Amendment to POJK No. 28/POJK.05/2015 on Dissolution, Liquidation, and Bankruptcy of Insurance, Sharia Insurance, Reinsurance, and Sharia Reinsurance Companies

COPY
FINANCIAL SERVICES AUTHORITY REGULATION
OF THE REPUBLIC OF INDONESIA
NUMBER 38 OF 2024
CONCERNING
AMENDMENT TO THE FINANCIAL SERVICES AUTHORITY REGULATION NUMBER 28/POJK.05/2015 CONCERNING DISSOLUTION, LIQUIDATION, AND BANKRUPTCY OF INSURANCE COMPANIES, SHARIA INSURANCE COMPANIES, REINSURANCE COMPANIES, AND SHARIA REINSURANCE COMPANIES BY THE GRACE OF GOD THE ALMIGHTY THE COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY, Considering:
a. that in order to increase the effectiveness of the implementation of dissolution, liquidation, and bankruptcy of insurance companies, sharia insurance companies, reinsurance companies, and sharia reinsurance companies, and to implement the provisions of Article 50 paragraph (1) and (2), and Article 51 paragraph (4) of Law Number 40 of 2014 concerning Insurance as amended by Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector, it is necessary to adjust the Financial Services Authority Regulation Number 28/POJK.05/2015 concerning Dissolution, Liquidation, and Bankruptcy of Insurance Companies, Sharia Insurance Companies, Reinsurance Companies, and Sharia Reinsurance Companies; b. that based on the considerations as referred to in letter a, it is necessary to establish a Financial Services Authority Regulation concerning Amendment to the Financial Services Authority Regulation Number 28/POJK.05/2015 concerning Dissolution, Liquidation, and Bankruptcy of Insurance Companies, Sharia Insurance Companies, Reinsurance Companies, and Sharia Reinsurance Companies; Recalling: 1. 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) as amended by Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (State Gazette of the Republic of Indonesia Year 2023 Number 4, Supplement to the State Gazette of the Republic of Indonesia Number 6845); https://jdih.ojk.go.id/

Law Number 40 of 2014 concerning Insurance (State Gazette of the Republic of Indonesia Year 2014 Number 337, Supplement to the State Gazette of the Republic of Indonesia Number 5618) as amended by Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (State Gazette of the Republic of Indonesia Year 2023 Number 4, Supplement to the State Gazette of the Republic of Indonesia Number 6845);
Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (State Gazette of the Republic of Indonesia Year 2023 Number 4, Supplement to the State Gazette of the Republic of Indonesia Number 6845);
Financial Services Authority Regulation Number 28/POJK.05/2015 concerning Dissolution, Liquidation, and Bankruptcy of Insurance Companies, Sharia Insurance Companies, Reinsurance Companies, and Sharia Reinsurance Companies (State Gazette of the Republic of Indonesia Year 2015 Number 294, Supplement to the State Gazette of the Republic of Indonesia Number 5776);
DECIDING:
Establishing: FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING AMENDMENT TO THE FINANCIAL SERVICES AUTHORITY REGULATION NUMBER 28/POJK.05/2015 CONCERNING DISSOLUTION, LIQUIDATION, AND BANKRUPTCY OF INSURANCE COMPANIES, SHARIA INSURANCE COMPANIES, REINSURANCE COMPANIES, AND SHARIA REINSURANCE COMPANIES.
Article I
Several provisions in the Financial Services Authority Regulation Number 28/POJK.05/2015 concerning Dissolution, Liquidation, and Bankruptcy of Insurance Companies, Sharia Insurance Companies, Reinsurance Companies, and Sharia Reinsurance Companies (State Gazette of the Republic of Indonesia Year 2015 Number 294, Supplement to the State Gazette of the Republic of Indonesia Number 5776) are amended as follows:
The provisions of Article 1 are amended to read as follows:
Article 1
In this Financial Services Authority Regulation, the following terms are defined as:
Company means insurance company, sharia insurance company, reinsurance company, and sharia reinsurance company.
Insurance Company means general insurance company and life insurance company as referred to in Law Number 40 of 2014 concerning Insurance as amended by Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector.
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Sharia Insurance Company means sharia general insurance company and sharia life insurance company as referred to in Law Number 40 of 2014 concerning Insurance as amended by Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector.
Reinsurance Company means a company that provides reinsurance services against risks faced by insurance companies, guarantee companies, or other reinsurance companies.
Sharia Reinsurance Company means a company that manages risks based on sharia principles against risks faced by Sharia Insurance Companies, sharia guarantee companies, or other sharia reinsurance companies.
General Meeting of Shareholders, hereinafter abbreviated as GMS, is the GMS as referred to in the Law concerning Limited Liability Companies for Companies in the form of a limited liability company or equivalent to the GMS in a cooperative legal entity.
Board of Directors is the Board of Directors as referred to in the Law concerning Limited Liability Companies for Companies in the form of a limited liability company or equivalent to the Board of Directors in a cooperative legal entity.
Board of Commissioners is the Board of Commissioners as referred to in the Law concerning Limited Liability Companies for Companies in the form of a limited liability company or equivalent to the Board of Commissioners in a cooperative legal entity.
Sharia Supervisory Board is a board that has the duty and function of supervision and provides advice to the Board of Directors regarding the implementation of the Company's activities to ensure compliance with sharia principles.
Revocation of Company Business License is the revocation of the Company's business license by the Financial Services Authority because the Company does not meet regulations in the field of insurance or is declared bankrupt by the court.
Dissolution of the Company, hereinafter referred to as Dissolution, is the process of ending the Company's legal entity status after the Revocation of the Company Business License.
Liquidation of the Company, hereinafter referred to as Liquidation, is the action to settle all assets and liabilities of the Company as a result of the Revocation of the Company Business License and Dissolution.
Liquidation Team is a team tasked with carrying out Liquidation, formed by the GMS or the Financial Services Authority.
Policyholder is a party that binds itself through an agreement with the Company to obtain protection or risk management for itself, the insured, or other participants as referred to in Law Number 40 of 2014 concerning Insurance as amended by Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector.
Insured is a party facing risks as regulated in the insurance agreement or reinsurance agreement as referred to in Law Number 40 of 2014 concerning Insurance as amended by Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector.
Participant is a party facing risks as regulated in the sharia insurance agreement or sharia reinsurance agreement as referred to in Law Number 40 of 2014 concerning Insurance as amended by Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector.
Creditor is any party that has a claim or debt against the Company including Policyholders, Insured, Participants, or other parties entitled to insurance/sharia insurance benefits and Company employees.
Insurance Fund is a collection of funds originating from premiums formed to meet obligations arising from issued policies or insurance claims as referred to in Law Number 40 of 2014 concerning Insurance as amended by Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector.
Tabarru' Fund is a collection of funds originating from contributions from Participants, the mechanism of which is used in accordance with the sharia insurance agreement or sharia reinsurance agreement as referred to in Law Number 40 of 2014 concerning Insurance as amended by Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector.
Tanahud Fund is a collection of funds originating from tanahud contributions, investment results of the tanahud fund, qardh from the company's funds to the tanahud fund, and/or tanahud funds from reinsurers, the use of which is in accordance with the Tanahud Fund donation deed.
Closing Balance Sheet is the Company's balance sheet as of the date of Revocation of the Company Business License prepared in accordance with applicable financial accounting standards.
Interim Liquidation Balance Sheet is the Company's balance sheet as of the date of Revocation of the Company Business License prepared by the Liquidation Team based on the audited Closing Balance Sheet by taking into account:
a. asset position based on estimated realizable value; and b. liability position after the expiration of the period for submission of claims or debts by Creditors.
Final Liquidation Balance Sheet is the balance sheet submitted by the Liquidation Team after the Liquidation process is completed or the implementation period of Liquidation ends.
Bankruptcy is a general seizure of all assets of a bankrupt debtor, the management and settlement of which is carried out by a curator under the supervision of a supervising judge.
Postponement of Payment Obligations is a petition with the intention of submitting a peace plan that includes an offer to pay part or all of the debt to Creditors.
Insurance Products Linked to Investment, hereinafter referred to as PAYDI, is an insurance product that provides at least protection against death risk and provides benefits referring to the investment results of a fund specifically formed for the insurance product, whether stated in unit form or not.
Conflict of Interest is a state where there is a conflict between the economic interests of the Company and the personal economic interests of shareholders or equivalents to shareholders in a cooperative legal entity, members of the Board of Directors, members of the Board of Commissioners, and/or members of the Sharia Supervisory Board.
Newspaper means a daily newspaper in the Indonesian language circulated nationally.
Day means calendar day.
Financial Services Authority, hereinafter abbreviated as OJK, is an independent state institution that has the function, duty, and authority for regulation, supervision, examination, and investigation as referred to in Lawhttps://jdih.ojk.go.id/

