To:
The Board of Directors of Rural Banks at their place.

COPY
FINANCIAL SERVICES AUTHORITY CIRCULAR
REPUBLIC OF INDONESIA
NUMBER 24 /SEOJK.03/2020

ABOUT
AMENDMENT TO FINANCIAL SERVICES AUTHORITY CIRCULAR NUMBER 5/SEOJK.03/2016 ON THE IMPLEMENTATION OF CORPORATE GOVERNANCE FOR RURAL BANKS

To improve efficiency and effectiveness in monitoring the implementation of corporate governance for Rural Banks, hereinafter abbreviated as BPR, in conjunction with the establishment of Financial Services Authority Regulation Number 13/POJK.03/2019 on the Reporting of Rural Banks and Sharia Rural Financing Banks Through the Financial Services Authority Reporting System, hereinafter referred to as POJK BPR and BPRS Reporting, BPRs submit corporate governance implementation reports online through the Financial Services Authority Reporting System.

In light of this, it is necessary to make several changes to the Financial Services Authority Circular Number 5/SEOJK.03/2016 on the Implementation of Corporate Governance for Rural Banks, hereinafter referred to as SEOJK BPR Corporate Governance, as follows:

1. The provision in item VII.6 is amended to read as follows:
2. The corporate governance implementation report consists of at least:
   a. transparency of BPR corporate governance implementation, covering matters as referred to in Article 75 paragraph (2) and paragraph (3) of Financial Services Authority Regulation Number 4/POJK.03/2015 on the Implementation of Corporate Governance for Rural Banks (POJK BPR Corporate Governance), prepared in the format as referred to in the Appendix which is an integral part of this Financial Services Authority Circular; and

b. self-assessment results of corporate governance implementation as referred to in section VI numbers 11 and 12 of SEOJK BPR Corporate Governance, covering the Corporate Governance Implementation Assessment Work Paper as referred to in Appendix II and the General Conclusion of Corporate Governance Implementation Assessment Results as referred to in Appendix III of SEOJK BPR Corporate Governance.

2. The provision in item VII.7.g is amended to read as follows:
   g. the ratio of the highest salary to the lowest salary, namely:

1. what is meant by salary is employee entitlements received and stated in monetary form as compensation from the BPR to employees, established and paid according to a work agreement, consensus, or statutory regulations, including allowances for employees and their families for work and/or services performed within 1 (one) year;
2. the ratio of the highest salary to the lowest salary, in comparison:
   a) the ratio of the highest employee salary to the lowest employee salary; b) the ratio of the highest Director Board member salary to the lowest Director Board member salary; c) the ratio of the highest Supervisory Board member salary to the lowest Supervisory Board member salary; d) the ratio of the highest Director Board member salary to the highest Supervisory Board member salary; and e) the ratio of the highest Director Board member salary to the highest employee salary.

3. The provision in item VII.12 is amended to read as follows:

4. BPRs submit the corporate governance implementation report as referred to in number 6 annually in full to the Financial Services Authority through the Financial Services Authority Reporting System in accordance with POJK BPR and BPRS Reporting.

5. The provisions in item VII are added with 3 (three) numbers, namely numbers 13 to 15, so that they read as follows:

6. The corporate governance implementation report as referred to in number 12 is submitted to the Financial Services Authority for the first time for the December 2021 position report.

This copy is in accordance with the original
Director of Law 1
Legal Department signed
Mufli Asmawidjaja

14. Corrections to the corporate governance implementation report as referred to in item VII.10 of SEOJK BPR Corporate Governance are submitted through the Financial Services Authority Reporting System in accordance with POJK BPR and BPRS Reporting starting from the December 2021 position and meet the provisions as referred to in Article 76 paragraph (1) and paragraph (2) of POJK BPR Corporate Governance.

15. BPRs submit:
    a. the corporate governance implementation report as referred to in Article 76 paragraph (1) letter a of POJK BPR Corporate Governance; and b. corrections as referred to in item VII.10 of SEOJK BPR Corporate Governance, for the December 2020 position in electronic copy (softcopy) form via official email or printed copy (hardcopy) addressed to the Financial Services Authority Regional Office or Local Financial Services Authority Office according to the area where the BPR headquarters is located.

