. Customer's and/or Controlling Person's TIN, if available.

4. Explanation of Consequences to Customers by Reporting FIs
   a. Based on Article 5 of the POJK on Submission of Foreign Customer Tax Information, in the event that a Foreign Customer is unwilling to provide a written and voluntary statement of consent, instructions, or grant of authority, the FI must:

1. explain the consequences for the Foreign Customer if they are unwilling to provide information in accordance with the Automatic Exchange of Information Agreement;
2. request the Foreign Customer to submit a written statement of objection; and
3. not serve new transactions related to the account or policy of such Foreign Customer.
   b. The FI ensures that the Foreign Customer has understood the explanation regarding the consequences if they are unwilling to provide a written and voluntary statement of consent, instructions, or grant of authority.
   c. The submission of the explanation regarding consequences as referred to in letter b) is conducted in accordance with the FI's internal procedures.

5. Statement of Objection
   In the event that a Foreign Customer is unwilling to provide a written and voluntary statement of consent, instructions, or grant of authority as referred to in number 4, the Reporting FI requests a statement of objection from the customer, which shall contain at least:
   a. For Individual Foreign Customers:

1. Customer name;
2. Account number/sub-account number for securities/policy number;
3. Clause stating that the signatory of the statement of objection has understood the consequences of their unwillingness to provide data and information related to taxes to the authority;
4. Place and date of signing the statement of objection; and
5. Customer's signature.
   b. For Corporate Foreign Customers:
6. Company name according to the articles of association;
7. Account number/sub-account number for securities/policy number;
8. Clause stating that the signatory of the statement of objection has understood the consequences of their unwillingness to provide data and information related to taxes to the authority;
9. Place and date of signing the statement of objection; and
10. Customer's signature.

IV. REPORTING

1. Implementation of Reporting Accounts Required to be Reported
   a. Reporting FIs report Accounts Required to be Reported in subsequent years as long as the Foreign Customer is a Reported Party. b. Reporting FIs submit information on Reported Parties through the Financial Services Authority's foreign customer information submission system after obtaining a written and voluntary statement of consent, instructions, or grant of authority from the Reported Party.
   c. The information submitted is:

1. Information on the Reporting FI, containing at least the name and Tax Identification Number (NPWP) of the Reporting FI;
2. Information on Foreign Customers, containing at least:
   a) For Individual Customers:
   i. Customer name;
   ii. Place and date of birth of the customer;
   iii. Domicile address and/or correspondence address of the customer;
   iv. Partner country or partner jurisdiction of the customer's domicile for tax purposes; and
   v. Customer's TIN, if available.
   b) For Corporate Customers:
   i. Company name according to the articles of association;
   ii. Domicile address and/or correspondence address of the company;
   iii. Partner country or partner jurisdiction of the company's domicile for tax purposes;
   iv. Name of the Controlling Person;
   v. Place and date of birth of the Controlling Person;
   vi. Domicile address and/or correspondence address of the Controlling Person;
   vii. Partner country or partner jurisdiction of the Controlling Person's domicile for tax purposes; and
   viii. Customer's and/or Controlling Person's TIN, if available.
3. Financial information on Foreign Customers reported, containing at least:
   a) Account number of the Account Required to be Reported; b) Balance or account value in the case of insurance contracts, including cash value of insurance contracts, annuity value, or surrender value at the end of the calendar year; c) Income in the Account Required to be Reported, namely:
   i. for securities accounts, namely:
   (a) the amount of interest, dividends, and/or other income generated by assets located in the securities account paid or credited to the account during the calendar year; and/or (b) the amount obtained from the sale or redemption of securities paid or credited to the account during the calendar year in the event the FI acts as a custodian, broker, nominee, or agent for the customer.
   ii. for savings accounts, namely the amount of interest paid or credited to the savings account during the calendar year;
   d) total amount paid or credited to Foreign Customers, for types of Accounts Required to be Reported other than those referred to in letter b); and e) information on Accounts Required to be Reported that were closed before the end of the reporting period, reported with a zero balance and a note of closure. d. Reporting FIs must inform details regarding the type of currency used for each reported nominal. e. In the event that a Reporting FI does not have TIN or date of birth information for the Reported Party before the Determination Date, the Reporting FI must still make efforts to collect such information for 2 (two) years after being identified as a Reported Party.