Law Number 21 of 2011 concerning the Financial Services Authority as amended by Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector.
2. The provisions of Article 4 paragraph (3) letter c are amended to read as follows:
Article 4
(1) Within a maximum of 30 (thirty) Days from the date of revocation of the business license, the Company whose business license has been revoked is required to hold a GMS to decide on the relevant Dissolution and form a Liquidation Team. (2) Members of the Liquidation Team as referred to in paragraph (1) must first obtain approval from the OJK. (3) To obtain OJK approval as referred to in paragraph (2), the Board of Directors must submit the following documents:
a. photocopy of identity proof of the proposed members of the Liquidation Team; b. curriculum vitae of the proposed members of the Liquidation Team; and
c. statement letter of the proposed members of the Liquidation Team containing at least:
a. willingness to carry out Liquidation in accordance with the provisions of regulations; and b. commitment to complete Liquidation in accordance with the time frame in the work plan.
(4) The documents as referred to in paragraph (3) must be submitted to the OJK at most 15 (fifteen) Days before the date of the GMS implementation.
(5) The OJK provides approval or rejection of the proposed members of the Liquidation Team as referred to in paragraph (2) at most 5 (five) Days after receiving the complete documents.
(6) If the time frame as referred to in paragraph (5) has passed and the OJK has not provided approval or rejection of the proposed members of the Liquidation Team, the OJK is deemed to have approved the proposed members of the Liquidation Team submitted. (7) In the event that the OJK rejects the proposal for proposed members of the Liquidation Team, the Board of Directors is required to submit a new proposal for proposed members of the Liquidation Team and submit the documents as referred to in paragraph (3) at most 5 (five) Days after receiving the notification from the OJK. https://jdih.ojk.go.id/

The provisions of Article 6 paragraph (1) letter c are amended and 1 (one) paragraph, namely paragraph (1a), is inserted between paragraph (1) and paragraph (2), so that Article 6 reads as follows:
Article 6
(1) If within the time frame as referred to in Article 4 paragraph (1) the GMS cannot be held or the GMS can be held but fails to decide on Dissolution and fails to form a Liquidation Team, the OJK:
a. decides on Dissolution and forms a Liquidation Team; b. registers and notifies the Dissolution to the competent agency, and announces it in the State Gazette of the Republic of Indonesia and 2 (two) daily newspapers with wide circulation;
c. orders the Liquidation Team to carry out Liquidation in accordance with the provisions of Law Number 40 of 2014 concerning Insurance as amended by Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector and other regulations; and
d. orders the Liquidation Team to report the results of Liquidation implementation to the OJK.
(1a) Registration and notification of Dissolution and announcement as referred to in paragraph (1) letter b are carried out by the Liquidation Team based on the OJK's order.
(2) The actions as referred to in paragraph (1) letter b are implemented at most 15 (fifteen) Days from the date of the Dissolution decision by the OJK as referred to in paragraph (1) letter a. (3) Notification and announcement as referred to in paragraph (1) letter b contain:
a. Dissolution and its legal basis; b. name and address of the Liquidation Team;
c. procedure for submitting claims; and
d. time frame for submitting claims.
(4) The time frame for submitting claims as referred to in paragraph (3) letter d for Companies in the form of a limited liability company is at most 60 (sixty) Days calculated from the date of announcement as referred to in paragraph (1) letter b. (5) The time frame for submitting claims as referred to in paragraph (3) letter d for Companies in the form of a cooperative legal entity is at most 3 (three) months calculated from the date of announcement as referred to in paragraph (1) letter b.
1 (one) letter, namely letter e1, is inserted between letter e and letter f of Article 9, so that it reads as follows:
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Article 9
The Liquidation Team has the following duties:
a. settle matters related to Dissolution; b. settle matters related to Company employees;
c. carry out the settlement of the Company's assets and liabilities;
d. submit periodic reports and incidental reports if necessary to the OJK; e. provide accountability for the implementation of Liquidation to:

GMS, for Liquidation Teams formed by the GMS; or
OJK, for Liquidation Teams formed by the OJK;
e1. submit a written petition to the OJK to update debtor report data in the financial information service system in the event that the Company whose business license has been revoked is a reporter of the financial information service system in accordance with the OJK Regulation concerning debtor reporting and information requests through the financial information service system; and f. carry out other tasks deemed necessary to carry out the Liquidation process.
The provisions of Article 15 paragraph (5) are amended and 1 (one) paragraph, namely paragraph (6), is added, so that Article 15 reads as follows:
Article 15
(1) The implementation of Liquidation by the Liquidation Team must be completed within a maximum period of 2 (two) years calculated from the date of formation of the Liquidation Team.
(2) In the event that the implementation of Liquidation cannot be completed within the time frame as referred to in paragraph (1), then:
a. the GMS has the authority to extend the implementation time frame of Liquidation at most 2 (two) times, each for a maximum of 1 (one) year, for Liquidation Teams formed by the GMS after first obtaining approval from the OJK; or b. the OJK may extend the implementation time frame of Liquidation at most 2 (two) times, each for a maximum of 1 (one) year, for Liquidation Teams formed by the OJK. (3) The petition for extension of the implementation time frame of Liquidation as referred to in paragraph (2) must at least be completed with:
a. reasons for extending the implementation time frame of Liquidation; https://jdih.ojk.go.id/

