Regulation of the Head of the Commodity Futures Trading Regulatory Agency Number 5 of 2016 Concerning the Organization of Commodity Auction Markets Using the Integrated Auction System

REGULATION OF THE HEAD OF THE COMMODITY FUTURES TRADING REGULATORY AGENCY NUMBER 5 OF 2016 CONCERNING THE ORGANIZATION OF COMMODITY AUCTION MARKETS USING THE INTEGRATED AUCTION SYSTEM WITH THE GRACE OF THE ALMIGHTY GOD

THE HEAD OF THE COMMODITY FUTURES TRADING REGULATORY AGENCY,

Considering: a. that in order to accelerate economic growth in the field of agro-commodity trade, it is necessary to strive for a business climate that supports the creation of efficiency in agro-commodity trade; b. that in supporting the creation of efficiency in agro-commodity trade as referred to in letter a and in order to adjust to technological developments occurring in agro-commodity trade, the Integrated Auction System is being developed; c. that based on the considerations as referred to in letters a and b, it is necessary to establish a Regulation of the Head of the Commodity Futures Trading Regulatory Agency concerning the Organization of Commodity Auction Markets Using the Integrated Auction 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 7 of 2014 concerning Trade (State Gazette of the Republic of Indonesia Year 2014 Number 45, Supplement to the State Gazette of the Republic of Indonesia Number 5512);
3. Government Regulation Number 32 of 2004 concerning Regional Government (State Gazette of the Republic of Indonesia Year 2004 Number 125, Supplement to the State Gazette of the Republic of Indonesia Number 4437) as amended by Law Number 12 of 2008 (State Gazette of the Republic of Indonesia Year 2001 Number 78);
4. Presidential Regulation Number 7 of 2015 concerning the Organization of State Ministries (State Gazette of the Republic of Indonesia Year 2015 Number 8);
5. Presidential Regulation Number 48 of 2015 concerning the Ministry of Trade (State Gazette of the Republic of Indonesia Year 2015 Number 90);
6. 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);

DECIDES:

To establish: A REGULATION OF THE HEAD OF THE COMMODITY FUTURES TRADING REGULATORY AGENCY CONCERNING THE ORGANIZATION OF COMMODITY AUCTION MARKETS USING THE INTEGRATED AUCTION SYSTEM.

Article 1 The Organization of Commodity Auction Markets using the Integrated Auction System as referred to in this Regulation of the Head of the Commodity Futures Trading Regulatory Agency is the organization of commodity auction markets using an electronic auction system that is built, developed, and owned by the Commodity Futures Trading Regulatory Agency of the Ministry of Trade of the Republic of Indonesia.

Article 2 (1) The use of the Integrated Auction System in the context of the Organization of Auction Markets with Subsequent Delivery (forward) or Auction Markets with Immediate Delivery (spot) may only be conducted by parties that have obtained approval from the Commodity Futures Trading Regulatory Agency as a Commodity Auction Market Organizer and approval for the Use of the Integrated Auction System; (2) In the event that an application for the use of the Integrated Auction System is submitted by a Commodity Auction Market Organizer seeking approval from the Commodity Futures Trading Regulatory Agency, it must meet the following requirements: a. possess sufficient facilities and infrastructure to support the organization of online auction markets, including:

1. having adequate internet connection;
2. having desktops and laptops;
3. having printers;
4. having telephone connections; and
5. having projectors and projector screens. b. have at least 2 (two) staff/employees/workers who have expertise/knowledge/educational background in the field of information technology; (3) The submission of the application as referred to in paragraph (2) is submitted by providing: a. a letter of application for the use of the Integrated Auction System signed by the Director General/Director/Chairman of the Cooperative/Head of the Office or someone authorized to represent, with reference to the model form PL/SPLT/FORM.1; b. a copy of the letter of application for approval as a Commodity Auction Market Organizer; c. a letter of assignment to the staff/employees/workers as referred to in paragraph (2) letter b, with reference to the model form PL/SPLT/FORM.2; d. a list of resumes of the staff/employees/workers as referred to in paragraph (2) letter b; e. a letter of statement regarding rights, obligations, and risks in the use of the Integrated Auction System, which has been signed on stamped paper by the Director General/Director/Chairman of the Cooperative/Head of the Office or someone authorized to represent, with reference to the model form PL/SPLT/FORM.3; and f. a letter of power of attorney regarding the application for the use of the Integrated Auction System and/or the Agreement for the Use of the Integrated Auction System as referred to in paragraph (1) if the application letter and/or agreement is submitted by the attorney-in-fact (PL/SPLT/FORM.4); (4) In the event that an application for the use of the Integrated Auction System is submitted by a Commodity Auction Market Organizer that has already obtained approval from the Commodity Futures Trading Regulatory Agency, it must meet the requirements as referred to in paragraph (2), paragraph (3), and attach the Decision Letter of the Head of the Commodity Futures Trading Regulatory Agency concerning Approval as a Commodity Auction Market Organizer with Subsequent Delivery (forward).