16. The tables as referred to in item VII.7.i, item VII.7.j, and item VII.7.k remain valid until the corporate governance implementation report for the December 2020 position.

17. The provisions in this Financial Services Authority Circular take effect on the date of establishment.

Established in Jakarta on 14 December 2020
EXECUTIVE HEAD OF BANKING SUPERVISOR
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA, signed
HERU KRISTIYANA

APPENDIX
FINANCIAL SERVICES AUTHORITY CIRCULAR
REPUBLIC OF INDONESIA
NUMBER 24 /SEOJK.03/2020
ABOUT
AMENDMENT TO FINANCIAL SERVICES AUTHORITY CIRCULAR NUMBER 5/SEOJK.03/2016 ON THE IMPLEMENTATION OF CORPORATE GOVERNANCE FOR RURAL BANKS

TABLE OF CONTENTS
CHAPTER I GENERAL EXPLANATION ....................................................................... 4
CHAPTER II FORMAT OF TRANSPARENCY OF CORPORATE GOVERNANCE IMPLEMENTATION .................... 5
A. Disclosure of Corporate Governance Implementation................................................. 5

1. Implementation of Duties and Responsibilities of Board of Directors Members........... 5
2. Implementation of Duties and Responsibilities of Supervisory Board Members .................................................................................... 5
3. Completeness and Implementation of Committee Duties (if any) ............... 6
   B. Director Share Ownership ................................................................ 7
4. Board of Directors Members' Share Ownership in BPR ........................... 7
5. Board of Directors Members' Share Ownership in Other Companies........ 7
   C. Financial and/or Family Relationships of Board of Directors Members
   with Other Board of Directors Members, Supervisory Board Members and/or
   BPR Shareholders ........................................................................ 8
6. Board of Directors Members' Financial Relationships with BPR ......................... 8
7. Board of Directors Members' Family Relationships with BPR ........................... 8
   D. Supervisory Board Share Ownership ................................................ 9
8. Supervisory Board Members' Share Ownership in BPR............ 9
9. Supervisory Board Members' Share Ownership in Other Companies
   Lain............................................................................................. 9
   E. Financial and/or Family Relationships of Supervisory Board Members with Other Supervisory Board Members, Board of Directors Members
   and/or BPR Shareholders ...................................................... 10
10. Supervisory Board Members' Financial Relationships with BPR........ 10
11. Supervisory Board Members' Family Relationships with BPR ......... 10
    F. Remuneration Packages/Other Policies for Directors and
    Supervisory Board Members Determined Based on the General Meeting of Shareholders ..................... 11
12. Remuneration Packages/Policy for Directors and Supervisory Board Members
    Determined Based on the General Meeting of Shareholders.......................................... 11
13. Description of Other Facilities for Directors and Supervisory Board Members
    Determined Based on the General Meeting of Shareholders.................................................. 12
    G. Ratio of Highest and Lowest Salaries ............................................. 12
    H. Frequency of Supervisory Board Meetings.................................................... 13
14. Implementation of Meetings in 1 (One) Year................................. 13
15. Supervisory Board Members' Attendance ........................................ 13
    I. Number of Internal Deviations (Internal Fraud)................................ 13

J. Legal Issues Faced ............................................... 14
K. Transactions Containing Conflicts of Interest......................... 15
L. Provision of Funds for Social Activities and Political Activities ............ 15

CHAPTER I
GENERAL EXPLANATION
The submission of transparency of BPR corporate governance implementation, which is one of the scopes of the BPR corporate governance implementation report, is carried out in the framework of implementing the transparency principle as referred to in Article 76 of POJK BPR Corporate Governance. BPRs disclose all aspects of corporate governance transparency in the format as mentioned in this Appendix. BPRs may submit a general explanation of BPR corporate governance implementation or other matters deemed significant and not included in the scope of the explanation table in Chapter II, in the Financial Services Authority Reporting System, according to the conditions and policies of each BPR.

