BAPPEBTI REGULATION NO. 3 OF 2023

ON GUIDELINES FOR PUBLIC ACCOUNTANT AND PUBLIC ACCOUNTING FIRM CRITERIA IN COMMODITY FUTURES TRADING

BY THE GRACE OF GOD ALMIGHTY,

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

Considering: a. that in order to realize orderly, fair, efficient, effective commodity futures trading activities, as well as transparency regarding financial conditions and improvement in the quality of financial information reported by Business Actors in the field of Commodity Futures Trading using the services of Public Accountants and Public Accounting Firms, it is necessary to regulate the criteria for Public Accountants and Public Accounting Firms for Business Actors in Commodity Futures Trading so that they have competence commensurate with the complexity of the Business Actors' operations in the field of Commodity Futures Trading;

b. that based on the considerations referred to in letter a, it is necessary to establish a Bappebti Regulation concerning Guidelines for Public Accountant and Public Accounting Firm Criteria for Business Actors in Commodity Futures Trading;

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 5 of 2011 concerning Public Accountants (State Gazette of the Republic of Indonesia Year 2011 Number 51, Supplement to the State Gazette of the Republic of Indonesia Number 5215);
3. Government Regulation Number 49 of 2014 concerning the Implementation of Commodity Futures Trading (State Gazette of the Republic of Indonesia Year 2014 Number 143, Supplement to the State Gazette of the Republic of Indonesia Number 5548);
4. Presidential Regulation Number 68 of 2019 concerning the Organization of State Ministries (State Gazette of the Republic of Indonesia Year 2019 Number 203) as amended by Presidential Regulation Number 32 of 2021 concerning Amendments to Presidential Regulation Number 68 of 2019 concerning the Organization of State Ministries (State Gazette of the Republic of Indonesia Year 2021 Number 106);
5. Presidential Regulation Number 11 of 2022 concerning the Ministry of Trade (State Gazette of the Republic of Indonesia Year 2022 Number 19);
6. Minister of Trade Regulation Number 29 of 2022 concerning the Organization and Work Structure of the Ministry of Trade (State News of the Republic of Indonesia Year 2022 Number 492);

DECIDES:

Establishing: BAPPEBTI REGULATION CONCERNING GUIDELINES FOR PUBLIC ACCOUNTANT AND PUBLIC ACCOUNTING FIRM CRITERIA FOR BUSINESS ACTORS IN COMMODITY FUTURES TRADING.

Article 1

In this Bappebti Regulation, the following terms are defined:

1. Commodity Futures Trading Regulatory Agency, hereinafter referred to as Bappebti, is a government agency whose main duty is to conduct guidance, regulation, development, and supervision of Commodity Futures Trading.
2. Commodity Futures Trading, hereinafter referred to as Futures Trading, is anything related to the buying and selling of Commodities with margin collection and subsequent settlement based on Futures Contracts, Sharia Derivatives Contracts, and/or other Derivative Contracts.
3. Public Accountant, hereinafter abbreviated as PA, is a person who has obtained a license to provide services as referred to in the Law concerning Public Accountants.
4. Public Accounting Firm, hereinafter abbreviated as KAP, is a business entity established based on applicable legislation and obtaining a business license as referred to in the Law concerning Public Accountants.
5. Business Actor in the field of Commodity Futures Trading, hereinafter referred to as Business Actor, is any party that has a business license, approval, or registration certificate from the Commodity Futures Trading Regulatory Agency that is required by applicable legislation in the field of Commodity Futures Trading to submit annual financial reports in the field of Commodity Futures Trading.

Article 2

(1) Business Actors are required to submit annual financial reports that have been audited using the services of a Public Accountant or Public Accounting Firm in accordance with the established criteria.

(2) Public Accountants and Public Accounting Firms that can conduct audits of the annual financial reports of Business Actors as referred to in paragraph (1) must possess the criteria as listed in the Appendix of this Bappebti Regulation.

