Regulation of the Head of the Commodity Futures Trading Regulatory Agency Number 01/BAPPEBTI/PER-PL/08/2010 Concerning Approval of Forward Auction Market Organizers

REGULATION OF THE HEAD OF THE COMMODITY FUTURES TRADING REGULATORY AGENCY NUMBER: 01/BAPPEBTI/PER-PL/08/2010 CONCERNING APPROVAL OF FORWARD AUCTION MARKET ORGANIZERS

THE HEAD OF THE COMMODITY FUTURES TRADING REGULATORY AGENCY,

Considering: a. that in order to support the acceleration of economic growth in the agro-commodity industry and trade sector, it is necessary to strive for a business climate that supports the creation of agro-commodity trade efficiency; b. that in order to support the creation of agro-commodity trade efficiency as referred to in letter a, it is necessary to provide the widest possible business opportunities for Forward Auction Market Organizers; c. that based on the considerations referred to in letters a and b, it is necessary to establish a Regulation of the Head of the Commodity Futures Trading Regulatory Agency;

Recalling:

1. Law Number 32 of 1997 concerning Commodity Futures Trading (State Gazette of the Republic of Indonesia Year 1997 Number 93, Supplement to the State Gazette of the Republic of Indonesia Number 3720);
2. Law Number 32 of 2004 concerning Regional Government as amended by Law Number 12 of 2008 (State Gazette of the Republic of Indonesia Year 2004 Number 125, Supplement to the State Gazette of the Republic of Indonesia Number 4437);
3. Law Number 9 of 2006 concerning Warehouse Receipt System (State Gazette of the Republic of Indonesia Year 2006 Number 59, Supplement to the State Gazette of the Republic of Indonesia Number 4630);
4. Government Regulation Number 9 of 1999 concerning the Implementation of Commodity Futures Trading (State Gazette of the Republic of Indonesia Year 1999 Number 16, Supplement to the State Gazette of the Republic of Indonesia Number 3805);
5. Government Regulation Number 36 of 2007 concerning the Implementation of Law Number 9 of 2006 concerning the Warehouse Receipt System (State Gazette of the Republic of Indonesia Year 2007 Number 79, Supplement to the State Gazette of the Republic of Indonesia Number 4735);
6. Government Regulation Number 38 of 2007 concerning the Division of Government Affairs Between the Government, Provincial Regional Governments, and Regency/City Regional Governments (State Gazette of the Republic of Indonesia Year 2007 Number 82, Supplement to the State Gazette of the Republic of Indonesia Number 4737);
7. Presidential Decree Number 60/M of 2008 concerning the Appointment of Echelon I Officials in the Ministry of Trade;
8. Presidential Decree Number 84/P of 2009 concerning the Formation of the United Indonesia Cabinet II Period 2009-2014;
9. Presidential Regulation Number 47 of 2009 concerning the Formation and Organization of State Ministries;
10. Presidential Regulation Number 24 of 2010 concerning the Position and Duties of State Ministries as well as the Structure of Organizations, Duties, and Functions of Echelon I State Ministries;
11. Minister of Industry and Trade of the Republic of Indonesia Decree Number 650/MPP/Kep/10/2004 concerning Provisions for the Implementation of Forward Auction Markets for Agro-Commodities;
12. Minister of Trade Regulation Number 01/M-DAG/PER/3/2005 concerning the Organization and Work Structure of the Ministry of Trade as amended several times, most recently by Minister of Trade Regulation Number 24/M-DAG/PER/6/2009;

DECIDES:

To establish: A REGULATION OF THE HEAD OF THE COMMODITY FUTURES TRADING REGULATORY AGENCY CONCERNING APPROVAL OF FORWARD AUCTION MARKET ORGANIZERS.

Article 1 Approval as a Forward Auction Market Organizer may only be granted after fulfilling the provisions of Minister of Industry and Trade of the Republic of Indonesia Decree Number 650/MPP/Kep/10/2004 concerning Provisions for the Implementation of Forward Auction Markets for Agro-Commodities and this Regulation of the Head of the Commodity Futures Trading Regulatory Agency.

