2017-12-22 | 62/POJK.04/2017Added · Updated
This regulation mandates the specific form and content requirements for prospectuses and short prospectuses used in public offerings of regional bonds and regional sukuk. It defines key terms, establishes disclosure obligations for issuers regarding material facts and risks, and prescribes detailed structural elements for the documents, including mandatory warnings and Sharia compliance statements for sukuk. The rules apply to regional heads, underwriters, and supporting market institutions to ensure legal certainty and investor protection.
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COPY
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 62 /POJK.04/2017
CONCERNING
THE FORM AND CONTENT OF THE PROSPECTUS AND SHORT PROSPECTUS IN THE FRAMEWORK OF PUBLIC OFFERINGS OF REGIONAL BONDS AND/OR REGIONAL SUKUK BY THE GRACE OF THE ALMIGHTY GOD THE COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY, Considering:
a. that in order to support the improvement of the national economy through comprehensive infrastructure development in the Indonesian region, Regional Governments need to utilize funding sources from the capital market; b. that the utilization of funding sources from the capital market, which can be done through the issuance of regional bonds and/or regional sukuk, requires harmonizing the form and content of the prospectus and short prospectus in the framework of public offerings of regional bonds and/or regional sukuk with the form and content of the prospectus and short prospectus in public offerings that are generally applicable;
c. that in order to provide a legal basis and legal certainty for Regional Governments that will conduct public offerings of regional bonds and/or regional sukuk, regulations regarding the form and content of the prospectus and short prospectus in the framework of public offerings of regional bonds and/or regional sukuk are needed;
d. that based on the considerations as referred to in letters a, b, and c, it is necessary to establish a Financial Services Authority Regulation on the Form and Content of the Prospectus and Short Prospectus in the Framework of Public Offerings of Regional Bonds and/or Regional Sukuk; Recalling:
CHAPTER I
GENERAL PROVISIONS
Article 1
In this Financial Services Authority Regulation, the following terms are defined as:
Article 2
(1) The form and content of the Prospectus and Short Prospectus in the framework of Public Offerings of Regional Bonds and/or Regional Sukuk must follow the provisions as regulated in this Financial Services Authority Regulation. (2) The Prospectus and Short Prospectus must contain details of Material Information or Material Facts regarding the Public Offering and information and/or statements that can influence investor decisions, which are known or should be known by the Issuer. (3) The Prospectus and Short Prospectus are prohibited from containing incorrect statements about material facts or omitting correct statements about material facts necessary so that the Prospectus does not provide a misleading picture. (4) The Prospectus and Short Prospectus must be drafted in such a way that they are clear and communicative. (5) The presentation and delivery of important information in the Prospectus and Short Prospectus must not be obscured by less important information resulting in the important information being overlooked by readers. (6) The most important facts and considerations must be summarized and disclosed in the early part of the Prospectus and Short Prospectus. (7) The disclosure of Material Information or Material Facts and/or the use of photos, diagrams, and/or tables in the Prospectus and Short Prospectus is prohibited from providing a misleading picture. (8) The disclosure of Material Information or Material Facts in the Prospectus and Short Prospectus must be done clearly with emphasis appropriate to the Issuer's condition so that the Prospectus is not misleading.
Article 3
In preparing the Prospectus and Short Prospectus as referred to in Article 2, the Issuer may make adjustments to the disclosure of Material Information or Material Facts, not limited only to Material Information or Material Facts already regulated in this Financial Services Authority Regulation.
Article 4
The Regional Head and the securities issuance underwriter, if using a securities issuance underwriter, at the time the Registration Statement becomes effective, market supporting institutions and professions, or other Parties who provide opinions or statements and whose inclusion in the Prospectus is agreed to, individually or jointly, are responsible for ensuring that the Prospectus has met the provisions as referred to in Article 2 paragraph (2).
Article 5
(1) The Issuer must disclose all parts contained in the Prospectus and Short Prospectus and prepare the Prospectus and Short Prospectus in the order as regulated in this Financial Services Authority Regulation. (2) The disclosure of all parts contained in the Prospectus and Short Prospectus as referred to in paragraph (1) may be excluded if the disclosure is not relevant or cannot be applied by the Issuer.
CHAPTER II
FORM OF PROSPECTUS
Article 6
The Prospectus as referred to in Article 2 must at least contain the following sections:
a. information on the front cover of the Prospectus; b. table of contents;
c. prospectus summary;
d. Public Offering; e. use of funds obtained from the results of the Public Offering of Regional Bonds and/or Regional Sukuk; f. debt statement; g. summary of important financial data; h. analysis and discussion by the Regional Government;
i. risk factors;
j. significant events after the date of the audit report of the Republic of Indonesia's State Audit Agency; k. Regional Regulations related to the issuance of Regional Bonds and/or Regional Sukuk;
l. information about the Issuer;
m. information about the Activities to be financed with Regional Bonds and/or Regional Sukuk; n. taxation; o. securities issuance underwriting, if any; p. market supporting institutions and professions and other Parties; q. information about the Trustee; r. information about guarantors, if any; s. ordering procedures for Regional Bonds and/or Regional Sukuk; t. dissemination of the Prospectus and ordering forms for purchasing Regional Bonds and/or Regional Sukuk; u. legal opinion; and
v. Sharia compliance statement, in the event of issuing Regional Sukuk.