Article 3 (1) The Commodity Futures Trading Regulatory Agency conducts research on the authenticity of documents according to the originals and evaluates documents as required. (2) The Commodity Futures Trading Regulatory Agency conducts inspections of facilities and infrastructure and creates an inspection report according to the model form number PL/SPLT/FORM.5 as contained in the appendix of this Regulation of the Head of Bappebti. (3) The Commodity Futures Trading Regulatory Agency provides approval or rejection of the application for the use of the Integrated Auction System no later than 20 (twenty) working days after the completeness of requirements is fulfilled; (4) The Commodity Futures Trading Regulatory Agency provides approval for the use of the Integrated Auction System with reference to the model form PL/SPLT/FORM.6; (5) The Commodity Futures Trading Regulatory Agency transmits the rejection of the application for the use of the Integrated Auction System with reference to the model form PL/SPLT/FORM.7.

Article 4 In the event that a Commodity Auction Market Organizer has obtained approval for the use of the Integrated Auction System, the Commodity Auction Market Organizer is required to create and transmit information and/or reports periodically to Bappebti regarding the results of the organization of Commodity Auction Markets using the Integrated Auction System.

Article 5 This Regulation of the Head shall commence on the date of its promulgation.

APPENDIX REGULATION OF THE HEAD OF THE COMMODITY FUTURES TRADING REGULATORY AGENCY NUMBER 5 OF 2016 CONCERNING REGULATION OF THE HEAD OF THE COMMODITY FUTURES TRADING REGULATORY AGENCY CONCERNING THE ORGANIZATION OF COMMODITY AUCTION MARKETS USING THE INTEGRATED AUCTION SYSTEM

Form Number PL/SPLT/FORM.1 Letter of Application for Approval of Use of the Integrated Auction System

Form Number PL/SIPLT/FORM.2 Letter of Statement of Ability to Meet Requirements for the Organization of Commodity Auction Markets Using the Integrated Auction Information System

(LETTERHEAD OF AUCTION MARKET ORGANIZER) Number: ……………………. Attachment: 1 (one) file Subject: Application for Approval of Use of the Integrated Auction System

To the Head of the Commodity Futures Trading Regulatory Agency in JAKARTA

Hereby we submit an application for approval for the Use of the Integrated Auction System in the Organization of Commodity Auction Markets. Attached herewith we provide the following data:

1. Name of Applicant: ………………………………………………….
2. Address of Applicant: ………………………………………………….
3. Position of Applicant: ………………………………………………….
4. Name of Auction Market Organizer: ………………………………………………….
5. Address of Auction Market Organizer: ………………………………………………….
6. Telephone/Fax: ………………………………………………….
7. Email: ………………………………………………….
8. Number of Decision Letter of the Head of BAPPEBTI*) : ………………………………………………….

Attached herewith we also provide supporting documents (as attached). Thus, this application is submitted, and we thank you for your attention.

Name of Auction Market Organizer Stamp Duty (CLEAR NAME) Position *) Number of Decision Letter of the Head of BAPPEBTI concerning Approval as a Commodity Auction Market Organizer with Subsequent Delivery (forward)

Form Number PL/SPLT/FORM.2 Letter of Assignment of Staff/Employees/Officials to Handle Daily Operations of the Organization of Commodity Auction Markets Using the Integrated Auction System

(LETTERHEAD OF AUCTION MARKET ORGANIZER) LETTER OF ASSIGNMENT

The undersigned below: Name: ………………………………………………………. Position: ………………………………………………………. Name of Auction Market Organizer: ………………………………………………………. Address of Auction Market Organizer: ……………………………………………………….

Hereby assigns to: Name: ………………………………………………………. Position: ………………………………………………………. Telephone Number: ………………………………………………………. Email Address: ……………………………………………………….

To be responsible for the daily operations of the Integrated Auction System in the organization of Commodity Auction Markets. Thus, this letter of assignment is made to be implemented with full responsibility.