b. report on the progress of the Liquidation process up to the date of the petition along with supporting evidence; and
c. work plan and budget during the extension of the implementation time frame of Liquidation.
(4) The petition for extension of the implementation time frame of Liquidation as referred to in paragraph (2) is submitted at most 4 (four) months before the expiration of the implementation time frame of Liquidation as referred to in paragraph (1) or the expiration of the first extension period. (5) In the event that the implementation of Liquidation cannot be completed within the time frame as referred to in paragraph (2) due to lawsuits or disputes regarding the Company's problematic assets in Liquidation, the OJK waits until there is a final court decision. (6) The OJK has the authority to determine other settlement steps in accordance with the provisions of regulations.
6. The provisions of Article 17 paragraph (2) and paragraph (3) are amended and 2 (two) paragraphs, namely paragraph (2a) and paragraph (2b), are inserted between paragraph (2) and paragraph (3), and the explanation of paragraph (1) is amended as stated in the article-by-article explanation, so that Article 17 reads as follows:
Article 17
(1) The appointment of the Liquidation Team is carried out by considering the integrity, competence, and financial reputation of the proposed members of the Liquidation Team.
(2) The membership of the Liquidation Team consists of at least:
a. 1 (one) person who has knowledge and experience of at least 5 (five) years in the field of insurance; and b. 1 (one) person who has knowledge and experience of at least 5 (five) years in the field of law, audit, finance, and/or accounting. (2a) Members of the Liquidation Team as referred to in paragraph (2) must have competency certification in the field of liquidator from a professional certification body registered with the OJK. (2b) In the event that the professional certification body as referred to in paragraph (2a) is not yet available, competency certification in the field of liquidator can be obtained from other institutions/agencies. (3) Among members of the Liquidation Team, between members of the Liquidation Team and shareholders or equivalents to shareholders in a cooperative legal entity, and between members of the Liquidation Team and supporting personnel of the Liquidation Team or other parties appointed, there must not be a family relationship:
a. husband or wife; b. parent and child;
c. parent of husband or wife;
d. husband or wife of child; e. full/half sibling; or f. full/half sibling of husband/wife.
7. The provisions of Article 24 are amended to read as follows:
Article 24
(1) In the event that the Company is liquidated, the rights of Policyholders, Insured, Participants, and other parties entitled to insurance/sharia insurance benefits have a higher position than the rights of other parties in the distribution of the Company's assets. (2) In the event that an Insurance Company or Reinsurance Company is liquidated, the Insurance Fund must be used first to meet obligations to Policyholders, Insured, or other parties entitled to insurance/sharia insurance benefits. (3) In the event that the Insurance Fund is insufficient to pay all obligations to Policyholders, Insured, or other parties entitled to insurance/sharia insurance benefits, the payment of said obligations is carried out proportionally. (4) In the event that after all obligations to Policyholders, Insured, and other parties entitled to insurance/sharia insurance benefits have been met there is a surplus of the Insurance Fund, the said Insurance Fund can be used to meet obligations to third parties other than Policyholders, Insured, or other parties entitled to insurance/sharia insurance benefits. (5) Investment funds of PAYDI insurance Policyholders can only be used to pay obligations to the respective Policyholders. (6) In the event that a Sharia Insurance Company or Sharia Reinsurance Company is liquidated, Tabarru' Funds, Tanahud Funds, and Participant investment funds cannot be used to pay obligations other than to Policyholders, Participants, or other parties entitled to sharia insurance benefits. (7) In the event that there is a surplus of Tabarru' Funds, Tanahud Funds, and Participant investment funds after fulfilling obligations as referred to in paragraph (6), the surplus of Tabarru' Funds, Tanahud Funds, and Participant investment funds can be used to meet obligations tohttps://jdih.ojk.go.id/

third parties other than Policyholders, Participants, or other parties entitled to Sharia insurance benefits.

Article 25 provisions are added with 2 (two) paragraphs, namely paragraph (5) and paragraph (6), so that it reads as follows:

Article 25
(1) In order to pay the rights of Policyholders, Insureds, or Participants as referred to in Article 24 paragraph (1), the Liquidation Team of a life insurance company or Sharia life insurance company in Liquidation must endeavor to keep the still-valid life insurance or Sharia life insurance coverage (in force) active by transferring the coverage portfolio to another life insurance company or Sharia life insurance company.

(2) In order to carry out the transfer of the coverage portfolio to another life insurance company or Sharia life insurance company as referred to in paragraph (1), the Liquidation Team must first notify the plan of transfer to Policyholders, Insureds, or Participants.

(3) The transfer of the coverage portfolio as referred to in paragraph (1) must meet the following requirements:
a. be carried out at a life insurance company or Sharia life insurance company that has the same business field; and b. not cause the life insurance company or Sharia life insurance company receiving the transfer of the coverage portfolio to violate applicable regulations regarding financial health in the insurance sector.

(4) In the event that Policyholders, Insureds, or Participants refuse to have their coverage transferred to another life insurance company or Sharia life insurance company, the Liquidation Team returns the premiums or contributions.

(5) The transfer of the coverage portfolio as referred to in paragraph (1) and the return of premiums or contributions as referred to in paragraph (4) are carried out according to the remaining coverage value.

(6) In the event that the Company's assets are smaller than the Company's liabilities, the transfer of the coverage portfolio and the return of premiums or contributions are carried out proportionally.

The Explanation of Article 26 is amended as set forth in the paragraph-by-paragraph explanation.
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The provisions of paragraph (1) and paragraph (2) of Article 27 are amended so that they read as follows:

Article 27
(1) The proceeds from the liquidation of assets other than Insurance Funds, Tabarru' Funds, or Tanahud Funds are used to pay the Company's obligations to Policyholders, Insureds, Participants, or other parties entitled to insurance/Sharia insurance benefits, after being reduced by accrued salaries and liquidation implementation costs.

(2) The payment of the Company's obligations to Policyholders, Insureds, Participants, or other parties entitled to insurance/Sharia insurance benefits as referred to in paragraph (1) is carried out when Insurance Funds, Tabarru' Funds, or Tanahud Funds are insufficient to pay all obligations to Policyholders, Insureds, Participants, or other parties entitled to insurance/Sharia insurance benefits.

(3) Payment of obligations to Creditors as referred to in paragraph (1) from the proceeds of asset liquidation can be carried out in stages or all at once at the end of the Liquidation period, provided it does not violate other statutory regulations.

(4) Payment of obligations to Creditors as referred to in paragraph (3) must first obtain OJK approval.

Between Article 27 and Article 28, 1 (one) article is inserted, namely Article 27A, so that it reads as follows:

Article 27A
(1) Payment of all Company obligations from the proceeds of asset liquidation outside guarantee funds, Insurance Funds, Tabarru' Funds, or Tanahud Funds is carried out by prioritizing accrued salaries, liquidation implementation costs, and the rights of Policyholders, Insureds, Participants, or other parties entitled to insurance/Sharia insurance benefits.

(2) Payments to Creditors other than parties as referred to in paragraph (1) are carried out in accordance with statutory regulations.

The provisions of paragraph (8) of Article 28 are amended so that they read as follows:

Article 28
(1) In the event that there is a surplus from the Liquidation results after payment of all Company obligations in the Liquidation, the surplus Liquidation results are the rights of shareholders or those equivalent to shareholders in legal entities in the form of cooperatives.

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(2) The surplus Liquidation results as referred to in paragraph (1) can only be distributed to shareholders or those equivalent to shareholders in legal entities in the form of cooperatives after the expiration of a period of 2 (two) years since the Liquidation process is completed.