CHAPTER III
CONTENT OF PROSPECTUS
First Section
Information on the Front Cover of the Prospectus
Article 7
Information on the outer front cover of the Prospectus must at least contain or disclose:
a. the effective date of the Registration Statement from the Financial Services Authority; b. offering period;
c. allocation date;
d. date of return of ordering funds; e. distribution date of Regional Bonds and/or Regional Sukuk; f. listing date, if Regional Bonds and/or Regional Sukuk will be listed on a Stock Exchange; g. full name of the region, address, regional emblem, telephone number, fax number, email address, and Website; h. name of the Stock Exchange, if Regional Bonds and/or Regional Sukuk will be listed on a Stock Exchange;
i. type of offering, including descriptions regarding:
Article 8
An Issuer conducting a Public Offering of Regional Bonds and/or Regional Sukuk in phases, in addition to containing information as referred to in Article 7, must state on the outer front cover of the Prospectus:
a. “Phased Public Offering Prospectus of Regional Bonds and/or Regional Sukuk”, also stating the name of the Regional Bonds and/or Regional Sukuk; and b. the total amount of funds to be raised from the issuance of Regional Bonds and/or Regional Sukuk during the phased Public Offering of Regional Bonds and/or Regional Sukuk period.
Article 9
Information on the inner front cover of the Prospectus must at least contain or disclose:
a. information that the Registration Statement has been submitted to the Financial Services Authority by referring to applicable laws and regulations in the Capital Market sector; b. a statement that all market supporting institutions and professions mentioned in the Prospectus are fully responsible for the data presented according to their functions and positions, in accordance with applicable laws and regulations in the Capital Market sector and the respective codes of ethics, norms, and professional standards;
c. a statement that in connection with the Public Offering of Regional Bonds and/or Regional Sukuk, every Party involved in the Public Offering of Regional Bonds and/or Regional Sukuk is prohibited from providing statements or opinions regarding data not disclosed in the Prospectus, without written consent from the Issuer and securities issuance underwriter (if any);
d. in the event that Regional Bonds and/or Regional Sukuk will be listed on a Stock Exchange, the Issuer must provide information regarding the listing plan; e. in the event that the Prospectus states the name of a Party assisting the Issuer in preparing the Prospectus, the Party must make a statement that it has provided written consent regarding the inclusion of the Party's name in the Prospectus and will not withdraw such consent; and f. information that the Regional Government's financial reports are available on the Issuer's Website.
Second Section
Table of Contents
Article 10
The table of contents as referred to in Article 6 letter b must include descriptions of sections and pages.
Third Section
Prospectus Summary
Article 11
In the prospectus summary section as referred to in Article 6 letter c, at least the following important information must be contained or disclosed:
a. information about the Issuer; b. information about the offered Regional Bonds and/or Regional Sukuk;
c. information about outstanding Regional Bonds and/or Regional Sukuk, if any;
d. plan for the use of funds from the Public Offering of Regional Bonds and/or Regional Sukuk; e. important financial data; f. main risks faced by the Issuer; and g. type of Sharia Contract, in the event of issuing Regional Sukuk.
Fourth Section
Public Offering
Article 12
In the Public Offering section as referred to in Article 6 letter d, at least the following must be contained or disclosed:
a. information about Regional Bonds and/or Regional Sukuk, at least containing or disclosing:
Article 13
The summary of the main requirements in the Trust Agreement as referred to in Article 12 letter d must at least include information about:
a. matters related to the priority (seniority) rights of debt relatively compared to other outstanding debts of the Issuer and additional debt that can be created by the Issuer in the future (if any), at least covering:
Article 14
In the event that the Issuer issues Regional Sukuk, in addition to information as referred to in Article 13, the Issuer must add information:
a. replacement of assets underlying Regional Sukuk if events occur causing their value to no longer match the value of the issued Regional Sukuk, if necessary according to the characteristics of the Sharia Contract; b. conditions and provisions in the event that the Issuer will change the type of Sharia Contract, content of the Sharia Contract, and/or assets underlying Regional Sukuk, containing:
Part Five
Use of Funds Obtained from the Results of the Public Offering of Regional Bonds and/or Regional Sukuk
Article 15
In the section on the use of funds obtained from the results of the Public Offering of Regional Bonds and/or Regional Sukuk as referred to in Article 6 letter e, it must at least contain or disclose:
a. information regarding the purpose of the Public Offering of Regional Bonds and/or Regional Sukuk and the Activities to be financed with funds obtained from the results of the Public Offering of Regional Bonds and/or Regional Sukuk, both directly and indirectly, stated in detail in the form of amounts and/or percentages; and b. information regarding other sources of funds to be used to finance an Activity if the funds from the Public Offering of Regional Bonds and/or Regional Sukuk are insufficient.