(3) Before commencing the planning to execute an audit cooperation agreement, each Public Accountant and Public Accounting Firm as referred to in paragraph (2) must first be reported by the Business Actor using the services of the said Public Accountant and Public Accounting Firm to Bappebti.

(4) Within a maximum of 5 (five) working days since receiving the report as referred to in paragraph (3), Bappebti provides a response to the Business Actor by considering the track record of the Public Accountant and Public Accounting Firm.

(5) Bappebti, through the unit having the task and function of supervising financial reporting, conducts a review of the track record of the Public Accountant and Public Accounting Firm as referred to in paragraph (4).

(6) All costs arising from the implementation of the audit as referred to in paragraph (3) are the responsibility of the relevant Business Actor.

Article 3

Business Actors submitting annual financial reports audited using the services of a Public Accountant or Public Accounting Firm that do not meet the criteria as listed in the Appendix of this Bappebti Regulation are considered not to have submitted annual financial reports.

Article 4

Business Actors as referred to in Article 2 paragraph (1) are required to adjust to this Bappebti Regulation no later than 3 (three) months since this Bappebti Regulation was established.

Article 5

This Bappebti Regulation comes into effect on the date of establishment.

Established in Jakarta On the date, 12 May 2023

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

Signed,

DIDID NOORDIATMOKO

Copy consistent with the original COMMODITY FUTURES TRADING REGULATORY AGENCY Head of the Legal and Regulatory Bureau

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APPENDIX TO BAPPEBTI REGULATION

NUMBER 3 OF 2023 CONCERNING GUIDELINES FOR PUBLIC ACCOUNTANT AND PUBLIC ACCOUNTING FIRM CRITERIA FOR BUSINESS ACTORS IN COMMODITY FUTURES TRADING

GUIDELINES FOR PUBLIC ACCOUNTANT AND PUBLIC ACCOUNTING FIRM CRITERIA FOR BUSINESS ACTORS IN COMMODITY FUTURES TRADING

A. Background

In accordance with provisions regulated in Law Number 10 of 2011 concerning Amendments to Law Number 32 of 1997 concerning Commodity Futures Trading, Business Actors in the field of Commodity Futures Trading that have business licenses, approvals, or registrations from the Commodity Futures Trading Regulatory Agency (Bappebti) are required to meet financial requirements and submit periodic and/or ad-hoc reports to Bappebti. In order to ensure transparency of financial conditions and improve the quality of reported financial information, Business Actors in the field of Commodity Futures Trading use the services of Public Accountants (PA) and Public Accounting Firms (KAP) that have competence commensurate with the complexity of the Business Actors' operations in the field of Commodity Futures Trading.

The provision of quality financial information is part of the implementation of good corporate governance. To ensure that Public Accountants (PA) and Public Accounting Firms (KAP) providing services have competence commensurate with the complexity of the Business Actors' operations in the field of Commodity Futures Trading, clear criteria are needed in the appointment of Public Accountants (PA) and Public Accounting Firms (KAP).

This guideline is prepared to provide guidance for Business Actors in the field of Commodity Futures Trading in selecting and using Public Accountants (PA) and Public Accounting Firms (KAP), so that audit implementation can be more directed, efficient, and effective, thereby achieving quality examination results that can be relied upon as a basis for decision-making.

B. Scope

1. This guideline applies to Business Actors in the field of Commodity Futures Trading that have business licenses, approvals, or registrations from the Commodity Futures Trading Regulatory Agency (Bappebti);
2. This guideline regulates the criteria that must be possessed by Public Accounting Firms (KAP) and Public Accountants (PA) that will conduct Audits on the Financial Reports of Business Actors in the field of Commodity Futures Trading.

C. Public Accounting Firm Criteria

Public Accounting Firms (KAP) selected to conduct Audits on the Financial Reports of Business Actors in the field of Commodity Futures Trading must meet the following criteria:

1. Have a valid license from the Minister of Finance;
2. Be registered in the professional association, namely the Institute of Certified Public Accountants Indonesia (IAPI);
3. Have never committed disgraceful acts and/or been sentenced for proven criminal offenses in the field of finance or Commodity Futures Trading or physical commodity markets;
4. Not be listed in the list of non-performing credits or financing;
5. In providing services, KAP is required to maintain independence and be free from conflicts of interest;
6. Have a business entity form other than individual;
7. Have competence commensurate with the complexity of the Business Actors' operations in the field of Commodity Futures Trading.