(3) Creditors who have not filed claims with the Liquidation Team as referred to in Article 5 paragraph (4) or paragraph (5) may file claims within a period of 2 (two) years since the Liquidation process is completed as referred to in paragraph (2).

(4) Claims as referred to in paragraph (3) are submitted through OJK and addressed to shareholders or those equivalent to shareholders in legal entities in the form of cooperatives.

(5) OJK may request the competent agency to block the surplus Liquidation results that are the rights of shareholders or those equivalent to shareholders in legal entities in the form of cooperatives for the period as referred to in paragraph (2).

(6) Claims as referred to in paragraph (3) are charged against the surplus Liquidation results that are the rights of shareholders or those equivalent to shareholders in legal entities in the form of cooperatives.

(7) Based on the request of shareholders or those equivalent to shareholders in legal entities in the form of cooperatives, OJK may request the competent agency to lift the blockage of the surplus Liquidation results by the amount of the claim in order to pay the verified claims.

(8) If:
a. after the period as referred to in paragraph (2) expires:

no claims are filed through OJK to shareholders or those equivalent to shareholders in legal entities in the form of cooperatives; or
there are claims but there is still a surplus of Liquidation results; or
b. before the period as referred to in paragraph (2) expires, the Company has no Creditors, OJK requests the lifting of the blockage to the competent agency over the surplus Liquidation results to be taken by shareholders or those equivalent to shareholders in legal entities in the form of cooperatives.
The Explanation of Article 29 is amended as set forth in the paragraph-by-paragraph explanation.
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The provisions of Article 34 are amended so that they read as follows:

Article 34
(1) All liquidation implementation costs listed in the liquidation cost list become the burden of the assets of the Company in Liquidation and are paid out first from every proceeds of liquidation.

(2) In the event that the Company has no liquid assets other than guarantee funds, to protect the interests of Policyholders, Insureds, or Participants, all liquidation implementation costs as referred to in paragraph (1) may be charged against the proceeds of guarantee fund management.

The provisions of paragraph (4) of Article 38 are amended so that they read as follows:

Article 38
(1) In the event that the implementation of Liquidation will end as referred to in Article 15 paragraph (1) and paragraph (2), at least 3 (three) months before the estimated end of the implementation of Liquidation, the Liquidation Team is required to announce the final payment date to Creditors, including follow-up actions if Creditors do not take their rights until the final payment date.

(2) The final payment date as referred to in paragraph (1) is at most 30 (thirty) Days from the date of announcement.

(3) The announcement as referred to in paragraph (1) is carried out in 2 (two) Newspapers.

(4) In the event that Creditors have not taken their rights until the deadline as referred to in paragraph (2), the funds belonging to the Creditors are deposited with the court or estate office in accordance with statutory regulations.

(5) The deposit of funds as referred to in paragraph (4) is carried out at most 30 (thirty) Days from the payment deadline as referred to in paragraph (2).

(6) The Liquidation Team is deemed to have fulfilled the payment of obligations to the relevant Creditors after the deposit of funds belonging to Creditors who have not taken them as referred to in paragraph (4).

(7) If within a period of 30 (thirty) years the funds belonging to Creditors as referred to in paragraph (4) are not taken by the relevant Creditors, then the funds are handed over to the state treasury. https://jdih.ojk.go.id/

The provisions of paragraph (1), paragraph (2), and paragraph (4) of Article 39 are amended and 1 (one) paragraph is added, namely paragraph (5), so that Article 39 reads as follows:

Article 39
(1) In the event that the Liquidation Team is formed by the GMS as referred to in Article 4 paragraph (1), the Liquidation Team is required to submit:
a. the Final Liquidation Balance Sheet audited by a public accountant to OJK; and b. the report on the Liquidation Team's task accountability to the GMS, within at most 10 (ten) Days after the Liquidation implementation is completed.

(2) In the event that the Liquidation Team is formed by OJK as referred to in Article 6 paragraph (1), the Liquidation Team is required to submit the Final Liquidation Balance Sheet audited by a public accountant and the report on the Liquidation Team's task accountability to OJK with a copy to shareholders or those equivalent to shareholders in legal entities in the form of cooperatives within at most 10 (ten) Days after the Liquidation implementation is completed.

(3) The accountability report as referred to in paragraph (1) and paragraph (2) must at least contain:
a. receipt of Liquidation results; b. Liquidation costs;
c. payment of obligations to Creditors;
d. remaining cash or cash equivalent assets; and e. remaining problematic assets; and f. remaining unpaid obligations.

(4) OJK reviews the Final Liquidation Balance Sheet submitted by the Liquidation Team within at most 10 (ten) Days since it was submitted by the Liquidation Team as referred to in paragraph (1) and paragraph (2).

(5) OJK submits its opinion on the results of the review of the Final Liquidation Balance Sheet as referred to in paragraph (4) to the Liquidation Team.

The provisions of Article 40 are amended so that they read as follows:

Article 40
(1) The GMS considers OJK's opinion on the Final Liquidation Balance Sheet as referred to in Article 39 paragraph (5) before accepting or rejecting the Liquidation Team's accountability report formed by the GMS as referred to in Article 4 paragraph (1).

(2) In the event that the GMS has accepted the Liquidation Team's accountability report formed by the GMS, the GMS:
a. requests the Liquidation Team to:
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announce the end of Liquidation by placing it in the State Gazette of the Republic of Indonesia and in 2 (two) Newspapers;
notify the competent agency regarding the loss of the Company's legal entity status; and
notify the competent agency to have the Company's name removed from the company list; and
b. dissolve the Liquidation Team.

(3) Actions as referred to in paragraph (2) letter a are carried out by the Liquidation Team within at most 30 (thirty) Days since the accountability is accepted by the GMS.

The provisions of paragraph (2) and paragraph (4) of Article 41 are amended so that they read as follows:

Article 41
(1) In the event that the Liquidation Team formed by OJK as referred to in Article 6 paragraph (1) has submitted the Final Liquidation Balance Sheet and accountability report to OJK, OJK decides to accept or not accept the Liquidation Team's accountability within at most 10 (ten) Days since OJK receives the audit result report as referred to in Article 39 paragraph (4).

(2) In the event that the Liquidation Team's accountability report has been accepted by OJK, OJK:
a. requests the Liquidation Team to:

announce the end of Liquidation by placing it in the State Gazette of the Republic of Indonesia and in 2 (two) Newspapers;
notify the competent agency regarding the loss of the Company's legal entity status;
notify the competent agency to have the Company's name removed from the company list; and
hand over all documents of the Company in Liquidation to OJK;
b. dissolve the Liquidation Team; and
c. dismiss the inactive Board of Directors, Board of Commissioners, and Sharia Supervisory Board.

(3) Actions as referred to in paragraph (2) letter a are carried out by the Liquidation Team within at most 30 (thirty) Days since the accountability is accepted by OJK.

(4) In the event that OJK decides not to accept the Liquidation Team's accountability, OJK may take other steps in accordance with statutory regulations. https://jdih.ojk.go.id/

Between Article 41 and Article 42, 1 (one) article is inserted, namely Article 41A, so that it reads as follows:

Article 41A
In the event that the Liquidation Team is indicated to have committed fraud or criminal acts in the Liquidation process, OJK is authorized to report the Liquidation Team to the competent authorities.