Article 16
In the event that the Issuer issues Regional Sukuk, the Issuer is obligated to use the funds from the Public Offering of Regional Sukuk to finance Activities or make investments that do not contradict Sharia Principles in the Capital Market.
Article 17
In the event that there is no Underwriter or the Underwriter does not guarantee the offering in full, the Issuer must contain or disclose:
a. the minimum amount of funds that can be obtained through the Public Offering of Regional Bonds and/or Regional Sukuk based on the Regional Government's confidence; b. the priority of use of funds obtained from the Public Offering of Regional Bonds and/or Regional Sukuk; and
c. risks and the Issuer's plans in the event that the offered Regional Bonds and/or Regional Sukuk are not sold as planned.
Article 18
The Issuer must disclose information regarding the estimated detailed costs incurred by the Issuer in the context of the Public Offering of Regional Bonds and/or Regional Sukuk, whether in the form of a specific percentage or absolute value, which must at least include:
a. underwriting service costs; b. organization service costs;
c. sales service costs;
d. supporting Capital Market profession service costs; e. supporting Capital Market institution service costs; f. financial consulting service costs; and g. other costs.
Part Six
Debt Statement
Article 19
In the debt statement section as referred to in Article 6 letter f, it must at least contain or disclose:
a. a statement regarding the position of all liabilities on the date of the Regional Government's financial statements for the last audited year; b. the Regional Government's financial statements for the last audited year which serve as the data source, accompanied by the opinion provided;
c. an explanation of the details of each liability in accordance with the liabilities in the financial position report;
d. commitments and contingencies according to the Regional Government's financial statements for the last audited year; and e. liabilities that have matured but have not yet been settled (if any), accompanied by the cause or reason.
Part Seven
Summary of Important Financial Data
Article 20
(1) In the summary of important financial data section as referred to in Article 6 letter g, it must at least contain or disclose:
a. information on the audited financial statements of the Regional Government which serve as the data source, the opinion obtained, and an explanation of the period of the Regional Government's financial statements covered; b. financial data for the last 2 (two) fiscal years, including the budget realization report, the report on changes in budget surplus balances, the balance sheet, the operational report, the cash flow report, and the equity change report; and
c. the form and content of the reports as referred to in letter b must be the same as those presented in the Regional Government's financial statements.
(2) The summary of important financial data presented as referred to in paragraph (1) must be consistent with the Regional Government's financial statements, including the account names used.
Part Eight
Analysis and Discussion by the Regional Government
Article 21
In the analysis and discussion section by the Regional Government as referred to in Article 6 letter h, the Issuer must provide a brief description discussing and analyzing the Regional Government's financial statements and other information or facts stated in the Prospectus.
Article 22
The discussion, analysis, and information as referred to in Article 21 must at least contain or disclose:
a. a comprehensive financial performance analysis covering the comparison of financial performance in the last 2 (two) fiscal years, an explanation of the causes of changes and the impact of those changes, at least covering:
Part Nine
Risk Factors
Article 23
In the risk factor section as referred to in Article 6 letter i, it must at least contain or disclose:
a. main risks; b. other risks related to the Issuer;
c. risks that have a significant impact on the Activities to be financed with Regional Bonds and/or Regional Sukuk;
d. risks for investors; and e. a statement that general risk factors are compiled based on the risk weight faced by the Issuer.
Part Ten
Important Events After the Date of the Audit Report of the Supreme Audit Agency of the Republic of Indonesia
Article 24
In the section on important events after the date of the audit report of the Supreme Audit Agency of the Republic of Indonesia as referred to in Article 6 letter j, it must at least contain or disclose:
a. information on all important events that occurred after the date of the audit report of the Supreme Audit Agency of the Republic of Indonesia until the effective date of the Registration Statement; or b. a statement by the Regional Government regarding the non-existence of important events after the date of the audit report of the Supreme Audit Agency of the Republic of Indonesia until the effective date of the Registration Statement, in the event that no important events exist.
