Amendment to Financial Services Authority Regulation Number 6/POJK.03/2016 on Business Activities and Office Networks Based on Core Capital of Banks

COPY
FINANCIAL SERVICES AUTHORITY REGULATION REPUBLIC OF INDONESIA NUMBER 17 /POJK.03/2018 ON AMENDMENT TO FINANCIAL SERVICES AUTHORITY REGULATION NUMBER 6/POJK.03/2016 ON BUSINESS ACTIVITIES AND OFFICE NETWORKS BASED ON CORE CAPITAL OF BANKS BY THE GRACE OF THE ALMIGHTY GOD THE COMMISSIONERS COUNCIL OF THE FINANCIAL SERVICES AUTHORITY, Considering :
a. that currently there is a need for policy to increase Indonesia's economic growth and national competitiveness; b. that to increase economic growth there is a need for policy to drive the growth of priority sectors, namely the housing sector and the tourism sector;
c. that based on considerations as
stated in letters a and b it is necessary to establish Financial Services Authority Regulation on Amendment to Financial Services Authority Regulation Number 6/POJK.03/2016 on Business Activities and Office Networks Based on Core Capital of Bank; Recalling : 1. Law Number 7 of 1992 on Banking (State Gazette of the Republic of Indonesia Year 1992 Number 31, Supplement to the State Gazette Republic of Indonesia Number 3472) as amended by Law Number 10 of 1998 on Amendment to Law Number 7 Year 1992 on Banking (State Gazette Republic of Indonesia Year 1998 Number 182, Supplement State Gazette of the Republic of Indonesia Number 3790);
2. Law Number 21 of 2008 on
Sharia Banking (State Gazette of the Republic of Indonesia Year 2008 Number 94, Supplement to the State Gazette Republic of Indonesia Number 4867);
3. Law Number 21 of 2011 on Financial
Services Authority (State Gazette of the Republic of Indonesia Year 2011 Number 111, Supplement to the State Gazette Republic of Indonesia Number 5253); DECIDING:
Establishing : FINANCIAL SERVICES AUTHORITY REGULATION ON AMENDMENT TO FINANCIAL SERVICES AUTHORITY REGULATION NUMBER 6/POJK.03/2016 ON BUSINESS ACTIVITIES AND OFFICE NETWORKS BASED ON CORE CAPITAL OF BANK.
Article I
Several provisions in Financial Services Authority Regulation Number 6/POJK.03/2016 on Business Activities and Office Networks Based on Core Capital of Bank (State Gazette Republic of Indonesia Year 2016 Number 18, Supplement State Gazette of the Republic of Indonesia Number 5842) are amended as follows:

1. Between Article 12 and Article 13, insert 1 (one) article,
   namely Article 12A so that it reads as follows:
   Article 12A
   (1) Banks may calculate home ownership credit or financing in fulfilling the obligation to distribute credit or financing to productive businesses as referred to in Article 12. (2) Home ownership credit or financing that can be calculated in fulfilling the obligation to distribute credit or financing to productive businesses as referred to in paragraph (1) shall be at most 20% (twenty percent) of the total obligation to distribute credit or financing to productive businesses as referred to in Article 12.
2. The provisions of Article 25 are amended and 1 (one)
   new letter is added, namely letter c so that Article 25 reads as follows:
   Article 25
   The requirements for the availability of Core Capital allocation as referred to in Article 19 letter b are exempted for:
   a. opening a functional office that conducts special operational activities of distributing credit or financing to micro and/or small businesses; b. Opening of Office Networks for Banks owned by local governments within the province where the head office of the Bank is located; and/or
   c. Opening of Office Networks in regencies or cities
   of National Strategic Tourism Areas (KSPN) that are designated and prioritized by the central government as referred to in the Presidential Regulation regarding the acceleration of the implementation of national strategic projects.
3. The provisions of paragraph (1) and paragraph (3) of Article 27 are amended, so that
   Article 27 reads as follows:
   Article 27
   (1) For the balanced distribution of Bank Office Networks, Banks that open Bank Office Networks in Zone 1 and/or Zone 2 in certain amounts must be balanced with the Opening of Office Networks in Zone 5 and/or Zone 6 in certain amounts. (2) The obligation as referred to in paragraph (1) applies to BOOK 3 and BOOK 4 and its implementation must meet the availability of Core Capital allocation for the Opening of Office Networks. (3) The obligation to Open Office Networks as referred to in paragraph (2) is exempted for:
   a. Banks owned by local governments and conducting the Opening of Office Networks in Zone 1 or Zone 2 which are the provinces where the head office of the Bank is located; and b. Banks that conduct the Opening of Office Networks in regencies or cities of National Strategic Tourism Areas (KSPN) that are designated and prioritized by the central government as referred to in the Presidential Regulation regarding the acceleration of the implementation of national strategic projects. (4) Further provisions regarding the balanced distribution of Bank Office Networks as referred to in paragraph (1) are regulated by a Circular Letter of the Financial Services Authority.
4. Between Article 34 and Article 35, insert 1 (one) article,
   namely Article 34A so that it reads as follows:
   Article 34A
   Banks that open Bank Office Networks in Zone 5 and/or Zone 6 since the applicable legislation on business activities and office networks based on Core Capital of Bank, namely January 2 2013, may use Office Networks This copy is in accordance with the original Legal Director 1 Legal Department signed Yuliana Banks to fulfill the obligation of balancing the distribution of Bank Office Networks in accordance with this Financial Services Authority Regulation.
   Article II
   This Financial Services Authority Regulation takes effect on the date of enactment. So that everyone knows it, ordering the enactment of this Financial Services Authority Regulation by placing it in the State Gazette of the Republic of Indonesia. Established in Jakarta on August 15, 2018 CHAIRMAN OF THE COMMISSIONERS COUNCIL FINANCIAL SERVICES AUTHORITY REPUBLIC OF INDONESIA, signed WIMBOH SANTOSO Enacted in Jakarta on August 16, 2018 MINISTER OF LAW AND HUMAN RIGHTS REPUBLIC OF INDONESIA, signed YASONNA H. LAOLY SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2018 NUMBER 139