The provisions of Article 42 are amended so that they read as follows:

Article 42
The legal entity status of the liquidated Company ends since the date of announcement of the end of Liquidation in the State Gazette of the Republic of Indonesia as referred to in Article 40 paragraph (2) letter a number 1 and Article 41 paragraph (2) letter a number 1.

Between Article 42 and Article 43, 1 (one) article is inserted, namely Article 42A, so that it reads as follows:

Article 42A
Since the date of Revocation of the Business License of the Company as referred to in Article 2 paragraph (1), shareholders or those equivalent to shareholders in legal entities in the form of cooperatives are required to be responsible for every process and implementation of Dissolution and Liquidation.

The provisions of paragraph (2) of Article 43 are amended and paragraph (3) is deleted, so that Article 43 reads as follows:

Article 43
(1) Companies that cease their business activities are required to first report the plan to cease business activities to OJK.

(2) Companies that cease their business activities as referred to in paragraph (1) must be able to settle all Company obligations, including obligations to Policyholders, Insureds, or Participants.

(3) Deleted.

The provisions of paragraph (2) of Article 46 are amended so that they read as follows:

Article 46
(1) Settlement of Company obligations to all Creditors including Policyholders, Insureds, or Participants must not harm or reduce the rights of Creditors including Policyholders, Insureds, or Participants.

(2) In the event that a Company ceasing insurance and reinsurance business with Sharia principles has no Participants, the existing Tabarru' Funds and Tanahud Funds must be donated to a social institution based on the consideration of the Sharia Supervisory Board.

(3) In the event that settlement of obligations to Policyholders, Insureds, or Participants is carried out by transferring the coverage portfolio to another Company, the Company is required to notify the plan to transfer the coverage portfolio to Policyholders, Insureds, or Participants through:
a. announcement of the plan to cease business activities in a Newspaper as referred to in Article 45 paragraph (3) letter b; and b. letters to each Policyholder, Insured, or Participant.

(4) The transfer of the coverage portfolio as referred to in paragraph (3) must meet the following requirements:
a. does not reduce the rights of Policyholders, Insureds, or Participants; b. is carried out at a Company that has the same business field; and
c. does not cause the Company receiving the transfer of the coverage portfolio to violate applicable regulations in the insurance sector.

The provisions of Article 49 letter d are amended so that they read as follows:

Article 49
After all Company obligations as referred to in Article 46 are settled, the Board of Directors is required to submit a report to OJK that at least contains:
a. implementation of the Company's cessation of business activities; b. implementation of announcements as referred to in Article 45 paragraph (3) letter b;
c. implementation of settlement of Company obligations;
d. the final balance sheet of the Company audited by a public accountant; and e. a statement letter from shareholders or those equivalent to shareholders in legal entities in the form of cooperatives stating that all Company obligations have been settled and if there are claims in the future, they become the responsibility of shareholders or those equivalent to shareholders in legal entities in the form of cooperatives.

The provisions of paragraph (2) of Article 50 are amended so that they read as follows:

https://jdih.ojk.go.id/

Article 50
(1) OJK conducts an examination of the report submitted by the Board of Directors as referred to in Article 49.

(2) Based on the results of the examination as referred to in paragraph (1), within a period of at most 30 (thirty) Days since the complete report is received, OJK revokes the Company's business license.

Between Article 49 and Article 50, 2 (two) articles are inserted, namely Article 50A and 50B, so that they read as follows:

Article 50A
Since the date of Revocation of the Business License of the Company as referred to in Article 50 paragraph (2), the Company holds a GMS to:
a. decide on Dissolution; and b. form a Liquidation Team to:

notify the competent agency regarding the loss of the Company's legal entity status;
notify the competent agency to have the Company's name removed from the company list; and
carry out other affairs related to the Dissolution process and company termination,
within a certain period until the Liquidation Team is dissolved.

Article 50B
OJK is authorized to determine different mechanisms and requirements for Liquidation resulting from the cessation of business activities at the Company's request.

The provisions of Article 52 are amended so that they read as follows:

Article 52
(1) A petition for a declaration of bankruptcy against the Company can only be submitted by OJK.

(2) Creditors, based on their assessment that the Company meets the requirements to be declared bankrupt in accordance with statutory regulations, may submit a request to OJK for OJK to submit a petition for a declaration of bankruptcy of the relevant Company to the commercial court.

(3) A Company cannot submit a petition for a declaration of bankruptcy for itself.

(4) The petition as referred to in paragraph (1) is submitted in writing in the Indonesian language and signed by the Creditor or their attorney, at least containing:
a. Creditor identity, at least including full name and address of the Creditor; b. the name of the Company requested to be declared bankrupt by the commercial court;
c. a description of the grounds for the petition, including:

the authority of the commercial court;
the legal standing of the Creditor containing a clear description of the Creditor's right to submit the petition; and
the reasons for the petition for a declaration of bankruptcy described clearly and in detail; and
d. matters requested to be decided by the commercial court.

(5) In addition to meeting the provisions as referred to in paragraph (4), the petition as referred to in paragraph (1) is accompanied by evidence supporting the petition for a declaration of bankruptcy of the Company, at least in the form of:
a. proof of Creditor identity; b. proof of letters or writings related to the reasons for the petition;
c. a list of prospective witnesses and/or experts accompanied by a brief statement about matters to be explained regarding the reasons for the petition, and a statement of willingness to attend the trial, in the event the Creditor intends to submit witnesses and/or experts; and
d. a list of other evidence which may be information stored in or sent through electronic media, if deemed necessary.

The provisions of paragraph (1) and paragraph (3) of Article 53 are amended so that they read as follows:

Article 53
(1) The petition as referred to in Article 52 paragraph (1) is addressed to the Chairman of the Commissioners of OJK with a copy to the Head of the Executive for Insurance, Guarantee, and Pension Fund Supervision.

(2) OJK examines the petition along with the evidence submitted by the Creditor.

(3) If the petition is incomplete, OJK notifies the Creditor about the completeness of the petition that must be fulfilled, and the Creditor must complete it within a period of at most 10 (ten) Days since the notification letter is received.

(4) If the completeness of the petition is not fulfilled within the period as referred to in paragraph (3), the petition is considered withdrawn and subsequently OJK returns the petition documents to the Creditor. https://jdih.ojk.go.id/

The provisions of paragraph (1), paragraph (2), and paragraph (4) of Article 55 are amended so that they read as follows:

Article 55
(1) OJK approves or rejects the Creditor's petition to submit a petition for a declaration of bankruptcy of the Company to the commercial court by considering:
a. fulfillment of the requirements to be declared bankrupt as regulated in statutory regulations; b. fulfillment of the requirements for submitting the petition as referred to in Article 52 paragraph (4) and paragraph (5);
c. the Company's financial capacity to pay debts or obligations;
d. the continuity of the Company's business; e. the Company's supervision status; f. the imposition of administrative sanctions on the Company; and g. certain conditions.

(2) In the event that OJK rejects the Creditor's petition to submit a petition for a declaration of bankruptcy of the Company as referred to in paragraph (1), OJK submits the rejection of the petition in writing to the Creditor accompanied by the reasons for rejection.