Article 2 Activities as a Forward Auction Market Organizer may only be conducted by: a. Provincial/Regency/City Offices specializing in trade; b. business entities in the form of Cooperatives; or c. business entities in the form of Limited Liability Companies (PT).

Article 3 (1) Forward Auction Market Organizers as referred to in Article 2 letter a must fulfill the following requirements: a. possess a Recommendation Letter from the Governor/Regent/Mayor; b. possess adequate facilities to ensure orderly, fair, efficient, and effective auction transactions; c. possess Regulations and Bylaws for the Implementation of Forward Auction Markets that have obtained approval from Bappebti; and d. possess cooperation with a Clearing and Guarantee Institution for Forward Auction Markets to guarantee transaction settlement.

(2) Forward Auction Market Organizers as referred to in Article 2 letters b and c must fulfill the following requirements: a. possess paid-up capital or own capital of at least Rp. 1,000,000,000.00 (one billion rupiah); b. possess adequate facilities to ensure orderly, fair, efficient, and effective auction transactions; c. possess Regulations and Bylaws for the Implementation of Forward Auction Markets that have obtained approval from Bappebti; and d. possess cooperation with a Clearing and Guarantee Institution for Forward Auction Markets to guarantee transaction settlement.

Article 4 (1) Applications for approval as a Forward Auction Market Organizer as referred to in Article 2 letter a must fulfill the requirements referred to in Article 3 paragraph (1) and be submitted to the Head of Bappebti based on Form Model Number PL-FRM.I, accompanied by documents as required in Form Number PL-FRM.I.01 and Number PL-FRM.I.01.C.

(2) Applications for approval as a Forward Auction Market Organizer as referred to in Article 2 letter b must fulfill the requirements referred to in Article 3 paragraph (2) and be submitted to the Head of Bappebti based on Form Model Number PL-FRM.I, accompanied by documents as required in Form Number PL-FRM.I.01.A and Number PL-FRM.I.01.C.

(3) Applications for approval as a Forward Auction Market Organizer as referred to in Article 2 letter c must fulfill the requirements referred to in Article 3 paragraph (2) and be submitted to the Head of Bappebti based on Form Model Number PL-FRM.I, accompanied by documents as required in Form Number PL-FRM.I.01.A, PL-FRM.I.01.B, PL-FRM.I.01.C, and Number PL-FRM.I.01.D.

Article 5 (1) Bappebti conducts an examination of the authenticity of documents according to the originals and an assessment of documents as referred to in Article 4.

(2) Bappebti conducts an inspection of physical infrastructure and facilities at the office of the Forward Auction Market Organizer and creates an Inspection Report using Form Number PL-FRM.I.02 for Provincial/Regency/City Offices specializing in trade and Form Number PL-FRM.I.03 for Cooperative or Limited Liability Company (PT) business entities.

(3) Bappebti provides Approval or Rejection of applications as Forward Auction Market Organizers no later than 45 (forty-five) working days since the completeness assessment referred to in paragraphs (1) and (2) is fulfilled.

(4) Bappebti provides Approval as a Forward Auction Market Organizer for Provincial/Regency/City Offices specializing in trade using Form Number PL-FRM.I.04 as stated in the Appendix of this Regulation of the Head of the Commodity Futures Trading Regulatory Agency.

(5) Bappebti provides Approval as a Forward Auction Market Organizer for business entities in the form of Cooperatives or Limited Liability Companies (PT) using Form Number PLL-FRM.I.05 as stated in the Appendix of this Regulation of the Head of the Commodity Futures Trading Regulatory Agency.

(6) Bappebti conveys Rejection of applications for Approval as Forward Auction Market Organizers using Form Number PL-FRM.I.06 as stated in the Appendix of this Regulation of the Head of the Commodity Futures Trading Regulatory Agency.