Part Eleven
Regional Regulations Related to the Issuance of Regional Bonds and/or Regional Sukuk
Article 25
In the section on Regional Regulations related to the issuance of Regional Bonds and/or Regional Sukuk as referred to in Article 6 letter k, it must at least contain or disclose:
a. name, number, date, and year of the Regional Regulation; b. the nominal amount of Regional Bonds and/or Regional Sukuk to be issued;
c. the use of funds from the Public Offering of Regional Bonds and/or Regional Sukuk;
d. responsibility for the payment of principal, interest, and other costs arising as a result of the issuance of Regional Bonds; e. responsibility for the payment of principal or remaining lease remuneration, and/or remuneration arising as a result of the issuance of Regional Sukuk, in the event of issuing Regional Sukuk; f. annual issuance schedule, in the event that Regional Bonds and/or Regional Sukuk are issued in stages; and g. the Issuer's assets that serve as collateral for the issuance of Regional Bonds and/or Regional Sukuk, in the event that the Issuer's assets attached to the Activities to be financed with Regional Bonds and/or Regional Sukuk are used as collateral for the issuance of Regional Bonds and/or Regional Sukuk.
Part Twelve
Information Regarding the Issuer
Article 26
In the section on information regarding the Issuer as referred to in Article 6 letter l, it must at least contain or disclose:
a. brief information about the Issuer; b. geographical and demographic conditions;
c. natural resources owned or controlled by the Issuer;
d. information regarding the name, number of regional-owned enterprises, and ownership percentage; e. Regional Government, at least including:
Part Thirteen
Information Regarding Activities to be Financed with Regional Bonds and/or Regional Sukuk
Article 27
In the section on information regarding Activities to be financed with Regional Bonds and/or Regional Sukuk as referred to in Article 6 letter m, it must at least contain or disclose:
a. information regarding the Parties carrying out the Activities to be financed with Regional Bonds and/or Regional Sukuk; b. general information, at least including:
Part Fourteen
Taxation
Article 28
In the taxation section as referred to in Article 6 letter n, it must contain or disclose information regarding applicable taxes for both investors and the Issuer, as well as special tax facilities obtained, if any.
Part Fifteen
Underwriting of Securities Issuance
Article 29
In the section on underwriting of securities issuance as referred to in Article 6 letter o, it must contain or disclose a description of the important provisions and requirements of the underwriting agreement, at least including:
a. name of the executing underwriter; b. name of the Underwriter;
c. form of underwriting;
d. percentage and value of underwriting; and e. description of the approach or method in determining the price of the Public Offering of Regional Bonds and/or Regional Sukuk, including factors and parameters used in price determination.
Part Sixteen
Capital Market Supporting Institutions and Professions and Other Parties
Article 30
In the section on capital market supporting institutions and professions and other parties as referred to in Article 6 letter p, it must at least contain or disclose:
a. name, address, and description of the duties and responsibilities of capital market supporting institutions and professions and other parties involved in the Public Offering of Regional Bonds and/or Regional Sukuk; b. professional qualifications, for Parties other than those registered in the Capital Market, if any;
c. information regarding the membership of supporting capital market professions in associations;
d. a statement by the Issuer regarding the existence or non-existence of creditor-debtor relationships between the Issuer and the Trustee; and e. in the event that the Issuer has a creditor-debtor relationship with the Trustee, information must be disclosed regarding the amount, duration, and other requirements.
Part Seventeen
Trustee
Article 31
In the section on information regarding the Trustee as referred to in Article 6 letter q, it must at least contain or disclose information about the Trustee including:
a. name and complete address; b. capital structure;
c. board of commissioners and board of directors;
d. business activities and permits; e. main duties of the Trustee; f. replacement of the Trustee; g. summary of important financial data of the Trustee with a comparison of at least the last 2 (two) fiscal years or since establishment if less than 2 (two) fiscal years; and h. affiliation relationships between the Issuer and the Trustee arising from regional equity participation ownership.
Article 32
In the event that the Issuer issues Regional Sukuk, in addition to the information as referred to in Article 31, the Issuer must add a description of the Trustee's obligation to take all necessary actions:
a. to ensure the Issuer's compliance with Sharia Agreements; b. to ensure that the assets underlying the issuance of Regional Sukuk do not contradict Sharia Principles in the Capital Market;
c. in the event that the Issuer violates compliance with the application of Sharia Principles in the Capital Market or violates obligations in Sharia Agreements and/or Trust Agreements; and
d. to continue representing the interests of Regional Sukuk holders until the fulfillment of all the Issuer's obligations to them.
