Regulation of the Head of the Commodity Futures Trading Regulatory Agency Number 02/BAPPEBTI/PER-PL/08/2010 Concerning Approval of Clearing and Guarantee Institutions for Forward Auction Markets

REGULATION OF THE HEAD OF THE COMMODITY FUTURES TRADING REGULATORY AGENCY NUMBER: 02/BAPPEBTI/PER-PL/08/2010 CONCERNING APPROVAL OF CLEARING AND GUARANTEE INSTITUTIONS FOR FORWARD AUCTION MARKETS

THE HEAD OF THE COMMODITY FUTURES TRADING REGULATORY AGENCY,

Considering: a. that in order to support the acceleration of economic growth in the agricultural commodity industry and trade sector, it is necessary to strive for a business climate that supports the creation of agricultural commodity trading efficiency; b. that in order to support the creation of agricultural commodity trading efficiency as referred to in letter a, it is necessary to provide the widest possible business opportunities for Clearing and Guarantee Institutions for Forward Auction Markets; c. that based on the considerations as 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 the 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 Central 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 Environment of 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 Organization, 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 Agricultural 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 CLEARING AND GUARANTEE INSTITUTIONS FOR FORWARD AUCTION MARKETS.

Article 1 Approval as a Clearing and Guarantee Institution for Forward Auction Markets may only be granted after meeting 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 Agricultural Commodities and this Regulation of the Head of the Commodity Futures Trading Regulatory Agency.

Article 2 Activities as a Clearing and Guarantee Institution for Forward Auction Markets may only be conducted by a legal entity in the form of a Limited Liability Company (Perseroan Terbatas).

Article 3 An application for approval as a Clearing and Guarantee Institution for Forward Auction Markets must meet the following requirements: a. having paid-up capital of at least IDR 10,000,000,000.00 (ten billion rupiah); b. having Regulations and Bylaws of the Clearing and Guarantee Institution for Forward Auction Markets that have obtained approval from Bappebti; c. having facilities and systems that support the orderly, fair, efficient, effective, and transparent clearing and guaranteeing of the Auction Market; and d. conducting cooperation with the Organizer of the Forward Auction Market to guarantee the settlement of transactions.

Article 4 The application for approval as a Clearing and Guarantee Institution for Forward Auction Markets as referred to in Article 3 is submitted to the Head of Bappebti using Form Number PL-FRM.II.01 and is completed with documents as required in Form Number PL-FRM.II.01.A, PL-FRM.II.01.B, PL-FRM.II.01.C, and Number PL-FRM.II.01.D as stated in the Appendix of this Regulation of the Head of the Commodity Futures Trading Regulatory Agency.

Article 5 (1) Bappebti conducts research on the validity of documents according to the originals and evaluates the documents as referred to in Article 4. (2) Bappebti conducts an inspection of physical infrastructure and facilities at the office of the Clearing and Guarantee Institution for Forward Auction Markets and creates an Inspection Report using Form Number PL-FRM.II.02. (3) Bappebti provides Approval or Rejection as a Clearing and Guarantee Institution for Forward Auction Markets no later than 45 (forty-five) working days since the completeness assessment as referred to in paragraphs (1) and (2) is fulfilled. (4) Bappebti provides Approval as a Clearing and Guarantee Institution for Forward Auction Markets using Form Number PL-FRM.II.03 as stated in the Appendix of this Regulation of the Head of the Commodity Futures Trading Regulatory Agency. (5) Bappebti submits Rejection of the application for approval as a Clearing and Guarantee Institution for Forward Auction Markets using Form Number PL-FRM.II.04 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 Clearing and Guarantee Institution for Forward Auction Markets has obtained approval from Bappebti, the Clearing and Guarantee Institution for Forward Auction Markets is required to: a. store funds received from members of the Clearing and Guarantee Institution for Forward Auction Markets in a separate account from the account of the Clearing and Guarantee Institution for Forward Auction Markets at a bank designated by Bappebti; b. guarantee the confidentiality of the financial position information and business activities of members of the Clearing and Guarantee Institution for Forward Auction Markets, except when such information is provided in the implementation of its implementing regulations; c. document and properly store all data related to Forward Auction Market activities; and d. monitor the activities and financial conditions of members of the Clearing and Guarantee Institution for Forward Auction Markets and take actions to freeze or terminate members who do not meet financial and reporting requirements, in accordance with its implementing regulations.

Article 7 (1) Changes to the Articles of Association of the Clearing and Guarantee Institution for Forward Auction Markets must be reported to Bappebti no later than 1 (one) week after the change is legally valid according to applicable legislation. (2) The report on changes to the Articles of Association of the Clearing and Guarantee Institution for Forward Auction Markets as referred to in paragraph (1) is submitted to Bappebti using Form Number PL-FRM.II.05 and is completed with documents as required in Form Number PL-FRM.II.01.A and Number PL-FRM.II.01.

Article 8 (1) Changes to the address of the Clearing and Guarantee Institution for Forward Auction Markets must be reported to Bappebti. (2) The report on changes to the address of the Clearing and Guarantee Institution for Forward Auction Markets as referred to in paragraph (1) is submitted to Bappebti using Form Number PL-FRM.II.06 and is completed with documents as required in Form Number PL-FRM.II.01.C.

Article 9 Clearing and Guarantee Institutions for Forward Auction Markets are required to submit annual reports on their activities to Bappebti.

Article 10 Clearing and Guarantee Institutions for Forward Auction Markets 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 legislation in the field of Auction Markets.

Article 11 This Regulation of the Head of the Commodity Futures Trading Regulatory Agency shall come into force as of 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 in the Environment of Bappebti;
6. For information.