Appendix to Regulation of the Head of the Commodity Futures Trading Regulatory Agency Number 09/BAPPEBTI/PER-SRG/7/2008 on Warehouse Receipt Pledge Procedures and Technical Guidelines

APPENDIX TO THE REGULATION OF THE HEAD OF THE COMMODITY FUTURES TRADING REGULATORY AGENCY
NUMBER: 09/BAPPEBTI/PER-SRG/7/2008
DATE: JULY 24, 2008

A. FLOWCHART OF WAREHOUSE RECEIPT PLEDGE PROCEDURES B. TECHNICAL GUIDELINES FOR WAREHOUSE RECEIPT PLEDGE
C. FORMS IN THE ENCUMBRANCE OF SECURITY RIGHTS OVER WAREHOUSE RECEIPTS

1. Model Form Number SRG-OPR.12: Application for Verification of Warehouse Receipt to be Encumbered with Security Rights to the Registration Center
2. Model Form Number SRG-OPR.13: Confirmation Evidence that Warehouse Receipt Can/Cannot be Encumbered with Security Rights
3. Model Form Number SRG-OPR.14: Agreement on Encumbrance of Security Rights
4. Model Form Number SRG-OPR.15: Notification of Encumbrance of Security Rights
5. Model Number SRG-OPR.16: Confirmation Evidence that Notification of Encumbrance of Security Rights Has Been Received and Recorded
6. Model Number SRG-OPR.17: Notification of Change in Encumbrance of Security Rights
7. Model Number SRG-OPR.18: Confirmation Evidence that Notification of Change in Encumbrance of Security Rights Has Been Received and Recorded
8. Model Number SRG-OPR.19: Reporting of the Extinguishment of Encumbrance of Security Rights
9. Model Number SRG-OPR.20: Confirmation Evidence that Notification of Extinguishment of Encumbrance of Security Rights Has Been Received and Recorded
10. Model Number SRG-OPR.21: Letter of Notification of Plan to Sell Security Right Object Due to Breach of Contract by the Pledgor
11. Model Number SRG-OPR.22: Letter of Notification of Transfer of Warehouse Receipt to Warehouse Receipt Buyer Due to Sale of Security Right Object Due to Breach of Contract by Pledgor to Secured Party
12. Model Number SRG-OPR.23: Confirmation Evidence of Recording the Transfer of Warehouse Receipt Ownership Records from the Pledgor's Warehouse Receipt Account to the Warehouse Receipt Buyer's Account Sold Due to Breach of Contract by Pledgor

HEAD OF THE COMMODITY FUTURES TRADING REGULATORY AGENCY, DEDDY SALEH

APPENDIX to the Regulation of the Head of the Commodity Futures Trading Regulatory Agency
Number: 09/BAPPEBTI/PER-SRG/7/2008
Date: July 24, 2008

A. FLOWCHART OF WAREHOUSE RECEIPT PLEDGE PROCEDURES

I. PROCEDURES FOR ENCUMBRANCE AND NOTIFICATION OF ENCUMBRANCE OF SECURITY RIGHTS

Prospective Secured Party submits application for verification of Warehouse Receipt to be encumbered with Security Rights to the Registration Center (SRG-OPR.12)

Registration Center conducts verification:

• validity of Warehouse Receipt;
• validity of the Pledgor party;
• term of Warehouse Receipt;
• value of Warehouse Receipt at the time of issuance; and
• whether Security Rights have been encumbered on the Warehouse Receipt

Yes/No
Yes
Registration Center notifies that the Warehouse Receipt cannot be pledged along with the reasons (SRG-OPR.013.B)

No
Registration Center notifies that the Warehouse Receipt can be pledged (SRG-OPR.013.A)

Pledgor and Secured Party sign the Agreement on Encumbrance of Security Rights Over Warehouse Receipt (SRG-OPR.014) which is an ancillary agreement to the main agreement, namely the credit agreement

Dispute resolution procedure

Secured Party notifies the occurrence of Warehouse Receipt pledge to the Registration Center and Warehouse Operator (SRG-OPR.15) and attaches:

• Confirmation Evidence that Warehouse Receipt Can be Encumbered with Security Rights from the Registration Center;
• photocopy of the Agreement on Encumbrance of Security Rights Over Warehouse Receipt;
• photocopy of Warehouse Receipt.