Part Eighteen
Guarantor
Article 33
In the section on information regarding the guarantor (if any) as referred to in Article 6 letter r, it must at least contain or disclose:
a. information about the guarantor including:
Part Nineteen
Order Placement Procedures for Regional Bonds and/or Regional Sukuk
Article 34
In the section on order placement procedures for Regional Bonds and/or Regional Sukuk, as referred to in Article 6 letter s, it must at least contain or disclose:
a. submission of orders for the purchase of Regional Bonds and/or Regional Sukuk; b. acceptable order placement requirements;
c. the minimum amount that can be ordered for each order;
d. submission of order forms; e. the duration of the Public Offering of Regional Bonds and/or Regional Sukuk; f. allocation date; g. payment requirements including payment deadlines; h. receipts for order forms;
i. allocation method for Regional Bonds and/or Regional Sukuk;
j. order cancellation criteria; k. refund of order money including:
Part Twenty
Dissemination of Prospectus and Order Forms for the Purchase of Regional Bonds and/or Regional Sukuk
Article 35
In the section on the dissemination of the prospectus and order forms for the purchase of Regional Bonds and/or Regional Sukuk as referred to in Article 6 letter t, it must at least contain or disclose:
a. an explanation regarding the name, address, and telephone number of the Issuer, Underwriter, and sales agents for Regional Bonds and/or Regional Sukuk or Parties performing the function as sales agents for Regional Bonds and/or Regional Sukuk; b. an explanation regarding the method and deadline for disseminating the Prospectus;
c. the location where the Prospectus and order forms for the purchase of Regional Bonds and/or Regional Sukuk or other documents related to the Public Offering of Regional Bonds and/or Regional Sukuk or copies thereof mentioned in the Prospectus can be obtained; and
d. the location and Parties that can be contacted to obtain the Prospectus.
Part Twenty-One
Legal Opinion
Article 36
In the section on legal opinion as referred to in Article 6 letter u, the opinion from the Legal Consultant must at least contain or disclose:
a. the validity of agreements in the context of the Public Offering of Regional Bonds and/or Regional Sukuk and other important agreements related to Activities to be financed with Regional Bonds and/or Regional Sukuk; b. approvals required for the issuance of Regional Bonds and/or Regional Sukuk;
c. permits and main approvals required for the implementation of Activities to be financed with Regional Bonds and/or Regional Sukuk;
d. ownership or control status and disputes (if any) regarding the Issuer's assets related to Activities to be financed with Regional Bonds and/or Regional Sukuk; and e. other legal aspects concerning the Public Offering of Regional Bonds and/or Regional Sukuk and Activities to be financed with Regional Bonds and/or Regional Sukuk.
Part Twenty-Two
Sharia Compliance Statement
Article 37
In the section on Sharia compliance statement as referred to in Article 6 letter v, the Sharia compliance statement must at least contain or disclose:
a. Sharia opinion; b. the Sharia Expert Team that signed the Sharia compliance statement; and
c. the date of the opinion.
CHAPTER IV
FORM OF THE SHORT PROSPECTUS
Article 38
The Short Prospectus must at least contain the following information:
a. information regarding the Public Offering of Regional Bonds and/or Regional Sukuk; b. information regarding the use of funds obtained from the results of the Public Offering of Regional Bonds and/or Regional Sukuk;
c. information regarding the summary of important financial data;
d. information regarding the analysis and discussion by the Regional Government; e. information regarding risk factors; f. information regarding important events after the date of the audit report of the Supreme Audit Agency of the Republic of Indonesia; g. brief information regarding the Issuer; h. information regarding the order placement procedures for Regional Bonds and/or Regional Sukuk; and
i. information regarding the dissemination of the Prospectus and order forms for the purchase of Regional Bonds and/or Regional Sukuk.
CHAPTER V
CONTENT OF THE SHORT PROSPECTUS
Article 39
Information regarding the Public Offering of Regional Bonds and/or Regional Sukuk as referred to in Article 38 letter a must at least contain the following information:
a. date of the announcement approval for the Short Prospectus; b. initial offering period;
c. estimated effective date of the Registration Statement from the Financial Services Authority;
d. estimated offering period; e. estimated allocation date; f. estimated date for the refund of order money; g. estimated date for securities distribution; h. estimated listing date, if Regional Bonds and/or Regional Sukuk will be listed on the Stock Exchange;
i. full name of the region, address, regional emblem, telephone number, facsimile number, email address, and Website;
j. name of the Stock Exchange, if Regional Bonds and/or Regional Sukuk will be listed on the Stock Exchange; k. type of offering, including a description of the nature, brief description of the Regional Bonds and/or Regional Sukuk offered, nominal value, and description of the estimated quantity and estimated price, or approach and/or method in determining the price of Regional Bonds and/or Regional Sukuk, including factors and parameters used in price determination;
l. in the event of floating interest rates, a complete description of the method for determining floating interest rates;