2. Implementation of Reporting Undocumented Accounts
   a. Reporting FIs report undocumented accounts in subsequent years as long as the Foreign Customer is a Reported Party. b. Reporting FIs submit information on Reported Parties through the Financial Services Authority's foreign customer information submission system after obtaining a written and voluntary statement of consent, instructions, or grant of authority from the Reported Party.

3. Implementation of Reporting by Reporting FIs Acting as Selling Agents and/or Custodians
   a. In accordance with Article 9 of the POJK on Submission of Foreign Customer Tax Information, FIs may delegate the implementation of reporting obligations to other FIs acting as selling agents and/or custodians. b. In the event that the receiving selling agent and/or custodian is a Reporting FI, in addition to fulfilling obligations as a Reporting FI, it must also report tax-related information from customers of the FI delegating the reporting obligation.

4. Mechanism and Time of Reporting
   a. Information on Reported Parties as referred to in Chapter IV number 1 letter c) is submitted by Reporting FIs to the Financial Services Authority through the foreign customer information submission system. b. Reporting of financial information in the foreign customer information submission system is conducted for each account owned by the Reported Party.
   c. Based on multilateral CAAs, the submission of Information on Reported Parties as referred to in letter a) is conducted no later than August 1 of each year, for the position at the end of December of the previous year.
   d. Based on bilateral CAAs, the submission of Information on Reported Parties as referred to in letter a) for the position at the end of December, is conducted in each subsequent year no later than 60 (sixty) days before the reporting deadline agreed upon in the bilateral CAA. e. If the reporting deadline for Information on Reported Parties as referred to in letters c) and d) falls on a holiday, reporting is conducted on the next working day. f. Reporting of Information on Reported Parties as referred to in letter a) by Reporting FIs is conducted for the first time in 2018 based on multilateral CAAs, or in a specific year agreed upon in bilateral CAAs.

5. Nil Report
   In the event that in the current year a Reporting FI does not have any Accounts Required to be Reported, the Reporting FI submits a nil report through the foreign customer information submission system.

6. Responsible Officials and Reporting Executors
   a. Reporting FIs appoint responsible officials with a position level adjusted to internal regulations and the complexity of the Reporting FI's business. b. The responsible official as referred to in letter a) may be held concurrently by an official who oversees other functions at the Reporting FI in accordance with applicable laws and regulations regarding prohibitions on holding concurrent positions.
   c. The responsible official as referred to in letter a) may appoint reporting executors.
   d. Before the foreign customer information submission system account can be activated, the Reporting FI submits information regarding the identity of the responsible official and/or reporting executor to:

1. Licensing and Banking Information Department c.q. Banking Information Directorate, in the event the Reporting FI is a Commercial Bank;
2. Non-Bank Financial Industry Supervision Department (IKNB) 1B c.q. IKNB Statistics and Information Directorate, in the event the Reporting FI is a Life Insurance Company or Sharia Life Insurance Company; or
3. Capital Market Supervision Department 2A c.q. Investment Management Directorate, in the event the Reporting FI is a Securities Company or Custodian Bank.
   e. In the event of a replacement of the responsible official and/or reporting executor, the Reporting FI must submit information regarding the identity of the new responsible official and/or reporting executor.

This copy is consistent with the original
Legal Director 1
Legal Department signed
Yuliana

V. CLOSING
The provisions in this Financial Services Authority Circular Letter take effect on the date of issuance.
Determined in Jakarta on April 6, 2017
EXECUTIVE HEAD OF BANKING SUPERVISOR
FINANCIAL SERVICES AUTHORITY, signed
NELSON TAMPUBOLON

APPENDIX I
FINANCIAL SERVICES AUTHORITY CIRCULAR LETTER
NUMBER 16/SEOJK.03/2017
CONCERNING
SUBMISSION OF FOREIGN CUSTOMER TAX INFORMATION IN THE FRAMEWORK OF AUTOMATIC EXCHANGE OF INFORMATION AMONG COUNTRIES USING THE COMMON REPORTING STANDARD (COMMON REPORTING STANDARD)

I. CUSTOMER IDENTIFICATION

1. Reporting FIs conduct identification of customers, both individuals and corporations, to ensure that customers are identified as Foreign Customers.