Registration Center updates the status of the Warehouse Receipt and records the Encumbrance of Security Rights in the Register Book of Encumbrance of Security Rights

Registration Center sends confirmation evidence that the notification of encumbrance of Security Rights has been received and recorded (SRG-OPR.15)

APPENDIX to the Regulation of the Head of the Commodity Futures Trading Regulatory Agency
Number: 09/BAPPEBTI/PER-SRG/7/2008
Date: July 24, 2008

II. PROCEDURES FOR NOTIFICATION OF CHANGE IN ENCUMBRANCE OF SECURITY RIGHTS AND CHANGE OF RECORDS OF ENCUMBRANCE OF SECURITY RIGHTS

III. PROCEDURES FOR NOTIFICATION OF EXTINGUISHMENT OF ENCUMBRANCE OF SECURITY RIGHTS

Notification by Secured Party regarding changes in the encumbrance of Security Rights (SRG-OPR.17)

Registration Center conducts verification:

• identity of the Pledgor party has not changed;
• identity of the Secured Party has not changed; and
• verification of data on changes in the encumbrance of Security Rights

Yes/No
Yes
Registration Center notifies that the change in encumbrance of Security Rights cannot be recorded in the Register Book of Encumbrance of Security Rights along with the reasons

No
Registration Center records the change in encumbrance of Security Rights in the Register Book of Encumbrance of Security Rights

Registration Center submits confirmation evidence that the notification has been received and the recording of the change in encumbrance of Security Rights has been done (SRG-OPR.18)

Secured Party notifies about the extinguishment of the encumbrance of Security Rights (SRG-OPR.19)

Registration Center conducts verification:

• identity of the Pledgor party;
• identity of the Secured Party; and
• verification to the Secured Party regarding the extinguishment of the principal debt or the release of the encumbrance of Security Rights

Registration Center strikes off the record of encumbrance of Security Rights on the Register Book of Encumbrance of Security Rights

Registration Center submits confirmation evidence that the notification has been received and the striking off of the encumbrance of Security Rights on the Register Book of Encumbrance of Security Rights has been done (SRG-OPR.20)

APPENDIX to the Regulation of the Head of the Commodity Futures Trading Regulatory Agency
Number: 09/BAPPEBTI/PER-SRG/7/2008
Date: July 24, 2008

IV. SALE OF SECURITY RIGHT OBJECT

Notification by Secured Party regarding the plan to sell the Security Right object due to the breach of contract by the Pledgor to: Pledgor, Registration Center, & Warehouse Operator (SRG-OPR.21)

Secured Party sells the Security Right object, either Warehouse Receipt or goods as stated in the Warehouse Receipt, without requiring a court decree

In the event of a transfer of Warehouse Receipt, the Registration Center prepares a Warehouse Receipt Account for the Warehouse Receipt buyer and performs the book transfer of ownership of the Warehouse Receipt

Notification by Secured Party to the Registration Center regarding the sale of goods or transfer of Warehouse Receipt

Registration Center submits confirmation evidence that the book transfer of ownership of the Warehouse Receipt from the Pledgor's Warehouse Receipt Account to the Warehouse Receipt Buyer's Warehouse Receipt Account has been done (SRG-OPR.23) or confirmation evidence that the recording of the sale of goods has been done in the event of a sale of goods, to the Secured Party, Pledgor, and Warehouse Operator

APPENDIX to the Regulation of the Head of the Commodity Futures Trading Regulatory Agency
Number: 09/BAPPEBTI/PER-SRG/7/2008
Date: July 24, 2008

B. TECHNICAL GUIDELINES FOR WAREHOUSE RECEIPT PLEDGE

I. BACKGROUND
To realize the orderly and regular implementation of the Warehouse Receipt System, various requirements and procedures must be fulfilled by every party conducting activities in the field of the Warehouse Receipt System, including issuance, transfer, pledge, and settlement of Warehouse Receipt transactions. Warehouse Receipts as a document of title over goods can be used as collateral because the Warehouse Receipts are guaranteed by specific commodities under the supervision of the Warehouse Operator. Regulations regarding the encumbrance of Security Rights include procedures for notifying the agreement to bind Warehouse Receipts as Security Rights and procedures for recording the encumbrance of Security Rights in the Register Book of Encumbrance of Security Rights, extinguishment of Security Rights, and sale of Security Right objects. To ensure that the implementation of Warehouse Receipt pledges is carried out in accordance with applicable laws and regulations, and to provide legal certainty and protect public interests, guidelines for Warehouse Receipt pledges need to be regulated. Warehouse Receipt pledges use SRG-Online provided by the Registration Center.