m. range of the quantity of Regional Bonds and/or Regional Sukuk as well as the range of interest rates and/or remuneration or return, or approach and method in determining interest rates and/or remuneration or return for Regional Bonds and/or Regional Sukuk, including factors and parameters used in determining interest rates and/or remuneration or return by other means established for Regional Bonds and/or Regional Sukuk; n. bookkeeping unit and trading unit of the Regional Bonds and/or Regional Sukuk to be offered in the context of the Public Offering of Regional Bonds and/or Regional Sukuk, including restrictions on bookkeeping; o. summary of the rights of Regional Bonds and/or Regional Sukuk holders; p. summary of the characteristics of Regional Bonds and/or Regional Sukuk that allow for early payment at the option of the Issuer or Regional Bonds and/or Regional Sukuk holders; q. requirements and/or restrictions on early settlement of Regional Bonds and/or Regional Sukuk, if any; r. price, interest rate, or other remuneration established for Regional Bonds and/or remuneration for Regional Sukuk, including the determination method, with the provision that if floating interest rates apply, a complete description of the method for determining such floating interest rates is provided; s. date of principal debt payment and the amount of principal debt to be paid on that date; t. date of interest or other remuneration payment; u. schedule plan and procedures for the distribution and/or payment of remuneration, in the event of issuing Regional Sukuk;
v. details of the guarantee agreement principal, name and address of the guarantor, including information regarding the provided guarantee, replacement of the guarantor, and duration of the guarantee, if any;
w. name, address, and description of Parties acting as Trustee;
x. summary of main requirements in the Trust Agreement;
y. Activities financed with Regional Bonds and/or Regional Sukuk along with the Issuer's assets attached to such Activities that will serve as collateral for Regional Bonds and/or Regional Sukuk (if any); z. information regarding the redemption fund reserves; aa. approval from the Minister responsible for government affairs in the field of finance regarding the issuance of Regional Bonds and/or Regional Sukuk;
bb. other requirements related to the issuance of Regional Bonds and/or Regional Sukuk;
cc. Regional Regulations related to the issuance of Regional Bonds and/or Regional Sukuk;
dd. the rating results of Regional Bonds and/or Regional Sukuk, if any; ee. a summary of restrictions or prohibitions aimed at protecting holders of Regional Bonds and/or Regional Sukuk, if any; ff. the estimated full name of the Issuing Underwriter and Underwriter, if any; gg. the estimated full name of Capital Market supporting institutions and professions, as well as other parties; hh. the estimated name and complete address of the Sales Agent for Regional Bonds and/or Regional Sukuk;
ii. the estimated place and date of the Prospectus issuance;
jj. statements in capital letters, bold typeface, that immediately attract the reader's attention, namely:
Article 40
Information regarding the use of funds obtained from the results of the Public Offering of Regional Bonds and/or Regional Sukuk as referred to in Article 38 letter b must contain a summary of information regarding matters as referred to in Article 15 letter a.
Article 41
Information regarding the summary of important financial data as referred to in Article 38 letter c must at least contain or disclose:
a. budget realization report; b. report on changes in surplus budget balance;
c. balance sheet;
d. operational report; e. cash flow statement; and f. statement of changes in equity.
Article 42
Information regarding the analysis and discussion by the Regional Government as referred to in Article 38 letter d must contain a brief discussion of matters as referred to in Article 21 and Article 22.
Article 43
Information regarding risk factors as referred to in Article 38 letter e must contain a summary of matters as referred to in Article 23.
Article 44
Information regarding significant events after the date of the audit report of the Supreme Audit Agency of the Republic of Indonesia as referred to in Article 38 letter f includes information regarding all material facts occurring after the date of the audit report of the Supreme Audit Agency of the Republic of Indonesia.
Article 45
Brief information regarding the Issuer as referred to in Article 38 letter g must at least contain and disclose:
a. regional administration consisting of the name of the Regional Head, Deputy Regional Head, and leaders of the Regional Bond and/or Regional Sukuk management unit; b. facilities and/or infrastructure owned;
c. natural resources; and
d. the name of regional-owned enterprises owned by the Issuer and the amount or percentage of ownership.
Article 46
Information regarding the ordering procedure for Regional Bonds and/or Regional Sukuk as referred to in Article 38 letter h must contain a summary of matters as referred to in Article 34.
Article 47
Information regarding the dissemination of the Prospectus and purchase order forms for Regional Bonds and/or Regional Sukuk as referred to in Article 38 letter i must contain a summary of matters as referred to in Article 35.
CHAPTER VI
SANCTION PROVISIONS
Article 48
(1) Without prejudice to criminal provisions in the Capital Market sector, the Financial Services Authority has the authority to impose administrative sanctions on any party that violates the provisions of this Financial Services Authority Regulation, including parties causing the violation, in the form of:
a. written warning; b. fine, namely the obligation to pay a certain amount of money;
c. restriction of business activities;
d. suspension of business activities; e. revocation of business license; f. cancellation of approval; and/or g. cancellation of registration.
(2) Administrative sanctions as referred to in paragraph (1) letters b, c, d, e, f, or g may be imposed with or without prior imposition of administrative sanctions in the form of a written warning as referred to in paragraph (1) letter a. (3) Administrative sanctions in the form of a fine as referred to in paragraph (1) letter b may be imposed separately or concurrently with the imposition of administrative sanctions as referred to in paragraph (1) letters c, d, e, f, or g.
Article 49
In addition to administrative sanctions as referred to in Article 48 paragraph (1), the Financial Services Authority may take certain actions against any party that violates the provisions of this Financial Services Authority Regulation.
