Regulation of the Commodity Futures Trading Regulatory Agency Number 9 of 2018 Concerning Approval as Warehouse Manager of the Warehouse Receipt System

REGULATION OF THE COMMODITY FUTURES TRADING REGULATORY AGENCY OF THE REPUBLIC OF INDONESIA NUMBER 9 OF 2018 CONCERNING APPROVAL AS WAREHOUSE MANAGER OF THE WAREHOUSE RECEIPT SYSTEM BY THE GRACE OF THE ALMIGHTY GOD

HEAD OF THE COMMODITY FUTURES TRADING REGULATORY AGENCY OF THE REPUBLIC OF INDONESIA,

Considering: a. that in order to implement the provisions of Article 21 letter a and letter f of Law Number 9 of 2006 concerning the Warehouse Receipt System as amended by Law Number 9 of 2011 concerning Amendments to Law Number 9 of 2006 concerning the Warehouse Receipt System; b. that in order to implement the provisions of Article 88 and Article 89 of Government Regulation Number 24 of 2018 concerning Integrated Electronic Business Licensing Services, the regulations governing approval as Warehouse Manager need to be changed and adjusted;

c. that based on the considerations as referred to in letters a and b, it is necessary to establish a Regulation of the Commodity Futures Trading Regulatory Agency concerning Approval as Warehouse Manager of the Warehouse Receipt System;

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) as amended by Law Number 10 of 2011 concerning Amendments to Law Number 32 of 1997 concerning Commodity Futures Trading (State Gazette of the Republic of Indonesia Year 2011 Number 79, Supplement to the State Gazette of the Republic of Indonesia Number 5232);
2. 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) as amended by Law Number 9 of 2011 concerning Amendments to Law Number 9 of 2006 concerning the Warehouse Receipt System (State Gazette of the Republic of Indonesia Year 2011 Number 78, Supplement to the State Gazette of the Republic of Indonesia Number 5231);
3. 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) as amended by Government Regulation Number 70 of 2013 concerning Amendments to 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 2013 Number 172, Supplement to the State Gazette of the Republic of Indonesia Number 5459);
4. Government Regulation Number 24 of 2018 concerning Integrated Electronic Business Licensing Services (State Gazette of the Republic of Indonesia Year 2018 Number 90);
5. Presidential Regulation Number 7 of 2015 concerning the Organization of State Ministries (State Gazette of the Republic of Indonesia Year 2015 Number 8);
6. Presidential Regulation Number 48 of 2015 concerning the Ministry of Trade (State Gazette of the Republic of Indonesia Year 2015 Number 90);
7. Presidential Decree Number 86/TPA of 2018 concerning Dismissal and Appointment to and from Senior Management Positions in the Environment of the Ministry of Trade;
8. Minister of Trade Regulation Number 08/M-DAG/PER/2/2016 concerning the Organization and Work Structure of the Ministry of Trade (State News of the Republic of Indonesia Year 2016 Number 202);
9. Minister of Trade Regulation Number 77 of 2018 concerning Integrated Electronic Business Licensing Services in the Trade Sector (State News of the Republic of Indonesia Year 2018 Number 938);

DECIDES:

To establish: A REGULATION OF THE COMMODITY FUTURES TRADING REGULATORY AGENCY CONCERNING APPROVAL AS WAREHOUSE MANAGER OF THE WAREHOUSE RECEIPT SYSTEM.

Article 1 In this Regulation of the Agency, the following terms are defined:

1. Commodity Futures Trading Regulatory Agency, hereinafter referred to as Bappebti, is a government agency whose main duties are to conduct guidance, regulation, development, and supervision of Commodity Futures Trading, Warehouse Receipt System, and Commodity Auction Markets.
2. Warehouse Receipt System is activities related to the issuance, transfer, guarantee, and settlement of Warehouse Receipt transactions.
3. Warehouse Manager is a party conducting warehousing business, whether owning the warehouse or using another's warehouse, which conducts storage, maintenance, and supervision of goods stored by the owner of the goods and is entitled to issue Warehouse Receipts.
4. Warehouse is all immovable and non-movable rooms intended not to be visited by the public, but specifically used as a place for storing goods that can be traded generally and meet other conditions set by the Minister.
5. Registration Center is a legal entity business approved by Bappebti to conduct accounting of Warehouse Receipts and Derivative Warehouse Receipts, including recording, storage, book transfer of ownership, encumbrance of guarantee rights, reporting, and provision of information systems and networks.
6. Integrated Electronic Business Licensing or Online Single Submission, hereinafter abbreviated as OSS, is Business Licensing issued by the OSS Agency for and on behalf of the Minister, head of agency, governor, or regent/mayor to Business Actors through an integrated electronic system.
7. Commitment is a statement by the Business Actor to fulfill the requirements for Business License and/or Commercial or Operational License.
8. OSS Management and Organizing Agency, hereinafter referred to as OSS Agency, is a non-ministerial government agency that conducts government affairs in the field of investment coordination.
9. Business Identification Number, hereinafter abbreviated as NIB, is the identity of the Business Actor issued by the OSS Agency after the Business Actor completes Registration.
10. Service Level Arrangement, hereinafter abbreviated as SLA, is the service level that must be observed and implemented to conduct Business Licensing services in the trade sector integrated with OSS.