(3) In the event that OJK rejects the petition as referred to in paragraph (2), OJK may:
a. advise the Creditor to resolve disputes with the Company through alternative dispute resolution institutions or civil courts; b. facilitate out-of-court dispute resolution peacefully; or
c. take other actions that can help resolve disputes.

(4) In the event that OJK approves the Creditor's petition to submit a petition for a declaration of bankruptcy of the Company as referred to in paragraph (1), then OJK immediately submits the petition for a declaration of bankruptcy of the Company to the commercial court in accordance with statutory regulations.

(5) The costs of the petition for a declaration of bankruptcy to the commercial court are borne by the Creditor.

The provisions of Article 57 letter d paragraph (3) are amended so that they read as follows:

Article 57
(1) During the decision on the petition for a declaration of bankruptcy has not been pronounced, OJK may submit a petition to the court for:
a. to place a seizure guarantee on part or all of the Company's assets; or https://jdih.ojk.go.id/

b. appoint an interim curator to supervise:

the management of the Company's business; and
payments to Creditors,
transfer, or pledge of the Company's assets in Bankruptcy which are the authority of the curator.
(2) The Curator as referred to in paragraph (1) is:
a. Estate Administration Office; or b. other curators.
(3) In proposing a curator as referred to in paragraph (1) letter b, OJK considers the following:
a. independent and has no conflict of interest; b. has special expertise in managing and/or settling bankrupt estates;
c. is not handling more than 3 (three) Bankruptcy and debt payment suspension cases;
d. understands the provisions of legislation in the insurance field; and e. is registered at the ministry whose scope and responsibility are in the field of law and legislation.
Between CHAPTER IV and CHAPTER V, insert 1 (one) chapter, namely CHAPTER IVA, so that it reads as follows:
CHAPTER IVA
SUSPENSION OF DEBT PAYMENT OBLIGATIONS
Between Article 59 and Article 60, insert 4 (four) articles, namely Article 59A, Article 59B, Article 59C, and Article 59D, so that they read as follows:
Article 59A
(1) A petition for Suspension of Debt Payment Obligations against the Company may only be submitted by OJK.
(2) Creditors, based on their assessment that the Company meets the requirements for Suspension of Debt Payment Obligations in accordance with the provisions of legislation, may submit a petition to OJK so that OJK submits the petition for Suspension of Debt Payment Obligations for the relevant Company to the commercial court. (3) The Company cannot submit a petition for Suspension of Debt Payment Obligations for itself. (4) The petition as referred to in paragraph (1) is submitted in writing in the Indonesian language and signed by the Creditor or their attorney, at least containing:
https://jdih.ojk.go.id/

a. Creditor identity, at least including the full name and address of the Creditor; b. the name of the Company petitioned for Suspension of Debt Payment Obligations by the commercial court;
c. an explanation of the basis of the petition, including:

the authority of the commercial court;
the legal standing of the Creditor, containing a clear explanation of the Creditor's right to submit the petition; and
the reasons for the petition for Suspension of Debt Payment Obligations are explained clearly and in detail; and
d. matters requested to be decided by the commercial court.
(5) In addition to meeting the provisions in paragraph (4), the petition as referred to in paragraph (1) is accompanied by supporting evidence for the petition for Suspension of Debt Payment Obligations for the Company, at least in the form of:
a. proof of the Creditor's identity; b. proof of letters or writings related to the reasons for the petition;
c. a list of prospective witnesses and/or experts accompanied by a brief statement about matters to be explained regarding the reasons for the petition, and a statement of willingness to attend court sessions, in the event the Creditor intends to submit witnesses and/or experts; and
d. a list of other evidence which may be information stored in or sent through electronic media, if deemed necessary.
Article 59B
(1) The petition as referred to in Article 59A paragraph (1) is addressed to the Chairman of the Board of Commissioners of OJK with a copy to the Head of the Executive for Insurance Supervision, Guarantee, and Pension Funds. (2) OJK examines the petition along with the evidence submitted by the Creditor. (3) If the petition is incomplete, OJK notifies the Creditor about the completeness of the petition that must be fulfilled, and the Creditor must complete it within a maximum of 10 (ten) Days since the notification letter was received. (4) If the completeness of the petition is not fulfilled within the time limit as referred to in paragraph (3), the petition is considered withdrawn and subsequently OJK returns the petition documents to the Creditor. https://jdih.ojk.go.id/

Article 59C
(1) OJK approves or rejects the petition to submit a petition for Suspension of Debt Payment Obligations for the Company within a maximum of 30 (thirty) Days since the petition was received completely. (2) Within the time limit as referred to in paragraph (1), OJK may:
a. request information related to the petition for Suspension of Debt Payment Obligations from the Creditor, the Company petitioned for Suspension of Debt Payment Obligations, and/or other parties; and/or b. conduct an examination of the Company.
Article 59D
(1) OJK approves or rejects the Creditor's petition to submit a petition for Suspension of Debt Payment Obligations for the Company to the commercial court by considering:
a. fulfillment of the requirements for Suspension of Debt Payment Obligations as regulated in the provisions of legislation; b. fulfillment of the requirements for submitting the petition as referred to in Article 59A paragraph (4) and paragraph (5);
c. the Company's financial capacity to pay debts or obligations;
d. the continuity of the Company's business; e. the Company's supervision status; f. the imposition of administrative sanctions on the Company; and g. certain conditions.
(2) In the event that OJK rejects the petition to submit a petition for Suspension of Debt Payment Obligations for the Company as referred to in paragraph (1), OJK submits the rejection of the petition in writing to the Creditor accompanied by the reasons for the rejection. (3) In the event that OJK rejects the petition as referred to in paragraph (2), OJK may:
a. advise the Creditor to resolve disputes with the Company through alternative dispute resolution institutions or civil courts; b. facilitate out-of-court dispute resolution amicably; or
c. take other actions that can help resolve the dispute.
(4) In the event that OJK approves the petition to submit a petition for Suspension of Debt Payment Obligations for the Company as referred to in paragraph (1), OJK immediately submits the petition for Suspension of Debt Payment Obligations for the Company to the commercial court in accordance with the provisions of legislation. (5) The costs of the petition for Suspension of Debt Payment Obligations to the commercial court are borne by the Creditor.
33. The provisions of Article 60 are amended so that they read as follows:
Article 60
(1) Violations of the provisions as referred to in Article 2, Article 3 paragraph (1), Article 4 paragraph (1), paragraph (2), paragraph (4), and paragraph (7), Article 7, Article 8 paragraph (2) and paragraph (3), Article 12 paragraph (1), Article 15 paragraph (1), Article 22 paragraph (3), Article 23 paragraph (5) and paragraph (6), Article 32 paragraph (4) and paragraph (5), Article 38 paragraph (1), Article 39 paragraph (1) and paragraph (2), Article 42A, Article 43 paragraph (1), Article 46 paragraph (2) and paragraph (3), Article 47 paragraph (2), paragraph (3), and paragraph (4), and/or Article 49 are subject to administrative sanctions in the form of:
a. written warnings; and/or b. prohibition from becoming controllers and shareholders, members of the Board of Directors, members of the Board of Commissioners, or equivalents of shareholders, members of the Board of Directors, and members of the Board of Commissioners in legal entities in the form of cooperatives or joint ventures, Sharia supervisory boards, or holding executive positions below the Board of Directors, or equivalents of executive positions below the Board of Directors in legal entities in the form of cooperatives or joint ventures, in the Company. (2) Administrative sanctions as referred to in paragraph (1) may be imposed on parties causing the violation.
34. Between CHAPTER V and CHAPTER VI, insert 1 (one) chapter, namely CHAPTER VA, so that it reads as follows:
CHAPTER VA
OTHER PROVISIONS
35. Between Article 60 and Article 61, insert 5 (five) articles, namely Article 60A, Article 60B, Article 60C, Article 60D, and Article 60E, so that they read as follows:
Article 60A
In addition to imposing administrative sanctions as referred to in Article 60 paragraph (1), OJK has the authority to re-evaluate the main parties of the Company. https://jdih.ojk.go.id/

