Amendment to Financial Services Authority Regulation Number 23/POJK.04/2014 Regarding Guidelines for Issuance and Reporting of Asset-Backed Securities in the Form of Participation Certificates for Secondary Housing Financing

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FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 20 /POJK.04/2017
REGARDING
AMENDMENT TO FINANCIAL SERVICES AUTHORITY REGULATION NUMBER 23/POJK.04/2014 CONCERNING GUIDELINES FOR THE ISSUANCE AND REPORTING OF ASSET-BACKED SECURITIES IN THE FORM OF PARTICIPATION CERTIFICATES IN THE CONTEXT OF SECONDARY HOUSING FINANCING BY THE GRACE OF THE MOST HIGH GOD THE COMMISSIONERS COUNCIL OF THE FINANCIAL SERVICES AUTHORITY, Considering :
a. that to increase the liquidity of the EBA-SP market, strategic steps are needed to optimize the role of the Issuer as a driver of the EBA-SP market in Indonesia; b. that to optimize the role of the Issuer, it is necessary to amend the Financial Services Authority Regulation Number 23/POJK.04/2014 concerning Guidelines for the Issuance and Reporting of Asset-Backed Securities in the Form of Participation Certificates in the Context of Secondary Housing Financing so that it can be adjusted to current market and economic conditions;
c. that based on considerations as referred to in letters a and b, it is necessary to establish a Financial Services Authority Regulation regarding Amendment to the Financial Services Authority Regulation Number 23/POJK.04/2014 concerning Guidelines for the Issuance and Reporting of Asset-Backed Securities in the Form of Participation Certificates in the Context of Secondary Housing Financing;
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA
COPY

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Recalling : 1. Law Number 8 of 1995 concerning the Capital Market (State Gazette of the Republic of Indonesia Year 1995 Number 64, Supplement to the State Gazette of the Republic of Indonesia Number 3608);

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a. be obtained by the Issuer from the Originator through absolute sale/purchase and sold by the Issuer to the EBA-SP holders through absolute sale/purchase in law; or b. be obtained by the Issuer for the benefit of the EBA-SP holders from the Originator through absolute sale/purchase in law. (2) The absolute sale as referred to in paragraph (1) must be supported by a Legal Consultant's opinion. (3) The absolute sale/purchase as referred to in paragraph (1) and paragraph (2) must meet the requirements of absolute sale/purchase according to generally accepted accounting principles and must be carried out consistently and supported by an Accountant's opinion. (4) The Originator as referred to in paragraph (1) may only purchase EBA-SP up to a maximum of 10% (ten percent) of the total value of the Receivables Pool. (4a) The Issuer as referred to in paragraph (1) letter a may only purchase EBA-SP during the initial offering up to a maximum of 10% (ten percent) of the total value of the Receivables Pool. (4b) In the event that the initial offering of EBA-SP is not fully absorbed by the market, the Issuer as referred to in paragraph (1) letter b may purchase EBA-SP exceeding 10% (ten percent) of the total value of the Receivables Pool. (5) The rights of the EBA-SP holders over the Receivables Pool must be stated in the EBA-SP Prospectus or EBA-SP Disclosure Document and supported by a legal opinion from a Legal Consultant stating that the rights of the EBA-SP holders are as contained in the EBA-SP Prospectus or EBA-SP Disclosure Document.
Article II
This Financial Services Authority Regulation shall come into force on the date of its promulgation.

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This copy is in accordance with the original
Director of Law 1
Legal Department signed
Yuliana
In order for everyone to know it, ordering the promulgation of this Financial Services Authority Regulation by placing it in the State Gazette of the Republic of Indonesia.
Established in Jakarta on June 21, 2017
CHAIRMAN OF THE COMMISSIONERS COUNCIL
FINANCIAL SERVICES AUTHORITY, signed
MULIAMAN D. HADAD
Promulgated in Jakarta on June 22, 2017
MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA, signed
YASONNA H. LAOLY
STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2017 NUMBER 120

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EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 20 /POJK.04/2017
REGARDING
AMENDMENT TO FINANCIAL SERVICES AUTHORITY REGULATION NUMBER 23/POJK.04/2014 CONCERNING GUIDELINES FOR THE ISSUANCE AND REPORTING OF ASSET-BACKED SECURITIES IN THE FORM OF PARTICIPATION CERTIFICATES IN THE CONTEXT OF SECONDARY HOUSING FINANCING
I. GENERAL
Asset-Backed Securities in the Form of Participation Certificates (EBA-SP) are asset-backed securities issued by an Issuer whose portfolio consists of a Receivables Pool and serves as proof of proportional ownership over the Receivables Pool jointly owned by a group of EBA-SP holders. In this securitization, where the financial assets of the Originator are sold to the public through the issuance of EBA-SP, the financial assets of the Originator, which originally could not be immediately used or transformed into liquid assets, allow the Originator to immediately resume housing financing for the public. The issuance of EBA-SP is expected not only to drive the growth of the secondary housing financing industry in the country, but is also believed to provide other benefits in the form of an increasing number of financial instruments that serve as investment alternatives for investors and the public. In order to increase the liquidity of EBA-SP and optimize the role of the Issuer in carrying out its duties as the guardian of EBA-SP liquidity in secondary housing financing, it is necessary to amend one of the provisions in the Financial Services Authority Regulation Number 23/POJK.04/2014 concerning Guidelines for the Issuance and Reporting of Asset-Backed Securities in the Form of Participation Certificates in the Context of Secondary Housing Financing.
II. ARTICLE BY ARTICLE
Article I
Is clear enough.
Article II
Is clear enough.
SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 6067