Article 2 (1) Warehouse Manager business activities may only be conducted by a legal entity that has obtained approval as a Warehouse Manager of the Warehouse Receipt System from the Head of Bappebti. (2) The legal entity as referred to in paragraph (1) shall be in the form of a Limited Liability Company, Public Enterprise, Cooperative, or Regional Enterprise. (3) The implementation of the authority to issue approval as referred to in paragraph (1) is conducted through the OSS Agency. (4) The OSS Agency as referred to in paragraph (3) issues approval for Warehouse Manager of the Warehouse Receipt System for and on behalf of the Head of Bappebti based on the provisions of Government Regulations concerning Integrated Electronic Business Licensing Services and Minister of Trade Regulations governing Integrated Electronic Business Licensing Services in the Trade Sector.

Article 3 (1) Warehouse Manager of the Warehouse Receipt System must meet capital requirements. (2) Warehouse Managers in the form of Limited Liability Companies and Public Enterprises must have a basic capital of at least Rp1,500,000,000.00 (one billion five hundred million rupiah) with paid-up capital of at least Rp600,000,000.00 (six hundred million rupiah). (3) Warehouse Managers in the form of Cooperatives must have own capital of at least Rp250,000,000.00 (two hundred fifty million rupiah). (4) Warehouse Managers in the form of Regional Enterprises must have a basic capital of at least Rp750,000,000.00 (seven hundred fifty million rupiah) with paid-up capital of at least Rp300,000,000.00 (three hundred million rupiah).

Article 4 Warehouse Managers are prohibited from being controlled, directly or indirectly, by individuals who: a. have been declared bankrupt or served as directors/managers or commissioners/supervisors declared guilty causing a company to be declared bankrupt within the last 5 (five) years; b. have been sentenced based on a final court decision for committing criminal acts in the economic or financial sector with a penalty threat above 5 (five) years; c. are proven to have violated regulations in the Warehouse Receipt System sector; d. do not have good ethics and morals; and/or e. do not have knowledge in the Warehouse Receipt System sector.

Article 5 (1) Warehouse Managers must have personnel with the necessary competencies in Warehouse and Goods management. (2) The competencies as referred to in paragraph (1) must at least include: a. understanding of regulations in the Warehouse Receipt System sector; b. expertise regarding the characteristics of stored goods; c. expertise regarding goods maintenance; and d. expertise regarding warehouse management administration.

Article 6 (1) Warehouse Managers must own and/or control at least 1 (one) Warehouse that has obtained approval from Bappebti as a Warehouse Receipt System Warehouse. (2) In the event that a prospective Warehouse Manager is in the process of applying for approval as a Warehouse Manager, the approval for the Warehouse as referred to in paragraph (1) may be in the form of a receipt of the application for approval for Warehouse Receipt System Warehouse. (3) In the context of applying for approval as a Warehouse Manager of the Warehouse Receipt System, to be submitted as a Warehouse as referred to in paragraph (2), the Warehouse must have: a. Warehouse Registration Certificate (TDG); b. warehouse suitability certification from the Conformity Assessment Institution (LPK); c. warehouse completeness statement based on LPK certification results; d. proof of land and building ownership; e. lease agreement or other forms of agreement providing warehouse control if the warehouse is not owned by the Warehouse Manager of the Warehouse Receipt System; and f. Minutes of Physical Infrastructure Inspection.

Article 7 (1) Warehouse Managers in the form of Limited Liability Companies and Public Enterprises must have a Quality Management Certificate. (2) Warehouse Managers in the form of Cooperatives and Regional Enterprises must have Standard Operating Procedures supporting operational activities as a Warehouse Manager. (3) The Quality Management Certificate as referred to in paragraph (1) may be exempted for Warehouse Managers in the form of Limited Liability Companies and Public Enterprises that have at least 15 (fifteen) years of experience in warehouse management.

Article 8 (1) Prospective Warehouse Managers must have an NIB to apply for approval as a Warehouse Manager of the Warehouse Receipt System. (2) Prospective Warehouse Managers are issued an NIB in accordance with Government Regulations governing Integrated Electronic Business Licensing Services and Minister of Trade Regulations governing Integrated Electronic Business Licensing Services in the Trade Sector.

