Bank Indonesia Regulation Number 6 of 2024 on Money Market and Foreign Exchange Market

BANK INDONESIA REGULATION NUMBER 6 OF 2024 ON MONEY MARKET AND FOREIGN EXCHANGE MARKET BY THE BLESSING OF ALMIGHTY GOD THE GOVERNOR OF BANK INDONESIA, Considering : a. that with the enactment of Law Number 4 of 2023 on the Development and Strengthening of the Financial Sector, Bank Indonesia's authority has been strengthened in regulating, developing, and supervising the money market and foreign exchange market, to build a modern and advanced money market and foreign exchange market in supporting the effectiveness of monetary policy, financial system stability, and economic financing synergy; b. that in order to realize a modern and advanced money market and foreign exchange market as referred to in point a, Bank Indonesia is carrying out comprehensive regulatory reform, development, and supervision on products, reference pricing, market participants, and the organization of Financial Market Infrastructure that meets the principles of interconnection, interoperability, and integration, including those under sharia principles; c. that under the considerations as referred to in point a and point b, it has been deemed necessary to establish Regulation of Bank Indonesia on Money Markets and Foreign Exchange Markets; Observing : 1. Law Number 23 of 1999 on Bank Indonesia (State Gazette of the Republic of Indonesia 1999 Number 66, Supplement to the State Gazette of the Republic of Indonesia Number 3843) as amended several times, most recently by Law Number 4 of 2023 on the Development and Strengthening of the Financial Sector (State Gazette of the Republic of Indonesia 2023 Number 4, Supplement to the State Gazette of the Republic of Indonesia Number 6845);

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2. Law Number 24 of 1999 on Foreign Exchange Activities and Exchange Rate System (State Gazette of the Republic of Indonesia 1999 Number 67, Supplement to the State Gazette of the Republic of Indonesia Number 3844);
3. Law Number 4 of 2023 on the Development and Strengthening of the Financial Sector (State Gazette of the Republic of Indonesia 2023 Number 4, Supplement to the State Gazette of the Republic of Indonesia Number 6845); HAS DECIDED: To enact : BANK INDONESIA REGULATION ON MONEY MARKET AND FOREIGN EXCHANGE MARKET . CHAPTER I GENERAL PROVISIONS Article 1 In this Bank Indonesia Regulation the term definitions are:
4. Money Market is a part of the financial system that related to: a. activities of issuing and trading financial instruments or debt securities with a term of no more than 1 (one) year; b. money lending and borrowing transactions; c. interest rate derivative transactions; and d. other transactions that meet the characteristics of the money market, in rupiah or foreign currency.
5. Foreign Exchange Market is a part of the financial system related to transaction activities involving the exchange of currencies from 2 (two) different countries and their derivatives but excluding exchange of bank notes provided by foreign exchange business activities (money changer).
6. Money Market Instruments are short-term securities or other forms that may be equated with short-term securities as determined by Bank Indonesia, with a term of no more than 1 (one) year which gives the owner the right to directly or indirectly obtain economic benefits.
7. Money Market Transaction is a financial transaction and/or transaction on financial instruments that meet the criteria and/or requirements (characteristics) to be transacted in the Money Market.
8. Derivative is a financial product of which value is derived from an underlying asset.
9. Pricing is a reference price in the form of a price level that is the basis or may be used to determine prices, in issuing financial instruments and/or financial transactions.
10. Participant in the Money Market and Foreign Exchange Market (Pasar Uang dan Pasar Valuta Asing), hereinafter referred to as PUVA Participant, is a party who carries out

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8. Primary Dealer in the Money Market and Foreign Exchange Market, hereinafter referred to as the PUVA Primary Dealer, is a bank or other party that has obtained approval from Bank Indonesia to carry out obligations and iconduct certain activities in the Money Market and Foreign Exchange Market.
9. Money Market and Foreign Exchange Market Supporting Institution, hereinafter referred to as PUVA Supporting Institution, is the corporation that provides certain supporting services in the Money Market and Foreign Exchange Market.
10. Financial Sector Supporting Profession in the Money Market and Foreign Exchange Market, hereinafter referred to as PUVA Supporting Profession, is a professional actor in the form of an individual who provides certain professional services in the Money Market and Foreign Exchange Market.
11. Self-Regulatory Organization in the Money Market and Foreign Exchange Market Sector, hereinafter referred to as SRO PUVA, is a forum or institution with Indonesian legal status that is designated by Bank Indonesia to support the development of the Money Market and Foreign Exchange Market.
12. Financial Market Infrastructure is a system provided and/or operated by the provider for being used by participants in conducting transactions, clearing, settlement, reporting, and/or recording, in connection with payment transactions, securities transactions, derivative transactions, and/or other financial transactions.
13. Market Operator is an institution that provides and supplies or uses systems to conduct financial transactions.
14. Central Counterparty, hereinafter referred to as CCP, is an institution that positions itself between the parties conducting financial transactions, thus acting as a buyer for the seller and as a seller for the buyer.
15. Trade Repository for Financial Instruments and/or Derivatives, hereinafter referred to as Trade Repository, is a Financial Market Infrastructure that centrally manages all data and information on financial transactions and/or Derivative transactions.
16. Termination of Financial Transactions through Close-Out Netting, hereinafter referred to as Close-Out Netting, is the process of early termination, valuation, and debt set-off of all financial transactions between the parties in 1 (one) master agreement to produce 1 (one) value (single amount) that may be billed to one of the parties.

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17. Sharia Principle is the Islamic legal principle under fatwas and/or statements of sharia conformity issued by institutions that have the authority to determine fatwas in the sharia field. CHAPTER II FRAMEWORK FOR REGULATION, DEVELOPMENT, AND SUPERVISION OF MONEY MARKETS AND FOREIGN EXCHANGE MARKETS Part One Objectives, Targets, and Strategies Article 2 (1) Bank Indonesia shall determine the objectives, targets, and strategies for the regulation, development, and supervision of the Money Market and Foreign Exchange Market. (2) The objectives of the regulation, development, and supervision of the Money Market and Foreign Exchange Market shall include: a. building a modern and internationally standardized Money Market and Foreign Exchange Market; b. support monetary operations integrated with the Money Market and Foreign Exchange Market; and c. support the development of national economic financing sources. (3) The target of the regulation, development, and supervision of the Money Market and Foreign Exchange Market is to build a modern and advanced Money Market and Foreign Exchange Market in supporting the effectiveness of monetary policy, financial system stability, and economic financing synergy. (4) Strategies to achieve the objectives as referred to in section (2) and the targets as referred to in section (3) shall include: a. formulation of regulatory, development, and supervision policies for the Money Market and Foreign Exchange Market including Financial Market Infrastructure; b. regulation and development of inclusive and modern Money Markets and Foreign Exchange Markets that are integrated with monetary management; and c. policy synergy to develop sources of economic financing and risk management. Part Two Basic Principles and Scope Article 3

• 5 - The basic principles of regulation, development, and supervision of the Money Market and Foreign Exchange Market shall include: a. considering international best practices; b. digitalization of data and information; c. integrating inclusive and sustainable finance perspectives; d. effective, efficient, and good governance; and e. encouraging synergy and increasing innovation. Article 4 (1) The scope of regulation, development, and supervision in the Money Market and Foreign Exchange Market shall include: a. product; b. Pricing; c. PUVA Participant; and d. Financial Market Infrastructure. (2) Regulation, development, and supervision in the Money Market and Foreign Exchange Market as referred to in section (1) shall be carried out both conventionally and under Sharia Principles. CHAPTER III MONEY MARKET AND FOREIGN EXCHANGE MARKET PRODUCTS Part One General Article 5 (1) Bank Indonesia shall regulate Money Market and Foreign Exchange Market products. (2) Money Market Products shall include: a. Money Market Instruments; and b. written confirmation and/or financial contract in the Money Market. (3) Foreign Exchange Market Products shall include written confirmations and/or financial contracts in the Foreign Exchange Market. (4) Written confirmation and/or financial contract as referred to in section (2) point b and section (3) may be in the form of electronic or non-electronic documents. (5) Written confirmation and/or financial contract in the form of electronic documents as referred to in section (4) and/or printed copies thereof constitute valid legal evidence as regulated in the Law on electronic information and transactions. Part Two

• 6 - Money Market Instruments and Written Confirmations and Financial Contracts Paragraph 1 Money Market Instruments Article 6 (1) Money Market Instruments as referred to in Article 5 section (2) point a shall be in the form of: a. promissory note; b. payment order; c. debt securities and/or sukuk; and d. other forms that may be equated with short-term securities, as determined by Bank Indonesia. (2) Based on the form of Money Market Instrument as referred to in section (1), Bank Indonesia shall determine the type of Money Market Instrument. (3) Money Market Instrument as referred to in section (2) may be used in the establishment of investment products. Article 7 (1) Money Market Instrument as referred to in Article 5 section (2) point a shall be issued in a form that may be transferrable, tradable, and negotiable. (2) The criteria for Money Market Instruments that may be transferrable, tradable, and negotiable as referred to in section (1) shall include: a. scripless; b. provide economic benefits directly or indirectly; c. fulfill the transparency of information on Money Market Instruments; and d. other criteria determined by Bank Indonesia. (3) The transfer of Money Market Instruments as referred to in section (1) may be carried out against ownership rights and/or economic rights arising from said Money Market Instruments. (4) Scripless Money Market Instrument as referred to in section (2) point a, including the process of issuance, administration, listing, and/or transfer of ownership, may be valid legal evidence as regulated in the Law on the development and strengthening of the financial sector. Article 8 (1) Money Market Instruments as referred to in Article 5 section (2) point a may be issued in a non-transferable, non￾tradable, and/or non-negotiable manner, as long as it is regulated in the Law and/or Regulation of the Government. (2) Bank Indonesia shall determine the criteria for non￾transferable, non-tradable, and/or non-negotiable Money Market Instruments as referred to in section (1) as long as

• 7 - they are not regulated differently in the Law and/or Regulation of the Government. (3) The criteria for Money Market Instruments that may not be transferrable, tradable, and/or negotiable as referred to in section (2) may be determined differently from the criteria for Money Market Instruments as referred to in Article 7 section (2). Article 9 Further provisions regarding Money Market Instruments shall be regulated in the Regulation of the Members of the Board of Governors. Paragraph 2 Written Confirmation and Financial Contract Article 10 (1) Written confirmation and/or financial contract in the Money Market as referred to in Article 5 section (2) point b and written confirmation and/or financial contract in the Foreign Exchange Market as referred to in Article 5 section (3) shall include: a. financial contracts in the form of master agreements and/or standard contracts issued by associations, SRO PUVA, and/or relevant authorities; b. written confirmation and/or financial contract commonly used in Money Market Transactions and/or Foreign Exchange Market transactions; and/or c. written confirmation and/or other financial contracts determined by Bank Indonesia. (2) Written confirmation and/or financial contract as referred to in section (1): a. must contain information related to Money Market Transactions and/or Foreign Exchange Market transactions; and/or b. shall refer to applicable market standards and/or market conventions. Article 11 (1) Written confirmation and/or financial contract in the Money Market as referred to in Article 5 section (2) point b and written confirmation and/or financial contract in the Foreign Exchange Market as referred to in Article 5 section (3) shall be used as the basis for Money Market Transactions and Foreign Exchange Market transactions. (2) PUVA Participants and other parties determined by Bank Indonesia must use written confirmation and/or financial contract as referred to in section (1) when carrying out Money Market Transactions and Foreign Exchange Market transactions.

• 8 - Article 12 Further provisions regarding written confirmation and/or financial contract shall be regulated in the Regulation of the Members of the Board of Governors. Part Three Smart Contract Article 13 (1) Money Market and Foreign Exchange Market Products as referred to in Article 5 may use smart contracts. (2) The use of smart contracts as referred to in section (1) shall be followed by the storage of the smart contract agreement. (3) The storage of smart contract agreements as referred to in section (2) must at least contain terms and conditions regarding the automation of the implementation of the rights and obligations agreed upon in the smart contract. (4) The smart contract as referred to in section (1) and/or its printed version may be valid legal evidence as regulated in the Law on the development and strengthening of the financial sector. Article 14 (1) PUVA Participants and other parties determined by Bank Indonesia, who use smart contracts as referred to in Article 13 section (1) are required to: a. maintain governance, apply the prudential principles and risk management; b. ensure the security and reliability of information systems, including cyber resilience; c. ensure confidentiality of data and information; d. ensure the availability of data and information access for Bank Indonesia; and/or e. fulfill other obligations determined by Bank Indonesia. (2) Before using the smart contract as referred to in section (1), PUVA Participants and other parties determined by Bank Indonesia are required to consult with Bank Indonesia. (3) The obligation to conduct consultations as referred to in section (2) shall be exempted for certain Money Market and Foreign Exchange Market products. (4) In addition to the provisions referred to in section (1) and section (2), the use of smart contracts must consider the provisions of laws and regulations. Article 15 Further provisions regarding smart contracts shall be regulated in the Regulation of the Members of the Board of Governors.

• 9 - Part Four Administrative Sanctions Article 16 (1) PUVA Participants and/or other parties determined by Bank Indonesia that violate the provisions as referred to in Article 11 section (2), Article 14 section (1), or Article 14 section (2) shall be subject to administrative sanctions in the form of: a. written reprimand; b. temporary, partial, or full suspension of activities in the Money Market and/or Foreign Exchange Market; and/or c. revocation of license and/or determination. (2) The imposition of administrative sanctions as referred to in section (1) shall not preclude the imposition of criminal sanctions in accordance with the Law. (3) Provisions regarding the procedures for the imposition of administrative sanctions shall be regulated in the Regulation of the Members of the Board of Governors. CHAPTER IV PRICING Part One General Article 17 (1) PUVA Participants and other parties determined by Bank Indonesia must use transparent, robust, and credible Pricing. (2) The Pricing as referred to in section (1) shall be used in: a. issuance of Money Market Instruments; b. Money Market Transactions; c. Foreign Exchange Market transactions; and d. issuance of financial instruments and/or other financial transactions. (3) The Pricing as referred to in section (1) shall include: a. Pricing in the Money Market in the form of:

1. interest rate or rate of return;
2. yield or price of the instrument; and
3. other Pricing in the Money Market; and b. Pricing in the Foreign Exchange Market in the form of:
4. exchange rate; and
5. other Pricing in the Foreign Exchange Market. Article 18

• 10 - (1) Bank Indonesia shall regulate the Pricing as referred to in Article 17 section (1) in the Money Market and Foreign Exchange Market. (2) In regulating the Pricing as referred to in section (1), Bank Indonesia may: a. provide information related to Pricing; and/or b. appoint other parties to support the provision of Pricing. (3) The appointment of other parties to support the provision of Pricing as referred to in section (2) point b, shall be carried out under the following considerations: a. efforts to achieve the targets of regulation, development, and supervision of the Money Market and Foreign Exchange Market as referred to in Article 2 section (3); b. considering international principles regarding the establishment of Pricing; and c. other considerations determined by Bank Indonesia. (4) Other parties determined to support the provision of Pricing as referred to in section (2) point b, are required to: a. maintain the credibility and transparency of data and information; b. ensure the security and reliability of information systems; c. ensure confidentiality of data and information; d. have a mechanism for Pricing provision; e. ensure the availability of data and information access for Bank Indonesia; and f. fulfill other obligations determined by Bank Indonesia. (5) Pricing in the Money Market and Foreign Exchange Market as referred to in section (1) shall be published on the Bank Indonesia website and/or other media determined by Bank Indonesia. Article 19 Further provisions regarding Reference Pricing shall be regulated in the Regulation of the Members of the Board of Governors. Part Two Establishment of Pricing Paragraph 1 General Article 20 (1) Pricing in the Money Market and Foreign Exchange Market as referred to in Article 18 section (1) may be established through: a. input data;

• 11 - b. method of determination and/or calculation; and/or c. other methods determined by Bank Indonesia. (2) Participants of Money Market Transaction and Foreign Exchange Market transactions as well as providers of Financial Market Infrastructure must support the establishment of transparent, robust, and credible Pricing as referred to in Article 17 section (1). Paragraph 2 Input Data Article 21 (1) Input data in the establishment of Pricing in the Money Market and Foreign Exchange Market as referred to in Article 20 section (1) point a shall be obtained from: a. financial transaction data; and/or b. contributor. (2) Bank Indonesia shall determine the criteria for financial transaction data as referred to in section (1) point a which shall be used as input data in the establishment of Pricing in the Money Market and Foreign Exchange Market. Article 22 (1) Bank Indonesia may appoint the following parties: a. bank; and/or b. certain participant of Money Market Transactions and Foreign Exchange Market transactions, as a contributor of input data in the establishment of Pricing as referred to in Article 21 section (1) point b. (2) The parties referred to in section (1) are required to: a. determine the indicative Pricing in accordance with the requirements set by Bank Indonesia; b. submit an indicative Pricing quotation to:

1. Bank Indonesia; and/or
2. other parties who support the establishment of Pricing as referred to in Article 18 section (2) point b; c. administer data, information, and/or matters relating to the process of determining the indicative Pricing quotation; d. have internal guidelines relating to indicative Pricings; e. fulfill transaction requests from:
3. other contributors; and/or
4. non-contributor; f. have a commitment to support the establishment of transparent, robust, and credible Pricing; and/or g. fulfill other obligations determined by Bank Indonesia. (3) Bank Indonesia will evaluate the determination of the parties referred to in section (1) as contributors of input data in the establishment of Pricing.

• 12 - (4) Under the evaluation results as referred to in section (3), Bank Indonesia may add and/or terminate parties as referred to in section (1) as contributors of input data in the establishment of Pricing. Article 23 Further provisions regarding input data in the establishment of Reference Pricing shall be regulated in the Regulation of the Members of the Board of Governors. Paragraph 3 Determination and Calculation Method Article 24 (1) Bank Indonesia shall determine the method for the determination and/or calculation of Pricing in the Money Market and Foreign Exchange Market as referred to in Article 20 section (1) point b. (2) The method for the determination and/or calculation of the Pricing as referred to in section (1) shall include: a. measures of data centralization and data dispersion; b. scope of data used; c. calculation formula; and d. other methods for the determination and/or calculation of Pricing as determined by Bank Indonesia. (3) The method for the determination and/or calculation of the Pricing as referred to in section (1) shall be used to process: a. indicative Pricing; and/or b. financial transaction data. (4) Further provisions regarding the method for the determination and calculation of the Pricing shall be regulated in the Regulation of the Members of the Board of Governors. Part Three Administrative Sanctions Article 25 (1) Breach of the provisions as referred to in Article 18 section (4) and Article 22 section (2) shall be subject to administrative sanctions in the form of: a. written reprimand; b. temporary, partial, or full suspension of activities in the Money Market and/or Foreign Exchange Market; and/or c. revocation of the determination.

• 13 - (2) Provisions regarding the procedures for the imposition of administrative sanctions shall be regulated in the Regulation of the Members of the Board of Governors. CHAPTER V PUVA PARTICIPANT Part One General Article 26 (1) Bank Indonesia shall regulate PUVA Participants including: a. types of PUVA Participant; b. implementation of market code of ethics and treasury professional certification; and c. organization of SRO PUVA. (2) The types of PUVA Participants as referred to in section (1) point a shall include: a. Money Market Instrument issuer; b. Money Market Transaction and Foreign Exchange Market transaction participants; c. PUVA Supporting Institutions; d. PUVA Supporting Professions; and e. other parties as determined by Bank Indonesia. (3) Bank Indonesia may appoint PUVA Participants who are instrument issuers and/or transaction participants as referred to in section (2) point a and point b to conducting certain roles. (4) Certain roles as referred to in section (3) include: a. PUVA Primary Dealer; and/or b. other roles determined by Bank Indonesia. (5) Bank Indonesia may determine the use of identity standards for Money Market Transactions and Foreign Exchange Market transactions as referred to in section (2) point b and/or other parties determined by Bank Indonesia. Part Two Issuers of Money Market Instruments and Transaction Participants in the Money Market and Foreign Exchange Market Paragraph 1 Issuer of Money Market Instruments Article 27 (1) Issuers of Money Market Instruments as referred to in Article 26 section (2) point a shall include: a. financial services institutions; b. corporation;

• 14 - c. special purpose vehicle; and/or d. other parties as determined by Bank Indonesia. (2) Issuers of Money Market Instruments as referred to in section (1) may issue Money Market Instruments as long as they do not conflict with the provisions of laws and regulations in the financial sector. (3) Further provisions regarding the issuer of Money Market Instruments shall be regulated in the Regulation of the Members of the Board of Governors. Paragraph 2 Transaction Participants in the Money Market and Foreign Exchange Market Article 28 (1) Participants in Money Market Transactions and Foreign Exchange Market transactions as referred to in Article 26 section (2) point b shall include: a. financial services institutions; b. corporation; c. individual; and/or d. other transaction participants as determined by Bank Indonesia. (2) Participants in Money Market Transactions and Foreign Exchange Market transactions as referred to in section (1) shall be categorized as: a. resident; and b. non-resident. (3) Participants in Money Market Transactions and Foreign Exchange Market transactions as long as they do not conflict with the provisions of laws and regulations in the financial sector. (4) Further provisions regarding Participants in Money Market Transactions and Foreign Exchange Market transactions shall be regulated in the Regulation of the Members of the Board of Governors. Paragraph 3 PUVA Primary Dealer Article 29 PUVA Primary Dealers as referred to in Article 26 section (4) point a are required to: a. become a market maker; b. be active in Bank Indonesia's open market operations transactions; c. actively conduct Money Market Transactions and Foreign Exchange Market transactions; and

• 15 - d. fulfill other obligations to conduct activities in the Money Market and Foreign Exchange Market as determined by Bank Indonesia. Article 30 The PUVA Primary Dealer as referred to in Article 26 section (4) point a shall conduct activities that include: a. access the facilities provided for PUVA Primary Dealers; b. participate in Bank Indonesia's open market operations transactions with participants in the form of PUVA Primary Dealers; c. obtain information related to the role as a PUVA Primary Dealer; and/or d. other activities determined by Bank Indonesia. Article 31 Further provisions regarding PUVA Primary Dealers shall be regulated in the Regulation of the Members of the Board of Governors. Part Three PUVA Supporting Institutions Paragraph 1 General Article 32 (1) PUVA Supporting Institutions as referred to in Article 26 section (2) point c shall include: a. supporting institutions for the issuance of Money Market Instruments; b. supporting institutions for Money Market Transaction; c. supporting institutions for Foreign Exchange Market transaction; d. supporting institutions for the administration and settlement of Money Market Transactions; and e. other PUVA Supporting Institutions determined by Bank Indonesia. (2) PUVA Supporting Institutions as referred to in section (1) are required to: a. provide services and information in a professional, objective, and non-misleading manner; b. conduct business activities as a PUVA Supporting Institution in good faith and with full responsibility; and c. fulfill other obligations determined by Bank Indonesia. Article 33