Article 60B
At the time the Government Regulation regarding the implementation of policy guarantees takes effect, regulations regarding Dissolution and Liquidation for policy guarantee participants are implemented in accordance with the provisions of the Deposit Insurance Institution Regulation.
Article 60C
In the event that shareholders, members of the Board of Directors, members of the Board of Commissioners, or equivalents, are proven guilty and cause a Company to be declared bankrupt or have their business license revoked, shareholders, members of the Board of Directors, members of the Board of Commissioners, or equivalents, are added to the database of related parties of financial service institutions in the OJK system.
Article 60D
(1) Companies apply consumer protection principles in the implementation of Dissolution, Liquidation, Bankruptcy, and Suspension of Debt Payment Obligations in accordance with the provisions of legislation regarding consumer and public protection in the financial service sector. (2) The mechanism and procedures for applying consumer protection principles as referred to in paragraph (1) are implemented in accordance with the provisions of legislation regarding consumer and public protection in the financial service sector.
Article 60E
OJK, based on certain considerations, may grant approvals or policies different from this OJK Regulation.
Article II

At the time this OJK Regulation takes effect, all approvals granted by the Financial Services Authority in the implementation of the Dissolution and Liquidation process are declared to remain valid.
The implementation of the Dissolution and Liquidation process currently in progress continues by following the provisions in this OJK Regulation.
This OJK Regulation takes effect on the date of enactment.
https://jdih.ojk.go.id/

This copy is consistent with the original
Director of Legal Development
Legal Department
Aat Windradi
So that everyone knows, ordering the enactment of this OJK Regulation by placing it in the State Gazette of the Republic of Indonesia.
Established in Jakarta on 20 December 2024
CHAIRMAN OF THE BOARD OF COMMISSIONERS
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA,
MAHENDRA SIREGAR
Enacted in Jakarta on 23 December 2024
MINISTER OF LAW OF THE REPUBLIC OF INDONESIA,
SUPRATMAN ANDI AGTAS
STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2024 NUMBER 50/OJK ttd https://jdih.ojk.go.id/

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
REPUBLIC OF INDONESIA
NUMBER 38 OF 2024
REGARDING
AMENDMENT TO FINANCIAL SERVICES AUTHORITY REGULATION NUMBER 28/POJK.05/2015 ON DISSOLUTION, LIQUIDATION, AND BANKRUPTCY OF INSURANCE COMPANIES, SHARIA INSURANCE COMPANIES, REINSURANCE COMPANIES, AND SHARIA REINSURANCE COMPANIES
I. GENERAL
Regulations regarding Dissolution, Liquidation, and Bankruptcy of Insurance Companies, Sharia Insurance Companies, Reinsurance Companies, and Sharia Reinsurance Companies were previously regulated in Financial Services Authority Regulation Number 28/POJK.05/2015 on Dissolution, Liquidation, and Bankruptcy of Insurance Companies, Sharia Insurance Companies, Reinsurance Companies, and Sharia Reinsurance Companies (OJK Regulation 28/2015). In the implementation of the provisions of OJK Regulation 28/2015, there were disputes regarding the status of OJK's decision to dissolve legal entities and form Liquidation Teams to be equated as decisions taken by the General Meeting of Shareholders. In addition, OJK Regulation 28/2015 needs to be harmonized with regulations on the dissolution of legal entities applicable to other financial service sectors such as banking. The current practice of Liquidation implementation is considered still less effective in resolving problems arising during the Liquidation process. Therefore, improvements need to be made to several provisions regulated in OJK Regulation 28/2015. This OJK Regulation is an improvement of OJK Regulation 28/2015 based on the mandate of Article 50 paragraph (1) and (2), Article 51 paragraph (4) of Law Number 40 of 2014 concerning Insurance as amended by Law Number 4 of 2023 concerning Development and Strengthening of the Financial Sector. The improvements made include completing and clarifying provisions regarding the membership of Liquidation Teams, the use of guarantee funds in the implementation of Liquidation, and the addition of provisions regarding Suspension of Debt Payment Obligations.

II. ARTICLE BY ARTICLE
Article I
Number 1
Article 1
Clear enough.
Number 2
Article 4
Clear enough.
Number 3
Article 6
Paragraph (1)
This provision can be carried out by meeting one of the following conditions:
a. The General Meeting of Shareholders cannot be held; b. The General Meeting of Shareholders can be held but fails to decide on Dissolution and fails to form a Liquidation Team; or
c. The General Meeting of Shareholders can be held and successfully decides on Dissolution but fails to form a Liquidation Team.
Letter a
Clear enough.
Letter b
Clear enough.
Letter c
Legislative provisions include Financial Services Authority Regulations regarding consumer and public protection in the financial service sector.
Letter d
Clear enough.
Paragraph (1a)
Clear enough.
Paragraph (2)
Clear enough.
Paragraph (3)
Clear enough.
Paragraph (4)
Clear enough.
Paragraph (5)
Clear enough.
Number 4
Article 9
Clear enough.
Number 5
Article 15
Clear enough.
Number 6
Article 17
Paragraph (1)
Integrity requirements include:
a. capable of performing legal acts; b. having good ethics and morality, at least shown by an attitude of complying with applicable regulations, including never being convicted of a criminal offense within the last 5 (five) years;
c. having a commitment to comply with legislation and support OJK policies;
d. having a commitment to the development of healthy financial service institutions; and e. not included as parties prohibited from being Main Parties.
Financial reputation requirements include:
a. having no non-performing loans and/or financing; and b. never declared bankrupt and/or never having been a shareholder, controller of an insurance company that is not a shareholder, member of the Board of Directors, or member of the Board of Commissioners who was declared guilty causing a company to be declared bankrupt within the last 5 (five) years. Paragraph (2) Clear enough. Paragraph (2a) Clear enough. Paragraph (2b) Clear enough. Paragraph (3) Clear enough. Number 7
Article 24
Paragraph (1)
What is meant by "rights of Policyholders, Insured, Participants, and other parties entitled to insurance/Sharia insurance benefits" are claims of Policyholders, Insured, Participants, and other parties entitled to insurance/Sharia insurance benefits arising from policies issued, including insurance claims. Paragraph (2) Clear enough. Paragraph (3) Clear enough. Paragraph (4) Clear enough. Paragraph (5) Clear enough. Paragraph (6) Clear enough.

