Amendment to Financial Services Authority Regulation Number 32/POJK.03/2018 Concerning Maximum Limits for Credit Provision and Large Fund Provision for Commercial Banks

COPY
FINANCIAL SERVICES AUTHORITY REGULATION
REPUBLIC OF INDONESIA
NUMBER 38 /POJK.03/2019
CONCERNING
AMENDMENT TO THE FINANCIAL SERVICES AUTHORITY REGULATION NUMBER 32/POJK.03/2018 CONCERNING THE MAXIMUM LIMIT FOR CREDIT PROVISION AND LARGE FUND PROVISION FOR COMMERCIAL BANKS BY THE GRACE OF GOD THE ALMIGHTY, THE COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY, Considering:
a. that the concentration of Bank's fund provision to borrowers or a group of borrowers is one of the causes of Bank business failure; b. that to avoid Bank business failure resulting from the concentration of fund provision, Banks need to regulate fund provision in accordance with the principle of prudence;
c. that there is a need to improve regulations in accordance with international standards, so that the Financial Services Authority Regulation regarding the maximum limit for credit provision and large fund provision for commercial banks needs to be amended;
d. that based on considerations as referred to in letters a, b, and c, it is necessary to establish a Financial Services Authority Regulation concerning the Amendment to the Financial Services Authority Regulation Number 32/POJK.03/2018 concerning the Maximum Limit for Credit Provision and Large Fund Provision for Commercial Banks; Recalling:

1. Law Number 7 of 1992 concerning Banking (State Gazette of the Republic of Indonesia Year 1992 Number 31, Supplement to the State Gazette of the Republic of Indonesia Number 3472) as amended by Law Number 10 of 1998 concerning Amendment to Law Number 7 of 1992 concerning Banking (State Gazette of the Republic of Indonesia Year 1998 Number 182, Supplement to the State Gazette of the Republic of Indonesia Number 3790);
2. Law Number 21 of 2011 concerning the Financial Services Authority (State Gazette of the Republic of Indonesia Year 2011 Number 111, Supplement to the State Gazette of the Republic of Indonesia Number 5253);
3. Financial Services Authority Regulation Number 32/POJK.03/2018 concerning the Maximum Limit for Credit Provision and Large Fund Provision for Commercial Banks (State Gazette of the Republic of Indonesia Year 2018 Number 253, Supplement to the State Gazette of the Republic of Indonesia Number 6283);
   DECIDING:
   Establishing: FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING AMENDMENT TO THE FINANCIAL SERVICES AUTHORITY REGULATION NUMBER 32/POJK.03/2018 CONCERNING THE MAXIMUM LIMIT FOR CREDIT PROVISION AND LARGE FUND PROVISION FOR COMMERCIAL BANKS.

CHAPTER I
GENERAL PROVISIONS
Article I
Several provisions in the Financial Services Authority Regulation Number 32/POJK.03/2018 concerning the Maximum Limit for Credit Provision and Large Fund Provision for Commercial Banks (State Gazette of the Republic of Indonesia Year 2018 Number 253, Supplement to the State Gazette of the Republic of Indonesia Number 6283) are amended as follows:

1. Article 11 paragraph (1) is deleted.
2. Article 24 is deleted.
3. The provisions of Article 32 are amended and supplemented with 2 (two) paragraphs, namely paragraph (8) and paragraph (9), so that they read as follows:
   Article 32
   (1) The determination of the counterparty in the BMPK calculation for Fund Provision in the form of the purchase of Securities linked or guaranteed by underlying assets, both for the banking book and trading book positions, is determined based on the amount of the purchase of Securities. (2) Fund Provision in the form of the purchase of Securities linked or guaranteed by underlying assets with a total nominal value of the purchase of Securities less than 0.25% (zero point two five percent) of the Bank's Core Capital (tier 1) is established as Fund Provision to the issuer of the Securities linked or guaranteed by underlying assets. (3) Fund Provision in the form of the purchase of Securities linked or guaranteed by underlying assets with a total nominal value of the purchase of Securities equal to or greater than 0.25% (zero point two five percent) of the Bank's Core Capital (tier 1) is established as Fund Provision to the Reference Entity. (4) BMPK for Securities linked or guaranteed by underlying assets is calculated using:
   a. the nominal value of the Securities for Securities as referred to in paragraph (2); or b. the look-through approach calculated proportionally based on the proportion of underlying assets from each Reference Entity against the Securities for Securities as referred to in paragraph (3). (5) In the event that the Bank cannot identify the underlying assets as referred to in paragraph (4) letter b, Fund Provision is established as:
   a. Fund Provision to the issuer of Securities, in the event that there is a proportion of the nominal value of the purchase of Securities less than 0.25% (zero point two five percent) of the Bank's Core Capital (tier 1); or b. Fund Provision to unknown client, in the event that there is a proportion of the nominal value of the purchase of Securities equal to or greater than 0.25% (zero point two five percent) of the Bank's Core Capital (tier 1) Bank. (6) Fund Provision to unknown client as referred to in paragraph (5) letter b is calculated in its entirety with Fund Provision to other unknown clients while still taking into account the BMPK limitation for the Borrower Group as referred to in Article 16 letter b. (7) In the calculation of BMPK for Fund Provision in the form of the purchase of Securities linked or guaranteed by underlying assets, the Bank must identify third parties that can cause additional risk factors in the Securities. (8) The Bank may consider several third parties that can cause potential additional risk factors as referred to in paragraph (7). (9) In the event that there are several third parties that can cause additional risk factors as referred to in paragraph (8), the Bank is required to sum the exposure to Securities linked or guaranteed by underlying assets with each third party.
4. The provisions of paragraph (2), paragraph (3), and paragraph (5) of Article 33 are amended so that they read as follows:
   Article 33
   (1) Fund Provision in the form of Securities in the form of covered bonds is established as Fund Provision to the issuer of Securities in the form of covered bonds.
   (2) BMPK for the purchase of Securities in the form of covered bonds as referred to in paragraph (1) is calculated based on the nominal value of Securities in the form of covered bonds, except for the purchase of Securities in the form of covered bonds that meet certain requirements. (3) Certain requirements as referred to in paragraph (2) are:
   a. the issuance of Securities in the form of covered bonds meets the criteria:
5. bonds are issued by a Bank or a mortgage institution and are legally protected to protect the holders of the Securities;
6. the proceeds from the issuance of Securities in the form of covered bonds are invested in an asset and are able to cover claims attached to the bonds during the bond period; and
7. in the event of default by the bond issuer, the investment proceeds obtained are used based on priority for the replacement of principal and payment of interest;
   b. having a primary asset pool consisting of:
8. claims to or claims guaranteed by the central government, public sector entities, or multilateral development banks;
9. residential mortgage loans with a risk weight of at most 35% (thirty-five percent) and having a loan to value ratio of at most 80% (eighty percent); and/or
10. commercial property mortgage loans with a risk weight of at most 100% (one hundred percent) and having a loan to value ratio of at most 60% (sixty percent);
    and
    c. the nominal value of a pool of assets used as the basis for issuing Securities in the form of covered bonds must exceed the outstanding value of Securities in the form of covered bonds by at least 10% (ten percent).
    (4) Certain requirements as referred to in paragraph (3) must be met from the beginning of the Fund Provision in the form of Securities in the form of covered bonds until the remaining maturity of the Securities in the form of covered bonds. (5) BMPK for the purchase of Securities in the form of covered bonds that meet certain requirements as referred to in paragraph (3) is calculated at a minimum of 20% (twenty percent) of the nominal value of the covered bond.
11. CHAPTER IV is added with 1 (one) section, namely the ninth section, and between Article 38 and Article 39, 4 (four) articles are inserted, namely Article 38A, Article 38B, Article 38C, and Article 38D, each reading as follows:
    Ninth Section
    Fund Provision to Central Counterparty
    Article 38A
    (1) Fund Provision to central counterparties in the domestic and foreign countries consists of:
    a. Fund Provision for clearing activities; and b. Fund Provision for non-clearing activities.
    (2) Fund Provision for clearing activities as referred to in paragraph (1) letter a consists of:
    a. trade exposures; b. segregated initial margin;
    c. non-segregated initial margin;
    d. pre-funded default fund contribution; e. unfunded default fund contribution; and f. equity stakes.
    (3) The Bank is required to identify Fund Provision for clearing activities as referred to in paragraph (2) and sum all Fund Provision for each central counterparty.
    (4) The Bank is required to sum all Fund Provision for non-clearing activities as referred to in paragraph (1) letter b for each central counterparty.
    Article 38B
    (1) The calculation of BMPK for Fund Provision to one central counterparty is the sum of all calculations of Fund Provision for clearing activities and Fund Provision for non-clearing activities as referred to in Article 38A paragraph (3) and paragraph (4). (2) Fund Provision to one central counterparty is established at a maximum of 25% (twenty-five percent) of the Bank's Core Capital (tier 1).
    Article 38C
    (1) Fund Provision to central counterparties in the form of Fund Provision for clearing activities as referred to in Article 38A paragraph (2) is excluded from the borrower group classification as referred to in Article 17. (2) Fund Provision to central counterparties with the category of qualifying central counterparty in the form of Fund Provision for clearing activities as referred to in Article 38A paragraph (2) is excluded from the BMPK calculation.
    Article 38D
    (1) The calculation of BMPK to central counterparties in the form of Fund Provision for clearing activities as referred to in Article 38A paragraph (2) is as follows:
    a. for trade exposures, the value of Fund Provision is calculated based on the type of Fund Provision as regulated in this Financial Services Authority Regulation; b. for segregated initial margin, the value of Fund Provision is established at 0 (zero);
    c. for non-segregated initial margin, the value of Fund Provision is established at the nominal value of the initial margin placed;
    d. for pre-funded default fund contributions, the value of Fund Provision is established at the nominal value of the default fund contributions; e. for unfunded default fund contributions, the value of Fund Provision is established at 0 (zero); and f. for equity stakes, the value of Fund Provision is established at the nominal value. (2) In the event that Fund Provision in the form of equity stakes as referred to in paragraph (1) letter f has become a deduction from Core Capital (tier 1), Fund Provision is not categorized as Fund Provision to central counterparties. (3) In the event that the Bank acts as a clearing member or a client of a clearing member, the determination of the counterparty in the BMPK calculation in the form of Fund Provision for clearing activities as referred to in paragraph (1) is established based on standards regarding risk-based capital requirements for central counterparties. (4) The calculation of BMPK to central counterparties in the form of Fund Provision for non-clearing activities as referred to in Article 38A paragraph (1) letter b is calculated based on the type of Fund Provision as regulated in this Financial Services Authority Regulation.
12. The provisions of paragraph (1), paragraph (2), and paragraph (4) of Article 43 are amended so that they read as follows:
    Article 43
    (1) The portion of Fund Provision that receives guarantees from the central government is excluded from the BMPK calculation.
    (2) Guarantees as referred to in paragraph (1) must meet the following requirements:
    a. the guarantee is unconditional and irrevocable; b. it can be liquidated no later than 7 (seven) working days since the claim is submitted, including partial liquidation to pay principal and/or interest installment arrears;
    c. it has a duration at least equal to the duration of the Fund Provision; and
    d. it is not re-guaranteed.
    (3) The Bank must submit a claim against the guarantee received as referred to in paragraph (2) no later than 7 (seven) working days since the Borrower is in default.
    (4) The Borrower is declared in default as referred to in paragraph (3) in the event that:
    a. principal, interest, and/or other charges arrears occur for 90 (ninety) days even though the Fund Provision has not yet matured; b. payment of principal, interest, and/or other charges is not received when the Fund Provision matures; or
    c. other requirements other than the payment of principal and/or interest are not met, which can cause default.
13. The provisions of paragraph (1) and paragraph (4) of Article 46 are amended so that they read as follows:
    Article 46
    (1) The portion of Fund Provision to Borrowers that receive guarantees from Prime Banks which are Related Parties of the Bank is excluded from the BMPK calculation as referred to in Article 5 as long as the guarantee provided meets the requirements:
    a. in the form of a standby letter of credit issued in accordance with the Uniform Customs and Practice for Documentary Credits or International Standby Practices; b. unconditional and irrevocable;
    c. must be liquidable no later than 7 (seven) working days since the claim is submitted, including partial liquidation;
    d. has a duration at least equal to the duration of the Fund Provision; and e. is not re-guaranteed by the fund-providing Bank or a bank that is not a Prime Bank.
    (2) The Bank must submit a claim against the guarantee received as referred to in paragraph (1) no later than 7 (seven) working days since the Borrower is in default.
    (3) The Borrower is considered in default as referred to in paragraph (2) in the event that:
    a. principal, interest, and/or other charges arrears occur for 90 (ninety) days even though the Fund Provision has not yet matured; b. payment of principal, interest, and/or other charges is not received when the Fund Provision matures; or
    c. other requirements other than the payment of principal and/or interest are not met, which can cause default.
    (4) The exclusion from the BMPK calculation as referred to in paragraph (1) is established at a maximum of 90% (ninety percent) of the Bank's Capital.
14. The provision of paragraph (1) of Article 50 is amended so that it reads as follows:
    Article 50
    (1) The Bank is required to promptly resolve BMPK Violations and/or BMPK Exceedances with a resolution time target as referred to in Article 49 paragraph (2) established:
    a. for BMPK Violations, no later than within a period of 1 (one) month; b. for BMPK Exceedances caused by matters as referred to in Article 48 paragraph (1) letter a, letter b, and letter c, established no later than 9 (nine) months;
    c. for BMPK Exceedances caused by matters as referred to in Article 48 paragraph (1) letter d, established no later than 12 (twelve) months; and/or
    d. for BMPK Exceedances caused by matters as referred to in Article 48 paragraph (1) letter e, established no later than 18 (eighteen) months, since the deadline for submitting the action plan to the Financial Services Authority. (2) In the event that the resolution time target for the action plan as referred to in paragraph (1) is assessed as unachievable, the Bank, based on approval from the Financial Services Authority, may establish a different resolution time target for the action plan than the resolution time target for the action plan as referred to in paragraph (1).
15. Article 60 is amended so that it reads as follows:
    Article 60
    Banks that do not implement the provisions as referred to in Article 2 paragraph (1), Article 2 paragraph (3), Article 3 paragraph (1), Article 3 paragraph (2), Article 3 paragraph (5), Article 4, Article 6, Article 7, Article 8, Article 17 paragraph (1), Article 22 paragraph (1), Article 32 paragraph (9), Article 38A paragraph (3), Article 38A paragraph (4), Article 40 paragraph (1), Article 49, Article 50 paragraph (1), Article 51, Article 52, Article 53 paragraph (1), Article 54 paragraph (1), Article 55 paragraph (1), Article 57 paragraph (1), Article 58 paragraph (1), Article 58 paragraph (2), and/or Article 58 paragraph (3) are subject to administrative sanctions in the form of:
    a. written reprimand; b. downgrade of the Bank's health level;
    c. prohibition on expanding business activities;
    d. prohibition on opening office networks; e. suspension of certain business activities; and/or f. prohibition on acting as the main party of a financial service institution in accordance with the Financial Services Authority Regulation regarding the re-evaluation of the main party of a financial service institution.
16. Between Article 64 and Article 65, 1 (one) article is inserted, namely Article 64A, so that it reads as follows:
    Article 64A
    (1) BMPK exclusions for Fund Provision in the form of Placements in each Prime Bank and Fund Provision to Borrowers that receive guarantees from Prime Banks other than Related Parties that are ongoing and already existed before the implementation of this Financial Services Authority Regulation may continue until maturity. (2) In the event that Fund Provision in the form of Placements in each Prime Bank and Fund Provision to Borrowers that receive guarantees from Prime Banks other than Related Parties as referred to in paragraph (1) do not have a maturity date, the BMPK exclusion remains valid no later than until 18 (eighteen) months since this Financial Services Authority Regulation takes effect.
17. Appendix II is amended as stated in Appendix II which is an integral part of this Financial Services Authority Regulation.
    Article II
    This Financial Services Authority Regulation takes effect on January 1, 2020.

This copy is in accordance with the original
Director of Law 1
Law Department signed
Yuliana

In order that everyone knows it, it is ordered to promulgate this Financial Services Authority Regulation by placing it in the State Gazette of the Republic of Indonesia. Established in Jakarta on December 19, 2019 CHAIRMAN OF THE COMMISSIONERS FINANCIAL SERVICES AUTHORITY REPUBLIC OF INDONESIA, signed WIMBOH SANTOSO Promulgated in Jakarta on December 19, 2019 MINISTER OF LAW AND HUMAN RIGHTS REPUBLIC OF INDONESIA, signed YASONNA H. LAOLY STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2019 NUMBER 245

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
REPUBLIC OF INDONESIA
NUMBER 38 /POJK.03/2019
CONCERNING
AMENDMENT TO THE FINANCIAL SERVICES AUTHORITY REGULATION NUMBER 32/POJK.03/2018 CONCERNING THE MAXIMUM LIMIT FOR CREDIT PROVISION AND LARGE FUND PROVISION FOR COMMERCIAL BANKS

I. GENERAL
One of the causes of Bank business failure is Fund Provision not supported by the Bank's ability to effectively manage the concentration of Fund Provision. A counterparty that suddenly defaults can endanger the Bank's solvency. To reduce the potential for Bank business failure as a result of the concentration of Fund Provision, Banks are required to spread and diversify the Fund Provision portfolio, especially through limiting Fund Provision, both to Related Parties and non-Related Parties, by a certain percentage of the Bank's Capital or Core Capital (tier 1) of the Bank, known as BMPK and Large Fund Provision. In this regard, there is a need to improve regulations in accordance with international standards, so that the Financial Services Authority Regulation regarding the maximum limit for credit provision and large fund provision for commercial banks needs to be amended, including regulations regarding Prime Banks, central counterparties, and reporting.