Article 50
The Financial Services Authority may announce the imposition of administrative sanctions as referred to in Article 48 paragraph (1) and certain actions as referred to in Article 49 to the public.
CHAPTER VII
CLOSING PROVISIONS
Article 51
Upon the entry into force of this Financial Services Authority Regulation:
Article 52
This Financial Services Authority Regulation enters into force upon its enactment.
This copy is consistent with the original
Legal Director 1
Legal Department signed
Yuliana
In order that everyone may know it, ordering the enactment of this Financial Services Authority Regulation by placing it in the State Gazette of the Republic of Indonesia.
Established in Jakarta on 21 December 2017
CHAIRMAN OF THE COMMISSIONERS BOARD
FINANCIAL SERVICES AUTHORITY, signed
WIMBOH SANTOSO
Enacted in Jakarta on 22 December 2017
MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA, signed
YASONNA H. LAOLY
STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2017 NUMBER 283
EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 62 /POJK.04/2017
CONCERNING
THE FORM AND CONTENT OF THE PROSPECTUS AND SHORT PROSPECTUS IN THE FRAMEWORK OF THE PUBLIC OFFERING OF REGIONAL BONDS AND/OR REGIONAL SUKUK
I. GENERAL
One of the sources of information required by investors in making investment decisions is the Prospectus. The Prospectus is one of the main documents in the framework of the Public Offering, providing comprehensive information regarding the Public Offering of Regional Bonds and/or Regional Sukuk. Therefore, the information contained in the Prospectus must reflect the actual condition of the region and the offering of Regional Bonds and/or Regional Sukuk being conducted, so that if the information presented is untrue regarding material facts, or does not disclose true information regarding material facts, it may result in investors making inappropriate investment decisions.
In practice, disclosures in the Prospectus have undergone significant development, both in terms of transaction schemes and the need for more comprehensive information openness to fulfill the principle of openness as regulated in Law Number 8 of 1995 concerning the Capital Market and to provide protection to the public. Furthermore, while still emphasizing the quality of information openness, some simplifications, particularly historical information, are necessary to improve the quality of the Prospectus.
Currently, provisions regarding openness in the Prospectus or Short Prospectus for the Public Offering of Regional Bonds are regulated in Regulation Number IX.C.13, appendix of the Decision of the Chairman of the Capital Market Supervisory Board and Financial Institutions Institution Number Kep-67/BL/2007 concerning Guidelines on the Form and Content of the Prospectus in the Framework of the Public Offering of Regional Bonds, and Regulation Number IX.C.14, appendix of the Decision of the Chairman of the Capital Market Supervisory Board and Financial Institutions Institution Number Kep-68/BL/2007 concerning Guidelines on the Form and Content of the Short Prospectus in the Framework of the Public Offering of Regional Bonds.
The main provisions in regulations concerning guidelines on the form and content of the Prospectus and Short Prospectus in the framework of the Public Offering of Regional Bonds and/or Regional Sukuk include, among others:
a. information openness in the Prospectus and Short Prospectus for Regional Bonds and/or Regional Sukuk is restructured while still referring to the relevance and adequacy of information. This is done to make it easier for regions to compile the Prospectus and Short Prospectus and provide more comprehensive information to potential investors. The aforementioned additions include, among others:
II. ARTICLE BY ARTICLE
Article 1
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Article 2
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Article 3
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Article 4
The term “responsible” refers to responsibility as referred to in Law Number 8 of 1995 concerning the Capital Market.
Article 5
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Article 6
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Article 7
Letter a
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Letter b
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Letter c
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Letter d
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Letter e
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Letter f
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Letter g
In practice, electronic mail is called e-mail.
Letter h
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Letter i
Number 1
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Number 2
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Number 3
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Number 4
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Number 5
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Number 6
Disclosure of remuneration includes margin, service fee, or profit-sharing ratio according to the characteristics of the Shariah Contract.
Number 7
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Number 8
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Number 9
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Number 10
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Number 11
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Number 12
In practice, the repayment fund reserve is called a sinking fund.
Number 13
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Letter j
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Letter k
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Letter l
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Letter m
Number 1
The term “main risks faced by the Issuer” refers to the most dominant risks faced by the Issuer.
Number 2
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Article 8
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Article 9
Letter a
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Letter b
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Letter c
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Letter d
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Letter e
Examples of parties assisting in the preparation of the Prospectus include financial advisors.
Letter f
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Article 10
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Article 11
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Article 12
Letter a
Number 1
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Number 2
The term “assets” refers to activities that form the basis for the issuance of Regional Sukuk.
Number 3
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Number 4
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Number 5
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Number 6
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Number 7
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Number 8
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Number 9
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Number 10
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Number 11
Disclosure of remuneration includes margin, service fee, or profit-sharing ratio according to the characteristics of the Shariah Contract.