2. Based on the Determination Date, customers are categorized into 4 (four) groups, namely:
   a. Old individual customers, namely individuals who have opened accounts at Reporting FIs before the Determination Date; b. New individual customers, namely individuals who open accounts at Reporting FIs since the Determination Date;
   c. Old corporate customers, namely corporations that have opened accounts at Reporting FIs before the Determination Date; and
   d. New corporate customers, namely corporations that open accounts at Reporting FIs since the Determination Date.

3. The customer identification process refers to the process in accordance with the CRS CAA.

II. IDENTIFICATION OF OLD INDIVIDUAL CUSTOMERS

1. Based on the balance or account value on the day before the Determination Date, Reporting FIs classify customer accounts into 2 (two) groups, namely accounts with low balance or value, hereinafter referred to as Lower Value Accounts, and accounts with high balance or value, hereinafter referred to as High Value Accounts.

2. The balance or account value limits for Lower Value Accounts and High Value Accounts are:

No.	Balance or Account Value (in US Dollars or equivalent value in other currencies)	Group
1.	Balance or account value in the case of insurance contracts, including cash value of insurance contracts, annuity value, or surrender value up to USD 1,000,000 (one million US Dollars).	Lower Value Account
2.	Balance or account value in the case of insurance contracts, including cash value of insurance contracts, annuity value, or surrender value greater than USD 1,000,000 (one million US Dollars).	High Value Account

3. Stages of the identification process for Lower Value Accounts are:
   a. Identification Process Using Current Domicile Address

1. Reporting FIs can determine that customers originate from Participating Jurisdictions, based on information on the customer's current domicile address contained in documentary evidence available at the Reporting FI.
   Documentary evidence, including:
   a) passports, KITAS, or KITAP for individual customers; b) domicile certificates issued by competent government authorities (certificate of residence) if the residence address differs from the KITAS or KITAP address; and/or c) audited financial reports, third-party credit reports, bankruptcy application documents, or securities regulator’s reports.
2. Customers who are citizens or residents of Participating Jurisdictions are identified as Foreign Customers.
3. In the event that customers have been identified as Foreign Customers as referred to in number 2), Reporting FIs collect information as referred to in Chapter IV number 1 letter c) number 2) letter a) of the applicable Financial Services Authority Circular Letter mutatis mutandis.

b. Identification Process Using Participating Jurisdiction Indicia

1. In the event that the Reporting Financial Institution (LJK Pelapor) does not perform the identification process as referred to in letter a, the Reporting Financial Institution performs customer identification through the fulfillment of Participating Jurisdiction Indicia based on electronic information available in the Reporting Financial Institution's database.
2. Customers are identified as Foreign Customers if they meet Participating Jurisdiction Indicia, including but not limited to the following:
   a) identity as a citizen of a Participating Jurisdiction or resident of a Participating Jurisdiction; b) correspondence address or current domicile address (including Post-Office Box) in the territory of a Participating Jurisdiction; c) one or more telephone numbers with the country code of a Participating Jurisdiction, and no telephone number (fixed line) with the country code of Indonesia; d) a written standing instruction to transfer funds to an account managed in the territory of a Participating Jurisdiction, for accounts other than deposit accounts; e) a valid power of attorney or signing authorization to a party with an address in the territory of a Participating Jurisdiction; and/or f) an address in the territory of a Participating Jurisdiction with the description "in-care-of" or "hold mail" which is a single address related to the customer.
   c. In the event that a customer meets 1 (one) or more Participating Jurisdiction Indicia as referred to in letter b number 2), that customer is identified as a Foreign Customer.
   d. In the event that a customer has been identified as a Foreign Customer as referred to in letter c, the Reporting Financial Institution collects information as referred to in Roman numeral IV number 1 letter c number 2) letter a) of the Financial Services Authority Circular which applies mutatis mutandis. e. In the event that a customer only meets 1 (one) Participating Jurisdiction Indicia as referred to in letter b number 2) letter f), the Reporting Financial Institution performs the following procedures:
3. search for physical documents (paper record search); or
4. request self-certification documents or documentary evidence,
   to determine the partner country or partner jurisdiction of domicile of the Foreign Customer. f. If the Reporting Financial Institution cannot determine the partner country or partner jurisdiction of domicile of the Foreign Customer after performing the procedures as referred to in letter e and fails to obtain self-certification documents or documentary evidence as referred to in letter e, the Reporting Financial Institution categorizes the customer's account as an undocumented account. g. The identification process for Lower Value Accounts must be completed no later than the end of the second year after the Determination Date, except for undocumented accounts. h. The Reporting Financial Institution must perform the procedures as referred to in letter e and letter f against undocumented accounts until the customer's account is no longer categorized as an undocumented account in accordance with Financial Services Authority regulations governing the implementation of the Anti-Money Laundering and Counter-Terrorism Financing (APU and PPT) program for the financial services sector.