II. ARTICLE BY ARTICLE
Article I
Number 1
Sufficiently clear.
Number 2
Sufficiently clear.
Number 3
Article 32
Paragraph (1)
Securities linked or guaranteed by underlying assets are Securities whose price or value is determined, among others, based on the price or value of a specific instrument established as the underlying asset. Examples of such Securities include Asset-Backed Securities (ABS) and mutual funds. Paragraph (2) Example:
Bank "A" purchases ABS "XYZ" or mutual fund "PQR" from PT "B" with a total nominal value of purchase being less than 0.25% (zero point two five percent) of Core Capital (tier 1) of Bank "A". Fund Provision in the form of the purchase of ABS or mutual fund is established as Fund Provision to the issuer of ABS "XYZ" or the investment manager of mutual fund "PQR". Paragraph (3) Example 1:
Bank "A" purchases ABS "XYZ" from PT "B" with a total nominal value of purchase being equal to or greater than 0.25% (zero point two five percent) of Core Capital (tier 1) of Bank "A". The underlying assets of ABS "XYZ" are a portfolio of loans consisting of loans to PT "Alfa", PT "Beta", and PT "Gama". Thus, Fund Provision in the form of the purchase of ABS "XYZ" is established as Fund Provision to PT "Alfa", PT "Beta", and PT "Gama". Example 2:
Bank "A" purchases mutual fund "PQR" from PT "B" with a total nominal value of purchase being equal to or greater than 0.25% (zero point two five percent) of Core Capital (tier 1) of Bank "A". The underlying assets of mutual fund "PQR" are bonds of PT "Alfa" and bonds of PT "Beta". Thus, Fund Provision in the form of the purchase of mutual fund "PQR" is established as Fund Provision to PT "Alfa" and PT "Beta". Paragraph (4) Letter a Sufficiently clear. Letter b An example of the look-through approach is contained in Appendix I which is an integral part of this Financial Services Authority Regulation. Paragraph (5) In the event that the Bank is not required to use the look-through approach, the Bank demonstrates that the consideration to perform regulatory arbitrage does not affect the decision to use the look-through approach. For example, the Bank does not avoid setting Large Fund Provision limits by investing in several individual transactions that are immaterial with identical underlying assets. Paragraph (6) Sufficiently clear. Paragraph (7) Examples of third parties include originators, investment managers, liquidity providers, and credit protection providers. Paragraph (8) Sufficiently clear. Paragraph (9) Sufficiently clear. Number 4
Article 33
Paragraph (1)
Sufficiently clear.
Paragraph (2)
Sufficiently clear.
Paragraph (3)
Letter a
Sufficiently clear.
Letter b
Central government, public sector entities, or multilateral development banks; residential mortgage loans; or commercial property mortgage loans are as referred to in the Financial Services Authority regulations regarding the calculation guidelines for risk-weighted assets for credit risk using the standard approach. Letter c A pool of assets used as the basis for issuing Securities in the form of covered bonds may also consist of:

1. substitution assets, i.e., cash or short-term liquid assets held as a substitute for the primary asset pool with the aim of enhancing the value of the asset pool (cover pool); or
2. Derivative Transactions conducted as a hedge against risks arising from Securities in the form of covered bond transactions.

Paragraph (4)
Clearly stated.
Paragraph (5)
Clearly stated.
Number 5
Article 38A
Paragraph (1)
Domestic central counterparties refer to regulations concerning the operation of central counterparties for interest rate and over-the-counter exchange rate derivative transactions. Paragraph (2) Clearly stated. Paragraph (3) Clearly stated. Paragraph (4) Other fund provisions from non-clearing activities may take the form of financing facilities, Credits, and guarantees.
Article 38B
Clearly stated.
Article 38C
Paragraph (1)
Clearly stated.
Paragraph (2)
Qualifying central counterparty means an entity that has a license to operate as a central counterparty, including a license to obtain exemptions, and obtains approval from the relevant regulator or supervisor to operate as a central counterparty in accordance with the products offered. This refers to the provision that the central counterparty:
a. is based on regulations issued by the regulator; and b. is prudentially supervised by the relevant supervisor, in a jurisdiction that has provisions and regulations consistent with the Committee on Payment and Settlement Systems – International Organization of Securities Commissions Principles for Financial Market Infrastructures, and has been applied continuously.
Article 38D
Paragraph (1)
Letter a
Example:
The calculation of the value of Fund Provision for Derivative Transactions is calculated based on the value of Fund Provision for credit risk arising from counterparty failure. Letter b In the event that the initial margin submitted has been freed from the bankruptcy risk experienced by the central counterparty, namely the initial margin is separated from the records held by the central counterparty, the Bank will not lose the initial margin if the central counterparty defaults. Thus, the initial margin submitted by the Bank to the central counterparty may be excluded from the calculation of Maximum Credit Granting (BMPK). Letter c Clearly stated. Letter d The value of Fund Provision in the form of pre-funded default fund contributions may be changed if Fund Provision is provided to qualifying central counterparties and not only provided to non-qualifying central counterparties. Letter e Clearly stated. Letter f Clearly stated.

Paragraph (2)
Clearly stated.
Paragraph (3)
Standards regarding risk-based capital requirements for central counterparties refer to documents regarding Capital Requirements for Bank Exposures to Central Counterparties issued by the Basel Committee on Banking Supervision. Paragraph (4) Clearly stated. Number 6
Article 43
Paragraph (1)
Clearly stated.
Paragraph (2)
Letter a
Unconditional means in the event that:

1. the benefits obtained by the fund-providing Bank from the collateral do not substantially decrease even if losses occur due to factors beyond the Bank's control; and
2. does not contain procedural requirements, such as:
   a. requiring a time limit for submitting default notifications; b. requiring the fund-providing Bank to prove good faith; and/or
   c. requiring the release of collateral to be done through mutual offset first with the fund-providing Bank's obligations to the guarantor.
   Letter b
   Clearly stated.

Letter c
Clearly stated.
Letter d
Clearly stated.
Paragraph (3)
Clearly stated.
Paragraph (4)
Clearly stated.
Number 7
Article 46
Paragraph (1)
Clearly stated.
Paragraph (2)
Clearly stated.
Paragraph (3)
Clearly stated.
Paragraph (4)
With the guarantee from a Related Party's Prime Bank, the total Fund Provision to Borrowers who obtain such guarantee is at most:
a. 100% (one hundred percent) of the Bank's Capital for Related Parties; or b. 100% (one hundred percent) of Core Capital (tier 1) of the Bank for Fund Provision to 1 (one) Borrower or 1 (one) group of Borrowers other than Related Parties. Example 1:
Borrower “A” and Borrower “B” are Related Parties of PT Bank “X” who obtain guarantees in the form of standby letters of credit issued by the parent company of PT Bank “X” in the form of a Prime Bank. The portion of Fund Provision from PT Bank “X” to Borrower “A” and Borrower “B” who obtain such guarantees may be excluded from the calculation of Maximum Credit Granting (BMPK) at most 90% (ninety percent) of the Bank's Capital. This limit applies to the total Fund Provision to Related Parties. The portion of Fund Provision to Borrower “A” and Borrower “B” who do not obtain such guarantees is calculated as Fund Provision to Related Parties of the Bank, which in total is set at most 10% (ten percent) of the Bank's Capital. Example 2:
Borrower “C” and Borrower “D” are non-Related Parties (not a group of Borrowers) of PT Bank “Y” who obtain guarantees in the form of standby letters of credit issued by the parent company of PT Bank “Y” in the form of a Prime Bank. The total Fund Provision from PT Bank “Y” to each of Borrower “C” and Borrower “D” is at most 100% (one hundred percent) of Core Capital (tier 1), taking into account the Maximum Credit Granting (BMPK) limit for the portion that does not obtain guarantees, namely at most 25% (twenty-five percent) of Core Capital (tier 1) for each of Borrower “C” and Borrower “D”. Number 8
Article 50
Clearly stated.
Number 9
Article 60
Clearly stated.
Number 10
Article 64A
Clearly stated.
Number 11
Clearly stated.