Article 9 (1) Prospective Warehouse Managers in obtaining approval as a Warehouse Manager of the Warehouse Receipt System must fulfill Commitment and SLA requirements for business licensing in the trade sector in accordance with Minister of Trade Regulations governing Integrated Electronic Business Licensing Services in the Trade Sector. (2) Prospective Warehouse Managers in fulfilling Commitment and SLA requirements for business licensing in the trade sector as referred to in paragraph (1) must complete them within the time limit determined in accordance with Minister of Trade Regulations governing Integrated Electronic Business Licensing Services in the Trade Sector. (3) In the event that fulfilling Commitment and SLA requirements for business licensing in the trade sector involves costs, prospective Warehouse Managers must pay the costs in the manner determined in accordance with prevailing regulations. (4) In the event that a prospective Warehouse Manager cannot complete the Commitment within the established time limit as referred to in paragraph (2), the prospective Warehouse Manager cannot conduct business activities and must resubmit the application for business licensing in the Trade sector to the OSS Agency. (5) Approval as a Warehouse Manager of the Warehouse Receipt System becomes effective if all Commitment requirements are fulfilled and payment has been made.

Article 10 (1) In granting approval as a Warehouse Manager of the Warehouse Receipt System, Bappebti: a. examines the completeness and truthfulness of required documents; b. conducts an assessment of the 3 (three) year business plan; c. conducts suitability and propriety interviews with directors/managers, commissioners/supervisors, and shareholders regarding ethics, morals, knowledge in the Warehouse Receipt System sector, and ensures freedom from criminal acts stated in an integrity pact; and d. examines physical infrastructure. (2) Suitability and propriety tests for directors/managers, commissioners/supervisors, and shareholders as referred to in paragraph (1) letter c are conducted at the time of applying for approval as a Warehouse Manager of the Warehouse Receipt System. (3) Bappebti notifies the OSS Agency no later than 3 (three) working days since the completeness of Commitment fulfillment is met. (4) Notification as referred to in paragraph (3) may be in the form of fulfilled or unfulfilled Commitment.

Article 11 (1) Warehouse Managers must report to the OSS Agency any changes in the name and/or address of the Warehouse Manager no later than 5 (five) working days after the change occurs. (2) Warehouse Managers must report to Bappebti and the Registration Center any changes in the party authorized to sign Warehouse Receipts no later than 5 (five) working days before the change is implemented. (3) Warehouse Managers must report any changes in directors/managers, commissioners/supervisors, and shareholders to: a. OSS Agency no later than 5 (five) working days after the change is implemented; b. Bappebti no later than 5 (five) working days after the change is implemented using Form Number I. PG-SRG completed with documents required in Form Number I. PG-SRG.1.A as stated in the Appendix which is an integral part of this Agency Regulation. (4) Bappebti may conduct suitability and propriety tests for directors/managers, commissioners/supervisors, and shareholders regarding ethics, morals, and knowledge in the Warehouse Receipt System sector for changes reported to Bappebti as referred to in paragraph (3) letter b if necessary.

Article 12 In the event that the OSS Agency cannot yet process the issuance of business licensing in the trade sector regulated in this Agency Regulation, the Head of Bappebti issues approval as a Warehouse Manager of the Warehouse Receipt System with the following provisions: a. Prospective Warehouse Managers must submit applications electronically via http://srg.bappebti.go.id to the Head of Bappebti by attaching requirements as referred to in Article 9 paragraph (1). b. Bappebti examines the validity and truthfulness of documents as referred to in Article 9 paragraph (1), conducts interviews and suitability tests, and examines physical infrastructure within 20 (twenty) working days since the documents are received complete. c. The Head of Bappebti issues approval as a Warehouse Manager of the Warehouse Receipt System within the time limit as referred to in letter b using an Electronic Signature (e-Signature) that does not require a stamp and wet signature, and includes a QR Code (Quick Response Code) after the requirements as referred to in letter b are complete and correct. d. In the event that requirements as referred to in Article 9 paragraph (1) are incomplete, the application for approval as a Warehouse Manager of the Warehouse Receipt System cannot be processed further. e. In the event that requirements as referred to in letter b are incomplete and incorrect, the application for approval as a Warehouse Manager of the Warehouse Receipt System is rejected electronically. f. Bappebti notifies the OSS Agency no later than 3 (three) working days since the issuance of approval as referred to in letter c.

Article 13 Upon the commencement of this Agency Regulation, Approvals as Warehouse Manager of the Warehouse Receipt System that have been obtained and are still valid are declared to remain valid and must be registered by the approval holder into the OSS system.