CHAPTER II
FORMAT OF TRANSPARENCY OF CORPORATE GOVERNANCE IMPLEMENTATION FOR BPR A. Disclosure of Corporate Governance Implementation

1. Implementation of Duties and Responsibilities of Board of Directors Members
   No. Implementation of Duties and Responsibilities of Board of Directors Members

2. Name :
   ID Number*) :
   Position :
   Duties and Responsibilities:

3. Name :
   ID Number*) :
   Position :
   Duties and Responsibilities:
   etc.
   Follow-up on Supervisory Board Recommendations):
   *) ID Number is only submitted in reporting to the Financial Services Authority. ) Includes follow-up on Supervisory Board recommendations not yet reported in the previous year's corporate governance implementation report.

4. Implementation of Duties and Responsibilities of Supervisory Board Members
   No. Implementation of Duties and Responsibilities of Supervisory Board Members

5. Name :
   ID Number*) :
   Position :
   Duties and Responsibilities:

6. Name :
   ID Number*) :
   Position :
   Duties and Responsibilities:
   etc.
   Recommendations to the Board of Directors:

*) ID Number is only submitted in reporting to the Financial Services Authority.

3. Completeness and Implementation of Committee Duties (if any)
   a. Duties and Responsibilities of Committees
   No. Duties and Responsibilities of Committees
4. Audit Committee
   Duties and Responsibilities:
5. Risk Monitoring Committee
   Duties and Responsibilities:
6. Remuneration and Nomination Committee
   Duties and Responsibilities:
   b. Structure, Membership, Expertise, and Independence of Committee Members No. Name ID Number ) Expertise ) Committee) Independent Party (Yes/No) Audit Risk Monitoring Remuneration and Nomination 1. 2. etc. *) ID Number is only submitted in reporting to the Financial Services Authority. ) Filled with the competence and/or experience of each committee member according to the duties and responsibilities of the Committee. ) Filled with: chairman, member, or not holding office.
   c. Committee Work Program and Realization of Committee Work Program
   No. Committee Work Program and Realization of Committee Work Program)
7. Audit Committee
   Work Program :
   Realization :
   Number of Meetings :

No. Committee Work Program and Realization of Committee Work Program*)
2. Risk Monitoring Committee
Work Program :
Realization :
Number of Meetings :
3. Remuneration and Nomination Committee
Work Program :
Realization :
Number of Meetings :
*) The number of work programs reported is the same as the Realization of work programs.

1. Board of Directors Members' Share Ownership in BPR
   *) ID Number is only submitted in reporting to the Financial Services Authority.

2. Board of Directors Members' Share Ownership in Other Companies
   No.
   Name
   Board of
   Directors Member
   ID Number*)
   Other Bank Code*)/)
   Name
   Other Company
   Ownership Percentage (%)

4. etc.
   *) ID Number and other bank codes are only submitted in reporting to the Financial Services Authority. ) In the event that the other company is another bank, the code reported is in accordance with the Financial Services Authority Circular regarding monthly reports of rural banks.

B. Director Share Ownership
No.
Director Member Name
ID Number*) Nominal (Rp)
Ownership Percentage (%)
1.
2. etc.

C. Financial and/or Family Relationships of Board of Directors Members
with Other Board of Directors Members, Supervisory Board Members and/or BPR Shareholders

1. Board of Directors Members' Financial Relationships with BPR
   No.
   Name
   Board of
   Directors Member
   ID Number*)
   Financial Relationship)
   Other Board of
   Directors Members
   Supervisory Board
   Members
   Shareholders
3. etc.
   *) ID Number is only submitted in reporting to the Financial Services Authority. ) - In the event of a financial relationship, filled with "Name – Financial Relationship". Financial relationships can include, among others, receiving and/or giving income, financial assistance, loans, and/or acting as a guarantor or receiving guarantees, example "Mr. A – Loan".

• In the event that a Board of Directors member has a financial relationship with more than one party in each column, it can be added separated by a comma (,).
• In the event that there is no financial relationship, filled with "None".