Article II
Clearly stated.
SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 6438

APPENDIX II
FINANCIAL SERVICES AUTHORITY REGULATION
OF THE REPUBLIC OF INDONESIA
NUMBER 38 /POJK.03/2019
CONCERNING
AMENDMENT TO THE FINANCIAL SERVICES AUTHORITY REGULATION NUMBER 32/POJK.03/2018 CONCERNING MAXIMUM CREDIT GRANTING AND LARGE FUND PROVISION FOR COMMERCIAL BANKS

GUIDELINES FOR PREPARING REPORTS ON MAXIMUM CREDIT GRANTING AND LARGE FUND PROVISION FOR COMMERCIAL BANKS INDIVIDUAL FUND PROVISION REPORT Bank Name : PT Bank…. (individual) Report Position : Month/Year

(In Millions of Rupiah)
Initial Maturity
XII/i XIV XV XVI XVII XVIII XIX.1 XIX.2 XX XXI COLLATERAL/GUARANTEE PROVIDED (MRK TECHNIQUE) Quality Description Timeframe Form Collateral/ Guarantee Guaranteed Portion Issuer Collateral/ Guarantee Rating Guarantor Rating Agency Date Rating

CONSOLIDATED FUND PROVISION REPORT
Bank Name : PT Bank…. (consolidation)
Report Position : Month/Year

(In
Millions of Rupiah)
Initial Maturity Rupiah Foreign Currency Rupiah Foreign Currency XI XII.1 XII.2 XIII XIV XV XVI XVII XVIII XIX XX Description Consolidated Capital Quality Total Fund Provision after MRK Technique CONSOLIDATION Type Fund Provision SUBSIDIARIES Timeframe Total Fund Provision after MRK Technique Exchange Rate

Guidelines for Filling Out the Fund Provision Report In this table, the following matters are reported:

1. All Fund Provisions to Related Parties.
2. Fund Provisions to 20 (twenty) Borrowers other than Related Parties who obtain the largest amount of Fund Provision, regardless of the percentage of Fund Provision against the Bank's Core Capital (tier 1).
   I. Name
   This column is filled with the names of all Related Party Borrowers or non-Related Party Borrowers, whether individuals or groups of Borrowers. In the event that the Bank fills in the total Related Parties/group of Borrowers/group of State-Owned Enterprises (BUMN) Borrowers, the Name column is filled with “Total”, followed on the next line by the names of each member of the group of Borrowers. Debtors classified as “unknown client” as referred to in this Financial Services Authority Regulation are also written by the Bank as “unknown client”.
   II. Individual/Group of Borrowers Member/Total Group of Borrowers
   This column is filled with the following codes:
   No. Individual/Group Member/Total Group Code
3. Individual 1
4. Group of Borrowers Member 2
5. Total Group of Borrowers 3
6. Total Related Parties 4
7. State-Owned Enterprises (BUMN) Group of Borrowers Member 5
8. Total State-Owned Enterprises (BUMN) Group of Borrowers 6
   The Bank reports the Total Group of Borrowers/Total State-Owned Enterprises (BUMN) Group of Borrowers and details all Group of Borrowers Members/State-Owned Enterprises (BUMN) Group of Borrowers Members on subsequent lines. In the event that there is 1 (one) Group of Borrowers Member/State-Owned Enterprises (BUMN) Group of Borrowers Member who is a member of more than 1 (one) group of Borrowers/group of State-Owned Enterprises (BUMN) Borrowers, that Group of Borrowers Member/State-Owned Enterprises (BUMN) Group of Borrowers Member is reported in the details of each Total Group of Borrowers/Total State-Owned Enterprises (BUMN) Group of Borrowers.

The Bank reports the total Related Parties and details all Related Parties to whom the Bank provides Fund Provision on subsequent lines.
In the event that there are Fund Provisions to the Government of the Republic of Indonesia and Bank Indonesia, the Bank fills this column with the individual code.
III. Name of Group of Borrowers
This column is filled with the name of the group of Borrowers.
IV. Relationship with the Bank
This column is filled with the following codes:
No. Relationship Code

1. Related Party 1
2. Non-Related Party 2
   V. Status of Relationship with the Bank
   This column is filled with the following codes:
   No. Status of Relationship with the Bank Code
3. Related Party
   a. Controllers and/or families of the Bank's controllers 0110 b. Legal entities in the event that the Bank acts as a controller
   c. Companies in the event that individuals or companies as referred to in letter a act as controllers
   d. Bank Board of Commissioners, families of the Board of Commissioners, and Executive Officers of the Bank e. Board members of companies as referred to in letter a, letter b, and/or letter c f. Companies whose board members are members of the Board of Commissioners at the Bank g. Companies where 50% or more of the board members are board members of companies as referred to in letter a, letter b, and letter c h. Companies whose board members or Executive Officers of the Bank act as controllers
   i. Companies whose board members of parties as referred to in letter a, letter b, and/or letter c act as controllers
   j. Financial relationships 0310 k. Collective Investment Contracts (KIK) where the Bank and/or parties as referred to in letter a to letter i hold 10% or more of the shares in the investment manager of the KIK
   l. Guarantees 0330

m. Others 0410
2. Non-Related Party
a. Individual Borrowers 9900 b. Group of Borrowers

1. Controllers of Other Borrowers 9910
2. Joint Ownership 9920
3. Financial Relationships other than Guarantees 9930
4. Guarantees 9940
5. Board Members/Management Relationships 9950
   Explanation of the status of the relationship with the Bank as referred to in this Financial Services Authority Regulation and Appendix I, which is an integral part of this Financial Services Authority Regulation.
   VI. Type of Fund Provision
   This column is filled with the type of Fund Provision provided by the Bank to Borrowers as regulated in this appendix. This column is filled with the following codes:
   No. Type of Fund Provision Code

1. Placements 10
2. Securities 20
3. Securities Sold with Repurchase Agreement (Repo)
4. Claims on Securities Purchased with Resale Agreement (Reverse Repo)
5. Credits 30
6. Acceptance Claims 39
7. Equity Investments 40
8. Temporary Equity Investments 45
9. Credit Derivatives 50
10. Derivative Transactions other than Credit Derivatives 60
11. Other Forms of Fund Provision 62
12. Guarantees 65
13. Letter of Credit (L/C) 70
14. Standby Letter of Credit (SBLC) 80
15. Other Forms of Fund Provision in Administrative Account Transactions
    For Borrowers who obtain Fund Provision from the Bank in more than one type, this column is filled with the type of Fund Provision that has the largest amount of Fund Provision. In the event that there are issuers of collateral/guarantee issuers/guarantors whose exposures are calculated due to the application of the MRK Technique, this column is filled with code 62, namely Other Forms of Fund Provision.

VII. Timeframe

1. Initial
   This column is filled with the date, month, and year of the initial Fund Provision provided.
2. Maturity
   This column is filled with the date, month, and year of the Fund Provision maturity.
   VIII. Total Fund Provision in Rupiah
   This column is filled with the total Fund Provision received by the Borrower in Rupiah currency.
   In the event that there is more than 1 (one) type of Fund Provision for 1 (one) Borrower, the Bank sums the total value of Fund Provision for each type of Fund Provision by calculation as regulated in this Financial Services Authority Regulation. In the event that the Bank fills in information regarding the total Related Parties/group of Borrowers/group of State-Owned Enterprises (BUMN) Borrowers, this column is filled with the sum of all total Rupiah fund provisions from all Related Parties/group of Borrowers members/group of State-Owned Enterprises (BUMN) Borrowers members.
   IX. Total Fund Provision in Foreign Currency
   This column is filled with the total Fund Provision received by the Borrower in foreign currency after being converted into Rupiah using the exchange rate at the end of the reporting month conducted by the Borrower. In the event that there is more than 1 (one) type of Fund Provision for 1 (one) Borrower, the Bank sums the total value of Fund Provision for each type of Fund Provision by calculation as regulated in this Financial Services Authority Regulation. In the event that the Bank fills in information regarding the total Related Parties/group of Borrowers/group of State-Owned Enterprises (BUMN) Borrowers, this column is filled with the sum of all total foreign currency fund provisions from all Related Parties/group of Borrowers members/group of State-Owned Enterprises (BUMN) Borrowers members.
   X. Exchange Rate
   Filled with Bank Indonesia's closing exchange rate at the end of the reporting month, using the middle rate.