• 16 - (1) Supporting institutions for the issuance of Money Market Instruments as referred to in Article 32 section (1) point a shall include: a. arranger; b. rating agencies; and c. other supporting institutions for the issuance of Money Market Instruments as determined by Bank Indonesia. (2) Supporting institutions for Money Market Transactions as referred to in Article 32 section (1) point b shall include: a. bank; b. securities company; and c. other Money Market Transaction supporting institutions determined by Bank Indonesia. (3) Supporting institutions for Foreign Exchange Market transactions as referred to in Article 32 section (1) point c include: a. bank; and b. other Foreign Exchange Market transaction supporting institutions determined by Bank Indonesia. (4) Supporting institutions for the administration and settlement of Money Market Transactions as referred to in Article 32 section (1) point d shall include: a. banks that implement custodial business activities; b. securities company; and c. other supporting institutions for the administration and settlement of Money Market Transactions as determined by Bank Indonesia. (5) Supporting institutions for the administration and settlement of Money Market Transactions as referred to in section (4) shall be: a. account holders at depository and settlement institutions as regulated in the Law on capital markets; b. sub-registry other than Bank Indonesia which carries out administrative functions for the benefit of customers as regulated in Bank Indonesia provisions regarding the implementation of transactions, administration of securities, and immediate fund settlement; and/or c. participants and/or account holders in other transaction settlement, administration, and/or storage of financial instruments (central custodian). Article 34 (1) PUVA Supporting Institutions as referred to in Article 32 section (1) may use the services of third parties to support

• 17 - the issuance of Money Market Instruments, Money Market Transactions, or Foreign Exchange Market transactions. (2) PUVA Supporting Institutions as referred to in section (1) are required to ensure: a. the ability of third parties to support the business activities of PUVA Supporting Institutions; and b. implementation of the principle of prudence and effective risk management in the use of third-party services. (3) PUVA Supporting Institutions are required to ensure that Bank Indonesia may: a. have access to data and information required for the use of third-party services as referred to in section (1); and b. supervise the use of third-party services through the PUVA Supporting Institution. (4) The third-party as referred to in section (1) must provide access to the necessary information to Bank Indonesia and PUVA Supporting Institutions. Article 35 Further provisions regarding PUVA Supporting Institutions shall be regulated in the Regulation of the Members of the Board of Governors. Paragraph 2 Implementation of Financial Sector Technology Innovation by PUVA Supporting Institutions Article 36 (1) PUVA Supporting Institutions as referred to in Article 32 section (1) may use financial sector technological innovations in carrying out business activities as PUVA Supporting Institutions. (2) In the event that the PUVA Supporting Institution uses financial sector technology innovation, the PUVA Supporting Institution is required to: a. consult with Bank Indonesia in advance regarding plans to implement financial sector technology innovation to support business activities as a PUVA Supporting Institution; b. ensure the security and reliability of information systems, including cyber resilience; and c. fulfill other obligations determined by Bank Indonesia. (3) PUVA Supporting Institutions that use financial sector technology innovations must take into account the provisions of laws and regulations. (4) Further provisions regarding the implementation of financial sector technology innovation by PUVA Supporting

• 18 - Institutions shall be regulated in the Regulation of the Members of the Board of Governors. Part Four PUVA Supporting Professions Article 37 (1) PUVA Supporting Professions as referred to in Article 26 section (2) point d shall include: a. legal consultant; b. public accountant; c. notary; and d. other supporting professions determined by Bank Indonesia. (2) PUVA Supporting Professions as referred to in section (1) may provide services in: a. issuance of Money Market Instruments; b. Money Market Transactions and Foreign Exchange Market transactions; and/or c. organization of Financial Market Infrastructure. (3) PUVA Supporting Professions as referred to in section (1) are required to: a. provide services and information independently, professionally, objectively, and not misleadingly; b. conduct business activities as a PUVA Supporting Profession with good faith and full responsibility; c. comply with the code of ethics determined by the professional association of each PUVA Supporting Profession as long as it does not conflict with laws and regulations, in providing services as referred to in section (2); and d. fulfill other obligations determined by Bank Indonesia. Article 38 (1) Bank Indonesia shall stipulate the use of PUVA Supporting Professional services in the issuance of Money Market Instruments, Money Market Transactions, Foreign Exchange Market transactions, and the organization of Financial Market Infrastructure. (2) Issuers of Money Market Instruments, Money Market Transaction, and Foreign Exchange Market transaction participants, as well as Financial Market Infrastructure providers, are required to use the services of PUVA Supporting Professionals in the following activities: a. issuance of Money Market Instruments; b. Money Market Transactions; c. Foreign Exchange Market transactions; and d. organization of Financial Market Infrastructure, which has been determined by Bank Indonesia.

• 19 - Article 39 Further provisions regarding PUVA supporting professions shall be regulated in the Regulation of the Members of the Board of Governors. Part Five Implementation of Sustainable Finance Article 40 (1) The parties that are: a. issuer of Money Market Instruments as referred to in Article 26 section (2) point a; b. Money Market Transaction and Foreign Exchange Market Transaction participants as referred to in Article 26 section (2) point b; c. PUVA Supporting Institutions as referred to in Article 26 section (2) point c; and d. other parties who conduct activities in the Money Market and Foreign Exchange Market as determined by Bank Indonesia, who act as financial sector business participants, issuers, and/or public companies must implement sustainable finance. (2) The implementation of sustainable finance as referred to in section (1) shall be carried out in accordance with the provisions of laws and regulations. Article 41 (1) Bank Indonesia may determine the issuer of Money Market Instruments that play a role other than as a financial sector business participant, issuer, and/or public company to support the implementation of sustainable finance. (2) The issuer of Money Market Instruments as referred to in section (1) is a party that must conduct social and environmental responsibilities as regulated in the provisions of laws and regulations. (3) Issuers of Money Market Instruments as referred to in section (2) are required to allocate part of their social and environmental responsibility funds to support the implementation of sustainable finance. Article 42 Further provisions regarding the implementation of sustainable finance shall be regulated in the Regulation of the Members of the Board of Governors. Part Six Implementation of Market Code of Ethics and Implementation of Treasury Professional Certification

• 20 - Paragraph 1 Implementation of Market Code of Ethics Article 43 (1) The market code of ethics must be implemented by PUVA Participants and Financial Market Infrastructure providers in the form of: a. bank; b. brokerage firm; and c. other PUVA Participants and Financial Market Infrastructure providers determined by Bank Indonesia. (2) The implementation of the market code of ethics shall aim to at least improve the integrity of PUVA Participants and Financial Market Infrastructure providers. (3) Further provisions regarding the implementation of the market code of ethics shall be regulated in the Regulation of the Members of the Board of Governors. Paragraph 2 Dealer Treasury Article 44 (1) Dealer treasury is the dealer treasury of PUVA Participants and Financial Market Infrastructure providers including: a. bank; b. brokerage firm; and c. PUVA Participants or other Financial Market Infrastructure providers as determined by Bank Indonesia. (2) The dealer treasury as referred to in section (1) is required to: a. provide professional services; b. comply with and implement market codes of ethics in carrying out treasury activities; c. have a treasury certificate; and d. fulfill other obligations determined by Bank Indonesia. (3) PUVA Participants and Financial Market Infrastructure providers as referred to in section (1) are required to: a. use the treasury services of a dealer registered with Bank Indonesia; b. ensure the dealer treasury has a valid treasury certificate in accordance with the treasury certificate level; c. have internal procedures to ensure dealer treasury implements the market code of ethics; and d. fulfill other obligations determined by Bank Indonesia.

• 21 - (4) Bank Indonesia shall determine the deadline for the fulfillment of treasury certificates in accordance with the level of treasury certificates as referred to in section (3) point b. (5) Further provisions regarding dealer treasury shall be regulated in the Regulation of the Members of the Board of Governors. Paragraph 3 Professional Association in the Treasury Sector Article 45 (1) Professional associations in the treasury sector shall have the following duties: a. coordinate and determine the preparation of professional standards and codes of ethics; b. establish a committee to enforce professional ethics; c. implement member discipline enforcement against professional ethics; d. conduct continuous education and training; e. conduct quality reviews for its members in accordance with the provisions of laws and regulations; and f. implement other duties as determined by Bank Indonesia. (2) Professional associations in the treasury sector as referred to in section (1) are required to: a. implement the duties as referred to in section (1) professionally, objectively, in good faith, and full of responsibility; and b. implement other activities as determined by Bank Indonesia. (3) Further provisions regarding professional associations in the treasury sector shall be regulated in the Regulation of the Members of the Board of Governors. Paragraph 4 Implementation of Treasury Professional Certification Article 46 (1) Treasury professional certification shall be carried out by the treasury professional certification providers. (2) The treasury professional certification providers as referred to in section (1) shall include: a. professional certification body; and b. professional associations in the treasury sector as referred to in Article 45. (3) The treasury professional certification providers as referred to in section (1) has the following duties and activities: a. provide treasury professional certification; b. prepare competency test materials;

• 22 - c. issue treasury certificates; d. determine the extension, suspension, postponement, and revocation of treasury certificates; and e. other duties and activities determined by Bank Indonesia. Article 47 The treasury professional certification providers as referred to in Article 46 section (1) are required to: a. implement treasury professional certification in accordance with the duties and activities as referred to in Article 46 section (3) professionally, objectively, in good faith, and full of responsibility; and b. administer data related to the implementation and administration of treasury professional certification. Article 48 The issuance of treasury certificates by the treasury professional certification providers as referred to in Article 46 section (3) point c has: a. the validity period that may be extended; and b. several levels. Article 49 Under the results of supervision by Bank Indonesia and/or other relevant authorities, Bank Indonesia has the authority to request the treasury professional certification providers to postpone issuance, reject extension, suspend, and/or revoke treasury certificates. Article 50 Further provisions regarding the implementation of treasury professional certification shall be regulated in the Regulation of the Members of the Board of Governors. Part Seven SRO PUVA Article 51 (1) To support the achievement of the targets for regulation, development, and supervision of the Money Market and Foreign Exchange Market as referred to in Article 2 section (3), Bank Indonesia has the authority to designate the PUVA SRO. (2) Bank Indonesia shall determine the criteria and/or requirements for PUVA SROs as referred to in section (1) which at least cover institutional aspects. Article 52

• 23 - (1) The PUVA SRO as referred to in Article 51 section (1) has the following duties: a. support the implementation of Bank Indonesia policies; b. prepare and issue provisions in the field of Money Markets and Foreign Exchange Markets including Financial Market Infrastructure, which are technical and micro in nature under the approval of Bank Indonesia; c. supervise SRO PUVA members; d. encourage compliance and enforce discipline regarding the implementation of technical and micro provisions issued by SRO PUVA; e. represent institutions in the Money Market and Foreign Exchange Market in national and/or international forums; f. to mediation if there is a dispute involving SRO PUVA members; g. coordinate the implementation of treasury professional certification; h. establish competency standards in the treasury sector; i. conduct continuous education and training to improve competence and develop the quality of human resources in the Money Market and Foreign Exchange Market; j. receive, administer, and publish a statement of commitment to the market code of ethics; and k. implement other assignments as determined by Bank Indonesia. (2) SRO PUVA is required to: a. implement the duties and activities as referred to in section (1) professionally, objectively, in good faith and full of responsibility; b. maintain the confidentiality of data and information; and c. implement other activities as determined by Bank Indonesia. Article 53 (1) The parties that are: a. PUVA Participants in the form of banks; b. professional association in the field of treasury; c. Financial Market Infrastructure providers other than Bank Indonesia; and d. other parties who conduct activities in the Money Market and Foreign Exchange Market as determined by Bank Indonesia, are required to be a member of SRO PUVA.

• 24 - (2) Bank Indonesia shall determine the time limit for parties as referred to in section (1) to become members of the PUVA SRO. (3) Apart from the parties referred to in section (1), SRO PUVA may accept other parties to become members of SRO PUVA. (4) Members of the SRO PUVA as referred to in section (1) and section (3) must comply with the provisions issued by the SRO PUVA and support the implementation of the SRO PUVA duties as referred to in Article 52 section (1). Article 54 Further provisions regarding the PUVA SRO shall be regulated in the Regulation of the Members of the Board of Governors. Part Eight Administrative Sanctions Article 55 (1) Breach of the provisions as referred to in Article 29, Article 32 section (2), Article 34 section (2), section (3), Article 36 section (2), Article 37 section (3), Article 38 section (2), Article 41 section (3), Article 44 section (2), section (3), Article 45 section (2), Article 47, Article 52 section (2), and Article 53 section (1) shall be subject to administrative sanctions in the form of: a. written reprimand; b. obligation to pay; c. temporary, partial, or complete suspension of activities in the Money Market and/or Foreign Exchange Market; and/or d. revocation of license and/or determination. (2) The imposition of administrative sanctions as referred to in section (1) does not preclude the imposition of criminal sanctions in accordance with the Law. (3) Provisions regarding the procedures for the imposition of administrative sanctions shall be regulated in the Regulation of the Members of the Board of Governors. CHAPTER VI FINANCIAL MARKET INFRASTRUCTURE Part One General Article 56 (1) The implementation of markets in the financial sector shall be supported by Financial Market Infrastructure that follows technological developments.

• 25 - (2) The Financial Market Infrastructure as referred to in section (1) shall include: a. means of transaction; b. central counterparty; c. central custodian; d. payment system; e. Trade Repository; and f. other means determined by Bank Indonesia. (3) The Financial Market Infrastructure as referred to in section (1) shall be provided by way of: a. meeting the principles of safety, effectiveness, efficiency, and reliability; b. paying attention to aspects of interconnection, interoperability, and integration with other Financial Market Infrastructures; and c. paying attention to applicable international principles and/or standards. (4) The Financial Market Infrastructure as referred to in section (2) may be: a. provided by Bank Indonesia; b. provided by parties other than Bank Indonesia; and c. used in inter-market operations as regulated in the Law on the development and strengthening of the financial sector. (5) Further provisions regarding the types of Financial Market Infrastructure shall be regulated in the Regulation of the Members of the Board of Governors. Article 57 (1) Bank Indonesia shall determine the types of financial instruments and/or financial transactions that may be facilitated by the Financial Market Infrastructure as referred to in Article 56 section (2). (2) Financial instruments and/or financial transactions as referred to in section (1) that may be facilitated by Financial Market Infrastructure providers shall include: a. products and transactions in the Money Market and/or Foreign Exchange Market; b. Bank Indonesia's monetary operations instruments; c. financial instruments and/or financial transactions as regulated in the Law; and/or d. financial instruments and/or other financial transactions determined by Bank Indonesia. (3) Further provisions regarding financial instruments and/or financial transactions that may be facilitated by Financial Market Infrastructure providers shall be regulated in the Regulation of the Members of the Board of Governors. Part Two

• 26 - Principles of Providing Financial Market Infrastructure Article 58 (1) Financial Market Infrastructure providers be required to use customary communication means and procedures to facilitate business activities as Financial Market Infrastructure providers. (2) Financial Market Infrastructure providers be required to fulfill the principle of complete and transparent data and information disclosure to participants regarding the organization of Financial Market Infrastructure. (3) Fulfillment of the principle of transparency of data and information regarding the organization of Financial Market Infrastructure as referred to in section (2) must consider the provisions of laws and regulations. Article 59 (1) Bank Indonesia shall determine the categories of Financial Market Infrastructure as referred to in Article 56 section (2) under risk level. (2) The Financial Market Infrastructure categories as referred to in section (1) shall include: a. systemic; and b. critical. (3) The criteria for systemically important financial market infrastructure as referred to in section (2) point a shall be at least under: a. size; b. interconnectedness; c. complexity; and d. substitutability. (4) The systemically important financial market infrastructure as referred to in section (2) point a shall include: a. central counterparty in the form of CCP; b. central custodian in the form of Bank Indonesia￾Scripless Securities Settlement System; c. payment system as regulated in the Regulation of Bank Indonesia on payment systems; d. Trade Repository provided by Bank Indonesia; and e. other means determined by Bank Indonesia. (5) Critical Financial Market Infrastructure as referred to in section (2) point b shall include: a. means of transaction; and b. other means determined by Bank Indonesia. Article 60 (1) The systemically important Financial Market Infrastructure as referred to in Article 59 section (2) point a is required to comply with applicable international principles and/or standards as referred to in Article 56 section (3) point c.

• 27 - (2) Fulfillment of applicable international principles and/or standards as referred to in section (1) shall include: a. aspects of the organization of Financial Market Infrastructure; and b. aspects of the responsibility of the relevant authorities in the regulation and supervision of the Financial Market Infrastructure. (3) Bank Indonesia shall publish guidelines regarding the principles of organization and supervision of systemic Financial Market Infrastructure on the Bank Indonesia website and/or other media determined by Bank Indonesia. Article 61 (1) Systemically important Financial Market Infrastructure providers as referred to in Article 59 section (2) point a may work together to conduct cross-country Financial Market Infrastructure connectivity which shall be regulated and supervised by authorities in other jurisdictions. (2) In conducting cooperation to implement cross-country Financial Market Infrastructure connectivity as referred to in section (1), the providers of the systemically important Financial Market Infrastructure must at least: a. implement rules, procedures, and controls that enable the Financial Market Infrastructure to identify, monitor, and manage risks from cooperation and/or connectivity between Financial Market Infrastructures; b. ensure that records on both Financial Market Infrastructures are correct and accurate; and c. draw up a written agreement regarding cooperation and/or connectivity which shall at least contain the rights and obligations of each Financial Market Infrastructure including its participants. Article 62 Further provisions regarding the principles of Financial Market Infrastructure organization shall be regulated in the Regulation of the Members of the Board of Governors. Part Three Provision of Financial Market Infrastructure by Bank Indonesia Article 63 (1) Financial Market Infrastructure provided by Bank Indonesia shall include: a. means of transaction as referred to in Article 56 section (2) point a;

• 28 - b. central custodian as referred to in Article 56 section (2) point c; c. payment system as referred to in Article 56 section (2) point d; d. Trade Repository as referred to in Article 56 section (2) point e; and e. other means determined by Bank Indonesia. (2) Bank Indonesia as the provider of the Financial Market Infrastructure as referred to in section (1) must at least: a. determine the participation aspects of the Financial Market Infrastructure; b. determine aspects of the organization of Financial Market Infrastructure; c. determine the provisions and procedures for the organization of Financial Market Infrastructure; d. provide facilities and infrastructure related to the Financial Market Infrastructure provided by Bank Indonesia; e. implement operational activities of the Financial Market Infrastructure provided by Bank Indonesia; f. make efforts to ensure the reliability, availability, and security of the organization of Financial Market Infrastructure; and g. monitor participant compliance with the provisions and procedures as well as Bank Indonesia's provisions regarding financial market infrastructure. Article 64 (1) The transaction facilities provided by Bank Indonesia as referred to in Article 63 section (1) point a shall include: a. electronic trading platform; dan b. other transaction facilities determined by Bank Indonesia. (2) The central custodian provided by Bank Indonesia as referred to in Article 63 section (1) point b shall include: a. Bank Indonesia-Scripless Securities Settlement System; and b. other central custodians as determined by Bank Indonesia. (3) The payment systems provided by Bank Indonesia as referred to in Article 63 section (1) point c shall include: a. Bank Indonesia System–Real Time Gross Settlement; and b. other payment systems determined by Bank Indonesia. (4) Organization of: a. means of transaction as referred to in section (1); b. central custodians as referred to in section (2); and c. payment systems as referred to in section (3),

• 29 - shall be conducted in accordance with Bank Indonesia's provisions regarding the organization of Financial Market Infrastructure by Bank Indonesia. Article 65 (1) In the organization of the Trade Repository as referred to in Article 63 section (1) point d, the Trade Repository shall provide accurate, adequate, and timely data. (2) Trade Repository functions shall include: a. collection and storage of transaction data; b. management and maintenance of transaction data; c. dissemination of transaction data and information; and d. other functions as determined by Bank Indonesia. Article 66 (1) Bank Indonesia shall determine: a. transaction data reported on the Trade Repository; and b. access rights to the Trade Repository. (2) Transaction data as referred to in section (1) shall include: a. Money Market and Foreign Exchange Market Derivatives transaction data; and b. financial instrument data and/or other financial transactions as determined by Bank Indonesia. (3) Transaction data as referred to in section (1) shall be reported by: a. Money Market Transaction and Foreign Exchange Market transaction participants as referred to in Article 26 section (2) point b; b. Financial Market Infrastructure providers other than Bank Indonesia as referred to in Article 56 section (4) point b; and c. other transaction data reporters as determined by Bank Indonesia. (4) The data reporter as referred to in section (3) is required to report transaction data completely, accurately, currently, completely, and timely. (5) Bank Indonesia shall establish policies for the fulfillment of the obligation to report transaction data as referred to in section (4). Article 67 Provisions regarding the organization of Financial Market Infrastructure by Bank Indonesia shall be determined by Bank Indonesia. Part Four Provision of Financial Market Infrastructure by Parties Other Than Bank Indonesia

• 30 - Paragraph 1 General Article 68 (1) Parties other than Bank Indonesia that provide Financial Market Infrastructure as referred to in Article 56 section (4) point b must comply with the licensing provisions determined in this Regulation of Bank Indonesia. (2) Financial Market Infrastructure that may be provided by parties other than Bank Indonesia shall include: a. means of transaction as referred to in Article 56 section (2) point a; b. central counterparty as referred to in Article 56 section (2) point b; and c. other means determined by Bank Indonesia. (3) Financial Market Infrastructure provided by parties other than Bank Indonesia as referred to in section (1) are required to be connected to: a. Financial Market systems and/or Infrastructure provided by Bank Indonesia as referred to in Article 63 section (1); and/or b. Financial Market Infrastructure and/or other systems determined by Bank Indonesia. Article 69 (1) Parties other than Bank Indonesia that provide Financial Market Infrastructure are required to at least: a. prepare and enforce provisions and procedures for the organization of Financial Market Infrastructure in accordance with the provisions determined by Bank Indonesia; b. provide facilities and infrastructure related to Financial Market Infrastructure within the scope of its business activities; c. determine the criteria and/or requirements to become a participant in the Financial Market Infrastructure provider in an objective, risk-based, and transparent manner; d. implement operational activities of the Financial Market Infrastructure in accordance with the scope of its business activities; e. provide information technology systems and access to data and information for supervision of the organization of Financial Market Infrastructure; and f. make efforts to ensure the reliability, availability, and security of the implementation of the Financial Market Infrastructure within the scope of its business activities. (2) Parties other than Bank Indonesia that provide Financial Market Infrastructure are required to consult with Bank