Place & Date Position & Name of Auction Market Organizer ( … CLEAR NAME … )

Form Number PL/SIPLT/FORM.3 Letter of Statement of Rights, Obligations, and Risks in the Use of the Integrated Auction System

LETTER OF STATEMENT OF RIGHTS, OBLIGATIONS, AND RISKS IN THE USE OF THE INTEGRATED AUCTION SYSTEM

The undersigned below: Name: Position: Name of Auction Market Organizer: Address of Auction Market Organizer:

States that, I understand and agree to all requirements and provisions contained in this statement and take full responsibility for the use of the Integrated Auction System by signing this statement. The requirements and provisions for the use of the Integrated Auction System are as follows:

1. The Integrated Auction System is an application system built and developed with the intention to provide facilities for parties that have met the requirements and provisions as regulated in applicable laws and regulations to organize Commodity Auction Markets online and aims to develop the organization of auction markets in the territory of the Unitary State of the Republic of Indonesia;
2. The Integrated Auction System used is located on servers owned by Bappebti Ministry of Trade located at Jl. Kramat Raya No. 172 Central Jakarta 10430 with website address http://plk.bappebti.go.id;
3. Intellectual Property Rights over the Integrated Auction System used by the Commodity Auction Market Organizer are owned by Bappebti Ministry of Trade;
4. Bappebti as the owner of the Integrated Auction System has the right and may obtain data and information generated by the Integrated Auction System and use such data and information for the implementation of Bappebti's duties and functions;
5. The granting of approval for the use of the Integrated Auction System by Bappebti to the Auction Market Organizer is not intended as an exclusive right to that party. Bappebti has the right to grant approval for the use of the Integrated Auction System to other parties as long as they meet the requirements;
6. Users may conduct activities and/or access the Integrated Auction System after obtaining approval as a Commodity Auction Market Organizer from Bappebti and approval for the use of the Integrated Auction System. Therefore, Bappebti as the owner of the Integrated Auction System will provide usernames and passwords to users;
7. Commodity Auction Market Organizers that have obtained approval to use the Integrated Auction System have the right to conduct the organization of Commodity Auction Markets online and/or offline, including granting membership approval, rejection of membership, imposing sanctions on auction market members, setting auction schedules, and executing all other rights and obligations attached as a Commodity Auction Market Organizer as stated in Regulations and Bylaws approved by Bappebti;
8. Commodity Auction Market Organizers that have obtained approval for the use of the Integrated Auction System are not allowed to transfer rights over the use of the application system to other parties;
9. Commodity Auction Market Organizers that have obtained approval for the use of the Integrated Auction System are not allowed to lease, sublease, or lend rights over the use of this application system (in whole or in part) to other parties;
10. Commodity Auction Market Organizers that have obtained approval for the use of the Integrated Auction System are not allowed to reverse engineer, decompile, unravel, modify, add to, and develop this application system, nor engage in activities whose purpose is not in accordance with the intent and purpose of the creation and development of the Integrated Auction System;
11. Users are required to create and transmit information and/or reports periodically to Bappebti regarding the results of the organization of online and/or offline Commodity Auction Markets using the Integrated Auction System;
12. Users are required to submit to Bappebti the name and telephone number of the contact person handling the daily operations of the Integrated Auction System, as well as any replacement and/or changes to the aforementioned contact person;
13. Bappebti is not responsible for losses, damages, costs, or accidents befalling any party, nor is it responsible for failures, obstacles, or delays in fulfilling its obligations (in part or in whole) to Auction Market Members as a result of matters beyond Bappebti's ability to control. These matters include but are not limited to: a. Natural disasters, such as earthquakes, floods, typhoons, other natural disasters, war, riots, terrorism, actions of civil and military authorities, embargoes, demonstrations and strikes, fires, explosions, and Force Majeure experienced by Bappebti; b. The occurrence of changes in laws and regulations, interruptions and freezing, or insolvency or bankruptcy conditions of banks, financial institutions, and other institutions involved in the organization of auction markets conducted by the user;
14. Bappebti, based on its authority, may declare Force Majeure and request Users to take necessary actions regarding the resolution of transactions caused by Force Majeure.

.........., Date.... Month..... Year..... Signature & Stamp Duty Name.....................................