XI. Capital
This column is filled with the total Bank Capital at the time of the reporting month, both individually and consolidated.
XII. Core Capital (tier 1)
This column is filled with the Bank's Core Capital (tier 1) at the time of the reporting month, both individually and consolidated.
XIII. Form of Collateral/Guarantee
This column is filled with collateral/guarantee that can be calculated as a reduction factor in the calculation of Maximum Credit Granting (BMPK) and Large Fund Provision as referred to in this Financial Services Authority Regulation, namely with the following codes:
No. Form of Collateral/Guarantee Code

1. Current Account 10
2. Savings 15
3. Deposits 20
4. Guarantee Deposits 37
5. Gold 40
6. Treasury Bills (SBI) 45
7. Government Securities (SBN) 60
8. Standby Letter of Credit (SBLC) 65
9. Central Government Guarantees 68
10. Others 70
11. None 99
    In the event that one Fund Provision uses more than 1 (one) collateral/guarantee, this column is filled with the form of collateral/guarantee that has the largest guaranteed portion.
    XIV. Guaranteed Portion
    This column is filled with the portion of Fund Provision that receives protection from the Market Risk Mitigation (MRK) Technique instrument as referred to in this Financial Services Authority Regulation. In the event that one Fund Provision uses more than 1 (one) collateral/guarantee, the Bank sums the value of each form of collateral/guarantee as the guaranteed portion with the largest value equal to the total Fund Provision. In the event that the Bank fills in information regarding the total Related Parties/group of Borrowers/group of State-Owned Enterprises (BUMN) Borrowers, this column is filled with

the sum of all guaranteed portions from all Related Parties/group of Borrowers members/group of State-Owned Enterprises (BUMN) Borrowers members.
XV. Issuer of Collateral/Guarantee
This column is filled with the issuer of collateral/guarantee such as the Government of the Republic of Indonesia, Banks, or multilateral institutions according to the third-party category codes and Bank codes as referred to in regulations concerning integrated commercial bank reports.
XVI. Guarantor Rating
This column is filled with the rating of the collateral issuer. This column is filled with the number 00 for collateral/guarantee issued by the Government of the Republic of Indonesia or Bank Indonesia.
XVII. Rating Agency
This column is filled with the name of the rating agency recognized by the Financial Services Authority as referred to in the Financial Services Authority Circular Letter concerning recognized rating agencies and ratings by the Financial Services Authority. This column is filled with the following codes:
No. Rating Agency Code

1. Moody’s Investor Service MIS
2. Standard and Poor’s SNP
3. Fitch Rating International FIN
4. Indonesia Securities Rating Agency (Pefindo) PEF
5. Fitch Rating Indonesia FID
6. None 00
   XVIII. Rating Date
   This column is filled with the date, month, and year when the rating was given.
   XIX. Timeframe
7. Initial
   This column is filled with the date, month, and year of the initial issuance of the collateral/guarantee.
8. Maturity
   This column is filled with the date, month, and year of the collateral/guarantee maturity.

XX. Quality
Quality of Fund Provision, namely the quality of the Fund Provision provided by the Bank, assessed according to regulations concerning the assessment of commercial bank asset quality with the following quality classification:
No. Quality Code

1. Good 1
2. Special Attention 2
3. Less Good 3
4. Doubtful 4
5. Loss 5
   XXI. Description
   This column is filled with other descriptions considered necessary.

LARGE FUND PROVISION REPORT
Bank Name : PT Bank…. (individual/consolidation)* Report Position : Month/Year

(In Millions of Rupiah)
Initial Maturity Rupiah Foreign Currency
% Total
Fund Provision with
Core Capital (Tier 1)
XII XIII XIV XV XVI XVII XVIII.1 XVIII.2 XIX XX XXI XXII Form Collateral/ Guarantee Total Fund Provision after MRK Technique (Unguaranteed Portion) Guaranteed Portion Issuer Collateral/ Guarantee Rating Guarantor Rating Agency Date Rating COLLATERAL/GUARANTEE PROVIDED (MRK TECHNIQUE) Description Timeframe

Guidelines for Filling Out the Large Fund Provision Report In this table, all Fund Provisions of 10% (ten percent) or more of the Bank's Core Capital (tier 1) to non-Related Parties are reported, before and after applying the MRK Technique. This table does not include Large Fund Provisions that have been exempted and reported through the Large Fund Provision Exemption Report.
I. Name
This column is filled with the names of all non-Related Party Borrowers, whether individuals or groups of Borrowers. In the event that the Bank fills in the total group of Borrowers/group of State-Owned Enterprises (BUMN) Borrowers, the Name column is filled with “Total”, followed on the next line by the names of each member of the group of Borrowers. Debtors classified as “unknown client” as referred to in this Financial Services Authority Regulation are also written by the Bank as “unknown client”. For Banks that do not have Large Fund Provisions, the Borrower Name column is filled with “Nihil”.
II. Individual/Group of Borrowers Member/Total Group of Borrowers
This column is filled with the following codes:
No. Individual/Group Member/Total Group Code

1. Individual 1
2. Group of Borrowers Member 2
3. Total Group of Borrowers 3
4. State-Owned Enterprises (BUMN) Group of Borrowers Member 5
5. Total State-Owned Enterprises (BUMN) Group of Borrowers 6
   The Bank reports the Total Group of Borrowers/Total State-Owned Enterprises (BUMN) Group of Borrowers and details all Group of Borrowers Members/State-Owned Enterprises (BUMN) Group of Borrowers Members on subsequent lines. In the event that there is 1 (one) Group of Borrowers Member/State-Owned Enterprises (BUMN) Group of Borrowers Member who is a member of more than 1 (one) group of Borrowers/group of State-Owned Enterprises (BUMN) Borrowers, that Group of Borrowers Member/State-Owned Enterprises (BUMN) Group of Borrowers Member is reported in the details of each Total Group of Borrowers/Total State-Owned Enterprises (BUMN) Group of Borrowers.

In the event that there are Fund Provisions to the Government of the Republic of Indonesia and Bank Indonesia, the Bank fills this column with the individual code.
III. Name of Group of Borrowers
This column is filled with the name of the group of Borrowers.
IV. Status of Relationship with the Bank
This column is filled with the following codes:
No. Status of Relationship with the Bank Code

1. Individual Borrowers 9900
2. Group of Borrowers
   a) Controllers of Other Borrowers 9910 b) Joint Ownership 9920 c) Financial Relationships other than Guarantees 9930 d) Guarantees 9940 e) Board Members/Management Relationships 9950 Explanation of the status of the relationship with the Bank, namely as referred to in this Financial Services Authority Regulation and Appendix I, which is an integral part of this Financial Services Authority Regulation.
   V. Type of Fund Provision
   This column is filled with the type of Fund Provision provided by the Bank to Borrowers as regulated in these provisions.
   This column is filled with the following codes:
   No. Type of Fund Provision Code
3. Placements 10
4. Securities 20
5. Securities Sold with Repurchase Agreement (Repo)
6. Claims on Securities Purchased with Resale Agreement (Reverse Repo)
7. Credits 30
8. Acceptance Claims 39
9. Equity Investments 40
10. Temporary Equity Investments 45
11. Credit Derivatives 50
12. Derivative Transactions other than Credit Derivatives 60
13. Other Forms of Fund Provision 62
14. Guarantees 65
15. Letter of Credit (L/C) 70
16. Standby Letter of Credit (SBLC) 80
17. Other Forms of Fund Provision in Administrative Account Transactions

For Borrowers who obtain Fund Provision from the Bank in more than one type, this column is filled with the type of Fund Provision that has the largest amount of Fund Provision. In the event that there are issuers of collateral/guarantee issuers/guarantors whose exposures are calculated due to the application of the MRK Technique, this column is filled with code 62, namely Other Forms of Fund Provision.
VI. Timeframe

1. Initial
   This column is filled with the date, month, and year of the initial Fund Provision provided.
2. Maturity
   This column is filled with the date, month, and year of the Fund Provision maturity.
   VII. Total Fund Provision in Rupiah
   This column is filled with the total Fund Provision, individually or consolidated, received by the Borrower in Rupiah currency.
   In the event that there is more than 1 (one) type of Fund Provision for 1 (one) Borrower, the Bank sums the total value of Fund Provision for each type of Fund Provision by calculation as regulated in this Financial Services Authority Regulation. In the event that the Bank fills in information regarding the total group of Borrowers/group of State-Owned Enterprises (BUMN) Borrowers, this column is filled with the sum of all total Rupiah fund provisions from all group of Borrowers members/group of State-Owned Enterprises (BUMN) Borrowers members.
   VIII. Total Fund Provision in Foreign Currency
   This column is filled with the total Fund Provision received by the Borrower in foreign currency after being converted into Rupiah using the exchange rate at the end of the reporting month conducted by the Borrower. In the event that there is more than 1 (one) type of Fund Provision for 1 (one) Borrower, the Bank sums the total value of Fund Provision for each type of Fund Provision by calculation as regulated in this Financial Services Authority Regulation. In the event that the Bank fills in information regarding the total group of Borrowers/group of State-Owned Enterprises (BUMN) Borrowers, this column is filled with

the sum of all total foreign currency fund provisions from all group of Borrowers members/group of State-Owned Enterprises (BUMN) Borrowers members.
IX. Exchange Rate
Filled with Bank Indonesia's closing exchange rate at the end of the reporting month, using the middle rate.
X. Core Capital (tier 1)
This column is filled with the Bank's Core Capital (tier 1) at the time of the reporting month, both individually and consolidated.
XI. Percentage of Fund Provision with Core Capital (tier 1)
Percentage of Fund Provision with Core Capital (tier 1) of the Bank before applying the MRK Technique.
XII. Form of Collateral/Guarantee
This column is filled with collateral/guarantee that can be calculated as a reduction factor in the calculation of Maximum Credit Granting (BMPK) and Large Fund Provision as referred to in this Financial Services Authority Regulation, namely with the following codes:
No. Form of Collateral/Guarantee Code