2. Family Relationships of Board of Directors Members with BPR
   No.
   Name
   Board of
   Directors Member
   ID Number*)
   Family Relationship )
   Other Board of
   Directors Members
   Supervisory Board
   Members
   Shareholders
4. etc.
   *) ID Number is only submitted in reporting to the Financial Services Authority.

) - In the event of a family relationship, filled with "Name – Family Relationship", example "Mr. A – Cousin".

• In the event that a Board of Directors member has a family relationship with more than one party in each column, it can be added separated by a comma (,).
• In the event that there is no family relationship, filled with "None".

D. Supervisory Board Share Ownership

1. Supervisory Board Members' Share Ownership in BPR
   No.
   Supervisory Board Member Name
   ID Number*) Nominal (Rp)
   Ownership Percentage (%)

3. etc.
   *) ID Number is only submitted in reporting to the Financial Services Authority.

4. Supervisory Board Members' Share Ownership in Other Companies
   ) ID Number and other bank codes are only submitted in reporting to the Financial Services Authority. ) In the event that the other company is another bank, the code reported is in accordance with the Financial Services Authority Circular regarding monthly reports of rural banks. No. Name Supervisory Board Member ID Number) Other Bank Code*)/) Name Other Company Ownership Percentage (%) 1. 2. etc.

E. Financial and/or Family Relationships of Supervisory Board Members with Other Supervisory Board Members, Board of Directors Members and/or BPR Shareholders

1. Supervisory Board Members' Financial Relationships with BPR
   No.
   Name
   Supervisory
   Board Member
   ID Number*)
   Financial Relationship)
   Other Supervisory Board
   Members
   Board of
   Directors Members
   Shareholders
3. etc.
   *) ID Number is only submitted in reporting to the Financial Services Authority. ) - In the event of a financial relationship, filled with "Name – Financial Relationship". Financial relationships can include, among others, receiving and/or giving income, financial assistance, loans, and/or acting as a guarantor or receiving guarantees, example "Mr. A – Loan".

• In the event that a Supervisory Board member has a financial relationship with more than one party in each column, it can be added separated by a comma (,).
• In the event that there is no financial relationship, filled with "None".

2. Family Relationships of Supervisory Board Members with BPR
   No.
   Name
   Supervisory
   Board Member
   ID Number*)
   Family Relationship )
   Other Supervisory Board
   Members
   Board of
   Directors Members
   Shareholders
4. etc.
   *) ID Number is only submitted in reporting to the Financial Services Authority.

) - In the event of a family relationship, filled with "Name – Family Relationship", example "Mr. A – Cousin".

• In the event that a Supervisory Board member has a family relationship with more than one party in each column, it can be added separated by a comma (,).
• In the event that there is no family relationship, filled with "None".

F. Remuneration Packages/Other Policies for Directors and Supervisory Board Members Determined Based on the General Meeting of Shareholders

1. Remuneration Packages/Policy for Directors and Supervisory Board Members
   Determined Based on the General Meeting of Shareholders No.
   Type
   Remuneration
   (Within 1
   Year)
   Board of Directors Supervisory Board
   Number
   Of People
   Total
   Amount
   (Rp)
   Number
   Of People
   Total
   Amount
   (Rp)

2. Salary*)

3. Allowances

4. Bonuses

5. Stock-based compensation

6. Other
   Remuneration)
   Total
   *) Salary is the basic salary, not including allowances received by the Board of Directors and Supervisory Board members and their families. ) Other remuneration for BPR officials and determined based on the General Meeting of Shareholders, taking into account the duties, authorities, responsibilities, and risks of each Board of Directors member and Supervisory Board member.

7. Description of Other Facilities for Directors and Supervisory Board Members
   Determined Based on the General Meeting of Shareholders No.
   Type of Other Facility
   (Within 1 Year)
   Description of Facility Accompanied by
   Number of Facilities (Units)
   Board of Directors Supervisory Board

8. Housing

9. Transportation

10. Health Insurance

11. Other facilities*)
    *) Other facilities can be detailed and adjusted to the policy of each BPR, for example communication facilities.