II. REFERENCES
The references used in compiling these technical guidelines are based on, among others:
a. Laws and implementing regulations related to the Warehouse Receipt System, namely:

1. Law Number 9 of 2006 concerning the Warehouse Receipt System;
2. Government Regulation Number 36 of 2007 concerning the Implementation of Law Number 9 of 2006 on the Warehouse Receipt System;
3. Relevant laws and implementing regulations related to these technical guidelines.
   b. ISO 9001:2000 Quality Management System.

APPENDIX to the Regulation of the Head of the Commodity Futures Trading Regulatory Agency
Number: 09/BAPPEBTI/PER-SRG/7/2008
Date: July 24, 2008

III. DEFINITIONS

1. SRG-Online
   Is an integrated warehouse receipt accounting system with the Bappebti supervision system, provided and maintained by the Registration Center, which is accurate, current, secure, trustworthy, and reliable.
2. Warehouse Receipt Account
   Is an account issued by the Registration Center and given to each Warehouse Receipt Holder to record every Warehouse Receipt they own.
3. User ID (User Code)
   Is the user identity given by the Registration Center to each Warehouse Receipt Holder, which can be used to access the Warehouse Receipt Account and related information.
4. Password (Secret Code)
   Is the user password given by the Registration Center to each Warehouse Receipt Holder, which can be used to access the Warehouse Receipt Account and related information.

IV. PROCEDURES FOR ENCUMBRANCE AND NOTIFICATION OF ENCUMBRANCE OF SECURITY RIGHTS
The encumbrance of Security Rights over Warehouse Receipts is carried out with the following procedures:

1. The prospective Secured Party submits an application for verification of the Warehouse Receipt to be encumbered with Security Rights via SRG-Online to the Registration Center using Model Form Number SRG-OPR.12;
2. The Registration Center verifies the application as referred to in item 1, which at least covers: (i) validity of the Warehouse Receipt; (ii) validity of the Pledgor party; (iii) term of the Warehouse Receipt; (iv) value of the Warehouse Receipt at the time of issuance; and (v) whether Security Rights have been encumbered;
3. Certainty of whether the encumbrance of Security Rights can or cannot be done is communicated by the Registration Center by sending Confirmation Evidence via SRG-Online using Model Form Number SRG-OPR.013;
4. The Pledgor and Secured Party sign the Agreement on Encumbrance of Security Rights Over Warehouse Receipt, which is an ancillary agreement to the main agreement, namely the loan agreement. The signing of the Agreement on Encumbrance of Security Rights Over Warehouse Receipt can be done under hand or in front of a notary public. The form and content of the Agreement on Encumbrance of Security Rights Over Warehouse Receipt are in accordance with Model Form Number SRG-OPR.014;
5. Additions and adjustments to the Model Agreement on Encumbrance of Security Rights Over Warehouse Receipt as referred to in item 4 can be made based on needs as long as they do not contradict Law No. 9 of 2006 concerning the Warehouse Receipt System and its implementing regulations;
6. The Secured Party notifies the Encumbrance of Security Rights via SRG-Online to the Registration Center and Warehouse Operator, using Model Form Number SRG-OPR.15 and submits the said notification by attaching: (i) Confirmation Evidence that Warehouse Receipt Can be Encumbered with Security Rights from the Registration Center; (ii) photocopy of the Agreement on Encumbrance of Security Rights Over Warehouse Receipt; and (iii) photocopy of Warehouse Receipt, no later than the next day after the signing of the Agreement on Encumbrance of Security Rights Over Warehouse Receipt.
   Risks arising from the negligence or intent of the Secured Party in delaying or failing to notify the Encumbrance of Security Rights are the full responsibility of the Secured Party;
7. The Registration Center updates the status of the Warehouse Receipt and records the Encumbrance of Security Rights in the Register Book of Encumbrance of Security Rights;
8. The Registration Center sends confirmation evidence that the notification of encumbrance of Security Rights has been received and recorded via SRG-Online to the Secured Party, Pledgor, and Warehouse Operator, using Model Form Number SRG-OPR.16, no later than the next day after the complete notification documents for the encumbrance of Security Rights have been received.

