Letter of the Financial Services Authority Number 23/SEOJK.05/2016 Regarding the Revocation of Financial Services Authority Letter Number 26/SEOJK.05/2015 Concerning Investment Valuation of Securities for Pension Funds

To:
Pension Fund Managers

At your location.

COPY
LETTER OF THE FINANCIAL SERVICES AUTHORITY
NUMBER 23 /SEOJK.05/2016
CONCERNING
THE REVOCATION OF FINANCIAL SERVICES AUTHORITY LETTER NUMBER 26/SEOJK.05/2015 CONCERNING INVESTMENT VALUATION OF SECURITIES FOR PENSION FUNDS

In relation to Article 2 paragraph (3) of Financial Services Authority Regulation Number 3/POJK.05/2015 concerning Pension Fund Investments and Financial Services Authority Letter Number 26/SEOJK.05/2015 dated August 31, 2015 concerning Investment Valuation of Securities for Pension Funds, hereinafter referred to as SEOJK Number 26/SEOJK.05/2015, and considering current economic and market conditions, it is necessary to establish the revocation of SEOJK Number 26/SEOJK.05/2015 in this Financial Services Authority Letter as follows:

I. GENERAL PROVISIONS

1. Based on SEOJK Number 26/SEOJK.05/2015, the valuation of investment securities owned by pension funds was established to reflect fair value as a result of global financial conditions which caused the market value of investment securities to show unfair values.

2. That global financial conditions and the development of the Indonesian economy are currently experiencing positive growth and development, as reflected by market indicators:
   a. The exchange rate of the Indonesian Rupiah against the United States Dollar has continuously strengthened and stabilized since October 2015. b. The Bank Indonesia interest rate has continuously decreased and stabilized since December 2015.
   c. The Country Rate for Indonesia has continuously strengthened and stabilized since October 2015.
   d. The Composite Stock Price Index has increased since October 2015 and continues to show an upward trend.

3. That based on the conditions and developments as referred to in point 2, global financial conditions have shown fair values for the investment securities market.

4. That based on point 3, the determination of market unfairness as a global financial condition that had caused the market value of investment securities owned by pension funds to show unfair values in SEOJK Number 26/SEOJK.05/2015 as the basis for pension funds to calculate the securities they own needs to be revoked.

II. DETERMINATION OF REVOCATION OF SEOJK NUMBER 26/SEOJK.05/2015

Based on the considerations as referred to in Roman numeral I, SEOJK Number 26/SEOJK.05/2015 is revoked and declared invalid.

III. CLOSING

This Financial Services Authority Letter takes effect on the date it is established.

Established in Jakarta on June 27, 2016

EXECUTIVE HEAD OF INSURANCE, PENSION FUND,
FINANCING INSTITUTION, AND
OTHER FINANCIAL SERVICE INSTITUTIONS
FINANCIAL SERVICES AUTHORITY,

signed
FIRDAUS DJAELANI

Copy consistent with the original
Legal Director 1
Legal Department

signed
Yuliana