4. The stages of the identification process for High Value Accounts are:
   a. The Reporting Financial Institution ensures that the customer meets Participating Jurisdiction Indicia based on electronic information available in the Reporting Financial Institution's database. b. Customers are identified as Foreign Customers if they meet Participating Jurisdiction Indicia, including but not limited to the following:

1. identity as a citizen of a Participating Jurisdiction or resident of a Participating Jurisdiction;
2. correspondence address or current domicile address (including Post-Office Box) in the territory of a Participating Jurisdiction;
3. one or more telephone numbers with the country code of a Participating Jurisdiction, and no telephone number (fixed line) with the country code of Indonesia;
4. a written standing instruction to transfer funds to an account managed in the territory of a Participating Jurisdiction, for accounts other than deposit accounts;
5. a valid power of attorney or signing authorization to a party with an address in the territory of a Participating Jurisdiction; and/or
6. an address in the territory of a Participating Jurisdiction with the description "in-care-of" or "hold mail" which is a single address related to the customer.
   c. The Reporting Financial Institution performs identification by searching for information as referred to in letter b electronically in the database, including:
7. customer's citizenship or residency status;
8. customer's correspondence and/or domicile address;
9. customer's telephone number (fixed line) with the country code;
10. a written standing instruction to transfer funds from the customer's account to another account within 1 (one) Financial Institution or to a different Financial Institution, for accounts other than deposit accounts;
11. an address with the description "in-care-of" or "hold mail" related to the customer; and
12. a valid power of attorney or signing authorization related to the account.
    d. In the event that any of the 6 (six) pieces of information as referred to in letter c is not available in the database, the Reporting Financial Institution performs a search through physical documents. e. Physical documents as referred to in letter d originate from the customer master file, and/or supporting physical documents stored by the Reporting Financial Institution for the last 5 (five) years, including:
13. the most recent documents or contracts related to account or policy opening;
14. the most recent documents for compliance with Financial Services Authority regulations regarding the implementation of the APU and PPT program for the financial services sector;
15. valid power of attorney or signing authorization;
16. valid written standing instructions for transferring funds, for accounts other than deposit accounts; and
17. documentary evidence, including:
    a) passport, KITAS (Limited Stay Permit), or KITAP (Stay Permit); b) certificate of residence issued by the competent government authority in the event that the residential address differs from the KITAS or KITAP address; and/or c) audited financial reports, third-party credit reports, bankruptcy application documents, or securities regulator’s report; f. To support the completeness of information as referred to in letter c to letter e, the Reporting Financial Institution may search for additional information related to the customer. g. In the event that a customer meets 1 (one) or more Participating Jurisdiction Indicia as referred to in letter b, that customer is identified as a Foreign Customer. h. In the event that a customer has been identified as a Foreign Customer as referred to in letter g, the Reporting Financial Institution collects information as referred to in Roman numeral IV number 1 letter c number 2) letter a) of this Financial Services Authority Circular which applies mutatis mutandis.
    i. In the event that a customer only meets 1 (one) Participating Jurisdiction Indicia as referred to in letter b number 6), the Reporting Financial Institution requests self-certification documents or documentary evidence to determine the partner country or partner jurisdiction of domicile of the Foreign Customer.
    j. If the Reporting Financial Institution still cannot determine the partner country or partner jurisdiction of domicile of the Foreign Customer because it fails to obtain self-certification documents or documentary evidence as referred to in letter i, the Reporting Financial Institution categorizes the customer's account as an undocumented account. k. The identification process for High Value Accounts must be completed no later than the end of the following year after the Determination Date, except for undocumented accounts.
    l. The Reporting Financial Institution must perform the procedures as referred to in letter i and letter j against undocumented accounts until the customer's account is no longer categorized as an undocumented account in accordance with Financial Services Authority regulations governing the implementation of the APU and PPT program for the financial services sector.