• 31 - Indonesia before establishing the provisions and procedures as referred to in section (1) point a. Article 70 (1) Parties other than Bank Indonesia that provide Financial Market Infrastructure are required to submit information to Bank Indonesia if: a. there are events and/or conditions that cause the Financial Market Infrastructure provider to no longer meet the criteria and/or requirements as a Financial Market Infrastructure provider; b. there are agreements to exchange data, information, reports, statements, and/or explanations that have been agreed between the provider of the Financial Market Infrastructure and other parties; c. there are obligations to submit data, information, reports, statements, and/or explanations to other relevant authorities within and/or outside the country; d. there are indications of market manipulation by participants; e. there are incidents that have the potential to impact the smooth operation of the Financial Market Infrastructure; f. there are temporary suspensions of activities as a Financial Market Infrastructure provider; g. there are disputes between the Financial Market Infrastructure provider and participants and/or other parties; h. there are impositions of sanctions by other relevant authorities within and/or outside the country; and/or i. other information determined by Bank Indonesia. (2) Bank Indonesia shall determine the mechanism and time period for the fulfillment of the obligation to submit information as referred to in section (1). Article 71 (1) Financial Market Infrastructure Providers who have obtained a business license from Bank Indonesia shall be responsible for developing the quality of human resources in the Money Market and Foreign Exchange Market by improving competence and expertise. (2) Improving competence and expertise as referred to in section (1) shall be carried out through continuous education and training. (3) Financial Market Infrastructure Providers as referred to in section (1) are required to provide education and training funds from the current year's budget. Article 72

• 32 - (1) Parties other than Bank Indonesia that provide Financial Market Infrastructure as referred to in Article 68 section (2) may use financial sector technological innovations in carrying out business activities as providers of Financial Market Infrastructure. (2) Financial Market Infrastructure Providers are required to first consult with Bank Indonesia regarding plans to use financial sector technology innovation to support business activities as Financial Market Infrastructure Providers. Article 73 (1) Bank Indonesia may establish policies to strengthen the Financial Market Infrastructure provided by parties other than Bank Indonesia, which include: a. Bank Indonesia's capital participation in Financial Market Infrastructure providers; b. strengthening the institutional aspects of Financial Market Infrastructure providers; c. strengthening aspects of business activities in the organization of Financial Market Infrastructure; and/or d. strengthening of other Financial Market Infrastructure as determined by Bank Indonesia. (2) Strengthening the institutional aspects of Financial Market Infrastructure providers as referred to in section (1) point b shall include: a. strengthening of corporate organs; b. capitalization; c. implementation of corporate actions; and d. strengthening other institutional aspects as determined by Bank Indonesia. (3) Strengthening aspects of business activities for the provision of Financial Market Infrastructure as referred to in section (1) point c shall include: a. recommend or dot not recommend that the Financial Market Infrastructure provider conduct or not conduct certain business activities; and b. strengthening other aspects of business activities as determined by Bank Indonesia. (4) Financial Market Infrastructure Providers as referred to in section (1) are required to comply with the Financial Market Infrastructure strengthening policies determined by Bank Indonesia. Article 74 (1) Financial Market Infrastructure providers other than Bank Indonesia as referred to in Article 68 section (2) may use infrastructure supporting service providers to support the organization of Financial Market Infrastructure.

• 33 - (2) Financial Market Infrastructure Providers other than Bank Indonesia as referred to in section (1) are required to ensure: a. the ability of infrastructure supporting service providers to support the organization of Financial Market Infrastructure; b. operational resilience of infrastructure from supporting service providers; and c. implementation of the principle of prudence and effective risk management of infrastructure supporting service providers. (3) Financial Market Infrastructure Providers are required to ensure that Bank Indonesia may: a. have access to the data and information required for infrastructure supporting service providers as referred to in section (1); and b. supervise infrastructure supporting service providers through Financial Market Infrastructure providers. (4) Supporting service providers as referred to in section (1) must provide access to the necessary information to Bank Indonesia and Financial Market Infrastructure providers. Article 75 Further provisions regarding the organization of Financial Market Infrastructure by parties other than Bank Indonesia shall be regulated in the Regulation of the Members of the Board of Governors. Paragraph 2 Transaction Facilities Article 76 (1) Market Operators as referred to in Article 68 section (2) point a shall include: a. electronic trading platform provider; b. brokerage company; c. systematic internalisers; d. stock exchange provider; and e. other Market Operators as determined by Bank Indonesia. (2) The Market Operators as referred to in section (1) may provide transaction facilities used in carrying out transactions in the following manner: a. bilateral; and/or b. multilateral. (3) The Market Operators as referred to in section (1) may provide the following types of transaction facilities: a. electronic trading platform; b. telephone trading information system; and/or

• 34 - c. other transaction facilities determined by Bank Indonesia. (4) The types of transaction facilities as referred to in section (3) have at least the following functions: a. monitor prices, exchange rates, and/or interest rates; b. display or publish quotes and orders; c. process transactions; d. make transaction confirmation; and e. execute transactions. (5) Bank Indonesia shall determine the types of transaction facilities as referred to in section (3) which may be provided by Market Operators as referred to in section (1). Article 77 (1) Market Operators as referred to in Article 76 section (1) point a to point e, with the exception of point c, shall be prohibited from: a. providing services as a Market Operator that does not comply with the license and/or recommendations of Bank Indonesia; b. provide investment advice and/or counsel; c. implementing transactions in one's own name and/or use the Market Operator 's own funds; d. implementing transactions on behalf of shareholders and/or shareholder funds; e. implementing transaction settlements or settlements for service users; f. providing the name of the service user before the transaction is agreed; g. publishing information that is not under information from service users who will conduct transactions (without a transaction basis); and h. implementing other activities as determined by Bank Indonesia. (2) Market Operators as referred to in Article 76 section (1) point c and letter e shall be prohibited from: a. providing services as a Market Operator that does not comply with the license and/or recommendations of Bank Indonesia; b. implementing transactions on behalf of shareholders and/or shareholder funds; c. publishing information that is not under information from service users who will conduct transactions (without a transaction basis); and d. implementing other activities as determined by Bank Indonesia. (3) The prohibition as referred to in section (2) for systematic internalisers shall also take into account the provisions of other relevant authorities.

• 35 - Article 78 Further provisions regarding transaction facilities shall be regulated in the Regulation of the Members of the Board of Governors. Paragraph 3 CCP Article 79 (1) The organization of central counterparty as referred to in Article 68 section (2) point b shall include CCP. (2) CCP shall function include: a. clearing operations; b. risk management; c. novation and/or open offer; and d. other functions as determined by Bank Indonesia. (3) CCP may perform the functions as referred to in section (2) to: a. Money Market Transactions and Foreign Exchange Market transactions; and b. other financial transactions recommended and/or determined by Bank Indonesia. (4) CCP that who will conduct other functions as referred to in section (2) point d be required to obtain a recommendation from Bank Indonesia. Article 80 In conducting the functions as referred to in Article 79 section (2), the CCP has the following duties: a. administer the Money Market Transaction portfolio and Foreign Exchange Market transactions, as well as other financial transactions correctly and accurately, on time, consistently, and transparently; b. manage risks by establishing standard operating procedures related to risk management; c. administer default fund contribution, initial margin, and variation margin; d. implement routine monitoring, evaluation, and control of the transaction portfolio; and e. other duties as determined by Bank Indonesia. Article 81 In conducting the functions as referred to in Article 79 section (2) and the duties as referred to in Article 80, the CCP shall conduct the following activities: a. approve, reject, and terminate CCP members; b. impose sanctions on CCP members; c. determine the amount of default fund contribution, initial margin, variation margin, and fees;

• 36 - d. determine the valuation method for the initial margin and variation margin submitted by CCP members; e. manage default fund contribution, initial margin, and variation margin in accordance with the criteria and requirements set by Bank Indonesia; f. execute default fund contribution, initial margin, and variation margin, if a member experiences an event of default; g. implement Close-Out Netting, early termination, and auction of CCP member transactions that experience an event of default; and h. implement other activities as determined by Bank Indonesia. Article 82 (1) In providing CCP, CCP is required to: a. implement the functions as referred to in Article 79 section (2) and the duties as referred to in Article 80 as CCP; b. implement activities as referred to in Article 81 professionally, objectively, in good faith and full of responsibility; c. have adequate procedures and mechanisms regarding the sequence of use of funding sources (default waterfall) if a CCP member experiences an event of default; d. allocate CCP equity at a certain percentage as part of the default waterfall, with a minimum amount as determined by Bank Indonesia; e. ensure the transaction settlement process is carried out in a final manner; f. perform segregation and portability of assets, receivables, and liabilities, as well as transaction positions, default fund contributions, initial margins, and variation margins of CCP members; and g. fulfill other obligations determined by Bank Indonesia. (2) CCP may separate the mechanism for the default waterfall under the asset class and/or type of transaction that is within the scope of its business activities. (3) In the event that a CCP is declared bankrupt or liquidated, the assets belonging to CCP members that are under the control of the CCP may not be used to fulfill the CCP's obligations to third parties and/or its creditors. Article 83 (1) CCP members shall consist of: a. direct members; and b. indirect members. (2) Direct members as referred to in section (1) point a shall consist of:

• 37 - a. general members; and b. individual members. Article 84 (1) Bank Indonesia has the authority to: a. determine CCP qualifying status; and b. implement monitoring, evaluation, and revocation of qualifying CCP status. (2) Designation, monitoring, evaluation, and revocation of qualifying CCP status as referred to in section (1) shall be carried out under the following considerations: a. fulfillment of applicable international principles and/or standards; and b. other considerations determined by Bank Indonesia. (3) CCP must ensure that the implementation of CCP meets the basic considerations as referred to in section (2) to obtain and maintain qualifying CCP status from Bank Indonesia as referred to in section (1) point a. Article 85 Further provisions regarding CCP shall be regulated in the Regulation of the Members of the Board of Governors. Part Five Provision of Inter-Market Financial Market Infrastructure Article 86 (1) The Financial Market Infrastructure as referred to in Article 56 section (2) point a to point f, with the exception of point d, may be used in inter-market operations as referred to in Article 56 section (4) point c. (2) The Financial Market Infrastructure used in the implementation of inter-market transactions as referred to in section (1) shall consider: a. Financial Market Infrastructure category as referred to in Article 59 section (2); b. efforts to achieve the targets of regulation, development, and supervision of the Money Market and Foreign Exchange Market as referred to in Article 2 section (3); c. international best practices in the organization of Financial Market Infrastructure; and/or d. other matters determined by Bank Indonesia. (3) The Financial Market Infrastructure used in the implementation of inter-market transactions as referred to in section (1) shall include the Financial Market Infrastructure of which regulatory, development, and supervision authority is carried out by: a. Bank Indonesia; and b. other relevant authorities.

• 38 - Article 87 (1) Bank Indonesia shall coordinate with other relevant authorities to encourage the development of Financial Market Infrastructure used in the implementation of inter￾market transactions as referred to in Article 86. (2) Coordination in the development of the implementation of inter-market Financial Market Infrastructure as referred to in section (1) shall include: a. exchange and updating of data and information; b. joint supervision; c. risk mitigation steps; and d. other things by agreement. (3) In the event that under the results of joint supervision as referred to in section (2) point b a breach is found, Bank Indonesia and/or other related authorities as the originating authority shall impose sanctions on the Financial Market Infrastructure used in inter-market operations in accordance with their respective duties and authorities. Article 88 (1) In order may be able to provide inter-market Financial Market Infrastructure, the Financial Market Infrastructure of which regulatory, development, and supervision authority is carried out by Bank Indonesia as referred to in Article 86 section (3) point a must fulfill the provisions related to licensing in the form of: a. obtain recommendations from Bank Indonesia, for Financial Market Infrastructure providers; and b. pay attention to and/or fulfill the provisions related to licensing from other relevant authorities, for financial instruments and/or financial transactions that will be facilitated by the Financial Market Infrastructure provider. (2) The Financial Market Infrastructure Provider as referred to in section (1) are required to submit information regarding the duties and responsibilities of the Financial Market Infrastructure Provider in accordance with the provisions of other relevant authorities as referred to in section (1) point b. (3) Bank Indonesia will evaluate the implementation of inter￾market Financial Market Infrastructure as referred to in section (1) by taking into account the provisions as referred to in Article 86 section (2). Article 89 (1) In order may be able to provide inter-market Financial Market Infrastructure, the Financial Market Infrastructure of which regulatory, development, and supervision

• 39 - authority is carried out by other relevant authorities as referred to in Article 86 section (3) point b, must: a. have fulfilled the provisions related to licensing for the provision of inter-market infrastructure from other relevant authorities; and b. fulfill the licensing requirements of Bank Indonesia regarding the organization of Financial Market Infrastructure used in inter-market implementation after fulfilling the provisions as referred to in point a. (2) The provisions regarding the business activities of Financial Market Infrastructure providers shall apply mutatis mutandis to Financial Market Infrastructure providers used in inter-market operations that have fulfilled the licensing requirements as referred to in section (1) point b. (3) Bank Indonesia shall conduct an evaluation of the implementation of inter-market Financial Market Infrastructure for Financial Market Infrastructure of which regulatory, development, and supervision authority is carried out by other relevant authorities used in inter - market implementation by taking into account the provisions as referred to in Article 86 section (2). Article 90 Further provisions regarding the implementation of inter￾market Financial Market Infrastructure shall be regulated in the Regulation of the Members of the Board of Governors. Part Six Administrative Sanctions Article 91 (1) Breach of the provisions as referred to in Article 58 section (1), section (2), Article 60 section 36 / 131 (1), Article 66 section (4), Article 68 section (3), Article 69 section (1), section (2), Article 70 section (1), Article 71 section (3), Article 72 section (2), Article 73 section (4), Article 74 section (2), section (3), Article 77 section (1), section (2), Article 79 section (4), Article 82 section (1), and Article 88 section (2) shall be subject to administrative sanctions in the form of: a. written reprimand; b. obligation to pay; c. temporary, partial, or full suspension of activities in the Money Market and/or Foreign Exchange Market; and/or d. revocation of license and/or determination. (2) The imposition of administrative sanctions as referred to in section (1) does not preclude the imposition of criminal sanctions in accordance with the Law.

• 40 - (3) Provisions regarding the procedures for the imposition of administrative sanctions shall be regulated in the Regulation of the Members of the Board of Governors. CHAPTER VII TRANSACTIONS IN THE MONEY MARKET AND FOREIGN EXCHANGE MARKET Part One General Article 92 (1) Activities in the Money Market and/or Foreign Exchange Market shall include: a. issuance of Money Market Instruments; b. Money Market Transactions; and c. Foreign Exchange Market transactions. (2) Bank Indonesia shall regulate the issuance mechanism for Money Market Instruments, Money Market Transactions, and Foreign Exchange Market transactions as referred to in section (1). (3) The parties that are: a. issuers of Money Market Instruments as referred to in Article 26 section (2) point a; and b. Money Market Transaction participants and Foreign Exchange Market transaction participants as referred to in Article 26 section (2) point b, are required to comply with the mechanisms determined by Bank Indonesia as referred to in section (2). (4) Issuance of Money Market Instruments, Money Market Transactions, and Foreign Exchange Market transactions as referred to in section (1) may be carried out digitally and/or using financial sector technological innovations. (5) Further provisions regarding the issuance mechanism for Money Market Instruments, Money Market Transactions, and Foreign Exchange Market transactions shall be regulated in the Regulation of the Members of the Board of Governors. Article 93 (1) Bank Indonesia shall determine transaction times in Money Market Transactions and Foreign Exchange Market transactions. (2) Money Market Transaction Participants and Foreign Exchange Market transactions are required to conduct transactions at the transaction times determined by Bank Indonesia as referred to in section (1). (3) Under certain conditions, Bank Indonesia may determine:

• 41 - a. changes in the time of Money Market Transactions and/or Foreign Exchange Market transactions; and/or b. obligation to implement Money Market Transactions and/or certain Foreign Exchange Market transactions carried out at transaction times determined by Bank Indonesia. (4) Further provisions regarding the time of Money Market Transactions and/or Foreign Exchange Market transactions shall be regulated in the Regulation of the Members of the Board of Governors. Part Two Issuance of Money Market Instruments Paragraph 1 Criteria for the Issuance of Money Market Instruments Article 94 (1) The criteria for the issuance of Money Market Instruments as referred to in Article 92 section (1) point a shall consist of: a. general criteria; and b. specific criteria. (2) The general criteria for the issuance of Money Market Instruments as referred to in section (1) point a shall include: a. fulfill the criteria for Money Market Instruments as referred to in Article 7 section (2); b. administered at the provider of central custodians as determined by Bank Indonesia; c. fulfill the transparency of information regarding issuers of Money Market Instruments; and d. other general criteria set by Bank Indonesia. (3) The specific criteria for the issuance of Money Market Instruments as referred to in section (1) point b shall include: a. registration; b. offer; c. administration and settlement; and/or d. other specific criteria set by Bank Indonesia. (4) Bank Indonesia shall determine special criteria for the issuance of Money Market Instruments as referred to in section (3) under the form and/or type of Money Market Instrument. (5) Further provisions regarding the criteria for the issuance of Money Market Instruments shall be regulated in the Regulation of the Members of the Board of Governors.

• 42 - Paragraph 2 Obligations of Issuers of Money Market Instruments Article 95 (1) Issuers of Money Market Instruments are required to meet the criteria for the issuance of Money Market Instruments as referred to in Article 94 section (1). (2) Issuers of Money Market Instruments are required to submit correct and non-misleading material information and facts regarding the issuance of Money Market Instruments to: a. the party who will become an investor or the investors; and b. Bank Indonesia. (3) In the event of changes in material information and facts, the issuer of Money Market Instruments are required to convey these changes to the parties referred to in section (2). Article 96 (1) Issuers of Money Market Instruments as referred to in Article 26 section (2) point a are required to use the services of PUVA Supporting Institutions as referred to in Article 26 section (2) point c. (2) The provisions referred to in section (1) shall be excluded for: a. issuers of certain Money Market Instruments as determined by Bank Indonesia; and/or b. certain types of Money Market Instruments determined by Bank Indonesia. Article 97 The issuer of Money Market Instruments shall be fully responsible to investors regarding the fulfillment of obligations related to the issuance of Money Market Instruments. Article 98 Each party shall be prohibited from: a. issuing Money Market Instruments with a term of no more than 1 (one) year which are offered to the public; and/ or b. issuing Money Market Instruments with a term of no more than 1 (one) year to be traded on the secondary market, without permission from Bank Indonesia. Article 99 Further provisions regarding the obligations of issuers of Money Market Instruments shall be regulated in the Regulation of the Members of the Board of Governors. Part Three

• 43 - Money Market Transactions Paragraph 1 General Article 100 (1) The types of Money Market Transactions as referred to in Article 92 section (1) point b shall include: a. trading of financial instruments in the Money Market; b. money lending or funding transactions other than credit or financing; c. repo transactions (repurchase agreements); d. Derivative transactions; and e. other transactions in accordance with the characteristics of the Money Market as determined by Bank Indonesia. (2) In funding transactions other than financing as referred to in section (1) point b carried out on the interbank money market under Sharia principles: a. sharia commercial banks and sharia business units may place funds and/or receive funds; and b. conventional commercial banks may only make fund placements. Article 101 (1) The Money Market Transaction criteria as referred to in Article 92 section (1) point b shall include: a. general criteria; and b. special criteria. (2) The general criteria for Money Market Transactions as referred to in section (1) point a shall include: a. for Money Market Transactions using financial instruments, must:

1. be issued in scripless form; and
2. be administered by the provider of central custodians; b. use financial contracts and/or written confirmation; c. refer to the applicable market standards or market conventions; and d. other general criteria set by Bank Indonesia. (3) Bank Indonesia shall determine specific criteria for Money Market Transactions as referred to in section (1) point b under the type of Money Market Transaction. Article 102 (1) Trading of financial instruments in the Money Market as referred to in Article 100 section (1) point a shall include: a. transactions in Money Market Instruments for which the issuance criteria are determined by Bank Indonesia as referred to in Article 101 section (1);

• 44 - b. transactions on Money Market Instruments issued by Bank Indonesia; c. transactions in Money Market Instruments of which issuance is carried out in accordance with the Law; and d. transactions on financial instruments that may be traded on the Money Market. (2) Transactions on Money Market Instruments of which issuance is carried out in accordance with the Law as referred to in section (1) point c still fulfill the criteria for Money Market Transactions as referred to in Article 101 section (1) unless regulated differently in: a. Law; and/or b. Regulation of the Government underlying the issuance of Money Market Instruments as referred to in point a. Article 103 (1) Derivative transactions as referred to in Article 100 section (1) point d in the Money Market shall include: a. Derivative transactions that are plain vanilla in nature; b. structured product transactions; and c. other derivative transactions as determined by Bank Indonesia. (2) Derivative transactions as referred to in section (1) may be carried out for all time periods. (3) Derivative transactions as referred to in section (1) may be carried out for hedging. Article 104 Further provisions regarding Money Market Transactions shall be regulated in the Regulation of the Members of the Board of Governors. Paragraph 2 Implementation of Money Market Transactions Article 105 (1) Money Market Transaction participants may conduct Money Market Transactions as referred to in Article 100 section (1) by way of: a. direct; b. through the PUVA Supporting Institution as referred to in Article 32 section (1) point a to point e, with the exception of point c; and/or c. through the Financial Market Infrastructure provider in the form of transaction facilities as referred to in Article 56 section (2) point a, under the determination of Bank Indonesia. (2) The parties that are:

• 45 - a. Money Market Transaction participants who conduct Money Market Transactions directly as referred to in section (1) point a; b. PUVA Supporting Institutions as referred to in section (1) point b which act as intermediaries for Money Market Transactions; and/or c. Financial Market Infrastructure providers in the form of transaction facilities as referred to in section (1) point c, are required to ensure that Money Market Transactions meet the Money Market Transaction criteria as referred to in Article 101 section (1). (3) Further provisions regarding the implementation of Money Market Transactions shall be regulated in the Regulation of the Members of the Board of Governors. Paragraph 3 Qualifications of Money Market Transaction Participants (Qualified Participants) Article 106 (1) Bank Indonesia may determine the qualifications of Money Market Transaction participants (qualified participants). (2) Issuers of certain Money Market Instruments are required to ensure that investors meet the qualifications of qualified participants. (3) Certain PUVA Supporting Institutions are required to ensure that Money Market Transaction participants meet the qualifications of qualified participants. (4) Certain Money Market Transaction participants are required to ensure that the Money Market Transaction participants who are their counterparts meet the qualifications of qualified participants. (5) Further provisions regarding the qualifications of qualified participants shall be regulated in the Regulation of the Members of the Board of Governors. Part Four Currency in Issuance of Money Market Instruments and Money Market Transactions Article 107 (1) Issuance of Money Market Instruments and Money Market Transactions as referred to in Article 92 section (1) point a and point b shall be carried out in rupiah and/or foreign currency. (2) Money Market Transactions as referred to in section (1) may be carried out cross currency in rupiah and/or foreign currency.