1. Current Account 10
2. Savings 15
3. Deposits 20
4. Guarantee Deposits 37
5. Gold 40
6. Treasury Bills (SBI) 45
7. Government Securities (SBN) 60
8. Standby Letter of Credit (SBLC) 65
9. Central Government Guarantees 68
10. Others 70
11. None 99
    In the event that one Fund Provision uses more than 1 (one) collateral/guarantee, this column is filled with the form of collateral/guarantee that has the largest guaranteed portion.

XIII. Secured Portion
This column is filled with the portion of Fund Provision that receives protection from MRK Techniques as referred to in this Financial Services Authority Regulation.

In the event that one Fund Provision uses more than 1 (one) collateral/guarantee, the Bank sums the value of each form of collateral/guarantee as the secured portion with a maximum value equal to the total Fund Provision.

In the event the Bank fills in information regarding the total Related Party/borrower group/BUMN borrower group, this column is filled with the sum of all secured portions from all members of the borrower group/BUMN borrower group members.

XIV. Issuer of Collateral/Guarantee
This column is filled with the issuer of the collateral/guarantee such as the Government of the Republic of Indonesia, Banks, or multilateral institutions according to the third-party group code and Bank code as referred to in regulations concerning integrated general bank reports.

XV. Guarantor Rating
This column is filled with the rating of the collateral issuer. This column is filled with the number 00 for collateral/guarantees issued by the Government of the Republic of Indonesia or Bank Indonesia.

XVI. Rating Agency
This column is filled with the name of the rating agency recognized by the Financial Services Authority as referred to in the Financial Services Authority Circular Letter concerning recognized rating agencies and ratings by the Financial Services Authority. This column is filled with the code:

No. Rating Agency Code

1. Moody’s Investor Service MIS
2. Standard and Poor’s SNP
3. Fitch Rating Internasional FIN
4. Pemeringkat Efek Indonesia (Pefindo) PEF
5. Fitch Rating Indonesia FID
6. None 00

XVII. Rating Date
This column is filled with the date, month, and year when the rating was given.

XVIII. Tenor

1. Start
   This column is filled with the date, month, and year when the collateral/guarantee was issued.
2. Maturity
   This column is filled with the date, month, and year when the collateral/guarantee matures.

XIX. Amount of Rupiah Fund Provision after MRK Technique
This column is filled with the amount of Fund Provision individually or consolidated that is received by the Borrower in Rupiah currency after applying the MRK Technique. Fund Provision after the MRK Technique is the portion of Fund Provision that is not secured by the MRK Technique as referred to in this Financial Services Authority Regulation.

In the event there is more than 1 (one) type of Fund Provision for 1 (one) Borrower, the Bank sums all values of Fund Provision for each Fund Provision with a calculation method as regulated in this Financial Services Authority Regulation.

In the event the Bank fills in information regarding the total Related Party/borrower group/BUMN borrower group, this column is filled with the sum of all amounts of Rupiah Fund Provision from all members of the borrower group/BUMN borrower group members.

XX. Amount of Foreign Currency Fund Provision after MRK Technique
This column is filled with the amount of Fund Provision individually or consolidated that is received by the Borrower in foreign currency after being converted into Rupiah using the exchange rate at the end of the reporting month conducted by the Borrower or one member of the borrower group or one related member after applying the MRK Technique. Fund Provision after the MRK Technique is the portion of Fund Provision that is not secured by the MRK Technique as referred to in this Financial Services Authority Regulation.

In the event there is more than 1 (one) type of Fund Provision for 1 (one) Borrower, the Bank sums all values of Fund Provision for each Fund Provision with a calculation method as regulated in this Financial Services Authority Regulation.

In the event the Bank fills in information regarding the total Related Party/borrower group/BUMN borrower group, this column is filled with the sum of all amounts of foreign currency Fund Provision from all members of the borrower group/BUMN borrower group members.

XXI. Percentage of Fund Provision with Core Capital (tier 1)
Percentage of Fund Provision with Bank Core Capital (tier 1) after applying the MRK Technique.

XXII. Notes
This column is filled with other notes considered necessary.

LARGE FUND PROVISION EXCLUSION REPORT
Bank Name : PT Bank…. (individual/consolidated)* Report Position : Month/Year (In Millions of Rupiah)

I	II	III	IV	V	VI.1	VI.2	VII	VIII	IX	X	XI	XII	XIII	XIV
Borrower	Fund Provision on Reporting Date	Specific BMPK Treatment
Name Individual/Member of Borrower Group/Total Borrower Group	Name of Borrower Group	Relationship Status with Bank	Type of Fund Provision	Tenor	Amount of Fund Provision	Exchange Rate	Core Capital (Tier 1)	Form of Specific BMPK Treatment	Amount of Fund Provision with Specific BMPK Treatment

Guidelines for Filling the Large Fund Provision Exclusion Report In this table, all Fund Provisions of 10% (ten percent) or more of Core Capital (tier 1) to parties other than Related Parties that are excluded from BMPK calculations and Large Fund Provision calculations based on this Financial Services Authority Regulation are reported.

I. Name
This column is filled with the name of all Borrowers other than Related Parties consisting of individuals or borrower groups. In the event the Bank fills in the total borrower group/BUMN borrower group, the Name column is filled with “Total”, followed on the next row by the names of each member of the borrower group.

Debtors classified as “unknown client” as referred to in this Financial Services Authority Regulation are also written by the Bank as “unknown client”.

For Banks that do not have Large Fund Provision Exclusions, the Borrower Name column is filled with “Nihil”.

II. Individual/Member of Borrower Group/Total Borrower Group
This column is filled with the code:

No. Individual/Member Group/Total Group Code

1. Individual 1
2. Member of Borrower Group 2
3. Total Borrower Group 3
4. Member of BUMn Borrower Group 5
5. Total BUMn Borrower Group 6

The Bank reports the Total Borrower Group/Total BUMn Borrower Group and details all Members of the Borrower Group/Members of the BUMn Borrower Group on subsequent rows. In the event there is 1 (one) Member of the Borrower Group/Member of the BUMn Borrower Group that is a member of more than 1 (one) borrower group/BUMn borrower group, that Member of the Borrower Group/Member of the BUMn Borrower Group is reported in the details of each Total Borrower Group/Total BUMn Borrower Group.

In the event there is Fund Provision to the Government of the Republic of Indonesia and Bank Indonesia, the Bank fills this column with the individual code.

III. Name of Borrower Group
This column is filled with the name of the borrower group.

IV. Relationship Status with Bank
This column is filled with the code:

No. Relationship Status with Bank Code

1. Individual Borrower 9900
2. Borrower Group
   a. Controller of Other Borrowers 9910 b. Joint Ownership 9920
   c. Financial Relationship other than Guarantee 9930
   d. Guarantee 9940 e. Management/Corporate Relationship 9950

The explanation of the relationship status with the Bank is as referred to in this Financial Services Authority Regulation and Appendix I which is an integral part of this Financial Services Authority Regulation.

V. Type of Fund Provision
This column is filled with the type of Fund Provision given by the Bank to the Borrower as regulated in this appendix. This column is filled with the code:

No. Type of Fund Provision Code

1. Placement 10
2. Securities 20
3. Securities Sold with Repurchase Agreement (Repo)
4. Claims on Securities Purchased with Resale Agreement (Reverse Repo)
5. Credit 30
6. Acceptance Claims 39
7. Equity Participation 40
8. Temporary Equity Participation 45
9. Credit Derivatives 50
10. Derivative Transactions other than Credit Derivatives 60
11. Other Forms of Fund Provision 62
12. Guarantee 65
13. Letter of Credit (L/C) 70
14. Standby Letter of Credit (SBLC) 80
15. Other Forms of Fund Provision in Administrative Account Transactions

For Borrowers who receive Fund Provision from the Bank of more than one type, this column is filled with the type of Fund Provision that has the largest amount of Fund Provision.