Article 14 Upon the commencement of this Agency Regulation: a. Head of Bappebti Regulation Number 15/BAPPEBTI/PER-SRG/7/2012 concerning Requirements and Procedures for Obtaining Approval as Warehouse Manager in the Warehouse Receipt System; and b. Head of Bappebti Regulation Number 21/BAPPEBTI/PER-SRG/7/2015 concerning Amendments to Head of Bappebti Regulation Number 15/BAPPEBTI/PER-SRG/7/2012 concerning Requirements and Procedures for Obtaining Approval as Warehouse Manager in the Warehouse Receipt System, are repealed and declared invalid.

APPENDIX TO THE REGULATION OF THE COMMODITY FUTURES TRADING REGULATORY AGENCY NUMBER 9 OF 2018 CONCERNING APPROVAL AS WAREHOUSE MANAGER OF THE WAREHOUSE RECEIPT SYSTEM

Form Number I. PG-SRG

To: Head of the Commodity Futures Trading Regulatory Agency At: Place

In connection with changes in the data or information of the Company …………, the changes are namely name/address, directors/managers, commissioners/supervisors, or shareholders, we hereby submit the report on said changes accompanied by supporting documents as required in accordance with prevailing regulations.

We hereby submit this, and for your attention and permission, we thank you.

………,…………..20

Respectfully,

Stamp Duty (Name of Director/Manager)

Notes: *Choose one

A. Company Profile: Warehouse Manager Name (old) : ………………………………………………... Warehouse Manager Name (new) : ………………………………………………... Warehouse Manager Address (old) : ………………………………………………... ……………………………………………………… Warehouse Manager Address (new) : ………………………………………………... ……………………………………………………… Party Signing Warehouse Receipt (old) : …………………………………. Party Signing Warehouse Receipt (new) : ………………………………….

B. Board of Directors *:

1. Director General (old) : ………………………………………………………. Director General (new) : ……………………………………………………….
2. Board of Directors (old) : ………………………………………………………. Board of Directors (new) : ……………………………………………………….
3. Management (old) : ………………………………………………………. Management (new) : ………………………………………………………

C. Board of Commissioners *:

1. Chairman of Commissioners (old) : ……………………………………………………… Chairman of Commissioners (new) : ………………………………………………………
2. Commissioners (old) : ……………………………………………………………… Commissioners (new) : ………………………………………………………………
3. Supervisors (old) : …......................................................................... Supervisors (new) : ………………………………………………………………

D. Shareholder Structure: Name of Shareholder (old) | Number of Shares | Name of Shareholder (new) | Number of Shares

Notes: *Choose One

Form Number I. PG-SRG.1.A

1. Deed of Company Change (old);
2. Deed of Company Change (new);
3. Letter of Results of General Meeting of Shareholders (GMS)/Management Meeting signed by Directors, Commissioners, and Shareholders.

INTEGRITY QUESTIONNAIRE FOR APPLICANT

Instructions for Answering Questions:

1. All questions must be answered by the applicant;
2. Signed by directors/managers or board of commissioners/supervisors or shareholders on stamped paper;
3. Place an X in the box in front of the word "yes" if the applicant's answer is "yes", or place an X in the box in front of the word "no" if the applicant's answer is "no".

For every "yes" answer, the applicant must provide a detailed and clear answer on a separate sheet which includes among others: a. the institutions involved; b. the cases and dates of the actions taken; c. the court or institution taking action; and d. the actions and sanctions taken.

Answer the following questions!

Are you, as director/manager, supervisor/commissioner or shareholder *) of a business entity, ever:

1. Warned, suspended, revoked, or rejected for licensing by Bappebti? ☐ yes ☐ no

2. Sentenced for proven criminal acts in the economic sector including trade, industry, agriculture, banking, insurance, capital market, or taxation within the last 10 (ten) years? ☐ yes ☐ no

3. Proven to have violated regulations in the Trade sector within the last 10 (ten) years? ☐ yes ☐ no

4. Declared bankrupt or served as director or commissioner declared guilty causing a company to be declared bankrupt within the last 10 (ten) years? ☐ yes ☐ no

5. Currently under investigation or trial for suspected violations of regulations in the Trade sector or suspected criminal acts in the economic sector including industry, agriculture, banking, insurance, capital market, or taxation? ☐ yes ☐ no

6. Lacking good moral ethics? ☐ yes ☐ no

7. Included in the banking blacklist? ☐ yes ☐ no

8. Non-compliant in paying financial obligations, especially tax payments? ☐ yes ☐ no

.................,..................... (Place and date)

(Director/Manager, Commissioner/Supervisor or Shareholder *)

Stamp Duty Clear Name (.............................)