• 46 - (3) Under certain conditions, Bank Indonesia may determine the use of certain currencies in Money Market Transactions as referred to in section (1) and section (2). (4) Further provisions regarding currency in the issuance of Money Market Instruments and Money Market Transactions shall be regulated in the Regulation of the Members of the Board of Governors. Part Five Foreign Exchange Market Transactions Paragraph 1 General Article 108 (1) Foreign Exchange Market transaction participants as referred to in Article 28 section (1) must implement Foreign Exchange Market transactions with transaction counterparties in the form of: a. bank; and/or b. other parties as determined by Bank Indonesia. (2) Foreign Exchange Market transactions as referred to in section (1) may be carried out through institutions supporting Foreign Exchange Market transactions as referred to in Article 32 section (1) point c and/or Financial Market Infrastructure providers in the form of transaction facilities as referred to in Article 56 section (2) point a. (3) Bank Indonesia shall stipulate: a. types of Foreign Exchange Market transactions; b. underlying foreign exchange market transactions; and c. prohibitions and restrictions on Foreign Exchange Market transactions. Paragraph 2 Types of Foreign Exchange Market Transactions Article 109 (1) The types of Foreign Exchange Market transactions as referred to in Article 92 section (1) point c shall include: a. cash transactions; b. Derivative transactions; c. hedging transactions under Sharia Principles; and d. other foreign exchange transactions as determined by Bank Indonesia. (2) Cash transactions as referred to in section (1) point a shall include: a. transactions with the fund transfer date carried out on the same day (today transactions);

• 47 - b. transactions with a fund transfer date carried out 1 (one) business day after the transaction date (tomorrow transaction); and c. transactions with a fund transfer date carried out 2 (two) business days after the transaction date (spot transactions). (3) Derivative transactions as referred to in section (1) point b shall include: a. Derivative transactions that are plain vanilla in nature; b. structured product transactions; and c. other derivative transactions as determined by Bank Indonesia. (4) Derivative transactions as referred to in section (1) may be carried out for hedging. (5) Hedging transactions under Sharia Principles as referred to in section (1) point c shall include: a. simple hedging transaction (aqd al-tahawwuth al￾basith); b. complex hedging transactions (aqd al-tahawwuth al￾murakkab); and c. hedging transactions with other mechanisms in accordance with Sharia Principles determined by Bank Indonesia. (6) Hedging transactions under Sharia Principles as referred to in section (1) point c may only be requested by: a. residents and/or non-residents other than banks to sharia commercial banks or sharia business units; b. sharia commercial banks or sharia business units to other sharia commercial banks or other sharia business units; or c. sharia commercial banks or sharia business units to conventional commercial banks. Article 110 (1) Foreign Exchange Market transactions as referred to in Article 92 section (1) point c shall include: a. foreign exchange transactions against the rupiah; and b. foreign exchange transactions against foreign currencies. (2) Foreign Exchange Market transactions as referred to in section (1) shall include currency exchange in the form of: a. physical; b. account; and/or c. digital issued by the authorized authority. (3) Foreign exchange transactions against foreign currency as referred to in section (1) point b shall be transactions carried out in the territory of the Unitary State of the Republic of Indonesia.

• 48 - Article 111 Further provisions regarding the types of Foreign Exchange Market transactions shall be regulated in the Regulation of the Members of the Board of Governors. Paragraph 3 Underlying Foreign Exchange Market Transactions Article 112 (1) The provisions for underlying transactions in the Foreign Exchange Market as referred to in Article 108 section (3) point b, shall at least include: a. type of underlying transaction; b. fulfillment of ownership of underlying transactions for Foreign Exchange Market transactions as determined by Bank Indonesia; c. the time period and nominal value of the underlying transaction; d. type of currency in the underlying transaction; e. underlying transaction restrictions for Foreign Exchange Market transactions set by Bank Indonesia; and f. administration of underlying transactions. (2) Banks and/or other parties determined by Bank Indonesia that conduct foreign exchange transactions against the rupiah as referred to in Article 110 section (1) point a, are required to at least ensure: a. ownership of underlying transactions for Foreign Exchange Market transactions as determined by Bank Indonesia as referred to in section (1) point b; b. Foreign Exchange Market transaction participants submit underlying transaction documents; c. Foreign Exchange Market transaction participants submit supporting documents for Foreign Exchange Market transactions; d. the nominal value of the transaction is at highest the same as the nominal value in the underlying transaction; e. the transaction period is at maximum the same as the underlying transaction period; f. the underlying transaction as referred to in point a meets the provisions of Bank Indonesia regarding the obligation to use the rupiah in the territory of the Unitary State of the Republic of Indonesia; and g. the underlying transaction used for Foreign Exchange Market transactions under Sharia Principles does not conflict with Sharia Principles.

• 49 - (3) Fulfillment of ownership of underlying transactions as referred to in section (1) point b may be excluded for: a. Foreign Exchange Market transactions as referred to in Article 110 section (1) which shall be carried out between banks; and b. other Foreign Exchange Market transactions as determined by Bank Indonesia. (4) Foreign Exchange Market transaction participants as referred to in Article 28 section (1) and other parties determined by Bank Indonesia are required to comply with the provisions regarding restrictions on underlying transactions in Foreign Exchange Market transactions as referred to in section (1) point e. Article 113 (1) Foreign exchange transactions against the rupiah as referred to in Article 110 section (1) point a for certain economic activities may be carried out through third parties. (2) Banks and/or other parties determined by Bank Indonesia must apply the principle of prudence in analyzing underlying transaction documents used for Foreign Exchange Market transactions conducted through third parties as referred to in section (1). Article 114 Further provisions regarding underlying transactions in the Foreign Exchange Market shall be regulated in the Regulation of the Members of the Board of Governors. Paragraph 4 Prohibitions and Limitations on Foreign Exchange Market Transactions Article 115 (1) Banks and/or other parties determined by Bank Indonesia shall be prohibited from carrying out: a. rupiah transfer abroad; b. non-deliverable forward foreign exchange transactions against the rupiah abroad; c. provision of overdrafts and credit and/or financing for foreign exchange transactions against the rupiah; d. provision of overdrafts and credit and/or financing in rupiah or foreign currency to non-residents; e. purchase of securities in rupiah issued by non￾residents; f. investment in rupiah to non-residents; and g. other transactions as determined by Bank Indonesia. (2) The prohibition as referred to in section (1) shall be exempted for:

• 50 - a. certain activities for the settlement of transactions using local currency; b. provision of an overdraft as referred to in section (1) point c and point d is in the form of an intraday overdraft; c. provision of credit or financing to non-residents as referred to in section (1) point d with certain economic activity requirements in Indonesia; d. purchase of securities as referred to in section (1) point e relating to certain economic activities in Indonesia; and e. other transactions as determined by Bank Indonesia. Article 116 (1) Banks receiving rupiah transfers are required to ensure that rupiah transfers are made to accounts in Indonesia which belong to: a. non-resident; or b. non-residents and residents in the form of joint accounts, above the threshold, have an underlying transaction. (2) Rupiah transfers that: a. originate from Derivative transactions in the Foreign Exchange Market or hedging transactions under Sharia Principles, for foreign exchange transactions against the rupiah; or b. is a rupiah transfer between rupiah accounts belonging to the same non-resident, shall be exempted from the obligation to have underlying transactions as referred to in section (1). Article 117 Further provisions regarding prohibitions and limitations on Foreign Exchange Market transactions shall be regulated in the Regulation of the Members of the Board of Governors. Part Six Standardization of Transactions in the Money Market and Foreign Exchange Market Article 118 (1) Bank Indonesia may determine Money Market Transactions and/or Foreign Exchange Market transactions which are: a. transacted through the transaction facilities as referred to in Article 76 section (1); b. cleared through CCP as referred to in Article 79 section (1); and/or c. reported through the Trade Repository as referred to in Article 63 section (1) point d.

• 51 - (2) Bank Indonesia shall determine the standardization of Money Market Transactions and/or Foreign Exchange Market transactions transacted through transaction facilities as referred to in section (1) point a and/or cleared through clearing facilities as referred to in section (1) point b. Article 119 Further provisions regarding standardization in Money Market Transactions and/or Foreign Exchange Market transactions shall be regulated in the Regulation of the Members of the Board of Governors. Part Seven Transaction Settlement Paragraph 1 General Article 120 (1) Bank Indonesia shall regulate transaction settlement: a. for Money Market Transactions and Foreign Exchange Market transactions; and b. in the Financial Market Infrastructure in the form of:

1. CCP as referred to in Article 79 section (1);
2. central custodians as referred to in Article 56 section (2) point c;
3. payment systems as referred to in Article 56 section (2) point d. (2) Settlement of Money Market Transactions and Foreign Exchange Market transactions as well as Financial Market Infrastructure shall adhere to the following principles: a. settlement of transactions that have met the requirements is final and binding; b. delivery and/or payment in transactions; and c. recognition of transaction settlement by netting, by directly calculating the final results of the rights and obligations of the parties. (3) Settlement of transactions through delivery and/or payment as referred to in section (2) point b shall be carried out for: a. securities; and/or b. funds. Paragraph 2 Settlement of Transactions in the Money Market and Foreign Exchange Market Article 121

• 52 - (1) Bank Indonesia shall determine the use of currency in the settlement of Money Market Transactions and/or Foreign Exchange Market transactions. (2) In the event that Bank Indonesia determines the use of currency as referred to in section (1) in rupiah, Money Market Transaction and Foreign Exchange Market transaction participants must fulfill the obligation to use rupiah currency in settling Money Market Transactions and/or Foreign Exchange Market transactions as regulated in the Regulation of Bank Indonesia regarding the obligation to use rupiah in the territory of the Unitary State of the Republic of Indonesia. Article 122 (1) Settlement of Money Market Transactions and Foreign Exchange Market transactions may be conducted in the following ways: a. transfer of principal funds in full (gross); b. transfer of funds by calculating the difference in obligations for transactions (netting); or c. settlement of other transactions as determined by Bank Indonesia. (2) In the event that Bank Indonesia determines the method of transaction settlement as referred to in section (1), PUVA Participants are required to settle transactions in accordance with the method of settlement of Money Market Transactions and/or Foreign Exchange Market transactions determined by Bank Indonesia. Article 123 Banks are required to complete foreign exchange transactions against the rupiah with counterparties in the form of nonbank foreign exchange business operators with the delivery of foreign exchange carried out physically in the form of bank notes. Article 124 (1) Money Market transactions as referred to in Article 100 section (1) and/or Foreign Exchange Market transactions as referred to in Article 109 section (1) may be conducted: a. roll over; b. early termination; and/or c. unwind, based on Bank Indonesia’s determination. (2) Early termination as referred to in section (1) point b may also be carried out for Money Market Transactions and/or Foreign Exchange Market transactions that are cleared through CCP. Article 125

• 53 - Further provisions regarding the settlement of transactions in the Money Market and Foreign Exchange Market shall be regulated in the Regulation of the Members of the Board of Governors. Paragraph 3 Settlement of Transactions in Financial Market Infrastructure Article 126 (1) Financial Market Infrastructure Providers as referred to in Article 120 section (1) point b are required to ensure that the transaction settlement process is carried out in accordance with the settlement principles as referred to in Article 120 section (2). (2) Fulfillment of the principle of transaction settlement that has met the requirements is final and binding in the Financial Market Infrastructure as referred to in Article 120 section (2) point a when debits and credits are recorded in each securities account and/or funds belonging to participants in the Financial Market Infrastructure. (3) Fulfillment of the principle of delivery and/or payment in transactions on the Financial Market Infrastructure as referred to in Article 120 section (2) point b shall be carried out if there are sufficient securities and/or funds to complete the transaction. (4) Settlement of transactions as referred to in section (1) shall be carried out using funds from an account at Bank Indonesia (central bank money), unless otherwise determined by Bank Indonesia. (5) In the event that it is agreed that the transaction will be settled through physical delivery, the Financial Market Infrastructure provider as referred to in Article 120 section (1) point b: a. is required to include the provider's obligations in the contract; and b. must identify, measure, monitor, and manage the risks that potentially arise from physical delivery. (6) Further provisions regarding the settlement of transactions in the Financial Market Infrastructure shall be regulated in the Regulation of the Members of the Board of Governors. Paragraph 4 Settlement of Transactions in Bankruptcy Conditions Article 127 (1) Money Market Transactions as referred to in Article 92 section (1) point b and Foreign Exchange Market transactions as referred to in Article 92 section (1) point c which: a. has met the requirements; and/or

• 54 - b. occurred before the bankruptcy declaration decision was pronounced, are required to be completed as if there was no bankruptcy and can not be canceled by the parties directly related to the transaction as regulated in the Law on the development and strengthening of the financial sector. (2) Money Market transactions and/or Foreign Exchange Market transactions that have fulfilled the requirements as referred to in section (1) point a shall be proven by transaction confirmation from: a. between transacting parties; or b. Financial Market Infrastructure system. Article 128 The curator can not cancel or consider invalid a payment or collateral transfer that occurs in connection with a settlement that ends by calculating the net value of the value or amount of rights or obligations with the defaulting party unless it is proven that the payment or collateral transfer occurred due to fraud as regulated in the Law on the development and strengthening of the financial sector. Paragraph 5 Close-Out Netting Article 129 (1) In the event of default caused by: a. event of default; and/or b. event of termination, from one of the transacting parties, transaction settlement may be conducted through the Close-Out Netting mechanism. (2) Transactions that may be completed through the Close-Out Netting mechanism as referred to in section (1) shall include: a. Derivative transactions in the Money Market and/or Foreign Exchange Market; b. repurchase agreement; and c. other transactions as determined by Bank Indonesia or other relevant authorities. (3) Settlement of transactions through the Close-Out Netting mechanism as referred to in section (1) may be carried out as long as it is required or agreed to in the master agreement. (4) If in 1 (one) master agreement as referred to in section (3) there are: a. transactions that fall within the scope of transactions that may be completed through the Close-Out Netting mechanism; and

• 55 - b. transactions that are not included in the scope of transactions that may be completed through the Close-Out Netting mechanism, settlement of transactions through the Close-Out Netting mechanism shall be carried out for transactions as referred to in point a. (5) The Close-Out Netting mechanism as referred to in section (1) may be carried out under Sharia Principles. Article 130 (1) Settlement of transactions through the Close-Out Netting mechanism as referred to in Article 129 may be carried out either before or after bankruptcy occurs as regulated in the Law on the development and strengthening of the financial sector. (2) In the event that before the bankruptcy declaration decision is pronounced, the transaction settlement process has been carried out through the Close-Out Netting mechanism, the transaction is required to be completed. Article 131 (1) The implementation of transaction settlement through the Close-Out Netting mechanism by bankrupt debtors can not be canceled by the court as regulated in the Law on the development and strengthening of the financial sector. (2) The implementation of the Close-Out Netting mechanism as referred to in section (1) does not require a debt set-off application as regulated in the Law on the development and strengthening of the financial sector. (3) The implementation of the Close-Out Netting mechanism as referred to in section (1) does not require a debt set-off application as regulated in the Law on the development and strengthening of the financial sector. (4) The implementation as referred to in section (3) shall also apply to collateral arrangements which are under the master agreement as referred to in Article 129 section (3). Article 132 Further provisions regarding Close-out Netting shall be regulated in the Regulation of the Members of the Board of Governors. Part Eight Administrative Sanctions Article 133 (1) Breach of the provisions as referred to in Article 92 section (3), Article 93 section (2), Article 95 section (1), section (2), section (3), Article 96 section (1), Article 98, Article 105 section (2), Article 106 section (2), section (3), section (4),

• 56 - Article 112 section (2), section (4), Article 115 section (1), Article 116 section (1), Article 122 section (2), Article 123, Article 126 section (1), section (5) point a, Article 127 section (1), and Article 130 section (2) shall be subject to administrative sanctions in the form of: a. written reprimand; b. obligation to pay; c. temporary, partial, or full suspension of activities in the Money Market and/or Foreign Exchange Market; and/or d. revocation of license and/or determination. (2) The imposition of administrative sanctions as referred to in section (1) does not preclude the imposition of criminal sanctions in accordance with the Law. (3) Provisions regarding the procedures for the imposition of administrative sanctions shall be regulated in the Regulation of the Members of the Board of Governors. CHAPTER VIII LICENSING Part One General Article 134 (1) Bank Indonesia shall regulate licensing related to the Money Market and Foreign Exchange Market. (2) The licensing as referred to in section (1) shall include: a. form of licensing; b. licensing mechanisms; and c. other licensing scopes determined by Bank Indonesia. (3) The licensing referred to in section (1) shall be granted to: a. product; b. Pricing; c. PUVA Participant; and d. Financial Market Infrastructure. (4) PUVA Participants, Financial Market Infrastructure providers, and other parties determined by Bank Indonesia are required to comply with the licensing mechanisms as referred to in section (2) point b. (5) Bank Indonesia may announce licensing that has been granted by Bank Indonesia on the Bank Indonesia website and/or other media determined by Bank Indonesia. (6) Further provisions regarding the scope of licensing as referred to in section (2) shall be regulated in the Regulation of the Members of the Board of Governors. Article 135

• 57 - (1) The forms of licensing in the Money Market and Foreign Exchange Market as referred to in Article 134 section (2) point a shall include: a. granting of licenses; and b. designation. (2) Granting of licenses in the Money Market and Foreign Exchange Market as referred to in section (1) point a shall be in the form of: a. business license; b. operational license; c. agreement; d. registered certificate; or e. other forms of licenses determined by Bank Indonesia. (3) Parties who obtain a business license in the Money Market and Foreign Exchange Market as referred to in section (2) point a shall be financial sector business participants as referred to in the Law on the development and strengthening of the financial sector. (4) The granting of a licese or determination as referred to in section (1) can not be transferred to another party. (5) Further provisions regarding the form of licensing shall be regulated in the Regulation of the Members of the Board of Governors. Part Two Product and PUVA Participant Licenses Paragraph 1 Money Market Instrument Issuance License Article 136 (1) Parties that will become issuers of Money Market Instruments as referred to in Article 26 section point a are required to obtain a license from Bank Indonesia before issuing Money Market Instruments. (2) License as referred to in section (1) shall be in the form of: a. approval as an issuer of Money Market Instruments; b. registered certificate for the issuance of Money Market Instruments; or c. other forms of licenses determined by Bank Indonesia. (3) The form of license as referred to in section (2) shall be determined under the type of Money Market Instrument as referred to in Article 6 section (2). Article 137 (1) To obtain a license to issue Money Market Instruments as referred to in Article 136 section (1), the party that will issue the Money Market Instrument must fulfill the requirements set by Bank Indonesia. (2) The requirements as referred to in section (1) shall include:

• 58 - a. general requirements; and b. specific requirements. (3) The general requirements for parties who wish to become issuers of Money Market Instruments as referred to in section (2) point a shall include: a. have good financial capabilities; b. have good governance; and c. other requirements set by Bank Indonesia. (4) Bank Indonesia shall set specific requirements for parties that will become issuers of Money Market Instruments as referred to in section (2) point b under the type of Money Market Instrument. (5) The determination of specific requirements for parties that will become issuers of Money Market Instruments as referred to in section (4) shall consider the qualifications of the party that will become the issuer, including: a. listed or not listed as an issuer or public company; b. ever or never issued bonds and/or sukuk that are listed on the stock exchange provider within a certain period of time; and/or c. other considerations determined by Bank Indonesia. Article 138 (1) In granting licenses as referred to in Article 136 section (1), Bank Indonesia does not provide an assessment of the advantages or disadvantages of the Money Market Instruments to be issued. (2) The license as referred to in section (1) can not be used for the issuance of other financial instruments or other actions that benefit the issuer of Money Market Instruments. Article 139 Further provisions regarding licenses to issue Money Market Instruments shall be regulated in the Regulation of the Members of the Board of Governors. Paragraph 2 PUVA Primary Dealer License Article 140 (1) In order to become a PUVA Primary Dealer, issuers of Money Market Instruments as referred to in Article 26 section (2) point a and/or participants in Money Market Transactions and Foreign Exchange Market transactions as referred to in Article 26 section (2) point b are required to obtain approval from Bank Indonesia. (2) The issuer of the instrument and/or the transaction participant as referred to in section (1) must meet the criteria, including: a. general criteria; and

• 59 - b. specific criteria. (3) Further provisions regarding the PUVA Primary Dealer license shall be regulated in the Regulation of the Members of the Board of Governors. Paragraph 3 PUVA Supporting Institution License Article 141 (1) In providing services in the Money Market and Foreign Exchange Market, PUVA Supporting Institutions as referred to in Article 26 section (2) point c are required to be registered with Bank Indonesia. (2) The obligation to register as a PUVA Supporting Institution as referred to in section (1) shall apply to: a. supporting institutions for the issuance of Money Market Instruments as referred to in Article 32 section (1) point a; b. supporting institutions for Money Market Transactions as referred to in Article 32 section (1) point b; c. supporting institutions for foreign exchange market transactions as referred to in Article 32 section (1) point c; and d. other PUVA Supporting Institutions determined by Bank Indonesia. (3) The obligation to register as a supporting institution for Money Market Transactions as referred to in section (2) point b for banks shall apply to the provision of supporting services in: a. transactions on Money Market Instruments; and b. transactions on certain financial instruments that may be traded on the Money Market. (4) The obligation to register as a supporting institution for Foreign Exchange Market transactions as referred to in section (2) point c shall be exempted for banks. (5) PUVA Supporting Institutions as referred to in section (1) must meet the following criteria and/or requirements: a. institutional aspects of PUVA Supporting Institutions; b. aspects of the capabilities of PUVA Supporting Institutions in carrying out their functions; and c. other aspects determined by Bank Indonesia. (6) Further provisions regarding PUVA Supporting Institution licenses shall be regulated in the Regulation of the Members of the Board of Governors. Paragraph 4 PUVA Supporting Profession License Article 142

• 60 - (1) In providing services in the Money Market and Foreign Exchange Market, PUVA Supporting Professions as referred to in Article 26 section (2) point d are required to be registered with Bank Indonesia. (2) PUVA Supporting Professions as referred to in section (1) must meet the following criteria and/or requirements: a. aspects of individual legitimacy of PUVA Supporting Professions; b. aspects of the PUVA Supporting Profession's capabilities in carrying out its functions; and c. other aspects determined by Bank Indonesia. (3) Further provisions regarding PUVA Supporting Professional licenses shall be regulated in the Regulation of the Members of the Board of Governors. Paragraph 5 Dealer Treasury License Article 143 (1) In providing services in the Money Market and Foreign Exchange Market, the dealer treasury as referred to in Article 44 section (1) is required to be registered with Bank Indonesia. (2) The dealer treasury as referred to in section (1) must meet the following criteria and/or requirements: a. individual validity aspects of dealer treasury; b. aspects of the dealer's treasury capability in carrying out its functions; and c. other aspects determined by Bank Indonesia. (3) Further provisions regarding dealer treasury licenses shall be regulated in the Regulation of the Members of the Board of Governors. Paragraph 6 License of Professional Association in the Treasury Sector Article 144 (1) Professional associations in the treasury sector as referred to in Article 45 section (1) must be registered with Bank Indonesia. (2) Professional associations in the treasury sector as referred to in section (1) must meet the following criteria and/or requirements: a. institutional aspects of professional associations in the treasury sector; b. aspects of the ability of professional associations in the treasury sector to conduct their functions; and c. other aspects determined by Bank Indonesia.