Number 12
The principal repayment date may differ from the maturity date if the principal of the Regional Bonds is not paid all at once upon maturity.
Number 13
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Number 14
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Letter b
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Letter c
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Letter d
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Letter e
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Letter f
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Letter g
In practice, the repayment fund reserve is called a sinking fund.
Letter h
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Letter i
The term “other requirements” includes, among others, considerations from the Minister in charge of domestic affairs.
Letter j
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Letter k
In practice, electronic mail is called e-mail.
Article 13
Letter a
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Letter b
In practice, a state of negligence is called an event of default.
Letter c
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Letter d
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Article 14
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Article 15
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Article 16
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Article 17
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Article 18
Letter a
In practice, underwriting service fees are called underwriting fees.
Letter b
In practice, management service fees are called management fees.
Letter c
In practice, sales service fees are called selling fees.
Letter d
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Letter e
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Letter f
In practice, financial consulting service fees are called financial advisory fees.
Letter g
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Article 19
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Article 20
Paragraph (1)
Letter a
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Letter b
The budget realization report presents a summary of sources, allocation, and use of financial resources managed by the central/regional government, describing the comparison between the budget and its realization in one reporting period. The budget realization report consists of revenue, expenditure, transfers, and financing.
Letter c
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Paragraph (2)
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Article 21
This brief description aims to provide an explanation of financial conditions, changes in financial conditions at the time the Prospectus is issued, and expected conditions in the future.
Article 22
Letter a
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Letter b
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Letter c
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Letter d
In practice, amounts still owed are called outstanding.
Letter e
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Article 23
Letter a
The term “main risks” refers to risks that have a significant influence on the regional revenue and expenditure budget.
Letter b
Examples of other risks related to the Issuer include regional expansion, unmet revenue targets for the Issuer, central government policies or regulations, geographical conditions, and demographic conditions.
Letter c
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Letter d
Examples of risks for investors include the illiquidity risk of bonds offered by the region and the decline in the price of Regional Bonds.
Letter e
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Article 24
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Article 25
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Article 26
Letter a
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Letter b
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Letter c
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Letter d
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Letter e
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Letter f
The Regional Bond and/or Regional Sukuk management unit may be an existing unit with the addition of a new function, namely managing Regional Bonds and/or Regional Sukuk.
Article 27
Information regarding activities financed by Regional Bonds and/or Regional Sukuk refers to the terms of reference as referred to in the Regulation of the Minister of Finance concerning the procedures for issuance and accountability of Regional Bonds. In cases where there is more than one activity, each must be disclosed.
Letter a
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Letter b
Number 1
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Number 2
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Number 3
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Number 4
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Number 5
The term “value” refers to funds allocated to complete the activity.
Number 6
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Number 7
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Letter c
Number 1
The term “start of activity operation” refers to the time when the activity is completed and ready for use.
Number 2
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Number 3
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Number 4
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Article 28
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Article 29
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Article 30
The term “Capital Market supporting institution” includes, among others, securities administration bureaus.
The term “Capital Market supporting professions” includes, among others:
Article 31
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Article 32
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Article 33
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Article 34
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Article 35
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Article 36
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Article 37
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Article 38
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Article 39
Letter a
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Letter b
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Letter c
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Letter d
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Letter e
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Letter f
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Letter g
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Letter h
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Letter i
In practice, electronic mail is called e-mail.
Letter j
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Letter k
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Letter l
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Letter m
The range of interest rates and/or remuneration or returns is not the final interest rate and/or remuneration or returns. The interest rate and/or remuneration or returns may be outside the range.
Letter n
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Letter o
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Letter p
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Letter q
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Letter r
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Letter s
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Letter t
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Letter u
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Letter v
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Letter w
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Letter x
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Letter y
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Letter z
In practice, the repayment fund reserve is called a sinking fund.
Letter aa
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Letter bb
The term “other requirements” includes, among others, considerations from the Minister in charge of domestic affairs.
Letter cc
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Letter dd
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Letter ee
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Letter ff
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Letter gg
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Letter hh
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Letter ii
The purpose of the Issuer estimating the date of Prospectus issuance is to provide information about changes and/or additional information to potential investors.
Letter jj
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Letter kk
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Letter ll
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Article 40
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Article 41
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Article 42
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Article 43
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Article 44
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Article 45
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Article 46
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Article 47
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Article 48
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Article 49
The term “certain actions” includes, among others, the postponement of granting an effective statement, for example, an effective statement for the Public Offering of Regional Bonds and/or Regional Sukuk.
Article 50
The announcement of the imposition of administrative sanctions and certain actions by the Financial Services Authority may be conducted, among others, through the Financial Services Authority Website or the Financial Services Authority annual report.
Article 51
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Article 52
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SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 6151
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Source: Otoritas Jasa Keuangan (Financial Services Authority) — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works
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