Paragraph (7)
Examples of other parties entitled to insurance/Sharia insurance benefits are:

heirs for life insurance products; and
Insurance Companies/Sharia Insurance Companies as cedants in the event the liquidated entity is a Reinsurance Company/Sharia Reinsurance Company.
Number 8
Article 25
Clear enough.
Number 9
Article 26
Paragraph (1)
Clear enough.
Paragraph (2)
Example of proportional payment calculation:

Company asset value is Rp10,000,000.00 (ten million rupiah);
liability value is Rp50,000,000.00 (fifty million rupiah);
proportional calculation of 20% (twenty percent) is obtained from the asset value after deducting other liabilities divided by the liability value,
so the calculation of obligations to policyholders is as follows:
No. Obligation Value
Obligation
(rupiah)
Value Paid
(rupiah)

Premium refund 25,000,000.00 5,000,000.00
Unpaid claims 10,000,000.00 2,000,000.00
Policies transferred to
other companies 15,000,000.00 3,000,000.00
Number 10
Article 27
Clear enough.
Number 11
Article 27A
Clear enough.
Number 12
Article 28
Paragraph (1)
Payment of obligations of Insurance Companies and Sharia Insurance Companies to Creditors is carried out in accordance with the provisions of legislation.
Paragraph (2)
Clear enough.
Paragraph (3)
Claims include:
a. payments to other parties; b. unpaid debts of the Company; or
c. claims submitted by policyholders.
Paragraph (4)
Claims submitted through OJK are intended to facilitate the collection process, but OJK does not verify the claims.
Paragraph (5)
What is meant by "competent agency" is a court or other party given authority by law to freeze assets.
Paragraph (6)
Clear enough.
Paragraph (7)
Clear enough.
Paragraph (8)
Clear enough.
Number 13
Article 29
Letter a
Clear enough.
Letter b
Clear enough.
Letter c
Clear enough.
Letter d
Asset liquidation activities include asset release through auctions. In the event that asset release through auctions is not achieved, asset release can be done privately while still considering the interests of Policyholders, Insured, Participants, and other parties entitled to insurance/Sharia insurance benefits, and fair market prices, and is carried out in accordance with the provisions of legislation. Letter e Clear enough. Letter f Clear enough. Number 14
Article 34
Clear enough.
Number 15
Article 38
Clear enough.

Number 16
Article 39
Clear enough.
Number 17
Article 40
Clear enough.
Number 18
Article 41
Paragraph (1)
Clear enough.
Paragraph (2)
Clear enough.
Paragraph (3)
Clear enough.
Paragraph (4)
Other steps in accordance with the provisions of legislation include resolution through courts.
Number 19
Article 41A
Clear enough.
Number 20
Article 42
Clear enough.
Number 21
Article 42A
This provision is intended to ensure that actions by shareholders or equivalents of shareholders in legal entities in the form of cooperatives are cooperative in all processes of Liquidation implementation. Number 22
Article 43
Clear enough.
Number 23
Article 46
Paragraph (1)
Clear enough.
Paragraph (2)
Clear enough.
Paragraph (3)
Letter a
Clear enough.
Letter b
What is meant by "letters" also includes electronic letters.
Paragraph (4)
Clear enough.

Number 24
Article 49
Clear enough.
Number 25
Article 50
Clear enough.
Number 26
Article 50A
Clear enough.
Article 50B
Clear enough.
Number 27
Article 52
Clear enough.
Number 28
Article 53
Clear enough.
Number 29
Article 55
Paragraph (1)
Given that Companies collect public funds through insurance premiums, Insurance Companies bear public trust, especially from Policyholders, Insured, or Participants, who are relatively numerous. The trust of Policyholders, Insured, or Participants and business actors needs to be maintained so as not to decrease or disappear. Efforts to restore public trust are very costly for the economy, so it is very reasonable that bankruptcy efforts against Companies need to be carried out very carefully. Therefore, in deciding to approve or reject the petition for bankruptcy declaration of Companies, OJK does not solely base its decision on the fulfillment of the requirements of having two or more Creditors and not paying at least one debt that has become due and can be collected, but also considers other matters, particularly the condition of the Company. Letter a Clear enough. Letter b Clear enough. Letter c Clear enough. Letter d Clear enough.

Letter e
Clear enough.
Letter f
Clear enough.
Letter g
What is meant by "certain conditions" includes:

economic impact and public trust that may arise from Companies being declared bankrupt;
Companies in financial rehabilitation;
existence of other resolution alternatives; and
OJK will revoke the Company's Business License.
Paragraph (2)
Clear enough.
Paragraph (3)
Clear enough.
Paragraph (4)
Clear enough.
Paragraph (5)
Clear enough.
Number 30
Article 57
Clear enough.
Number 31
Clear enough.
Number 32
Clear enough.
Article 59A
Clear enough.
Article 59B
Paragraph (1)
Submission to the Chairman of the Board of Commissioners of OJK with a copy to the Head of Insurance Supervision, Guarantee, and Pension Funds Executive can be done in the form of print media or electronic media. Paragraph (2) Clear enough. Paragraph (3) Clear enough. Paragraph (4) Clear enough.
Article 59C
Clear enough.

Article 59D
Paragraph (1)
Given that Companies collect public funds through insurance premiums, Insurance Companies bear public trust, especially from Policyholders, Insured, or Participants, who are relatively numerous. The trust of Policyholders, Insured, or Participants and business actors needs to be maintained so as not to decrease or disappear. Efforts to restore public trust are very costly for the economy, so it is very reasonable that Suspension of Debt Payment Obligations efforts against Companies need to be carried out very carefully. Therefore, in deciding to approve or reject petitions for Suspension of Debt Payment Obligations for Companies, OJK does not solely base its decision on the fulfillment of Creditor requirements estimating that the Company cannot continue to pay its debts that have become due and can be collected, but also considers other matters, particularly the condition of the Company. Letter a Clear enough. Letter b Clear enough. Letter c Clear enough. Letter d Clear enough. Letter e Clear enough. Letter f Clear enough. Letter g What is meant by "certain conditions" includes:

economic impact and public trust that may arise from Companies being petitioned for Suspension of Debt Payment Obligations;
Companies in financial rehabilitation;
existence of other resolution alternatives; and
OJK will revoke the Company's Business License.
Paragraph (2)
Clear enough.
Paragraph (3)
Clear enough.
Paragraph (4)
Clear enough.

Paragraph (5)
Clear enough.
Number 33
Article 60
Clear enough.
Number 34
Clear enough.
Number 35
Clear enough.
Article 60A
Clear enough.
Article 60B
Clear enough.
Article 60C
Clear enough.
Article 60D
Clear enough.
Article 60E
Granting approvals or different policies is intended among others to:
a. support national policies; b. maintain public interests;
c. maintain industry growth; and/or
d. maintain healthy business competition.
Conditions requiring certain considerations, among others, are due to extraordinary events that can cause significant increases in morbidity and mortality and also impact the economy and society, thus requiring attention and handling by all relevant parties and regulated in other provisions regarding considerations in facing possible extraordinary events.
Article II
Clear enough.
SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 118/OJK ---

Amendment to POJK No. 28/POJK.05/2015 on Dissolution, Liquidation, and Bankruptcy of Insurance, Sharia Insurance, Reinsurance, and Sharia Reinsurance Companies

Lineage: In force

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