• 61 - (3) Further provisions regarding licenses for professional associations in the treasury sector shall be regulated in the Regulation of the Members of the Board of Governors. Paragraph 7 Treasury Professional Certification Provider License Article 145 (1) The providers of treasury professional certification as referred to in Article 46 section (1) must be registered with Bank Indonesia. (2) The providers of treasury professional certification as referred to in section (1) must meet the following criteria and/or requirements: a. institutional aspects of the treasury professional certification provider; b. aspects of the ability of the treasury professional certification provider to conduct their functions; and c. other aspects determined by Bank Indonesia. (3) Further provisions regarding licenses for treasury professional certification providers shall be regulated in the Regulation of the Members of the Board of Governors. Part Three License of Financial Market Infrastructure Provider by Parties Other Than Bank Indonesia Paragraph 1 General Article 146 (1) Bank Indonesia shall grant licenses to parties who will become providers of Financial Market Infrastructure other than Bank Indonesia as referred to in Article 68 section (1). (2) The Financial Market Infrastructure as referred to in section (1) shall be provided by a legal entity incorporated in Indonesia. (3) The licenses as referred to in section (1) shall consist of: a. business license; or b. operational license. (4) The granting of a business license as referred to in section (3) point a shall be preceded by the granting of in-principle approval by Bank Indonesia. Article 147 (1) PUVA Participants shall be prohibited from using Financial Market Infrastructure which is provided without license from Bank Indonesia as referred to in Article 146 section (1).

• 62 - (2) The provisions referred to in section (1) shall be exempted for the use of Financial Market Infrastructure in the form of transaction facilities for cross-country cooperation in economic and financial transactions with the local currency of each particular country as determined by Bank Indonesia. Article 148 (1) Financial Market Infrastructure Providers other than Bank Indonesia as referred to in Article 146 section (1) must meet the following criteria and/or requirements: a. institutional aspects; b. aspects of capability in carrying out business activities; and/or c. other aspects determined by Bank Indonesia. (2) The institutional aspects as referred to in section (1) point a shall include: a. the form of a legal entity in Indonesia as referred to in Article 146 section (2); b. human resources and/or management of legal entity; c. capitalization; d. the relationship between the business activities of legal entity and the organization of Financial Market Infrastructure; and e. other institutional aspects determined by Bank Indonesia. (3) Aspects of capability in carrying out business activities as referred to in section (1) point b shall include: a. reliable and secure infrastructure; b. readiness to implement the principle of prudence and risk management and/or governance; c. continuity of business activities; and d. other aspects determined by Bank Indonesia. (4) The criteria and/or requirements as referred to in section (1) shall also apply to the implementation of inter-market Financial Market Infrastructure for Financial Market Infrastructure of which regulatory, development, and supervision authority is carried out by other relevant authorities as referred to in Article 86 section (3) point b. (5) Fulfillment of institutional aspects in the form of capital as referred to in section (2) point c, shall be prohibited from originating from loans or financing facilities in any form and shall not be related to money laundering and terrorism financing. Article 149 (1) Financial Market Infrastructure Providers who have obtained a license from Bank Indonesia as referred to in Article 146 section (3) point a are required to start carrying

• 63 - out business activities within the time limit determined by Bank Indonesia. (2) Financial Market Infrastructure Providers as referred to in section (1) are required to report the commencement of business activities within the reporting time limit set by Bank Indonesia. (3) In the event that the provider of the Financial Market Infrastructure does not fulfill the obligations as referred to in section (1) and/or section (2), the license granted by Bank Indonesia shall be declared null and void by law. Article 150 Further provisions regarding licenses for Financial Market Infrastructure providers by parties other than Bank Indonesia shall be regulated in the Regulation of the Members of the Board of Governors. Paragraph 2 Composition of Share Ownership and Controlling Shareholders of Financial Market Infrastructure Providers Article 151 (1) Bank Indonesia shall determine the composition of share ownership for Financial Market Infrastructure providers of which business licenses are issued by Bank Indonesia. (2) Financial Market Infrastructure Providers are required to fulfill the provisions on share ownership composition as referred to in section (1). Article 152 (1) Controlling shareholders shall be prohibited from being controlling shareholders in more than 1 (one) similar Financial Market Infrastructure provider. (2) Financial Market Infrastructure Providers are required to ensure compliance with the provisions as referred to in section (1). Article 153 Further provisions regarding the composition of share ownership and controlling shareholders of Financial Market Infrastructure providers shall be regulated in the Regulation of the Members of the Board of Governors. Paragraph 3 Market Operators and CCP License Article 154

• 64 - (1) Market Operators as referred to in Article 76 section (1) and CCP as referred to in Article 79 section (1) be required to obtain a license from Bank Indonesia. (2) The licenses referred to in section (1) shall include: a. business license for:

1. CCP;
2. electronic trading platform provider;
3. brokerage firm;
4. stock exchange provider; and
5. other parties as determined by Bank Indonesia; and b. operational license for:
6. systematic internalisers; and
7. other parties as determined by Bank Indonesia. Article 155 Bank Indonesia shall stipulate capital requirements for Market Operators as referred to in Article 154 section (2) point a in the form of as follows: a. prospective electronic trading platform providers must have paid-up capital of at lowest Rp30,000,000,000.00 (thirty billion rupiah); b. prospective brokerage companies must have paid-up capital of at lowest Rp12,000,000,000.00 (twelve billion rupiah); c. prospective stock exchange providers must have paid-up capital of at lowest Rp100,000,000,000.00 (one hundred billion rupiah); and d. other prospective Market Operators must have paid-up capital as determined by Bank Indonesia. Article 156 (1) Bank Indonesia shall set the minimum equity for prospective CCP at Rp400,000,000,000.00 (four hundred billion rupiah). (2) The minimum equity as referred to in section (1) shall be under the characteristics of the CCP's business activities and risks. (3) The equity components as referred to in section (1) shall include: a. paid-up capital; b. balance of profit (loss); and c. other capital components. (4) The amount of paid-up capital as referred to in section (3) point a shall be at least 50% (fifty percent) of the minimum CCP equity determined by Bank Indonesia as referred to in section (1). (5) The amount of paid-up capital as referred to in section (4) shall be fulfilled at the time when this prospective CCP

• 65 - submits an application for principle approval as referred to in Article 146 section (4). (6) The minimum equity amount as referred to in section (1) shall be fulfilled at the time when this prospective CCP submits a business license application to Bank Indonesia. Article 157 Further provisions regarding licenses for Transaction Market Operators and CCP shall be regulated in the Regulation of the Members of the Board of Governors. Paragraph 4 Minimum Equity Maintenance Article 158 (1) Market Operators that have obtained a business license are required to maintain minimum equity of: a. Rp10,000,000,000.00 (ten billion rupiah) for electronic trading platform providers; b. Rp5,000,000,000.00 (five billion rupiah) for brokerage companies; and c. Rp100,000,000,000.00 (one hundred billion rupiah) for stock exchange providers. (2) In the event that a prospective Market Operator as referred to in Article 155 point d has obtained a business license, the Market Operators are required to maintain minimum equity of the amount determined by Bank Indonesia. (3) CCP that have obtained a business license is required to maintain minimum equity of the minimum amount as referred to in Article 156 section (1). Article 159 (1) In the event that the equity of the Market Operators and CCP are decreased to below the minimum equity as referred to in Article 158 then: a. Market Operators are required to meet the minimum equity not later than period of 2 (two) years from the time of the decrease below the minimum equity; and b. CCP is required to meet the minimum equity not later than period of 1 (one) year from the time of the decrease below the minimum equity. (2) Market Operators and/or CCP that experience a decline below the minimum equity as referred to in section (1) are required to: a. submit a report on the current financial condition; and b. minimum equity fulfillment action plan, to Bank Indonesia. (3) The action plan for the fulfillment of the minimum equity as referred to in section (2) point b must be measurable and can be accounted for by the Market Operators and CCP.

• 66 - Article 160 (1) Financial Market Infrastructure Providers that obtain a business license as referred to in Article 154 section (2) point a shall be prohibited from carrying out business activities other than providing Financial Market Infrastructure under a business license from Bank Indonesia. (2) The prohibition as referred to in section (1) may be exempted under the criteria set by Bank Indonesia. Article 161 Further provisions regarding minimum equity maintenance shall be regulated in the Regulation of the Members of the Board of Governors. Part Four Determination Article 162 (1) Bank Indonesia shall coduct the determination as referred to in Article 135 section (1) point b under an assessment by considering: a. efforts to achieve the targets of regulation, development, and supervision of the Money Market and Foreign Exchange Market as referred to in Article 2 section (3); b. competitiveness and/or market share in activities in the Money Market and Foreign Exchange Market; c. applicable international standards and/or principles; and/or d. other matters determined by Bank Indonesia. (2) The parties to be appointed by Bank Indonesia as referred to in section (1) must meet the criteria and/or requirements set by Bank Indonesia, which include: a. institutional aspects; b. capability aspects; and/or c. other aspects determined by Bank Indonesia. Article 163 The obligations and prohibitions for PUVA Participants and/or Financial Market Infrastructure providers that have obtained a license from Bank Indonesia as referred to in Article 136 section (1), Article 140 section (1), Article 141 section (1), Article 142 section (1), Article 143 section (1), Article 147 section (1), Article 148 section (5), Article 149 section (1), section (2), Article 151 section (2), Article 152 section (1), section (2), Article 154 section (1), Article 158 section (1), section (2), section (3), Article 159 section (1) point a, point b, section (2), and Article 160 section (1), shall apply mutatis mutandis to PUVA Participants and/or

• 67 - Financial Market Infrastructure providers that have received a determination from Bank Indonesia. Article 164 Further provisions regarding the determination shall be regulated in the Regulation of the Members of the Board of Governors. Part Five Administrative Sanctions Article 165 (1) Breach of the provisions as referred to in Article 134 section (4), Article 136 section (1), Article 140 section (1), Article 141 section (1), Article 142 section (1), Article 143 section (1), Article 147 section (1), Article 148 section (5), Article 151 section (2), Article 152 section (1), section (2), Article 154 section (1), Article 158 section (1), section (2), section (3), Article 159 section(1) points a, point b, section (2), and Article 160 section (1) shall be subject to administrative sanctions in the form of: a. written reprimand; b. obligation to pay; c. temporary, partial, or full suspension of activities in the Money Market and/or Foreign Exchange Market; and/or d. revocation of license and/or determination. (2) The imposition of administrative sanctions as referred to in section (1) does not preclude the imposition of criminal sanctions in accordance with the Law. (3) Provisions regarding the procedures for the imposition of administrative sanctions shall be regulated in the Regulation of the Members of the Board of Governors. CHAPTER IX DATA AND INFORMATION Article 166 (1) The parties that are: a. PUVA Participant; b. Financial Market Infrastructure provider; c. SRO PUVA; d. professional association in the field of treasury; e. treasury professional certification provider; and f. other parties as determined by Bank Indonesia, are required to provide data, information, reports, statements, and/or explanations related to activities in the Money Market and Foreign Exchange Market and/or their business activities related to Bank Indonesia.

• 68 - (2) Data, information, reports, statements, and/or explanations as referred to in section (1) shall be submitted to Bank Indonesia through: a. survey; b. reporting; or c. other methods determined by Bank Indonesia. (3) The implementation of the survey as referred to in section (2) point a shall be carried out in accordance with Bank Indonesia's provisions regarding the implementation of surveys by Bank Indonesia. Article 167 (1) The reports submitted to Bank Indonesia as referred to in Article 166 section (2) point b shall include: a. periodic reports; and/or b. incidental report. (2) The report as referred to in section (1) is required to be submitted in a complete, accurate, current, integral, and timely manner to Bank Indonesia. (3) In the event of an error in the report that has been submitted, each party as referred to in Article 166 section (1) is required to submit a correction to the report. (4) Bank Indonesia shall determine the time limit for the fulfillment of the report as referred to in section (1). (5) If required, Bank Indonesia may request additional information regarding the submission of reports as referred to in section (1). (6) The parties as referred to in Article 166 section (1) are required to submit additional information as referred to in section (5). Article 168 (1) The report as referred to in Article 167 section (1) shall be submitted to Bank Indonesia online through the reporting system. (2) Online reporting as referred to in section (1) shall be carried out in accordance with Bank Indonesia provisions regarding reporting. (3) In the event that the online reporting system as referred to in section (1) is not yet available, reports shall be submitted offline. Article 169 (1) PUVA Participants, Financial Market Infrastructure providers, and/or other parties determined by Bank Indonesia are required to: a. provide transaction data before the transaction is executed (pre-trade), during the transaction is executed (trade), after the transaction is executed

• 69 - (post-trade), and/or the financial instrument ownership position; b. provide, convey, and/or ensure the availability of access, and provide transaction data for licensing, supervision, evaluation, and/or other purposes; c. ensure data standardization, technical standardization, security standardization, and governance standardization of financial market data and information provided and/or submitted; d. maintain and document transaction databases and/or recordings of conversations that may be heard and/or re-read by Bank Indonesia with a retention period in accordance with the provisions of laws and regulations; e. manage, process and store transaction data in the territory of the Unitary State of the Republic of Indonesia; and f. maintain the confidentiality of customer or participant data. (2) The obligation to manage, process and/or store transaction data in the territory of the Republic of Indonesia as referred to in section (1) point e shall be exempted for certain parties with the approval of Bank Indonesia. Article 170 Further provisions regarding data and information shall be regulated in the Regulation of the Members of the Board of Governors. Article 171 (1) Breach of the provisions as referred to in Article 166 section (1), Article 167 section (2), section (3), section (6), and Article 169 section (1) shall be subject to administrative sanctions in the form of: a. written reprimand; b. obligation to pay; c. temporary, partial, or full suspension of activities in the Money Market and/or Foreign Exchange Market; and/or d. revocation of license and/or determination. (2) The imposition of administrative sanctions as referred to in section (1) does not preclude the imposition of criminal sanctions in accordance with the Law. (3) Provisions regarding the procedures for the imposition of administrative sanctions shall be regulated in the Regulation of the Members of the Board of Governors. CHAPTER X IMPLEMENTATION OF PRINCIPLES OF PRUDENCE, RISK MANAGEMENT, AND GOVERNANCE

• 70 - Article 172 (1) The parties that are: a. PUVA Participant; b. Financial Market Infrastructure providers; and c. other parties as determined by Bank Indonesia, are required to apply the principles of prudence and effective risk management. (2) In carrying out business activities, the parties referred to in section (1) must pay attention to obligations regarding the risk of money laundering and/or terrorism financing crimes as regulated in laws and regulations. Article 173 (1) The implementation of risk management for PUVA Participants as referred to in Article 172 section (1) point a at least shall include: a. active supervision by management; b. policies and procedures and the adequacy of organizational structures; c. risk management processes and risk management functions which shall at least include:

1. risk management process framework;
2. information technology related risk management; and
3. risk management related to disaster recovery; d. human resources; and e. internal control. (2) The application of risk management as referred to in section (1) shall be carried out for the risks faced. Article 174 (1) In implementing effective risk management, the providers of the Financial Market Infrastructure as referred to in Article 172 section (1) point b must have at least: a. adequate risk management framework; b. business continuity planning; c. disaster recovery plan; d. information security that meets the principles of confidentiality, integrity, and availability; and e. technology related risk management. (2) The implementation of risk management as referred to in section (1) shall be carried out for risks faced by Financial Market Infrastructure providers in the form of: a. legal risks; b. credit risk; c. liquidity risk; d. business risk; e. custody risk; f. investment risk; g. operational risk; and/or

• 71 - h. other risks that Financial Market Infrastructure providers may face. Article 175 (1) Financial Market Infrastructure providers and other parties appointed by Bank Indonesia are required to implement the principles of good governance as determined in the Law on the development and strengthening of the financial sector. (2) The principles of good governance as referred to in section (1) shall be at least: a. openness; b. accountability; c. responsibility; d. independence; and e. fairness. (3) In addition to the implementation of the principles as referred to in section (1), the Financial Market Infrastructure and other parties determined by Bank Indonesia must follow developments in industry dynamics for the implementation of good governance. Article 176 Further provisions regarding the application of the principles of prudence, risk management and governance shall be regulated in the Regulation of the Members of the Board of Governors. Article 177 (1) Breach of the provisions as referred to in Article 172 section (1) and Article 175 section (1) shall be subject to administrative sanctions in the form of: a. written reprimand; b. obligation to pay; c. temporary, partial, or complete suspension of activities in the Money Market and/or Foreign Exchange Market; and/or d. revocation of license and/or determination. (2) The imposition of administrative sanctions as referred to in section (1) does not preclude the imposition of criminal sanctions in accordance with the Law. (3) Provisions regarding the procedures for the imposition of administrative sanctions shall be regulated in the Regulation of the Members of the Board of Governors. CHAPTER XI CONSUMER PROTECTION Article 178 The scope of parties, implementation of consumer protection, and imposition of sanctions for breach of provisions regarding

• 72 - consumer protection shall be implemented in accordance with Regulation of Bank Indonesia regarding Bank Indonesia consumer protection. CHAPTER XII SUPERVISION Article 179 (1) Bank Indonesia shall supervise the Money Market and Foreign Exchange Market. (2) Supervision as referred to in section (1) shall be carried out on: a. PUVA Participant; b. Financial Market Infrastructure provider; c. SRO PUVA; d. professional association in the field of treasury; e. treasury professional certification provider; f. dealer treasury; and g. other parties as determined by Bank Indonesia. (3) Supervision as referred to in section (1) shall include: a. indirect supervision; and/or b. inspection. (4) In carrying out supervision as referred to in section (1), Bank Indonesia may coordinate with other relevant authorities. Article 180 (1) In implementing supervision as referred to in Article 179 section (1), the parties as referred to in Article 179 section (2) are required to provide and submit data, information, statements, and/or explanations required by Bank Indonesia. (2) The parties referred to in Article 179 section (2) be required to ensure the truthfulness, completeness, and accuracy of the data, information, and/or statements submitted to Bank Indonesia. Article 181 (1) Bank Indonesia may assign another party to conduct the inspection as referred to in Article 179 section (3) point b. (2) Other parties assigned to conduct the inspection as referred to in section (1) be required to maintain the confidentiality of data, information, and/or statements obtained from the results of the inspection. Article 182 (1) Bank Indonesia may supervise third parties that cooperate with parties as referred to in Article 179 section (2).