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION REPUBLIC OF INDONESIA NUMBER 17 /POJK.03/2018 ON AMENDMENT TO FINANCIAL SERVICES AUTHORITY REGULATION NUMBER 6/POJK.03/2016 ON BUSINESS ACTIVITIES AND OFFICE NETWORKS BASED ON CORE CAPITAL OF BANK
I. GENERAL
To increase Indonesia's economic growth and national competitiveness, efforts are needed to drive the intermediary function of banking through adjustments to regulations regarding business activities and office networks based on Core Capital of Banks. The adjustment of regulations is expected to increase the potential for expansion of credit or financing by Banks carried out in a measurable manner while still observing the principle of prudence. The regulations are focused on driving the growth of credit or financing for priority sectors, namely the housing sector and the tourism sector. In light of these considerations, banking policy is needed to drive economic growth.
II. ARTICLE BY ARTICLE
Article I
Number 1
Article 12A
Paragraph (1)
Houses mean landed houses or apartment buildings as referred to in legislation regarding housing and residential areas. Paragraph (2) Example:
According to Article 12 of Financial Services Authority Regulation Number 6/POJK.03/2016 on Business Activities and Office Networks Based on Core Capital of Bank, for BOOK 2 is required to distribute credit or financing to productive businesses at least 60% (sixty percent) of total credit or financing. Based on this, Banks may calculate home ownership credit or financing in fulfilling the obligation to distribute credit or financing to productive businesses at most 12% (twelve percent) of the total portfolio of credit or financing owned by the Bank. The magnitude of 12% (twelve percent) is obtained from 20% (twenty percent) x 60% (sixty percent). In the event that a Bank has a total portfolio of credit or financing of Rp1,000,000,000,000.00 (one trillion rupiah), the Bank may calculate the portfolio of credit or financing for home ownership at most Rp120,000,000,000.00 (one hundred twenty billion rupiah), in fulfilling the obligation to distribute credit or financing to productive businesses as referred to (12% x Rp1,000,000,000,000.00). Number 2
Article 25
Letter a
Functional offices mean functional offices as referred to in legislation regarding general banks, sharia general banks, or sharia business units. Letter b Banks owned by local governments mean Banks whose shares are majority owned by the government of provinces, regencies, and/or cities. This regulation is intended to support the role of Banks owned by local governments in the development of regional economic development. Letter c Clearly stated. Number 3
Article 27
Paragraph (1)
Clearly stated.
Paragraph (2)
Clearly stated.
Paragraph (3)
Letter a
Banks owned by local governments mean Banks whose shares are majority owned by provincial governments, regency governments, and/or city governments. This regulation is intended to support the role of Banks owned by local governments in the development of regional economic development. Letter b Clearly stated. Paragraph (4) Clearly stated. Number 4
Article 34A
Clearly stated.

Article II
Clearly stated.
SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 6242