In the event there is an issuer of collateral/issuer of guarantee/guarantor whose exposure is calculated due to the application of the MRK Technique, this column is filled with code 62, which is Other Forms of Fund Provision.

VI. Tenor

1. Start
   This column is filled with the date, month, and year when the Fund Provision was given.
2. Maturity
   This column is filled with the date, month, and year when the Fund Provision matures.

VII. Amount of Rupiah Fund Provision
This column is filled with the amount of Fund Provision individually or consolidated that is received by the Borrower in Rupiah currency.

In the event there is more than 1 (one) type of Fund Provision for 1 (one) Borrower, the Bank sums all values of Fund Provision for each Fund Provision with a calculation method as regulated in this Financial Services Authority Regulation.

In the event the Bank fills in information regarding the total borrower group/BUMn borrower group, this column is filled with the sum of all amounts of Rupiah Fund Provision from all Related Parties/members of the borrower group/members of the BUMn borrower group.

VIII. Amount of Foreign Currency Fund Provision
This column is filled with the amount of Fund Provision received by the Borrower in foreign currency after being converted into Rupiah using the exchange rate at the end of the reporting month conducted by the Borrower.

In the event there is more than 1 (one) type of Fund Provision for 1 (one) Borrower, the Bank sums all values of Fund Provision for each Fund Provision with a calculation method as regulated in this Financial Services Authority Regulation.

In the event the Bank fills in information regarding the total borrower group/BUMn borrower group, this column is filled with the sum of all amounts of foreign currency Fund Provision from all members of the borrower group/members of the BUMn borrower group.

IX. Exchange Rate
Filled with the closing exchange rate of Bank Indonesia at the end of the reporting month, using the middle rate.

X. Core Capital
This column is filled with the Bank’s Core Capital (tier 1) at the time of the reporting month, both individually and consolidated.

XI. Form of Specific BMPK Treatment
This column is filled with the specific BMPK treatment as regulated in these provisions, namely with the code:

No. Form of Specific BMPK Treatment Code

1. Fund Provision to central government 1
2. Placement at Bank Indonesia 2
3. Purchase of Securities issued by the Government of the Republic of Indonesia and/or Bank Indonesia
4. Fund Provision guaranteed by the central government
5. Fund Provision to financial institutions meeting certain requirements
6. Portion of Fund Provision guaranteed by financial institutions meeting certain requirements
7. Fund Provision secured with cash collateral
8. Fund Provision secured with collateral in the form of Securities issued by the Government of the Republic of Indonesia and/or Bank Indonesia
9. Fund Provision secured with SBLC issued by a Prime Bank
10. Takeover of Securities in the form of time export bills that have been accepted by a Prime Bank
11. Placement in other banks in Indonesia for daily liquidity management
12. Guarantee by BUMn/BUMd to support government programs
13. Others 16

In the event one Fund Provision receives more than 1 (one) specific BMPK treatment, this column is filled with the form of specific BMPK treatment that has the largest proportion of specific BMPK treatment.

XII. Amount of Rupiah Fund Provision Receiving Specific BMPK Treatment
This column is filled with the value of Rupiah Fund Provision individually or consolidated that receives specific BMPK treatment as referred to in this Financial Services Authority Regulation.

In the event there is more than 1 (one) type of Fund Provision for 1 (one) Borrower, the Bank sums all values of Fund Provision for each Fund Provision with a calculation method as regulated in this Financial Services Authority Regulation.

XIII. Amount of Foreign Currency Fund Provision Receiving Specific BMPK Treatment
This column is filled with the value of foreign currency Fund Provision individually or consolidated that receives specific BMPK treatment as referred to in this Financial Services Authority Regulation.

In the event there is more than 1 (one) type of Fund Provision for 1 (one) Borrower, the Bank sums all values of Fund Provision for each Fund Provision with a calculation method as regulated in this Financial Services Authority Regulation.

XIV. Percentage of Fund Provision with Core Capital (tier 1)
Percentage of Fund Provision receiving specific BMPK treatment with Bank Core Capital (tier 1).

LARGE FUND PROVISION VIOLATION OR EXCEEDANCE REPORT Bank Name : PT Bank…. (individual) Report Position : Month/Year

I	II	III	IV	V	VI	VII.1	VII.2	VIII	IX	X	XI	XII	XIII	XIV	XV	XVI	XVII	XVIII	XIX.1	XIX.2	XX.1	XX.2	XXI.1	XXI.2	XXII	XXIII
Tenor	Amount	Exchange Rate	Type of Fund Provision	Borrower	Fund Provision at Realization or Reporting Date (BEFORE MRK TECHNIQUE)													Collateral/Guarantee Given (MRK TECHNIQUE)						BMPK Violation	BMPK Exceedance
Name Individual/Member of Borrower Group/Total Borrower Group	Name of Group/Borrower Group	Relationship with Bank	Status of Relationship with Bank															Form of Collateral/Guarantee	Issuer of Collateral/Guarantee	Nominal	%	Guarantor Rating	Rating Agency	Rating Date	Tenor	Nominal	Secured Portion	%	Quality	Notes

LARGE FUND PROVISION VIOLATION OR EXCEEDANCE REPORT (CONSOLIDATED) Bank Name : PT Bank…. (consolidated) Report Position : Month/Year

I	II	III	IV	V	VI	VII.1	VII.2	VIII	IX	X	XI	XII.1	XII.2	XIII	XIV	XV	XVI	XVII	XVIII	XIX	XX	XXI	XXII	XXIII
Exchange Rate	Amount of Fund Provision after MRK Technique	Exchange Rate	Type of Fund Provision	Tenor	Amount of Fund Provision after MRK Technique	Name of Borrower	Individual/Member of Borrower Group/Total Borrower Group	Name of Group/Borrower Group	Relationship with Bank	Status of Relationship with Bank	BANK SUBSIDIARIES
											Type of Fund Provision	Tenor

(In Millions of Rupiah)

Rupiah	Foreign Currency	Nominal (Rupiah)	%	Nominal (Rupiah)	%	Consolidated Core Capital*)	Consolidated	BMPK Violation	BMPK Exceedance
								Form of Collateral/Guarantee	Issuer of Collateral/Guarantee	Nominal	%	Guarantor Rating	Rating Agency	Rating Date	Tenor	Nominal	Secured Portion	%	Quality	Notes

*) Consolidated capital for the calculation of BMPK Violation is the total Capital or Core Capital (tier 1) consolidated in the last quarter before the realization of Fund Provision. Consolidated capital for the calculation of BMPK Exceedance is the total Capital or Core Capital (tier 1) consolidated in the reporting month.

Guidelines for Filling the BMPK Violation or BMPK Exceedance Report In this table, Borrowers or borrower groups that commit BMPK Violations or BMPK Exceedances are reported. In the event a borrower group commits a BMPK Violation or BMPK Exceedance, individual members of the borrower group are reported in this table even if the individual members of the borrower group do not commit a BMPK Violation or BMPK Exceedance.

I. Name
This column is filled with the name of all Related Party Borrowers or other parties consisting of individuals or borrower groups. In the event the Bank fills in the total Related Party/borrower group/BUMn borrower group, the Name column is filled with “Total”, followed on the next row by the names of each member of the group.

Debtors classified as “unknown client” as referred to in this Financial Services Authority Regulation are also written by the Bank as “unknown client”.

For Banks that do not have BMPK violations or BMPK exceedances, the Borrower Name column is filled with “Nihil”. Meanwhile, for Banks that have negative capital, the Borrower Name column is filled with “ALL DEBTORS” and the notes column is filled with “Negative Capital”.

II. Individual/Member of Borrower Group/Total Borrower Group
This column is filled with the code:

No. Individual/Member Group/Total Group Code

1. Individual 1
2. Member of Borrower Group 2
3. Total Borrower Group 3
4. Total Related Party 4
5. Member of BUMn Borrower Group 5
6. Total BUMn Borrower Group 6

The Bank reports the Total Borrower Group/Total BUMn Borrower Group and details all Members of the Borrower Group/Members of the BUMn Borrower Group on subsequent rows. In the event there is 1 (one) Member of the Borrower Group/Member of the BUMn Borrower Group that is a member of more than 1 (one) borrower group/BUMn borrower group, that Member of the Borrower Group/Member of the BUMn Borrower Group is reported in the details of each Total Borrower Group/Total BUMn Borrower Group.

The Bank reports the total Related Party and details all Related Parties given Fund Provision by the Bank on subsequent rows.

In the event there is Fund Provision to the Government of the Republic of Indonesia and Bank Indonesia, the Bank fills this column with the individual code.