Article 6 In the event that a Forward Auction Market Organizer has obtained approval from Bappebti, the Forward Auction Market Organizer must: a. prepare detailed records and reports of all activities of Forward Auction Market Members related to commodity transactions and commodity control; b. guarantee the confidentiality of members' financial position information and business activities, except where such information is provided in the implementation of implementing regulations; c. document and properly store all data related to Forward Auction Market activities; d. disseminate information on the prices of traded commodities; e. monitor the activities and financial conditions of Forward Auction Market Members and take actions to suspend or terminate members who do not meet financial and reporting requirements, in accordance with implementing regulations; and f. submit any changes to the Regulations and Bylaws for the Implementation of Forward Auction Markets to obtain prior approval from Bappebti.

Article 7 (1) Changes to the management of Forward Auction Market Organizers in the form of Cooperatives and Limited Liability Companies (PT) must be reported to Bappebti no later than 1 (one) week after the change becomes valid according to applicable laws and regulations.

(2) Reports on changes to the management of Forward Auction Market Organizers as referred to in paragraph (1) are submitted to Bappebti using Form Number PL-FRM.I.07, accompanied by documents as required in Form Number PL-FRM.I.01.A for business entities in the form of Cooperatives, and Form Number PL-FRM.I.01.A and Number PL-FRM.I.01.D for business entities in the form of Limited Liability Companies (PT).

Article 8 (1) Changes to shareholders of Forward Auction Market Organizers in the form of Limited Liability Companies (PT) must be reported to Bappebti no later than 1 (one) week after the change becomes valid according to applicable laws and regulations.

(2) Reports on changes to shareholders of Forward Auction Market Organizers in the form of Limited Liability Companies (PT) as referred to in paragraph (1) are submitted to Bappebti using Form Number PL-FRM.I.07, accompanied by documents as required in Form Number PL-FRM.I.01.A and Number PL-FRM.I.01.D.

Article 9 (1) Changes to the name and address of Forward Auction Market Organizers must be reported to Bappebti.

(2) Reports on changes to the name and address of Forward Auction Market Organizers as referred to in paragraph (1) are submitted to Bappebti using Form Number PL-FRM.I.08, accompanied by documents as required in Form Number PL-FRM.I.01.C.

Article 10 (1) The opening of Branch Offices of Forward Auction Market Organizers in the form of Limited Liability Companies (PT) must be reported to Bappebti.

(2) Reports on the opening of Branch Offices of Forward Auction Market Organizers as referred to in paragraph (1) are submitted to Bappebti using Form Number PL-FRM.I.09.

Article 11 Forward Auction Market Organizers must submit annual reports on their activities to Bappebti, the format and content of which will be further regulated by Bappebti.

Article 12 (1) In the event that a Forward Auction Market Organizer in the form of a Provincial/Regency/City Office specializing in trade is still in the process of fulfilling the requirements as referred to in Article 3 paragraph (1), Bappebti provides Temporary Approval valid for 1 (one) year.

(2) If within the 1 (one) year period, the Forward Auction Market Organizer in the form of a Provincial/Regency/City Office specializing in trade has not been able to fulfill the requirements as referred to in Article 3 paragraph (1), Bappebti may extend the Temporary Approval for a maximum of 2 (two) extensions.

Article 13 Forward Auction Market Organizers that do not implement the provisions in this Regulation of the Head of the Commodity Futures Trading Regulatory Agency are subject to administrative sanctions in accordance with laws and regulations in the field of Auction Markets.

Article 14 This Regulation of the Head of the Commodity Futures Trading Regulatory Agency takes effect from the date of establishment.

Established in Jakarta On 27 August 2010

HEAD OF THE COMMODITY FUTURES TRADING REGULATORY AGENCY,

DEDDY SALEH

COPY This Regulation of the Head of the Commodity Futures Trading Regulatory Agency is transmitted to:

1. Minister of Trade of the Republic of Indonesia;
2. Deputy Minister of Trade of the Republic of Indonesia;
3. Secretary General of the Ministry of Trade;
4. Inspector General of the Ministry of Trade;
5. Secretaries and Heads of Bureaus within Bappebti;
6. For information.