D. Public Accountant Criteria

Public Accountants used by KAP to conduct Audits on the Financial Reports of Business Actors in the field of Commodity Futures Trading must meet the following criteria:

1. Have a valid Public Accountant license from the Ministry of Finance;
2. Be registered as a member of the professional association, namely the Institute of Certified Public Accountants Indonesia (IAPI);
3. Have never or are not subject to sanctions and/or blacklisting by the Center for Professional Development of Finance, Ministry of Finance, and the Institute of Certified Public Accountants Indonesia (IAPI);
4. Maintain independence and be free from conflicts of interest;
5. Have competence and knowledge in the field of Commodity Futures Trading and the industry using PA services.

E. Independence Criteria

1. Persons Within the Public Accounting Firm, including: a. Persons included in the audit assignment, review, other assurance, and/or non-assurance services, namely: 1) staff; 2) leadership; 3) professional employees; and/or 4) reviewers, who participate in the assignment. b. Persons included in the execution or command chain, namely KAP leadership and all persons who: 1) supervise or have direct management responsibility for the audit; 2) evaluate performance or recommend compensation for staff in the audit assignment; or 3) provide quality control or other supervision over the audit. c. Any other staff, leadership, or professional employees of KAP and affiliates of KAP that have provided audit, review, other assurance, and/or non-assurance services to the Business Actor in the field of Commodity Futures Trading being audited or examined (client).

2. A Public Accountant meets the independence criteria if, in providing audit services, there are no conditions as follows: a. Direct or indirect material financial interests in the Business Actor in the field of Commodity Futures Trading being audited or examined (client), such as: 1) having investments in the client; and/or 2) having other financial interests in the client that may cause conflicts of interest. b. Work relationships with the client, such as: 1) serving as Key Employees on the client; 2) having Close Family Members working on the client as Key Employees in accounting or finance fields; 3) having former staff and/or professional employees of KAP working on the client as Key Employees in accounting or finance fields, except if more than 2 (two) years have passed since they no longer worked at the relevant KAP; 4) having staff and/or professional employees of KAP who previously worked on the client as Key Employees in accounting or finance fields, except if the person does not participate in conducting the audit for the client in the Audit Period; and/or 5) holding a position in the client company or the client's business group whose reports will be consolidated. c. Direct or indirect material business relationships with the client, or with Key Employees working on the client, or with major shareholders of the client. Business relationships are not included if PA, KAP, or Persons Within KAP provide audit, review, other assurance, and/or non-assurance services to the client, or are consumers of the client's goods or services to support routine activities; d. Providing non-assurance services to the client in the same Audit Period and Professional Assignment Period, such as: 1) bookkeeping or other services related to the client's accounting records or financial reports; 2) design of financial information systems and implementation; 3) internal audit; 4) management consulting; 5) human resources consulting; 6) financial advisory; 7) tax services, except with prior approval from the Board of Commissioners. Such approval from the Board of Commissioners does not include tax services to represent the client in and out of tax courts and/or act on behalf of the client in tax calculations and reporting; or B) other services that may cause conflicts of interest. e. Providing services or products to the client on a contingent fee or commission basis, or receiving contingent fees or commissions from the client, except contingent fees established by a court as a result of legal settlement, findings of regulatory bodies and/or tax authorities. The term contingent fee refers to fees established for the implementation of a professional service that will only be charged if there are specific findings or results where the fee amount depends on such specific findings or results; f. Having legal disputes with the client; and/or g. Other matters that may cause conflicts of interest.

Established in Jakarta On the date, 12 May 2023

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

Signed,

DIDID NOORDIATMOKO

Copy consistent with the original COMMODITY FUTURES TRADING REGULATORY AGENCY Head of the Legal and Regulatory Bureau