G. Ratio of Highest and Lowest Salaries
Ratio of the highest salary to the lowest salary in comparison.
Description*)
Comparison)
(a/b) : 1
Ratio of the highest employee salary (a) to the lowest employee salary (b) :
Ratio of the highest Board of Directors member salary (a) to the lowest Board of Directors member salary (b) :
Ratio of the highest Supervisory Board member salary (a) to the lowest Supervisory Board member salary (b) :
Ratio of the highest Board of Directors member salary (a) to the highest Supervisory Board member salary (b) :
Ratio of the highest Board of Directors member salary (a) to the highest Employee salary (b) :
*) The salary referred to is the total salary received, including basic salary and allowances within 1 (one) year. ) Example of calculation of salary ratio comparison Highest employee salary = Rp200,000,000.00 Lowest employee salary = Rp50,000,000.00 Ratio of Highest to Lowest Employee Salary = Highest Employee Salary Lowest Employee Salary :
Lowest Employee Salary
Lowest Employee Salary

Rp200,000,000.00
Rp50,000,000.00 :
Rp50,000,000.00
Rp50,000,000.00
= 4 ∶ 1

The ratio of the highest to lowest employee salary is reported in the smallest fraction.

H. Frequency of Supervisory Board Meetings

1. Implementation of Meetings in 1 (One) Year
   No. Meeting Date Number of Participants Topic/Material Discussed 1.

2. etc.

3. Supervisory Board Members' Attendance
   No. Name
   Supervisory
   Board Member
   ID Number*) Attendance Frequency Attendance Level) (in %) Physical Teleconference 1. 2. etc. *) ID Number is only submitted in reporting to the Financial Services Authority.

I. Number of Internal Deviations (Internal Fraud)
Number
Internal
Deviation*)
(Within 1
Year)
Number of Cases (Units) Committed By
Board of Directors Members Supervisory Board
Members
Permanent Employees Non-Permanent Employees
Previous Year
Report Year
Previous Year
Report Year
Previous Year
Report Year
Previous Year
Report Year
Total Fraud
Completed
In Process of Resolution)
) Attendance Level =
Physical Attendance Frequency + Teleconference Attendance Frequency Total Number of Meetings 𝑥 100%

Number
Internal
Deviation*)
(Within 1
Year)
Number of Cases (Units) Committed By
Board of Directors Members Supervisory Board
Members
Permanent Employees Non-Permanent Employees
Previous Year
Report Year
Previous Year
Report Year
Previous Year
Report Year
Previous Year
Report Year
Not Yet
Attempted
Resolution*)
Already
Followed Up
Through Legal
Process
*) BPRs must explain further regarding the resolution efforts for internal deviations by the BPR. In the event of internal deviations not yet attempted to be resolved, the research efforts conducted can be explained. ) Includes internal deviations not resolved previously up to the report year. *) Refers to internal deviations still under investigation.

J. Legal Issues Faced
Legal
Issues
Number (Units)
Civil Criminal
Completed
(has acquired permanent legal force)
In Process of Resolution
Total
BPRs must explain further regarding the resolution efforts for legal issues by the BPR.

This copy is in accordance with the original
Director of Law 1
Legal Department signed
Mufli Asmawidjaja

K. Transactions Containing Conflicts of Interest No.
Party with
Conflict of Interest
Decision Maker Type
Transaction
Transaction Value
(Millions
Rupiah)
Description)
Name Position ID Number*) Name Position ID Number*) 1.
2. etc.
*) ID Number is only submitted in reporting to the Financial Services Authority. ) Description is filled with:

• Compliance and/or non-compliance of the transaction with internal regulations; and
• Explains the connection between the party with the conflict of interest and the decision maker.

L. Provision of Funds for Social Activities and Political Activities
No.
Date
Implementation
Type of Activity
(Social/
Political)
Explanation of Activity
Recipient of Funds
Amount (Rp)
1.
2. etc.

Established in Jakarta on 14 December 2020
EXECUTIVE HEAD OF BANKING SUPERVISOR
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA, signed
HERU KRISTIYANA