5. The Reporting Financial Institution may exclude customers who have met certain Participating Jurisdiction Indicia as Foreign Customers, provided that they can provide supporting documents including:

No.	Participating Jurisdiction Indicia Met	Other Supporting Documents
1.	a. Correspondence address and/or domicile address in Participating Jurisdiction; <br> b. One or more telephone numbers in the territory of a Participating Jurisdiction and no telephone number (fixed line) in the territory of Indonesia; or <br> c. Written Standing Instruction (standing instruction) to transfer funds to an account managed in the territory of a Participating Jurisdiction, for accounts other than deposit accounts.	a. Self-certification document stating that the customer is not a tax subject of the Participating Jurisdiction; and <br> b. Documentary evidence showing that the customer is not a citizen of the Participating Jurisdiction, including: <br> 1) passport, KITAS, or KITAP for individual customers; <br> 2) certificate of residence issued by the competent government authority if the residential address differs from the KITAS or KITAP address; and/or <br> 3) audited financial reports, third-party credit reports, bankruptcy application documents, or securities regulator’s report.
2.	Valid power of attorney or signing authorization to a party with an address in the territory of a Participating Jurisdiction.	a. Self-certification document stating that the customer is not a tax subject of the Participating Jurisdiction; or <br> b. Documentary evidence showing that the customer is not a citizen of the Participating Jurisdiction, including: <br> 1) passport, KITAS, or KITAP for individual customers; <br> 2) certificate of residence issued by the competent government authority if the residential address differs from the KITAS or KITAP address; and/or <br> 3) audited financial reports, third-party credit reports, bankruptcy application documents, or securities regulator’s report.

6. In the event that a customer is not identified as a Foreign Customer, the Reporting Financial Institution monitors the fulfillment of Participating Jurisdiction Indicia based on information and/or documents received by the Reporting Financial Institution.

III. IDENTIFICATION OF NEW INDIVIDUAL CUSTOMERS

1. In order to identify customers as Foreign Customers, the Reporting Financial Institution requests information regarding the customer's country or jurisdiction of domicile in the account opening document.
2. In the event that a customer is identified as a Foreign Customer, the Reporting Financial Institution requests the customer to complete self-certification documents containing at least the following information:
   a) Foreign Customer's name; b) Foreign Customer's place and date of birth; c) Foreign Customer's address; d) Foreign Customer's country or jurisdiction of domicile; e) Foreign Customer's TIN; f) a clause stating that the information as referred to in the self-certification document is true; and g) a clause stating that the customer will notify the Reporting Financial Institution if there are changes to the Foreign Customer's status that cause the content of the self-certification document to become untrue or incomplete, no later than 90 (ninety) days since the occurrence of the said change.
3. In the event that a customer is not identified as a Foreign Customer, the Reporting Financial Institution monitors the fulfillment of Participating Jurisdiction Indicia based on information and/or documents received by the Reporting Financial Institution.