• 73 - (2) The parties as referred to in Article 179 section (2) who cooperate with third parties as referred to section (1) be required to ensure that Bank Indonesia may: a. have access to data and information required for supervision; and b. implement supervision of third parties who cooperate with parties as referred to in Article 179 section (2). Article 183 Further provisions regarding supervision in the Money Market and Foreign Exchange Market shall be regulated in the Regulation of the Members of the Board of Governors. Article 184 (1) Breach of the provisions as referred to in Article 180 section (1), section (2), Article 181 section (2), and Article 182 section (2) shall be subject to administrative sanctions in the form of: a. written reprimand; b. obligation to pay; c. temporary, partial, or full suspension of activities in the Money Market and/or Foreign Exchange Market; and/or d. revocation of license and/or determination. (2) The imposition of administrative sanctions as referred to in section (1) does not preclude the imposition of criminal sanctions in accordance with the Law. (3) Provisions regarding the procedures for the imposition of administrative sanctions shall be regulated in the Regulation of the Members of the Board of Governors. CHAPTER XIII EXIT POLICY Article 185 (1) Bank Indonesia shall set an exit policy in the Money Market and Foreign Exchange Market which cover: a. product; b. Pricing; c. PUVA Participant; and d. Financial Market Infrastructure providers, as referred to in Article 4 section (1). (2) Exit policy related to products as referred to in section (1) point a in the Money Market and Foreign Exchange Market shall include: a. determination of limits on the issuance of Money Market Instruments;

• 74 - b. determination of limits on Money Market Transactions and Foreign Exchange Market transactions; and/or a. other forms of exit policy set by Bank Indonesia regarding products in the Money Market and Foreign Exchange Market. (3) The exit policy regarding Pricing as referred to in section (1) point b shall include: a. termination of the determination of other parties to support the provision of Pricing as referred to in Article 18 section (2) point b; b. termination of the determination of input data contributors in the establishment of Pricing as referred to in Article 22 section (4); and c. other forms of exit policy set by Bank Indonesia regarding Reference Pricing. (4) The exit policy regarding PUVA Participants as referred to in section (1) point c and Financial Market Infrastructure providers as referred to in section (1) point d shall be carried out through revocation of licenses and/or determination. (5) Revocation of licenses and/or determinations as referred to in section (4) shall be carried out by considering: a. results of Bank Indonesia's supervision and/or evaluation; b. information and/or data and recommendations from other relevant authorities, associations, and/or PUVA SROs; a. corporate action; b. court decision that has permanent legal force; c. own request by the PUVA Participant or Financial Market Infrastructure provider; and/or d. other considerations determined by Bank Indonesia. (6) Further provisions regarding exit policy in the Money Market and Foreign Exchange Market shall be regulated in the Regulation of the Members of the Board of Governors. CHAPTER XIV COORDINATION Article 186 (1) In regulating, developing, and supervising the Money Market and Foreign Exchange Market, Bank Indonesia may coordinate with other relevant authorities, ministries and/or related parties. (2) Coordination in the regulation, development and supervision of the Money Market and Foreign Exchange Market as referred to in section (1) shall include:

• 75 - a. development of alternative sources of financing for the national economy; b. implementation of sustainable finance; c. development of national financial markets; and d. other coordination in supporting the regulation, development, and supervision of the Money Market and Foreign Exchange Market. (3) Coordination in the development of the national financial market as referred to in section (2) point c may be carried out for financial instruments and/or transactions on financial instruments that have: a. more than 1 (one) characteristic between the Money Market, Foreign Exchange Market, capital market, and commodity market; and/or b. characteristics of risk, rights and benefits that are equivalent to investors or issuers, shall be conducted to establish equivalent regulatory and supervisory standards. (4) The regulatory and supervision standards as referred to in section (3) shall at least include: a. publishing mechanisms, information disclosure, and reporting; b. risk mitigation including systemic and non-systemic risks; and c. protection of investors and reasonable sanctions against market players. CHAPTER XV MISCELLANEOUS PROVISIONS Article 187 (1) The provisions in this Regulation of Bank Indonesia shall be exempted for: a. issuance of Money Market Instruments carried out by Bank Indonesia; b. issuance of Money Market Instruments issued and guaranteed by the Government of the Republic of Indonesia; a. Money Market Transactions and Foreign Exchange Market transactions conducted with Bank Indonesia; and b. Money Market Transactions conducted with the Government of the Republic of Indonesia. (2) The issuance of Money Market Instruments issued by Money Market Instrument issuers as referred to in Article 26 section (2) point a and guaranteed by the Government of the Republic of Indonesia shall be subject to the provisions in this Regulation of Bank Indonesia. Article 188

• 76 - Bank Indonesia, under certain considerations, may adopt certain policies regarding the regulation, development and supervision of the Money Market and Foreign Exchange Market while still paying attention to the provisions of applicable laws and regulations. CHAPTER XVI TRANSITIONAL PROVISIONS Article 189 At the time this Regulation of Bank Indonesia comes into force: a. primary dealers as regulated in Bank Indonesia's provisions regarding primary dealers, that have obtained Bank Indonesia's approval, shall be designated as PUVA Primary Dealers; b. money market and foreign exchange market brokerage companies as regulated in Bank Indonesia's provisions regarding money market and foreign exchange market brokerage companies, which have obtained a business license from Bank Indonesia, shall be designated as brokerage companies; c. institutions supporting the issuance of commercial securities as regulated in Bank Indonesia's provisions regarding money market supporting institutions that conduct activities related to commercial securities in the money market, which include:

1. banks and securities companies that function as issue arrangers; and
2. rating agency, which has been registered with Bank Indonesia, shall be designated as a supporting institution for the issuance of Money Market Instruments; d. institutions supporting the issuance of commercial securities as regulated in Bank Indonesia's provisions regarding money market supporting institutions that conduct activities related to commercial securities in the money market, which include:
3. legal consultant;
4. public accountant; and
5. Notary Public, who have been registered with Bank Indonesia, are designated as PUVA Supporting Professions; e. commercial securities transaction support institutions as regulated in Bank Indonesia's provisions on money market support institutions that conduct activities related to commercial securities in the money market and/or intermediaries for implementing deposit certificate transactions as regulated in Bank Indonesia's provisions on deposit certificate transactions in the money market, in the form of securities companies that have been registered

• 77 - with Bank Indonesia, shall be designated as Money Market Transaction support institutions; f. supporting institutions for the administration and settlement of commercial securities transactions as regulated in Bank Indonesia's provisions on money market supporting institutions that conduct activities related to commercial securities in the money market, custodians that administer certificates of deposit transacted in the Money Market as regulated in Bank Indonesia's provisions on certificate of deposit transactions, and supporting institutions for the administration and settlement of sharia certificate of deposit transactions as regulated in Bank Indonesia's provisions on sharia certificate of deposit transactions in the money market, in the form of:

1. banks that implement custodial activities; or
2. securities company, which has been registered with Bank Indonesia, and/or is an account holder of a depository and settlement institution as regulated in the Law on Capital Markets, shall be designated as a supporting institution for the administration and settlement of Money Market Transactions; g. self regulatory organization in the field of Money Market and Foreign Exchange Market as regulated in the provisions of Bank Indonesia on strengthening the quality of participants and the implementation of self-regulatory organization in the money market and foreign exchange market, which has been determined by Bank Indonesia, shall be designated as SRO PUVA; and h. central counterparty for over-the-counter interest rate and exchange rate derivative transactions as regulated in Bank Indonesia's provisions regarding the organization of central counterparty for over-the-counter interest rate and exchange rate derivative transactions, which has obtained a business license from Bank Indonesia, shall be designated as CCP, under this Regulation of Bank Indonesia. Article 190 (1) The processing of business licenses as a central counterparty for over-the-counter interest rate and exchange rate derivative transactions for parties that have obtained principle approval before the enforcement of this Regulation of Bank Indonesia, will continue to be processed in accordance with Regulation of Bank Indonesia Number 21/11/PBI/2019 on the Implementation of Central Counterparties for Over-the-Counter Interest Rate and Exchange Rate Derivative Transactions (State Gazette of the

• 78 - Republic of Indonesia 2019 Number 159, Supplement to the State Gazette of the Republic of Indonesia Number 6381). (2) In the event that the party referred to in section (1) is granted a business license as a central counterparty for over-the-counter interest rate and exchange rate derivative transactions, the license shall be granted as a CCP business license as referred to in Article 154 section (2) point a number 1. CHAPTER XVII CLOSING PROVISIONS Article 191 At the time this Regulation of Bank Indonesia comes into force: a. all terms “Money Market Supporting Institution” and “Foreign Exchange Market Supporting Institution” that existed before the enforcement of this Regulation of Bank Indonesia must be interpreted as “PUVA Supporting Institution” as referred to in this Regulation of Bank Indonesia; b. all terms “Money Market and Foreign Exchange Market Brokerage Firm”, “Money Market Broker”, “Foreign Exchange Market Broker”, “Money Market Brokerage Firm”, or “Foreign Exchange Market Brokerage Firm” that existed before the enforcement of this Regulation of Bank Indonesia must be interpreted as “brokerage firm” as referred to in this Regulation of Bank Indonesia; c. all terms “Commercial Securities Transaction Supporting Institution”, “Deposit Certificate Transaction Implementation Intermediary”, or “Sharia Deposit Certificate Transaction Implementation Intermediary” that existed before the enforcement of this Regulation of Bank Indonesia must be interpreted as “Money Market Transaction Supporting Institution” as referred to in this Regulation of Bank Indonesia; d. all terms “Central Counterparty for Over-the-Counter Interest Rate and Exchange Rate Derivative Transactions”, “Central Counterparty in the Money Market and Foreign Exchange Market”, or “Clearing Facility for Over-the￾Counter Interest Rate and Exchange Rate” that existed before the enforcement of this Regulation of Bank Indonesia must be interpreted as “CCP” as referred to in this Regulation of Bank Indonesia; and e. all terms “Trading Facility Provider”, “Market Operators in the Money Market and Foreign Exchange Market”, or “Transaction Provider” that existed before the enforcement of this Regulation of Bank Indonesia must be interpreted as “Market Operators” as referred to in this Regulation of Bank Indonesia.

• 79 - Article 192 At the time this Regulation of Bank Indonesia comes into force, all regulations which are implementing regulations of: a. Regulation of Bank Indonesia Number 20/9/PBI/2018 on Sharia Deposit Certificate Transactions in the Money Market (State Gazette of the Republic of Indonesia 2018 Number 121, Supplement to the State Gazette of the Republic of Indonesia Number 6233); b. Regulation of Bank Indonesia Number 21/5/PBI/2019 on Marlet Operators in the Money Market and Foreign Exchange Market (State Gazette of the Republic of Indonesia 2019 Number 72, Supplement to the State Gazette of the Republic of Indonesia Number 6336); c. Regulation of Bank Indonesia Number 21/11/PBI/2019 on the Implementation of Central Counterparty for Over-the￾Counter Interest Rate and Exchange Rate Derivative Transactions (State Gazette of the Republic of Indonesia 2019 Number 159, Supplement to the State Gazette of the Republic of Indonesia Number 6381); d. Regulation of Bank Indonesia Number 22/9/PBI/2020 on the Interbank Money Market Under Sharia Principles (State Gazette of the Republic of Indonesia 2020 Number 179, Supplement to the State Gazette of the Republic of Indonesia Number 6539); e. Regulation of Bank Indonesia Number 24/7/PBI/2022 on Transactions in the Foreign Exchange Market (State Gazette of the Republic of Indonesia 2022 Number 3/BI, Supplement to the State Gazette of the Republic of Indonesia Number 3/BI); f. Regulation of Bank Indonesia Number 6 of 2023 on Money Market and Foreign Exchange Market (State Gazette of the Republic of Indonesia 2023 Number 16/BI, Supplement to the State Gazette of the Republic of Indonesia Number 41/BI); g. Regulation of Bank Indonesia Number 12 of 2023 on the Issuance of Money Market Instruments and Money Market Transactions (State Gazette of the Republic of Indonesia 2023 Number 34/BI, Supplement to the State Gazette of the Republic of Indonesia Number 57/BI); and h. Article 68 section (2) point b, Article 68A, Article 68B, Article 68C, Article 68D, Article 68E, Article 68F, and Article 68G in Regulation of Bank Indonesia Number 22/14/PBI/2020 on Monetary Operations (State Gazette of the Republic of Indonesia 2020 Number 220, Supplement to the State Gazette of the Republic of Indonesia Number 6556) as amended several times, most recently by Regulation of Bank Indonesia Number 15 of 2023 on the Third Amendment to Regulation of Bank Indonesia Number 22/14/PBI/2020 on Monetary Operations (State Gazette of the Republic of

• 80 - Indonesia 2023 Number 38/BI, Supplement to the State Gazette of the Republic of Indonesia Number 60/BI), declared to remain effective to the extent not contrary to the provisions of the Regulation of Bank Indonesia. Article 193 At the time this Regulation of Bank Indonesia comes into force: a. Regulation of Bank Indonesia Number 16/18/PBI/2014 on the Amendment to Regulation of Bank Indonesia Number 15/8/PBI/2013 on Hedging Transactions to Banks (State Gazette of the Republic of Indonesia 2014 Number 214); b. Regulation of Bank Indonesia Number 20/9/PBI/2018 on Sharia Deposit Certificate Transactions in the Money Market (State Gazette of the Republic of Indonesia 2018 Number 121, Supplement to the State Gazette of the Republic of Indonesia Number 6233); c. Regulation of Bank Indonesia Number 21/5/PBI/2019 on Market Operators in the Money Market and Foreign Exchange Market (State Gazette of the Republic of Indonesia 2019 Number 72, Supplement to the State Gazette of the Republic of Indonesia Number 6336); d. Regulation of Bank Indonesia Number 21/11/PBI/2019 on the Implementation of Central Counterparty for Over-the￾Counter Interest Rate and Exchange Rate Derivative Transactions (State Gazette of the Republic of Indonesia 2019 Number 159, Supplement to the State Gazette of the Republic of Indonesia Number 6381); e. Regulation of Bank Indonesia Number 22/9/PBI/2020 on the Interbank Money Market Under Sharia Principles (State Gazette of the Republic of Indonesia 2020 Number 179, Supplement to the State Gazette of the Republic of Indonesia Number 6539); f. Regulation of Bank Indonesia Number 24/7/PBI/2022 on Transactions in the Foreign Exchange Market (State Gazette of the Republic of Indonesia 2022 Number 3/BI, Supplement to the State Gazette of the Republic of Indonesia Number 3/BI); g. Regulation of Bank Indonesia Number 6 of 2023 on Money Market and Foreign Exchange Market (State Gazette of the Republic of Indonesia 2023 Number 16/BI, Supplement to the State Gazette of the Republic of Indonesia Number 41/BI); h. Regulation of Bank Indonesia Number 12 of 2023 on the Issuance of Money Market Instruments and Money Market Transactions (State Gazette of the Republic of Indonesia 2023 Number 34/BI, Supplement to the State Gazette of the Republic of Indonesia Number 57/BI); and i. Article 68 section (2) point b, Article 68A, Article 68B, Article 68C, Article 68D, Article 68E, Article 68F, and

• 81 - Article 68G in Regulation of Bank Indonesia Number 22/14/PBI/2020 on Monetary Operations (State Gazette of the Republic of Indonesia 2020 Number 220, Supplement to the State Gazette of the Republic of Indonesia Number

6556. as amended several times, most recently by Regulation of Bank Indonesia Number 15 of 2023 on the Third Amendment to Regulation of Bank Indonesia Number 22/14/PBI/2020 on Monetary Operations (State Gazette of the Republic of Indonesia 2023 Number 38/BI, Supplement to the State Gazette of the Republic of Indonesia Number 60/BI), are repealed and declared ineffective. Article 194 This Regulation of Bank Indonesia comes into force from the date of its promulgation. In order that every person may know hereof, it is ordered to promulgate this Bank Indonesia Regulation by its placement in the State Gazette of the Republic of Indonesia. Issued in Jakarta On 11 July 2024 GOVERNOR OF BANK INDONESIA, PERRY WARJIYO Promulgated in Jakarta On 16 July 2024 MINISTER OF LAW AND HUMAN RIGHTS OF THE REPUBLIC OF INDONESIA, YASONNA H. LAOLY STATE GAZETTE OF THE REPUBLIC OF INDONESIA OF 2024 NUMBER 17/B

82 ELUCIDATION OF REGULATION OF BANK INDONESIA NUMBER 6 OF 2024 ON MONEY MARKET AND FOREIGN EXCHANGE MARKET I. GENERAL The Government of the Republic of Indonesia has issued Law Number 4 of 2023 on the Development and Strengthening of the Financial Sector as an effort to reform the financial sector in Indonesia. The law aims to provide laws and regulations in the financial sector so that national development may be realized which is supported by a strong economy. The Law contains provisions for strengthening the development of the financial market as a whole, such as strengthening the capital market, money market, and foreign exchange market, regulating technological innovation in the financial sector, implementing sustainable finance, strengthening financial literacy, financial inclusion and consumer protection, and strengthening human resources in the financial sector. Regarding the Money Market and Foreign Exchange Market, it also includes strengthening the authority of Bank Indonesia in regulating, developing, and supervising the Money Market and Foreign Exchange Market, including those carried out under Sharia Principles. Strengthening the authority in regulating, developing, and supervising the Money Market and Foreign Exchange Market shall be in line with Bank Indonesia's efforts to realize a modern and advanced Money Market and Foreign Exchange Market that will contribute to the development and deepening of financial markets, and will further support the effectiveness of monetary policy, financial system stability, and synergy in financing the national economy. A modern and advanced Money Market and Foreign Exchange Market may be realized through end-to-end regulation, development and supervision of the Money Market and Foreign Exchange Market regarding:

83

1. Money Market and Foreign Exchange Market products which include the regulation, development, and supervision of financial instruments and/or transactions on financial instruments, including those which have: a. more than 1 (one) characteristic between the Money Market, Foreign Exchange Market with the capital market, and/or commodity market, for example repo transactions (repurchase agreement); and/or b. characteristics of risk, rights and benefits that are equivalent to investors or issuers; characteristics of risk, rights and benefits that are equivalent to investors or issuers;
2. Pricing that may be used in the issuance of Money Market Instruments, Money Market Transactions, Foreign Exchange Market transactions, issuance of financial instruments, and/or other financial transactions;
3. PUVA Participants, including strengthening the role of PUVA Participants through the implementation of Primary dealers and the implementation of SROs; and
4. organization of Financial Market Infrastructure which shall include: a. Financial Market Infrastructure provided by Bank Indonesia; b. Financial Market Infrastructure provided by parties other than Bank Indonesia; and c. Financial Market Infrastructure used in inter-market operations, which meets the principles of interconnection, interoperability, and integration between Financial Market Infrastructures. Comprehensive (end-to-end) regulation, development, and supervision of products, Reference Pricing, PUVA Participants, and the organization of Financial Market Infrastructure are expected to create a more provided and well-functioning Money Market and Foreign Exchange Market. In order to regulate, develop, and supervise the Money Market and Foreign Exchange Market in an end-to-end manner, Bank Indonesia needs to harmonize the regulation of the Money Market and Foreign Exchange Market through the issuance of Regulation of Bank Indonesia that integrate, simplify, and perfect the overall substance of the regulation of the Money Market and Foreign Exchange Market. Under this, Bank Indonesia needs to establish Regulation of Bank Indonesia on Money Markets and Foreign Exchange Markets. II. ARTICLE BY ARTICLE Article 1 Sufficiently clear. Article 2

84 Sufficiently clear. Article 3 Sufficiently clear. Article 4 Sufficiently clear. Article 5 Section (1) Sufficiently clear. Section (2) Sufficiently clear. Section (3) Sufficiently clear. Section (4) The term “electronic document” means any electronic information that is created, forwarded, sent, received, or stored in analog, digital, electromagnetic, optical, or similar form, which may be viewed, displayed, and/or heard through a computer or electronic system, including but not limited to writing, sound, images, maps, designs, photograph or the like, points, signs, numbers, access codes, symbols or perforations that have meaning or significance or may be understood by a person who is able to understand them as regulated in the Law on Electronic Information and Transactions. Section (5) Sufficiently clear. Article 6 Section (1) Point a Sufficiently clear. Point b Sufficiently clear. Point c The term “debt securities and/or sukuk” means debt securities and/or sukuk that mature in no more than 1 (one) year. Under the Law on the development and strengthening of the financial sector, these securities shall be exempt from regulation and supervision by the Financial Services Authority. Point d Sufficiently clear. Section (2)

85 Types of money market instruments in the form of promissory notes include commercial securities. Section (3) Investment products include mutual funds formed from Money Market Instruments. Article 7 Section (1) Sufficiently clear. Section (2) Point a Sufficiently clear. Point b Sufficiently clear. Point c Sufficiently clear. Point d Other criteria set by Bank Indonesia include the underlying assets of Money Market Instruments and the use of certain contracts for Money Market Instruments under Sharia Principles. Section (3) Rights arising from Money Market Instruments include ownership rights due to the transfer of ownership of Money Market Instruments and rights that give rise to economic benefits such as the right to collect. The transfer of the rights that arise shall be carried out without a document (scripless). Section (4) Sufficiently clear. Article 8 Section (1) Laws and/or Regulation of the Government, among others, is Regulation of the Government Number 36 of 2023 on Foreign Exchange from Export Proceeds from Business Activities, Management, and/or Processing of Natural Resources. Section (2) Sufficiently clear. Section (3) Sufficiently clear. Article 9 Sufficiently clear. Article 10 Section (1)

86 Point a Master agreements and/or standard contracts include the Indonesian Derivatives Master Agreement, the International Swaps and Derivatives Association Master Agreement, the Global Master Repurchase Agreement, and master agreements and/or standard contracts formed from several master agreements and/or standard contracts such as the Cross-Product Master Agreement. “association” is an association at the national and/or international level. Relevant authorities include financial sector authorities including Bank Indonesia. Point b Written confirmation includes trade confirmation on the Financial Market Infrastructure system. Point c Sufficiently clear. Section (2) Point a Sufficiently clear. Point b Market standards and/or conventions, including the number of days in a year. Article 11 Sufficiently clear. Article 12 Sufficiently clear. Article 13 Section (1) The Law on the Development and Strengthening of the Financial Sector has regulated the legal standing of the use of smart contracts as a form of electronic contract as regulated in the Law on Information and Electronic Transactions. A smart contract may be a set of agreements specified in digital form, including in the form of a computer protocol. In line with current technological developments, it is possible to have smart contracts, including in standard Derivative transactions supported by digital technology and for some terms may be applied automatically for efficiency and are binding, which are implemented on a certain platform, including distributed ledger technology/DLT. The preparation and implementation of technological solutions for smart contracts must be consistent with applicable regulatory standards and laws.

87 The use of smart contracts is intended to reduce the possibility of differences between the legal meaning and operational performance of smart contracts. Section (2) The agreement is used as a framework for an agreement that contains natural language to underlie the automation of the implementation of rights and obligations using programming language (code) in a smart contract. Section (3) Sufficiently clear. Section (4) Sufficiently clear. Article 14 Section (1) Sufficiently clear. Section (2) Sufficiently clear. Section (3) Certain Money Market and Foreign Exchange Market products include Money Market and Foreign Exchange Market products that use smart contracts that have: a) been consulted and determined by Bank Indonesia; and b) been transacted and traded in the Money Market and Foreign Exchange Market. Section (4) The provisions of laws and regulations include the Law on the development and strengthening of the financial sector and Regulation of the Government on the implementation of electronic systems and transactions. Article 15 Sufficiently clear. Article 16 Sufficiently clear. Article 17 Section (1) Sufficiently clear. Section (2) Point a Sufficiently clear. Point b Sufficiently clear. Point c Sufficiently clear.