III. Name of Borrower Group
This column is filled with the name of the borrower group.

IV. Relationship with Bank
This column is filled with the code:

No. Relationship with Bank Code

1. Related Party 1
2. Other than Related Party 2

V. Status of Relationship with Bank
This column is filled with the code:

No. Status of Relationship with Bank Code

1. Related Party
   a. Controller and/or family of the Bank’s controller 0110 b. Legal entity in the event the Bank acts as the controller
   c. Company in the event an individual or company as referred to in letter a acts as the controller
   d. Bank Management, family of Bank Management, and Bank Executive Officials e. Management at companies as referred to in letters a, b, and/or c f. Companies whose management members are members of the Board of Commissioners at the Bank g. Companies where 50% or more of their management members are management members at companies as referred to in letters a, b, and c h. Companies whose Bank Management or Bank Executive Officials act as controllers
   i. Companies whose management members as referred to in letters a, b, and/or c act as controllers
   j. Financial Relationship 0310 k. KIK where the Bank and/or parties as referred to in letters a to i own 10% or more of the shares in the investment manager of the KIK
   l. Guarantee 0330
   m. Others 0410
2. Other than Related Party
   a. Individual Borrower 9900 b. Borrower Group

1. Controller of Other Borrowers 9910
2. Joint Ownership 9920
3. Financial Relationship other than Guarantee 9930
4. Guarantee 9940
5. Management/Corporate Relationship 9950

The explanation of the relationship status with the Bank is as referred to in this Financial Services Authority Regulation and Appendix I which is an integral part of this Financial Services Authority Regulation.

VI. Type of Fund Provision

No. Type of Fund Provision Code

1. Placement 10
2. Securities 20
3. Securities Sold with Repurchase Agreement (Repo)
4. Claims on Securities Purchased with Resale Agreement (Reverse Repo)
5. Credit 30
6. Acceptance Claims 39
7. Equity Participation 40
8. Temporary Equity Participation 45
9. Credit Derivatives 50
10. Derivative Transactions other than Credit Derivatives 60
11. Other Forms of Fund Provision 62
12. Guarantee 65
13. Letter of Credit (L/C) 70
14. Standby Letter of Credit (SBLC) 80
15. Other Forms of Fund Provision in Administrative Account Transactions

For Borrowers who receive Fund Provision from the Bank of more than one type, this column is filled with the type of Fund Provision that has the largest amount of Fund Provision.

In the event there is an issuer of collateral/issuer of guarantee/guarantor whose exposure is calculated due to the application of the MRK Technique, this column is filled with code 62, which is Other Forms of Fund Provision.

VII. Tenor

1. Start
   This column is filled with the date, month, and year when the Fund Provision was given.
2. Maturity
   This column is filled with the date, month, and year when the Fund Provision matures.

VIII. Amount of Rupiah Fund Provision
This column is filled with the amount of Fund Provision received by the Borrower in Rupiah currency.

In the event there is more than 1 (one) type of Fund Provision for 1 (one) Borrower, the Bank sums all values of Fund Provision for each Fund Provision with a calculation method as regulated in this Financial Services Authority Regulation.

In the event of consolidated reporting, Fund Provision is the amount of Fund Provision after applying the MRK Technique.

In the event the Bank fills in information regarding the total Related Party/borrower group/BUMn borrower group, this column is filled with the sum of all amounts of Rupiah Fund Provision from all Related Parties/members of the borrower group/members of the BUMn borrower group.

IX. Amount of Foreign Currency Fund Provision
This column is filled with the amount of Fund Provision received by the Borrower in foreign currency after being converted into Rupiah using the exchange rate at the end of the reporting month conducted by the Borrower.

In the event there is more than 1 (one) type of Fund Provision for 1 (one) Borrower, the Bank sums all values of Fund Provision for each Fund Provision with a calculation method as regulated in this Financial Services Authority Regulation.

In the event the Bank fills in information regarding the total Related Party/borrower group/BUMn borrower group, this column is filled with the sum of all amounts of foreign currency Fund Provision from all Related Parties/members of the borrower group/members of the BUMn borrower group.

X. Exchange Rate
Filled with the closing exchange rate of Bank Indonesia at the end of the reporting month, using the middle rate.

XI. Capital
This column is filled with the total Bank Capital at the position of the last month before the realization of Fund Provision for the calculation of BMPK Violation individually. This column is filled with the total Capital at the time of the reporting month for the calculation of BMPK Exceedance individually.

XII. Core Capital (tier 1)
This column is filled with Core Capital (tier 1) at the position of the last month before the realization of Fund Provision for the calculation of BMPK Violation individually. This column is filled with Core Capital (tier 1) at the time of the reporting month for the calculation of BMPK Exceedance individually.

XIII. Form of Collateral/Guarantee
This column is filled with collateral/guarantees that can be counted as a reducing factor in the calculation of BMPK and Large Fund Provision as referred to in this Financial Services Authority Regulation, namely with the code:

No. Form of Collateral/Guarantee Code

1. Current Account 10
2. Savings Account 15
3. Deposit 20
4. Guarantee Deposit 37
5. Gold 40
6. SBI 45
7. SBN 60
8. SBLC 65
9. Central Government Guarantee 68
10. Others 70
11. None 99

In the event that a Fund Provision uses more than 1 (one) collateral/guarantee, this column is filled with the form of collateral/guarantee that has the largest guaranteed share.

XIV. Guaranteed Portion
This column is filled with the portion of the Fund Provision that receives protection from credit risk mitigation instruments as referred to in this Financial Services Authority Regulation.

In the event that a Fund Provision uses more than 1 (one) collateral/guarantee, the Bank sums the value of each form of collateral/guarantee as the guaranteed portion with the largest value equal to the sum of the Fund Provision.

In the event that the Bank fills in information regarding the total Related Party/borrower group/BUMN borrower group, this column is filled with the sum of all guaranteed portions from all Related Parties/member of borrower groups/member of BUMN borrower groups.

XV. Issuer of Guarantee/Collateral
This column is filled with the issuer of the guarantee/collateral such as the Government of the Republic of Indonesia, Banks, or multilateral institutions according to the third-party group code and Bank code as referred to in provisions of legislation regarding integrated commercial bank reports.

XVI. Guarantor Rating
This column is filled with the rating of the guarantee issuer. This column is filled with the number 00 for guarantees/collaterals issued by the Government of the Republic of Indonesia or Bank Indonesia.

XVII. Rating Agency
This column is filled with the name of the rating agency recognized by the Financial Services Authority as referred to in the Financial Services Authority Circular Letter regarding rating agencies and ratings recognized by the Financial Services Authority.

This column is filled with the code:

No. Rating Agency Code

1. Moody’s Investor Service MIS
2. Standard and Poor’s SNP
3. Fitch Rating Internasional FIN
4. Pemeringkat Efek Indonesia (Pefindo) PEF
5. Fitch Rating Indonesia FID
6. None 00

XVIII. Rating Date
This column is filled with the date, month, and year when the rating was given.

XIX. Duration

1. Start
   This column is filled with the date, month, and year the guarantee/collateral was issued.
2. Maturity
   This column is filled with the date, month, and year the guarantee/collateral matures.

XX. Violation or Exceedance of BMPK and Large Fund Provision
Nominal Violation or Exceedance
This column is filled with the following calculation method:

1. BMPK Individual Borrower =
   {(Fund Provision – guaranteed portion) – 25% of Core Capital (tier 1)}
2. BMPK Borrower Group =
   {(Fund Provision – guaranteed portion) – 25% of Core Capital (tier 1)}
3. BMPK Specific BUMN =
   {(Fund Provision – guaranteed portion) – 30% of Total Capital}
4. BMPK Related Party =
   {(Fund Provision – guaranteed portion) – 10% of Total Capital}

XXI. Percentage of Violation or Exceedance of BMPK
Percentage calculation (%), the nominal BMPK Violation or BMPK Exceedance divided by Bank Capital or Bank Core Capital (tier 1) multiplied by 100% (one hundred percent).

This column is filled from the calculation result:
(BMPK Violation or BMPK Exceedance ÷ (Total Capital or Core Capital (tier 1)) x 100%

XXII. Quality
Quality of Fund Provision, namely the quality of the Fund Provision provided by the Bank assessed according to provisions regarding the assessment of commercial bank asset quality with quality classification as follows:

No. Quality Code

1. Good 1
2. Special Attention 2
3. Less Good 3
4. Doubtful 4
5. Loss 5

XXIII. Notes
This column is filled with other information considered necessary.

Established in Jakarta on December 19, 2019

CHAIRMAN OF THE COMMISSIONERS
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA,

Yuliana
Legal Director 1
Legal Department

WIMBOH SANTOSO