IV. IDENTIFICATION OF OLD CORPORATE CUSTOMERS

1. The Reporting Financial Institution performs identification on customers who have an aggregate balance or account value greater than USD 250,000 (two hundred fifty thousand US dollars) or the equivalent value in other currencies.
2. Based on information obtained in the context of fulfilling Financial Services Authority regulations governing the implementation of the APU and PPT program for the financial services sector, the Reporting Financial Institution determines customers into 2 (two) groups, namely:
   a. Customers originating from a Participating Jurisdiction (Foreign Customers); or b. Passive Non-Financial Entities (NFE) which are:

1. NFEs that are not Active NFEs; or
2. companies that are not "financial institutions in a Participating Jurisdiction", which derive gross income from investment, reinvestment, or trading of financial assets, and are managed by another financial institution,
   which have Controlling Persons who are Foreign Customers.

3. In order to determine Foreign Customers:
   a. The Reporting Financial Institution examines information that may indicate that the customer is a Foreign Customer, including but not limited to customers domiciled or having an address in the territory of a Participating Jurisdiction. b. In the event that, based on the examination as referred to in letter a, the customer is a Foreign Customer, the Reporting Financial Institution collects information as referred to in Roman numeral IV number 1 letter c number 2) letter b) of this Financial Services Authority Circular which applies mutatis mutandis.
   c. The Reporting Financial Institution may exclude a customer from being categorized as a Foreign Customer, provided that the Reporting Financial Institution can:

1. obtain a self-certification document stating that the customer is not a Foreign Customer; or
2. ensure that the customer is not a Foreign Customer based on other information owned or generally available.

4. In order to establish Passive NFEs that have Controlling Persons who are Foreign Customers:
   a. The Reporting Financial Institution establishes the status of Passive NFE by:

1. requesting self-certification documents from the customer containing at least: a) customer's name; b) customer's address; c) customer's country or jurisdiction of domicile; d) customer's TIN; e) information regarding Controlling Persons; f) a clause stating that the information as referred to in the self-certification document is true; and g) a clause stating that the customer will notify the Reporting Financial Institution if there are changes to the customer's status that cause the content of the self-certification document to become untrue or incomplete, no later than 90 (ninety) days since the occurrence of the said change; or
2. ensuring that the customer is a Passive NFE based on other information owned by the Reporting Financial Institution or generally available.
   b. In the event that the customer is a Passive NFE, the Reporting Financial Institution ensures that the Passive NFE has Controlling Persons who are Foreign Customers, based on:
3. information obtained in the context of fulfilling Financial Services Authority regulations governing the implementation of the APU and PPT program for the financial services sector, if the balance or account value is less than or equal to USD 1,000,000 (one million US dollars) or the equivalent value in other currencies; or
4. self-certification documents from the customer, if the balance or account value is greater than USD 1,000,000 (one million US dollars) or the equivalent value in other currencies.
   c. In the event that the Passive NFE has Controlling Persons who are Foreign Customers, the Reporting Financial Institution collects information as referred to in Roman numeral IV number 1 letter c number 2) letter b) of this Financial Services Authority Circular which applies mutatis mutandis.

5. In the event that, based on identification as referred to in numbers 3 and 4, the customer is identified as a Foreign Customer with an account categorized as a Reportable Account, the Reporting Financial Institution requests the Foreign Customer to complete self-certification documents containing at least the following information:
   a. Foreign Customer's name; b. Foreign Customer's address;
   c. Foreign Customer's TIN; and
   d. a clause stating that the information as referred to in the self-certification document is true.
6. In the event that there are changes to the status of a corporate Foreign Customer's account, including due to inconsistencies in self-certification documents, the Reporting Financial Institution performs the determination process by following the procedures as referred to in numbers 2 to 4.
7. The identification process for customer accounts must be completed no later than the end of the following year after the Determination Date.