88 Point d Issuance of financial instruments and/or other financial transactions include the issuance of securities with floating interest rates, provision of credit or financing. Section (3) Point a Point 1 Reference Pricing in the money market in the form of interest rates include: a) Indonesia Overnight Index Average (IndONIA); and b) compounded Indonesia Overnight Index Average (compounded IndONIA). Reference Pricing in the Money Market shall be in the form of a rate of return, including the average rate of return for transactions occurring in the interbank Money Market under Sharia Principles. Point 2 Sufficiently clear. Point 3 Sufficiently clear. Point b Point 1 Reference Pricing in the Foreign Exchange Market shall be in the form of exchange rates including the Jakarta Interbank Spot Dollar Rate (JISDOR) and non-USD/Reference rates. Point 2 Sufficiently clear. Article 18 Section (1) Sufficiently clear. Section (2) Point a Sufficiently clear. Point b Other parties who support the provision of Reference Pricing are parties who play a role in, among other things, the calculation and publication of Reference Pricing. Section (3) Sufficiently clear. Section (4) Sufficiently clear. Section (5) Sufficiently clear. Article 19

89 Sufficiently clear. Article 20 Sufficiently clear. Article 21 Sufficiently clear. Article 22 Sufficiently clear. Article 23 Sufficiently clear. Article 24 Sufficiently clear. Article 25 Sufficiently clear. Article 26 Section (1) Sufficiently clear. Section (2) Sufficiently clear. Section (3) Sufficiently clear. Section (4) Sufficiently clear. Section (5) Identity standards shall include Single Investor Identification (SID) issued by PT Kustodian Sentral Efek Indonesia and Legal Entity Identifier (LEI) issued by The Global Legal Entity Identifier Foundation. Article 27 Section (1) Point a The term “financial services institutions" means institutions that conduct activities in the banking, capital markets, insurance, pension fund, financing institutions and other financial services institutions sectors under the provisions of laws and regulations in the financial services sector. The term “other financial services institutions” means pawnshops, guarantee institutions, Indonesian export financing institutions, secondary housing financing companies, providers of information technology-based joint

90 funding services, and institutions that provide mandatory public fund management, including providers of social security, pension, and welfare programs, as referred to in the provisions of laws and regulations regarding pawnshops, guarantees, Indonesian export financing institutions, secondary housing financing companies, and mandatory public fund management, as well as other financial services institutions that are declared to be supervised by the Financial Services Authority under the provisions of laws and regulations. Point b The term “corporation” means a provided group of people and/or assets, whether a legal entity or not. Point c The term “special purpose vehicle" means a special business entity formed to conduct asset securitization activities including financial assets in the form of Money Market Instruments. Point d Sufficiently clear. Section (2) The provisions of laws and regulations in the financial sector include the Law on the development and strengthening of the financial sector. Section (3) Sufficiently clear. Article 28 Section (1) Sufficiently clear. Section (2) Point a The term "resident" means a person, legal entity, or other entity, who is domiciled or plans to be domiciled in Indonesia for at least 1 (one) year, including representatives and diplomatic staff of the Republic of Indonesia abroad. Point b The term “non-resident" means a person, legal entity, or other body, who is not domiciled in Indonesia or has been domiciled in Indonesia for less than 1 (one) year, including representatives and diplomatic staff of other countries in Indonesia. Non-residents are non-residents as referred to in the Law on the development and strengthening of the financial sector. Section (3) See the explanation of Article 27 section (2).

91 Section (4) Sufficiently clear. Article 29 Sufficiently clear. Article 30 Point a The facilities provided for PUVA Primary Dealers include repurchase agreement transaction facilities and domestic non￾deriverable forward transactions with Bank Indonesia. Point b Sufficiently clear. Point c Information related to the role as PUVA's Primary dealer includes developments in the implementation of monetary operations. Point d Sufficiently clear. Article 31 Sufficiently clear. Article 32 Sufficiently clear. Article 33 Sufficiently clear. Article 34 Sufficiently clear. Article 35 Sufficiently clear. Article 36 Section (1) Sufficiently clear. Section (2) Sufficiently clear. Section (3) See the explanation of Article 14 section (4). Section (4) Sufficiently clear. Article 37 Section (1) Point a

92 The term “legal consultant" means a legal expert who provides legal services such as providing legal opinions and carrying out legal due diligence activities. Point b The term “public accountant" means an accountant who has obtained a license to provide public accounting services. Point c The term “notary" means a public official as regulated in the Law on the position of notary. Point d Other supporting professions determined by Bank Indonesia include sharia experts who conduct activities in the Money Market and Foreign Exchange Market under Sharia Principles. Section (2) Sufficiently clear. Section (3) Point a Sufficiently clear. Point b Sufficiently clear. Point c Under the Law on the development and strengthening of the financial sector, PUVA Supporting Professions must comply with the code of ethics determined by their respective professional associations as long as it does not conflict with the Law on the development and strengthening of the financial sector and/or its implementing regulations including this Regulation of Bank Indonesia. Point d Sufficiently clear. Article 38 Sufficiently clear. Article 39 Sufficiently clear. Article 40 Section (1) The term “sustainable finance" means an ecosystem with comprehensive support in the form of policies, regulations, norms, standards, products, transactions, and financial services that align economic, environmental, and social interests in financing sustainable activities and financing the

93 transition towards sustainable economic growth as referred to in the Law on the development and strengthening of the financial sector. Section (2) The provisions of the laws and regulations shall include: a) Law on the development and strengthening of the financial sector; and b) regulation of the financial sector authority regarding the implementation of sustainable finance. Article 41 Section (1) Sufficiently clear. Section (2) The provisions of laws and regulations governing the implementation of social and environmental responsibility include the Law on limited liability companies and Regulation of the Government on social and environmental responsibility. Section (3) Sufficiently clear. Article 42 Sufficiently clear. Article 43 Sufficiently clear. Article 44 Section (1) The term “treasury dealer” means the directors and employees who conduct treasury activities in the Money Market and Foreign Exchange Market. Section (2) Point a The provision of professional services by a treasury dealer may be in the form of carrying out treasury activities under market codes of ethics and expertise proven by a treasury certificate. Point b The term “market code of ethics” means a guideline for professional moral norms regarding actions that must be taken and those that must be avoided in behaving in the Money Market and Foreign Exchange Market. Market codes of ethics include codes of ethics issued by professional associations in the treasury sector, both conventional and under Sharia Principles, as long as they do not conflict with the provisions of laws and regulations.

94 The term “treasury activities” means financial transaction activities that include product sales and/or transaction execution carried out directly by treasury dealers in the Money Market and Foreign Exchange Market. Point c Sufficiently clear. Point d Sufficiently clear. Section (3) Sufficiently clear. Section (4) Sufficiently clear. Section (5) Sufficiently clear. Article 45 The term “professional association in the treasury sector” means an organization that oversees the profession of treasury dealers in carrying out activities in the Money Market and Foreign Exchange Market. Article 46 Section (1) The term “treasury profession certification” means the process of providing competency certificates for dealer treasury professions which is carried out systematically and objectively through competency tests that refer to national work competency standards and/or international competency standards and/or special standards. Section (2) Point a The term “professional certification institution” means an institution implementing treasury professional certification that has obtained a license to have authority over institution and is registered with Bank Indonesia. Point b Sufficiently clear. Section (3) Sufficiently clear. Article 47 Sufficiently clear. Article 48 Sufficiently clear. Article 49

95 Postponement of issuance, rejection of extension, suspension, and/or revocation of treasury certificates are carried out, among other things, when there are problems with the integrity of the dealer's treasury such as breach of the market code of ethics, problems with the market code of ethics, problems with the implementation of treasury professional certification by the provider of treasury professional certification, or for other reasons related to treasury certificates and the implementation of the market code of ethics. Other relevant authorities include financial sector authorities other than Bank Indonesia. Article 50 Sufficiently clear. Article 51 Sufficiently clear. Article 52 Section (1) Point a Sufficiently clear. Point b The technical and micro provisions issued by SRO PUVA include SRO PUVA provisions and technical guidelines. Point c Supervision of SRO PUVA members is carried out, among other things, to ensure compliance of SRO PUVA members with SRO PUVA provisions. Point d Sufficiently clear. Point e Sufficiently clear. Point f Sufficiently clear. Point g Sufficiently clear. Point h Sufficiently clear. Point i Sufficiently clear. Point j Sufficiently clear. Point k Sufficiently clear. Section (2) Sufficiently clear.

96 Article 53 Section (1) Point a Sufficiently clear. Point b Sufficiently clear. Point c The term “Financial Market Infrastructure providers other than Bank Indonesia” means a party other than Bank Indonesia that provides Financial Market Infrastructure under the authority of Bank Indonesia. Financial Market Infrastructure other than Bank Indonesia includes CCP. Point d Sufficiently clear. Section (2) Sufficiently clear. Section (3) Sufficiently clear. Section (4) Sufficiently clear. Article 54 Sufficiently clear. Article 55 Sufficiently clear. Article 56 Section (1) Sufficiently clear. Section (2) Sufficiently clear. Section (3) Point a The term “effectiveness” means the ability of the Financial Market Infrastructure provider to fulfill its obligations in a timely manner and fulfill the security principles in carrying out its activities. The term “efficiency” means the ability of the Financial Market Infrastructure provider to calculate efficient costs and benefits for the services provided. Point b Sufficiently clear. Point c Applicable international principles and/or standards include principles for financial market infrastructures.

97 Section (4) Point a Sufficiently clear. Point b Sufficiently clear. Point c The term “inter-market organization” means the organization of Financial Market Infrastructure in the capital market, Money Market, and Foreign Exchange Market as regulated in the Law on the development and strengthening of the financial sector. Section (5) Sufficiently clear. Article 57 Section (1) Sufficiently clear. Section (2) Financial instruments and/or financial transactions that may be facilitated by Financial Market Infrastructure providers include those under Sharia Principles. Point a Sufficiently clear. Point b Sufficiently clear. Point c Financial instruments and/or financial transactions as regulated in the Law include securities issued by the Indonesian Government. Point d Sufficiently clear. Section (3) Sufficiently clear. Article 58 Section (1) Customary communication means and procedures include the use of the Society for Worldwide Interbank Financial Telecommunication (SWIFT). Section (2) Participants include participants, service users, members, or reporters from Financial Market Infrastructure providers. Data and information regarding the organization of Financial Market Infrastructure includes rule book for the organization of Financial Market Infrastructure and transaction data. Section (3)

98 The provisions of laws and regulations include the Law on Electronic Information and Transactions, the Law on Personal Data Protection, and Regulation of the Government on the Implementation of Electronic Systems and Transactions. Article 59 Section (1) Sufficiently clear. Section (2) Sufficiently clear. Section (3) Point a Size includes frequency, transaction volume, and level of participation of participants providing the Financial Market Infrastructure. Point b Interconnectedness shall include:

1. the connectivity between Financial Market Infrastructure and other Financial Market Infrastructure; and
2. the connectivity between the Financial Market Infrastructure and other financial institutions. Point c Complexity includes the variety of markets and transactions facilitated by the Financial Market Infrastructure. Point d Substitutability includes the availability of alternative Financial Market Infrastructure that may be used for transactions. Section (4) Point a Sufficiently clear. Point b The term “Bank Indonesia-Scripless Securities Settlement System” means the infrastructure used as a means of managing transactions and administering securities electronically. Point c Sufficiently clear. Point d Sufficiently clear. Point e Sufficiently clear. Section (5) Sufficiently clear.

99 Article 60 Section (1) See the explanation of Article 56 section (3) point c. Section (2) Point a Aspects of implementing Financial Market Infrastructure include:

1. legal basis;
2. governance;
3. comprehensive risk management framework;
4. credit risk;
5. collateral;
6. margin;
7. liquidity risk;
8. final settlement;
9. fund settlement;
10. physical delivery settlement;
11. securities administration center;
12. value exchange settlement system;
13. rules and procedures regarding participant default;
14. segregation and portability;
15. general business risks;
16. custodial and investment risks;
17. operational risk;
18. access and participation requirements;
19. tiered participation arrangements;
20. interconnectedness of Financial Market Infrastructure;
21. efficiency and effectiveness;
22. communication procedures and standards;
23. transparency regarding rule book, as well as market data; and
24. market data transparency by trade repository. Point b Aspects of the responsibility of the authorities in conducting supervision shall include:
25. regulation and oversight of Financial Market Infrastructure;
26. regulatory and oversight authority and resources;
27. transparency regarding policies related to Financial Market Infrastructure;
28. implementation of the principles of Financial Market Infrastructure; and
29. cooperation with other authorities. Relevant authorities see the explanation in Article 10 section (1) point a. Section (3)

100 Sufficiently clear. Article 61 The interconnectedness of Financial Market Infrastructure across countries is known as FMI link. Article 62 Sufficiently clear. Article 63 Section (1) Sufficiently clear. Section (2) Point a Participation aspects include institutions, types of participants, requirements to become participants, scope of functions that participants may have, participant status, and participant obligations. Types of participants include direct participants and indirect participants. Point b Aspects of implementation include monitoring compliance with participants. Point c The rule book for the organization of Financial Market Infrastructure include rule book in normal conditions, abnormal conditions, and/or emergency conditions. Point d Facilities and infrastructure include helpdesk, information systems, and contingency facilities. Point e Operational activities include carrying out operational activities for the provision of Financial Market Infrastructure in accordance with applicable provisions. Point f Efforts to ensure the reliability, availability, and security of the organization of Financial Market Infrastructure include compiling minimum service standards for the organization of Financial Market Infrastructure, as well as procedures for handling abnormal conditions and/or emergencies. Point g Bank Indonesia's provisions regarding financial market infrastructure include Bank Indonesia's provisions regarding the Bank Indonesia-Scripless Securities Settlement System. Article 64 Section (1)

101 Sufficiently clear. Section (2) Point a See the explanation of Article 59 section (4) point b. Point b Sufficiently clear. Section (3) Point a The term “Bank Indonesia System-Real Time Gross Settlement” means the infrastructure used as a means of electronic fund transfer where settlement is carried out instantly per individual transaction. Point b Sufficiently clear. Section (4) Sufficiently clear. Article 65 Sufficiently clear. Article 66 Section (1) Point a Sufficiently clear. Point b Access rights to the Trade Repository include:

1. granting, removing, or restricting access;
2. scope of accessible data; and
3. period of granting access rights. Section (2) Sufficiently clear. Section (3) Point a Sufficiently clear. Point b Financial Market Infrastructure providers other than Bank Indonesia include CCP. Point c Sufficiently clear. Section (4) Reporters are known as reporting entities from the Trade Repository. Section (5) Sufficiently clear. Article 67 Sufficiently clear.

102 Article 68 Sufficiently clear. Article 69 Section (1) Point a The rule book for the provision of transaction facilities include provisions related to transparency and openness of information, dispute resolution mechanisms, procedures for registering service users, terminating services to service users, and the fee structure charged to service users. Point b Sufficiently clear. Point c Participants see the explanation of Article 58 section (2). Point d Sufficiently clear. Point e Sufficiently clear. Point f Sufficiently clear. Section (2) Sufficiently clear. Article 70 Section (1) Point a Sufficiently clear. Point b Sufficiently clear. Point c Other relevant authorities see explanation of Article 49. Point d Sufficiently clear. Point e Sufficiently clear. Point f Sufficiently clear. Point g Sufficiently clear. Point h Other relevant authorities see explanation of Article 49. Point i Sufficiently clear. Section (2) Sufficiently clear.

103 Article 71 Sufficiently clear. Article 72 Sufficiently clear. Article 73 Section (1) Point a Bank Indonesia may make capital participation in Financial Market Infrastructure providers in line with the authority to make capital participation under the Law on Bank Indonesia. Point b Sufficiently clear. Point c Sufficiently clear. Point d Sufficiently clear. Section (2) Point a Sufficiently clear. Point b Sufficiently clear. Point c The policy of strengthening the institutional aspects of Financial Market Infrastructure providers in the form of implementing corporate actions aims to realize the implementation of strong, efficient, and competitive Financial Market Infrastructure, which is in line with the achievement of Bank Indonesia's tasks and objectives. Corporate actions include mergers, amalgamations, and separations, both split-off and spin-off. Point d Sufficiently clear. Section (3) Sufficiently clear. Section (4) Sufficiently clear. Article 74 Section (1) The term “supporting service provider” means a provider of supporting services for Financial Market Infrastructure. Supporting service providers include information technology providers including messaging providers. Section (2)

104 Sufficiently clear. Section (3) Point a Bank Indonesia and Financial Market Infrastructure providers have access to the necessary information regarding supporting service providers as regulated in the Law on the development and strengthening of the financial sector. Point b Sufficiently clear. Section (4) Sufficiently clear. Article 75 Sufficiently clear. Article 76 Section (1) Point a The term “electronic trading platform provider” means a business entity that provides and provides electronic transaction systems and/or facilities. Point b The term "brokerage company” means a business entity that provides certain facilities for the transaction interests of service users and receives compensation for its services. Point c The term “systematic internalisers” means banks that provide certain facilities used in conducting financial transactions on their own accounts with service users. Point d The term “exchange provider”means a business entity that provides and provides electronic transaction systems and/or facilities for standardized and recorded or registered contracts. Point e Sufficiently clear. Section (2) Point a The term “transaction facilities used in carrying out transactions in a bilateral manner” means transaction facilities used in conducting transactions between 2 (two) market players. Point b The term “transaction facilities used in carrying out transactions in a multilateral manner” means transaction

105 facilities used in conducting transactions between more than 2 (two) market players. Section (3) Point a The term “electronic trading platform” is an electronic system used as a means to conduct transactions in the financial market. Point b The term “telephone trading information system" means a communication tool used for transaction purposes and equipped with certain features. Point c Sufficiently clear. Section (4) Point a The term “monitoring prices, exchange rates and/or interest rates” means the best and most recent monitoring of prices, exchange rates and/or interest rates. Point b Sufficiently clear. Point c The term “processing transactions” means verification of transaction data. Point d Sufficiently clear. Point e Sufficiently clear. Section (5) Sufficiently clear. Article 77 Section (1) The prohibition is aimed at, among other things, Market Operators in the form of parties other than banks. Section (2) The prohibition is aimed at, among others, Market Operators in the form of banks. Section (3) Other relevant authorities see explanation of Article 49. Article 78 Sufficiently clear. Article 79 Section (1) Sufficiently clear. Section (2)

106 Point a Sufficiently clear. Point b Sufficiently clear. Point c The term “novation” means the process carried out by the CCP to position itself between the seller and the buyer by terminating the initial contract between the buyer and the seller, then replacing it with 2 (two) new contracts between the CCP and the buyer and the CCP and the seller. The term “open offer” means the process carried out by the CCP to position itself between the seller and the buyer through a contract between the CCP and the buyer and the CCP and the seller at the time of the transaction, without any initial contract between the seller and the buyer. Point d Sufficiently clear. Section (3) Point a Sufficiently clear. Point b The implementation of the CCP function for other financial transactions recommended and/or determined by Bank Indonesia is carried out, among other things, in order to providing intermarket Financial Market Infrastructure as regulated in the Law on the development and strengthening of the financial sector. Section (4) Sufficiently clear. Article 80 Point a Sufficiently clear. Point b Sufficiently clear. Point c The term “default fund contribution” means funds deposited by members to the CCP as part of risk mitigation in the event of default by the CCP member. The term “initial margin” means funds and/or securities deposited by a CCP member when making a transaction to mitigate potential changes in the position of the CCP member concerned if an event of default occurs. The term “variation margin” means funds and/or securities deposited by CCP members for exposures resulting from changes in market prices (market-to-market) of a transaction. Point d

107 Sufficiently clear. Point e Sufficiently clear. Article 81 Sufficiently clear. Article 82 Section (1) Point a Sufficiently clear. Point b Sufficiently clear. Point c Sufficiently clear. Point d The term “equity” means the value of assets after deducting liabilities. Equity refers to the accounting standards applicable in Indonesia. CCP equity allocated as part of the default waterfall is a liquid asset. Point e Sufficiently clear. Point f Sufficiently clear. Point g Sufficiently clear. Section (2) Sufficiently clear. Section (3) Sufficiently clear. Article 83 Section (1) Point a Direct members include banks that are members of the CCP. Point b Indirect members include customers of banks that are members of the CCP. Section (2) Point a The term “general members” means CCP members who may act in their own interests and/or on behalf of their customers. Point b The term “individual members” means CCP members who act in their own self-interest.

108 Article 84 Section (1) The term “qualifying CCP” means an entity that has a license to operate as a CCP, including a license to obtain exemption, and has obtained a license from the appropriate regulator or supervisor to operate as a CCP in accordance with the products offered. Section (2) Point a See the explanation of Article 56 section (3) point c. Point b Sufficiently clear. Section (3) Sufficiently clear. Article 85 Sufficiently clear. Article 86 Section (1) See the explanation of Article 56 section (4) point c. Inter-market implementation is carried out to support market efficiency and interoperability between markets. Section (2) Sufficiently clear. Section (3) Point a Financial Market Infrastructure of which regulatory, development and supervision authority is carried out by Bank Indonesia applies to Financial Market Infrastructure provided by Bank Indonesia and parties other than Bank Indonesia. Point b Other relevant authorities see explanation of Article 49. Article 87 Section (1) Other relevant authorities see explanation of Article 49. Section (2) Point a Sufficiently clear. Point b Joint supervision is carried out if there are issues resulting from supervision that require discussion between institutions with a mechanism agreed upon between authorities. Point c

109 Sufficiently clear. Point d Sufficiently clear. Section (3) Other relevant authorities see explanation of Article 49. Article 88 Section (1) Point a Sufficiently clear. Point b Other relevant authorities see explanation of Article 49. Section (2) Other relevant authorities see explanation of Article 49. Section (3) Sufficiently clear. Article 89 Section (1) Other relevant authorities see explanation of Article 49. Section (2) Provisions regarding the business activities of Financial Market Infrastructure providers include: a) types of financial instruments and transactions that may be facilitated by Financial Market Infrastructure providers; b) principles of providing Financial Market Infrastructure; c) participants in the organization of Financial Market Infrastructure; and d) application of the principles of prudence, risk management, and/or governance. Section (3) Other relevant authorities see explanation of Article 49. Article 90 Sufficiently clear. Article 91 Sufficiently clear. Article 92 Section (1) Point a Issuance of Money Market Instruments including Money Market Transactions in the primary market. Point b Sufficiently clear.