Form Number PL/SIPLT/FORM.4 Letter of Power of Attorney for Processing the Application for the Organization of Commodity Auction Markets Using the Integrated Auction System

Form Number PL/SIPLT/FORM.5

(Letterhead of Auction Market Organizer) On this day, ………….. date……… month ……………year…………., the undersigned below: Name: ID Number: Address: Acting in the capacity of […position..] from […Auction Market Organizer…], and therefore acting on behalf of and in the name of […Auction Market Organizer…] a [….business entity type….] established under the laws of the Republic of Indonesia, with an office at [….address of Auction Market Organizer…..] ("Principal") hereby grants power and authority to: Name: ID Number: Address: Position: ………………………….. ("Attorney-in-Fact") SPECIFICALLY to act on behalf of and in the name of the Principal, to submit an application for approval for the Organization of Commodity Auction Markets Using the Integrated Auction System to the Commodity Futures Trading Regulatory Agency (BAPPEBTI). This Letter of Power of Attorney will cover, but is not limited to, the authority of the Attorney-in-Fact to appear before competent government officials, to provide explanations regarding the matters mentioned above, to sign letters and other documents, and to execute all actions deemed necessary and useful to resolve the matters mentioned above. This Letter of Power of Attorney will be valid from the date of signing and will remain valid, and have full force until the processing of the application for approval for the Organization of Commodity Auction Markets Using the Integrated Auction System as mentioned above is completed.

Principal Attorney-in-Fact Signed and stamped (………Name……..) Position Signed and stamped (………Name……..) Position

Form Number PL/SIPLT/FORM.5 Inspection Report on Facilities and Infrastructure for the Organization of Commodity Auction Markets Using the Integrated Auction System

INSPECTION REPORT ON FACILITIES AND INFRASTRUCTURE FOR AUCTION MARKET ORGANIZERS OF COMMODITY AUCTION MARKETS USING THE INTEGRATED AUCTION SYSTEM

FOR BUSINESS ENTITIES IN THE FORM OF COOPERATIVES/LIMITED LIABILITY COMPANIES (PT)/LOCAL GOVERNMENT OWNED ENTERPRISES (BUMD)*)

On this day ............. month .........., year ........ at the Office of ....(Name of Business Entity).........., the undersigned below:

1. Name: ................ NIP: ............... Position: ...............
2. Name: ................ NIP: ............... Position: ...............
3. Name: ................ NIP: ............... Position: ...............

According to the letter of assignment from the Head of the Bureau for Development and Supervision of SRG and PLK Number ..../Bappebti.5/ST/xx/20xx dated ....., we have conducted an inspection of the infrastructure and facilities owned by the Auction Market Organizer with Subsequent Delivery (Forward) to the Cooperative/PT/BUMD*) .....(Name of Business Entity).... to conduct activities as an Organizer of Commodity Auction Markets using the Integrated Auction System. Thus, this Inspection Report is made truthfully to be used as appropriate.

Auction Market Organizer, Inspection Team, with Subsequent Delivery (Forward) Cooperative/PT/BUMD*) ...(Name of Business Entity).. 1. Name of Team Leader ........(signed)........ 2. Team Member ........(signed)........ 3. Team Member ........(signed)........ (..............................) *) Choose one

Auction Market Organizer, Inspection Team, with Subsequent Delivery (Forward) Cooperative/PT/BUMD*) ...(Name of Company).. 1. Name of Team Leader ........(signed)........ 2. Team Member ........(signed)........ 3. Team Member ........(signed)........

COMPLETENESS INFORMATION FOR AUCTION MARKET ORGANIZERS USING THE INTEGRATED AUCTION SYSTEM (Name of Business Entity) No. Type Description 1 Internet Connection 2 Desktop PC / Laptop 3 Printer 4 Telephone 5 Projector and Projector Screen

Auction Market Organizer Inspection Team, with Subsequent Delivery (Forward) Cooperative/PT/BUMD*) ...(Name of Business Entity).. 1. Name of Team Leader ........(signed)........ 2. Team Member ........(signed)........ 3. Team Member ........(signed)........ (..............................)

Form Number PL/SIPLT/FORM.6 Approval for Use of the Integrated Auction System

Number: ……………………. Attachment: ……………………. Subject: Approval for Use of the Integrated Auction System

To: …………………………….. At – ……………………………….

Referring to your letter Number: ………………….. dated …………….. regarding the Application for the Organization of Commodity Auction Markets Using the Integrated Auction System, after reviewing your application, it is hereby decided that your application is accepted. With this approval, you may use the Integrated Auction System in the organization of Commodity Auction Markets. Subsequently, we will transmit the Username and Password to access the aforementioned system. Thus, this letter of approval is given to be used as appropriate.

On behalf of the HEAD OF THE COMMODITY FUTURES TRADING REGULATORY AGENCY Head of the Bureau for Development and Supervision of SRG & PLK, (............................................)

Copy to:

1. Head of Bappebti (as a report);
2. Bappebti Eselon II Officials;
3. Relevant Parties.