V. IDENTIFICATION OF NEW CORPORATE CUSTOMERS

1. The Reporting Financial Institution determines customers into 2 (two) groups by referring to the provisions as referred to in Roman numeral IV number 2.
2. In order to determine customers as Foreign Customers:
   a. The Reporting Financial Institution requests self-certification documents as referred to in Roman numeral IV number 4 letter a number 1). b. The Reporting Financial Institution determines the customer's country or jurisdiction of domicile based on the self-certification document as referred to in letter a or based on the customer's principal office address.
   c. In the event that the customer is a Foreign Customer, the Reporting Financial Institution collects information as referred to in Roman numeral IV number 1 letter c number 2) letter b) of this Financial Services Authority Circular which applies mutatis mutandis.
   d. The Reporting Financial Institution may exclude the customer's account from being categorized as a Foreign Customer, provided that the Reporting Financial Institution can ensure that the customer is not a Reportable Person based on other information owned or generally available.
3. Stages for the Reporting Financial Institution to determine Passive NFE customers with Controlling Persons who are Foreign Customers:
   a. To establish the status of Passive NFE, the Reporting Financial Institution:

1. requests self-certification documents from the customer stating that the customer is a Passive NFE; or
2. ensures that the customer is a Passive NFE based on other information owned by the Reporting Financial Institution or generally available.
   b. In the event that the customer is identified as a Passive NFE, the Reporting Financial Institution examines information to determine if the Passive NFE has Controlling Persons who are Foreign Customers, based on self-certification documents.
   c. In the event that the Passive NFE has Controlling Persons who are Foreign Customers, the Reporting Financial Institution collects information as referred to in Roman numeral IV number 1 letter c number 2) letter b) of this Financial Services Authority Circular which applies mutatis mutandis.

This copy is consistent with the original
Director of Law 1
Legal Department
Yuliana

VI. DETERMINATION OF BALANCE OR ACCOUNT VALUE LIMITS
In order to determine the fulfillment of customer balance or account value limits, the Reporting Financial Institution needs to pay attention to:

1. Aggregate balance or account value.
   The Reporting Financial Institution determines the fulfillment of balance or account value limits based on the aggregate balance or value of all accounts owned by the customer.
2. Currency exchange rate.
   In the event that the customer's account balance or value is recorded in a currency other than the US Dollar, the Reporting Financial Institution must convert the account balance or value into US Dollars. The currency conversion exchange rate refers to the mid-rate of Bank Indonesia on the last working day at the end of the reporting period. Example:
   Customer A has an account with a balance of AUD 400,000 (four hundred thousand Australian dollars) at Bank X in 2016.
   The mid-rate of Bank Indonesia on December 31, 2016 is as follows:

Currency	Value	Bank Indonesia Mid-Rate (Rupiah)
AUD 1	10,061.84
USD 1	13,103.00

Customer A's account balance in US Dollars at Bank X is:
AUD 400,000 × (Rp 10,061.84 / AUD 1) / (Rp 13,103.00 / USD 1) = USD 307,160.35

Determined in Jakarta on April 6, 2017
EXECUTIVE HEAD OF BANKING SUPERVISOR
FINANCIAL SERVICES AUTHORITY, sd
NELSON TAMPUBOLON

APPENDIX II
FINANCIAL SERVICES AUTHORITY CIRCULAR LETTER
NUMBER 16 /SEOJK.03/2017
ABOUT
DELIVERY OF FOREIGN CUSTOMER INFORMATION RELATED TO TAXATION IN THE FRAMEWORK OF AUTOMATIC EXCHANGE OF INFORMATION BETWEEN COUNTRIES USING THE COMMON REPORTING STANDARD

NON-REPORTING FINANCIAL INSTITUTIONS
I. Parties categorized as Non-Reporting Financial Institutions are:

1. The Government of the Republic of Indonesia;
2. International Organizations;
3. Bank Indonesia;
4. Broad Participation Retirement Funds, namely Employer Pension Funds or Financial Institution Pension Funds;
5. Narrow Participation Retirement Funds, namely Employer Pension Funds or Financial Institution Pension Funds with up to 50 (fifty) participants;
6. Pension Funds of Governmental Entities, International Organizations, or Central Banks;
7. Rural Banks or Sharia People's Financing Banks;
8. Microfinance Institutions;
9. Qualified Credit Card Issuers;
10. Exempt Collective Investment Vehicles; and
11. Mutual Funds that:
    a. have maximum purchases of Rp 100,000.00 (one hundred thousand rupiah) and purchases accompanied by insurance and savings; or b. have maximum purchases of Rp 10,000,000.00 (ten million rupiah) with payment using electronic wallets (e-wallets).
    II. Accounts excluded from reporting include accounts as follows:
    a. accounts that meet the following requirements:

1. accounts regulated as investment vehicles for purposes other than pension and regularly traded on established stock exchanges or accounts subject to regulations as savings vehicles for purposes other than pension;
2. tax-favoured accounts (for example, contributions to accounts that would otherwise be subject to tax); or

tax, but may be deductible or excluded from the gross income of the account holder or taxed at a reduced percentage, or tax on investment income from such account is deferred or taxed at a reduced percentage);
3) withdrawals can only be made upon meeting specific criteria related to the purpose of the savings account (e.g., provision of education or health allowances), or penalties are imposed on withdrawals made before such criteria are met;
4) annual contributions are limited to USD 50,000 (fifty thousand United States dollars), subject to the provisions in Appendix I Roman VI of this Financial Services Authority Circular; and
5) financial accounts with annual contributions exceeding the amount referred to in item 4) are not categorized as reportable accounts, provided that the annual contributions originate from one or more retirement funds or pension funds as referred to in Roman I items 4 through 6.
b. life insurance contracts with a coverage period that will end before the insured reaches the age of 90 (ninety) years, subject to the contract meeting the following requirements:

1. periodic premiums, which do not decrease over time, which must be paid at least annually during the contract period or until the insured reaches the age of 90 (ninety) years, whichever is shorter;

2. no contract value accessible to anyone (through withdrawal, loan, or otherwise) without terminating the contract;

3. the amount (other than death benefit) payable upon cancellation or termination of the contract does not exceed the aggregate premiums paid for the contract, minus death claims, medical costs, and administrative costs, during the coverage period; and

4. not established under provisions stating that the receipt of certain benefits is subject to tax.
   c. an account established in connection with any of the following:

5. a court or arbitration judgment or order;

6. the sale, exchange, or lease of real or personal property, provided the account meets the following requirements:
   (a) the account is funded solely with down payments, earnest money, deposits in amounts sufficient to guarantee obligations directly related to the transaction, or similar payments, or funded with financial assets held in the account in connection with the sale, exchange, or lease of assets; (b) the account is established and used solely to guarantee the buyer's obligation to pay the purchase price of the asset, the seller's contingent obligation, or the lessor or lessee's payment of any losses related to the leased asset as agreed upon in the lease agreement; (c) the assets in the account, including income derived therefrom, will be paid or distributed for the benefit of the buyer, seller, lessor, or lessee (including to satisfy the relevant obligation) when the asset is sold, exchanged, delivered, or the lease agreement ends; (d) the account is not a margin or similar account established in connection with the sale or exchange of a financial asset; and (e) the account is not related to a deposit account;

7. the obligation of the Financial Services Institution (LJK) to provide a loan secured by real property to set aside part of the payment solely to facilitate the payment of tax or insurance related to the real property in the future; or

This copy is consistent with the original
Legal Director 1
Legal Department signed
Yuliana
4) the obligation of the Financial Services Institution (LJK) solely to facilitate the payment of tax in the future.
d. Savings accounts that meet the following requirements:

1. an account that exists only because the customer made a payment exceeding the due balance regarding a credit card or other revolving credit facility, and the excess payment is not immediately returned to the customer; and
2. starting from or before the Determination Date, the Financial Services Institution (LJK) has implemented good policies and procedures to prevent customers from making excess payments exceeding USD 50,000 (fifty thousand United States dollars), or to ensure that customer excess payments exceeding USD 50,000 (fifty thousand United States dollars) are returned to the customer within 60 (sixty) days, in each case subject to the provisions in Appendix I Roman VI of this Financial Services Authority Circular.
   e. Any other account with a low risk of being used to avoid tax, which essentially has characteristics similar to the accounts described in letters a through d.

Established in Jakarta on April 6, 2017
EXECUTIVE HEAD OF BANKING SUPERVISOR
FINANCIAL SERVICES AUTHORITY, signed
NELSON TAMPUBOLON