110 Point c Sufficiently clear. Section (2) Sufficiently clear. Section (3) Sufficiently clear. Section (4) Sufficiently clear. Section (5) Sufficiently clear. Article 93 Section (1) Transaction times in Money Market Transactions and Foreign Exchange Market transactions include settlement times for funds and/or securities. Section (2) Participants in Money Market Transactions and/or Foreign Exchange Market transactions include banks. Section (3) Sufficiently clear. Section (4) Sufficiently clear. Article 94 Section (1) Sufficiently clear. Section (2) Point a Sufficiently clear. Point b Central custodians include:

1. Bank Indonesia as the central registry and/or infrastructure provider as regulated in Bank Indonesia's provisions regarding the implementation of transactions, administration of securities, and immediate fund settlement; and
2. depository and settlement institutions as regulated in the Law on capital markets. Point c Sufficiently clear. Point d Sufficiently clear. Section (3) Sufficiently clear. Section (4) Sufficiently clear.

111 Section (5) Sufficiently clear. Article 95 Sufficiently clear. Article 96 Sufficiently clear. Article 97 The term “investor” means Money Market Transaction participant who buy Money Market Instruments in the primary market. The obligations of the issuer of Money Market Instruments include: a) principal or nominal payments of Money Market Instruments; and b) other obligations arising as a result of the occurrence of conditions required in the information memorandum for the issuance of Money Market Instruments, for example payment of fines or penalties. Article 98 Sufficiently clear. Article 99 Sufficiently clear. Article 100 Section (1) Point a Sufficiently clear. Point b Sufficiently clear. Point c Repo transactions (repurchase agreements) are a type of transaction in the financial market that has more than 1 (one) characteristic between the Money Market and the capital market, both as a lending-borrowing transaction and a buying or selling transaction with a promise to buy or resell as regulated in the Law on the development and strengthening of the financial sector. Point d Types of derivative transactions in the money market include interest rate derivative transactions. Derivative Transactions from Money Market Instruments as regulated in the Law on the development and strengthening of the financial sector. Point e

112 Other transactions in accordance with the characteristics of the Money Market include transactions for borrowing and lending securities in the form of securities issued by Bank Indonesia. Section (2) Sufficiently clear. Article 101 Sufficiently clear. Article 102 Section (1) Point a Sufficiently clear. Point b Money Market Instruments issued by Bank Indonesia include Bank Indonesia Certificates (Sertifikat Bank Indonesia/SBI), Bank Indonesia Deposit Certificates (Sertifikat Deposito Bank Indonesia/SDBI), Bank Indonesia Rupiah Securities (SRBI), Bank Indonesia Securities in Foreign Currency (Surat Berharga Bank Indonesia dalam Valuta Asing/SBBI Valas), and Bank Indonesia Foreign Currency Securities (Sekuritas Valuta Asing Bank Indonesia/SVBI). Money Market Instruments issued by Bank Indonesia under Sharia Principles include Bank Indonesia Certificates (Sertifikat Bank Indonesia/SBIS), Bank Indonesia Sukuk (Sukuk Bank Indonesia/SukBI), and Bank Indonesia Foreign Currency Sukuk (Sukuk Valuta Asing Bank Indonesia/SUVBI). Point c Transactions on Money Market Instruments of which issuance is carried out in accordance with the Law include transactions on Money Market Instruments issued and guaranteed by the Government of the Republic of Indonesia as regulated in the Law on the development and strengthening of the financial sector. Point d The law on the development and strengthening of the financial sector has regulated the legal standing of transactions on financial instruments that may be transacted in the Money Market. Transactions on financial instruments that may be traded on the Money Market include transactions in certificates of deposit (negotiable certificates of deposit). Section (2) Sufficiently clear.

113 Article 103 Section (1) Point a Plain vanilla derivative transactions include swaps, options and futures. Point b Structured product transactions may be a combination of Money Market Derivative transactions with:

1. Money Market Derivatives transactions;
2. other Derivative transactions; and/or
3. non-Derivative transactions. Point c Sufficiently clear. Section (2) Sufficiently clear. Section (3) Sufficiently clear. Article 104 Sufficiently clear. Article 105 Sufficiently clear. Article 106 Section (1) Sufficiently clear. Section (2) The term “issuer of certain Money Market Instruments” is an issuer of Money Market Instruments that issues Money Market Instruments without going through a PUVA Supporting Institution. Investors see the explanation of Article 97. Section (3) Certain PUVA supporting institutions include banks. Section (4) Certain Money Market Transaction Participants include banks. Section (5) Sufficiently clear. Article 107 Section (1) Sufficiently clear. Section (2) Money Market transactions that may be conducted in cross currency include repo transactions (repurchase agreements) in rupiah currency using securities in foreign currency.

114 Section (3) Sufficiently clear. Section (4) Sufficiently clear. Article 108 Sufficiently clear. Article 109 Section (1) Sufficiently clear. Section (2) Sufficiently clear. Section (3) Point a Derivative transactions in the Foreign Exchange Market that are plain vanilla include forwards, futures, domestic non-deliverable forwards, swaps, cross-currency swaps, and options. Point b Structured product transactions may be a combination of exchange rate derivative transactions with:

1. other exchange rate derivative transactions;
2. other Derivative transactions; and/or
3. nonderivative. Point c Sufficiently clear. Section (4) Sufficiently clear. Section (5) Point a The term “simple hedging transaction (aqd al-tahawwuth al-basith)” means hedging transaction with a forward agreement scheme (al-muwa'adat li 'aqd al-sharf al-fawri fi al-mustaqbal) which is followed by a cash transaction at the time when this maturity and the settlement is in the form of currency handover. Point b The term “complex hedging transaction (aqd al-tahawwuth al-murakkab)” means hedging transaction with a scheme in the form of a series of cash transactions and forward agreements (al-muwa'adat li 'aqd al-sharf al-fawri fi al￾msustaqbal) which is followed by a cash transaction at the time when this maturity and the settlement is in the form of a currency handover. Point c Sufficiently clear.

115 Section (6) Sufficiently clear. Article 110 Section (1) Sufficiently clear. Section (2) Point a Sufficiently clear. Point b Sufficiently clear. Point c Digital currency includes digital rupiah as regulated in the Law on currency. Section (3) Sufficiently clear. Article 111 Sufficiently clear. Article 112 Section (1) The term “underlying transaction” means the activity that underlies the Foreign Exchange Market transaction. Section (2) Point a Sufficiently clear. Point b Sufficiently clear. Point c Supporting documents for transactions include personal identification and/or a statement letter. Point d Sufficiently clear. Point e Sufficiently clear. Point f Sufficiently clear. Point g Sufficiently clear. Section (3) Sufficiently clear. Section (4) Restrictions on underlying transactions include the placement of funds and credit or financing facilities, which have not been withdrawn, are exclude in underlying transactions, however, in certain Foreign Exchange Market transactions, the placement

116 of funds and credit or financing facilities may be underlying transactions. Certain Foreign Exchange Market transactions include cross￾currency swap transactions for transactions that have an underlying transaction in the form of an undrawn credit facility. Article 113 Section (1) Certain economic activities include trading using electronic systems (e-commerce) and portfolio investment transactions. Section (2) Sufficiently clear. Article 114 Sufficiently clear. Article 115 Section (1) Point a Sufficiently clear. Point b Sufficiently clear. Point c The term “overdraft” means negative balance on a customer's checking account that may not be paid in full by the end of the day. The term “credit” means the provision of money or bills that may be equated with it, under an agreement or loan agreement between a bank and another party that requires the borrower to pay off his debt after a certain period of time with the provision of interest. The term “financing” means the provision of funds or bills that may be equated with it under an agreement or deal between a general Islamic bank and/or an sharia business unit and another party that requires the party that is financed and/or given funding facilities to return the funds after a certain period of time with a fee, without a fee, or profit sharing, which includes profit sharing transactions, rental transactions, buying and selling transactions, lending and borrowing transactions, and service rental transactions in accordance with Sharia Principles. Point d See explanation of point c. Point e Sufficiently clear. Point f

117 Sufficiently clear. Point g Sufficiently clear. Section (2) Sufficiently clear. Article 116 Sufficiently clear. Article 117 Sufficiently clear. Article 118 Sufficiently clear. Article 119 Sufficiently clear. Article 120 Section (1) Sufficiently clear. Section (2) Point a The principle of settlement of Money Market transactions and Foreign Exchange Market transactions that have met the requirements and are final and binding is a principle that financial instruments and/or funds that have been transferred to accounts at the transaction settlement and storage facility for financial instruments (central custodian), or other parties are final and may not be withdrawn. Point b The principles of delivery and/or payment include:

1. delivery versus payment, for example settlement of Money Market Instrument sale and purchase transactions and repo transactions (repurchase agreement);
2. delivery free of payment, for example transfer of securities and/or delivery of underlying assets in repo transactions (repurchase agreement) and/or financial instrument lending transactions (securities lending);
3. delivery versus delivery for example securities lending; and/or
4. payment versus payment for example cash transactions in Foreign Exchange Market transactions. Point c

118 As long as it is required or agreed, the netting mechanism must be implemented by the transacting parties even if there is a suspension on business activities, revocation of business licenses, or a decision to declare bankruptcy against the transacting parties. Thus, all Money Market Transactions and Foreign Exchange Market transactions by parties subject to freezing of business activities, revocation of business licenses, or bankruptcy declaration decisions are still calculated by netting and settled. Section (3) Sufficiently clear. Article 121 Sufficiently clear. Article 122 Section (1) Sufficiently clear. Section (2) The method of transaction settlement for Foreign Exchange Market transactions determined by Bank Indonesia includes transaction settlement by transferring the principal in full (gross) for cash transactions. Article 123 Sufficiently clear. Article 124 Sufficiently clear. Article 125 Sufficiently clear. Article 126 Sufficiently clear. Article 127 Section (1) The term “occurred before the bankruptcy declaration decision was pronounced” means 00.00 until the bankruptcy declaration decision is pronounced. The term “the bankruptcy declaration decision was pronounced” means the time on the date of the pronouncement of the bankruptcy declaration decision in hours, minutes and seconds in accordance with the time applicable at the local commercial court.

119 The term “as if no bankruptcy had occurred” means that the debtor is deemed to still have power over the bankrupt's assets. Section (2) Sufficiently clear. Article 128 Sufficiently clear. Article 129 Section (1) Point a The term “event of default” means the failure of one party to fulfill its obligations, including failure to pay or deliver, breach of agreement, bankruptcy, and other events agreed to in the master agreement. Point b The term “event of termination” means a specific event agreed to trigger the parties to terminate the relevant transaction, including invalidity, force majeure, tax event, additional termination event, or other termination event agreed to in the master agreement. Section (2) Point a Sufficiently clear. Point b Sufficiently clear. Point c Sufficiently clear. Section (3) The master agreements include the Indonesian Derivatives Master Agreement, the International Swaps and Derivatives Association Master Agreement, the Global Master Repurchase Agreement, and master agreements formed from several master agreements such as the Cross-Product Master Agreement. Section (4) Sufficiently clear. Section (5) Sufficiently clear. Article 130 Sufficiently clear. Article 131 Sufficiently clear.

120 Article 132 Sufficiently clear. Article 133 Sufficiently clear. Article 134 Sufficiently clear. Article 135 Section (1) Point a Granting of licenses applies to any party that meets the criteria and/or requirements set by Bank Indonesia. Point b The determination shall apply to certain parties under Bank Indonesia's assessment. Section (2) Point a Granting of licenses in the form of business licenses includes licenses granted to Financial Market Infrastructure providers in the form of CCP. Point b Granting of licenses in the form of operational licenses includes licenses granted to banks as systematic internalisers. Point c Granting of licenses in the form of approvals includes approval from the PUVA Primary Dealer. Point d Granting of licenses in the form of registered certificates includes licenses granted to PUVA Supporting Institutions, PUVA Supporting Professions, and dealer treasuries Point e Other forms of licenses determined by Bank Indonesia include a letter of proof of receipt of documents regarding the planned issuance of Money Market Instruments. Section (3) Financial sector business participants have obligations as regulated in the Law on the development and strengthening of the financial sector, including the implementation of governance, provision of education funds, and sustainable finance. Section (4) Sufficiently clear. Section (5) Sufficiently clear.

121 Article 136 Sufficiently clear. Article 137 Section (1) Sufficiently clear. Section (2) Sufficiently clear. Section (3) Point a Requirements for having good financial capabilities include never having experienced a payment default during a certain period of time and having financial reports that meet certain standards. Point b Requirements for having good governance include having a good track record and having guidelines for implementing the principles of prudence and risk management. Point c Sufficiently clear. Section (4) Sufficiently clear. Section (5) Sufficiently clear. Article 138 Sufficiently clear. Article 139 Sufficiently clear. Article 140 Section (1) Sufficiently clear. Section (2) General criteria include size, interconnectedness, and complexity. Specific criteria include transactions, interconnection, competence, risk management and infrastructure. Section (3) Sufficiently clear. Article 141 Section (1) Sufficiently clear. Section (2) Sufficiently clear.

122 Section (3) Point a Transactions in Money Market Instruments include transactions in commercial securities. Point b Transactions on certain financial instruments that may be transacted in the Money Market include negotiable certificates of deposit. Section (4) Sufficiently clear. Section (5) Point a The institutional aspects of the PUVA Supporting Institution include the deed of establishment and other institutional legitimacy. Point b Aspects of the capabilities of PUVA Supporting Institutions include standard operational procedures and behavioral guidelines (code of conduct). Point c Other aspects determined by Bank Indonesia include commitment to implementing Sharia Principles. Section (6) Sufficiently clear. Article 142 Section (1) Sufficiently clear. Section (2) Point a Sufficiently clear. Point b Sufficiently clear. Point c See the explanation of Article 141 section (5) point c. Section (3) Sufficiently clear. Article 143 Sufficiently clear. Article 144 Sufficiently clear. Article 145 Sufficiently clear.

123 Article 146 Sufficiently clear. Article 147 Sufficiently clear. Article 148 Section (1) Sufficiently clear. Section (2) Point a Forms of legal entity in Indonesia include limited liability companies. Point b The management of a legal entity includes the company's organs if the company is in the form of a limited liability company as regulated in the Law on limited liability companies. Point c Sufficiently clear. Point d Sufficiently clear. Point e Sufficiently clear. Section (3) Sufficiently clear. Section (4) Other relevant authorities see explanation of Article 49. Section (5) Sufficiently clear. Article 149 Section (1) The term “start carrying out business activities” means that the Financial Market Infrastructure provider is ready to carry out business activities. Section (2) Sufficiently clear. Section (3) Sufficiently clear. Article 150 Sufficiently clear. Article 151 Sufficiently clear.

124 Article 152 Section (1) The term “controlling shareholder" is a shareholder who has: a) shares amounting to 25% (twenty five percent) or more of the total number of shares issued by the Financial Market Infrastructure provider and have voting rights; or b) shares of less than 25% (twenty five percent) of the total shares issued by the Financial Market Infrastructure provider and have voting rights, but it may be proven that the person concerned has exercised control over the Financial Market Infrastructure provider, either directly or indirectly. Example: PT XYZ becomes the controlling shareholder in an electronic trading platform provider, PT XYZ is prohibited from becoming a controlling shareholder in a brokerage firm, systematic internaliser, and stock exchange provider because it is a similar Financial Market Infrastructure, namely a Market Operators, but PT XYZ may become a controlling shareholder in a CCP. Section (2) Sufficiently clear. Article 153 Sufficiently clear. Article 154 Sufficiently clear. Article 155 Sufficiently clear. Article 156 Section (1) Sufficiently clear. Section (2) Sufficiently clear. Section (3) Point a Sufficiently clear. Point b Sufficiently clear. Point c The term “other capital components” means capital components that may be calculated and/or are equivalent to capital.

125 Section (4) Sufficiently clear. Section (5) Sufficiently clear. Section (6) Sufficiently clear. Article 157 Sufficiently clear. Article 158 Sufficiently clear. Article 159 Sufficiently clear. Article 160 Sufficiently clear. Article 161 Sufficiently clear. Article 162 Sufficiently clear. Article 163 Sufficiently clear. Article 164 Sufficiently clear. Article 165 Sufficiently clear. Article 166 Section (1) Point a Sufficiently clear. Point b Sufficiently clear. Point c Sufficiently clear. Point d Sufficiently clear. Point e Sufficiently clear. Point f Other parties include:

126

1. parent company, subsidiary companies, and parties that have business and/or financial relationships with parties including PUVA Participants; and/or
2. third parties who support and/or provide services to PUVA Participants, PUVA Supporting Institutions, and/or PUVA Supporting Professions. Section (2) Sufficiently clear. Section (3) Sufficiently clear. Article 167 Sufficiently clear. Article 168 Section (1) Sufficiently clear. Section (2) Bank Indonesia's provisions regarding reporting include Bank Indonesia's provisions regarding integrated general bank reports and Bank Indonesia's provisions regarding money market reports. Section (3) Submission of reports offline is carried out, among other things, through electronic mail. Article 169 Section (1) Point a The ownership positions of financial instruments include Money Market Instruments and financial instruments traded in the Money Market. Point b Sufficiently clear. Point c Sufficiently clear. Point d Sufficiently clear. Point e Sufficiently clear. Point f Sufficiently clear. Section (2) Sufficiently clear. Article 170 Sufficiently clear.

127 Article 171 Sufficiently clear. Article 172 Section (1) Point a Sufficiently clear. Point b Sufficiently clear. Point c Other parties determined by Bank Indonesia include parties that support the provision of Reference Pricing. Section (2) The provisions of laws and regulations include the Law on the development and strengthening of the financial sector and the Law on the prevention and eradication of money laundering crimes. Article 173 Section (1) Point a Sufficiently clear. Point b Sufficiently clear. Point c The risk management process and risk management functions are carried out through the stages of risk identification, measurement, monitoring and control, and are supported by a risk management information system. Point d Sufficiently clear. Point e Sufficiently clear. Section (2) Sufficiently clear. Article 174 Section (1) The implementation of risk management for Financial Market Infrastructure providers takes into account applicable international principles and/or standards, including principles for financial market infrastructures. Section (2) Point a The term “legal risk” means the risk caused by weaknesses in legal aspects and changes in regulations that may result in losses.

128 Point b The term “credit risk” means the risk caused by a counterparty to a transaction being unable to fulfill all of its financial obligations at the time when this maturity or at a certain time in the future. Point c The term “liquidity risk" means he risk caused by the counterparty not having sufficient funds to fulfill its financial obligations at the time when this maturity or at the agreed time even though it may ultimately fulfill these obligations in the future. Counterparties to transactions include CCP members. Point d The term “business risk” means the potential decline in the financial position of the Financial Market Infrastructure provider from a business perspective as a result of a decrease in income or an increase in expenses so that expenses exceed income and result in losses that must be charged to capital. Point e The term “custody risk” means the risk of loss of assets stored in a custodian if the custodian experiences bankruptcy, negligence, embezzlement, fraud, substandard administration, or inadequate administration. Point f The term “investment risk” means the risk of loss faced by the Financial Market Infrastructure provider when investing its own resources or the resources of its participants, such as collateral and margin. Point g The term “Operational risk” means the risk caused by limitations of information systems or internal processes, human error, management failure, or disruption from external events that will result in the reduction, deterioration, or non-functioning of services provided by the Financial Market Infrastructure. Included in operational risk is cyber risk. Point h Sufficiently clear. Article 175 Section (1) Sufficiently clear. Section (2) Point a

129 Transparency includes openness in the decision-making process and openness in disclosing and providing relevant and easily accessible information to stakeholders. Point b Accountability includes clarity of function and implementation of responsibilities. Point c Responsibility includes compliance of management with the provisions of laws and regulations and ethical values as well as standards, principles and practices of the provisions of laws and regulation. Point d Independence includes a state of being managed independently and professionally and free from conflicts of interest and influence or pressure from any party that is not in accordance with the provisions of laws and regulations and ethical values as well as standards, principles and practices. Point e Fairness includes equality, balance, and justice in fulfilling stakeholder rights arising from agreements, provisions of laws and regulations, and ethical values as well as standards, principles, and practices. Section (3) This provision is intended to encourage the implementation of good governance so that Financial Market Infrastructure providers may carry out their functions so as to create healthy business practices. Article 176 Sufficiently clear. Article 177 Sufficiently clear. Article 178 Sufficiently clear. Article 179 Section (1) Supervision is carried out by considering applicable international standards. Section (2) Sufficiently clear. Section (3) Sufficiently clear. Section (4)

130 Other relevant authorities see explanation of Article 49. Article 180 Sufficiently clear. Article 181 Section (1) Inspection by other parties is carried out for and on behalf of Bank Indonesia. Other parties assigned by Bank Indonesia include public accountants and public appraisers. In assigning another party to conduct an inspection, Bank Indonesia issues a work order and determines the terms of reference. Section (2) The obligation of other parties to maintain the confidentiality of data, information and/or statements obtained from the audit applies to commissioners, directors, managers, experts, supervisory staff and support staff related to the audit. Article 182 Section (1) Sufficiently clear. Section (2) Point a In ensuring that Bank Indonesia may have access to data and information required for supervision, parties cooperating with third parties may, among other things, include a clause on data and information access rights in the cooperation agreement document and/or an addendum to the agreement. Point b Sufficiently clear. Article 183 Sufficiently clear. Article 184 Sufficiently clear. Article 185 Section (1) The term “exit policy" means Bank Indonesia's policy in determining the cessation of activities in the Money Market and Foreign Exchange Market. Section (2) Sufficiently clear. Section (3)

131 Sufficiently clear. Section (4) Sufficiently clear. Section (5) Point a Sufficiently clear. Point b Other relevant authorities see explanation of Article 49 Point c Sufficiently clear. Point d Sufficiently clear. Point e Sufficiently clear. Point f Sufficiently clear. Section (6) Sufficiently clear. Article 186 Section (1) Other relevant authorities see explanation of Article 49. Section (2) Sufficiently clear. Section (3) Financial instruments and/or transactions on financial instruments that have more than 1 (one) market characteristic include repo transactions (repurchase agreements) with underlying debt securities that are classified as secondary securities transactions in the capital market, but may be classified as Money Market Transactions. Section (4) Sufficiently clear. Article 187 Section (1) Sufficiently clear. Section (2) Example: PT XYZ received a mandate from the Government of the Republic of Indonesia to issue Money Market Instruments, the issuance of which is guaranteed by the Government of the Republic of Indonesia. PT XYZ remains is required to comply with the provisions related to the issuance of Money Market Instruments as determined in this Regulation of Bank Indonesia. Article 188

132 Sufficiently clear. Article 189 Sufficiently clear. Article 190 Sufficiently clear. Article 191 Sufficiently clear. Article 192 Sufficiently clear. Article 193 Sufficiently clear. Article 194 Sufficiently clear.