APPENDIX to the Regulation of the Head of the Commodity Futures Trading Regulatory Agency
Number: 09/BAPPEBTI/PER-SRG/7/2008
Date: July 24, 2008

V. PROCEDURES FOR NOTIFICATION OF CHANGE IN ENCUMBRANCE AND CHANGE OF RECORDS OF ENCUMBRANCE OF SECURITY RIGHTS
Changes to the records of encumbrance of Security Rights are carried out with the following procedures:

1. The Secured Party notifies the existence of changes in the encumbrance of Security Rights via SRG-Online to the Registration Center using Model Form Number SRG-OPR.17;
2. The Registration Center conducts verification: (i) identity of the Pledgor party has not changed; (ii) identity of the Secured Party has not changed; and (iii) verification of data on changes in the encumbrance of Security Rights;
3. The Registration Center records the change in encumbrance of Security Rights in the Register Book of Encumbrance of Security Rights;
4. The Registration Center submits confirmation evidence that the notification has been received and the recording of the change in encumbrance of Security Rights has been done via SRG-Online to the Secured Party, Pledgor, and Warehouse Operator, using Model Form Number SRG-OPR.18, no later than the next day after the Secured Party notifies the Registration Center of the change in encumbrance of Security Rights.

VI. PROCEDURES FOR NOTIFICATION OF EXTINGUISHMENT OF ENCUMBRANCE OF SECURITY RIGHTS
Notification of the extinguishment of the encumbrance of Security Rights is carried out with the following procedures:

1. The Secured Party notifies the extinguishment of the encumbrance of Security Rights via SRG-Online to the Registration Center and Pledgor using Model Form Number SRG-OPR.19, no later than 3 (three) days after the extinguishment of the encumbrance of Security Rights;
2. The Registration Center strikes off the record of encumbrance of Security Rights on the Register Book of Encumbrance of Security Rights no later than 1 (one) day after receiving the notification as referred to in item 1;
3. The Registration Center submits Confirmation Evidence that the Notification of Extinguishment of Encumbrance of Security Rights Has Been Received and Recorded via SRG-Online to the Secured Party, Pledgor, and Warehouse Operator using Model Form Number SRG-OPR.20, no later than the next day.

VII. SALE OF SECURITY RIGHT OBJECT
The sale of the Security Right Object in the event that the Pledgor breaches their obligations to the Secured Party is carried out with the following procedures:

1. In the event that the Pledgor breaches their obligations to the Secured Party, the Secured Party notifies the plan to sell the Security Right Object due to the breach of contract by the Pledgor using Model Form Number SRG-OPR.21. The notification is done via SRG-Online and sent via registered mail to the Pledgor, Registration Center, and Warehouse Operator no later than 3 (three) days before the implementation of direct sale or public auction.
   The said notification contains:
   a. In the event that the sale is done through direct sale, the Notification must at least contain:
   (i) Warehouse Receipt issuance number;

APPENDIX to the Regulation of the Head of the Commodity Futures Trading Regulatory Agency
Number: 09/BAPPEBTI/PER-SRG/7/2008
Date: July 24, 2008

(ii) description of goods including type, quality level, quantity, and class of goods (if any); (iii) offered price; and (iv) time and place of direct sale. b. In the event that the sale is done through public auction, the Notification must at least contain:
(i) Warehouse Receipt issuance number;
(ii) description of goods including type, quality level, quantity, and class of goods (if any); and (iii) time and place of public auction sale.
2. In the event that the Secured Party intends to conduct a direct sale, to ensure that the direct sale is conducted by seeking the best price beneficial to the parties, the Secured Party is required to obtain prior approval from the Pledgor;
In the event that: (i) the storage term of the goods has expired, or (ii) the goods will be damaged or can damage other goods, or (iii) if the sale is not immediately conducted, the value of the commodity will decrease, then the Secured Party can conduct a direct sale without prior approval from the Pledgor.
3. The Secured Party sells the Security Right Object, either Warehouse Receipt or goods as stated in the Warehouse Receipt, without requiring a court decree;
4. The Secured Party submits notification via SRG-Online and via registered mail to the Registration Center regarding the transfer of Warehouse Receipt to the Warehouse Receipt buyer due to the sale of the Security Right Object because of the breach of contract by the Pledgor to the Secured Party using Model Form Number SRG-OPR.22;
5. The Registration Center prepares a Warehouse Receipt Account for the Warehouse Receipt buyer and performs the book transfer of ownership of the Warehouse Receipt from the Pledgor's Warehouse Receipt Account to the Warehouse Receipt Buyer's Warehouse Receipt Account as the Holder of the Warehouse Receipt resulting from the sale;
6. The Registration Center submits confirmation evidence that the book transfer of ownership of the Warehouse Receipt from the Pledgor's Warehouse Receipt Account to the Warehouse Receipt Buyer's Warehouse Receipt Account has been done via SRG-Online to the Secured Party, Warehouse Operator, and Warehouse Receipt buyer using Model Form Number SRG-OPR.23.

APPENDIX to the Regulation of the Head of the Commodity Futures Trading Regulatory Agency
Number: 09/BAPPEBTI/PER-SRG/7/2008
Date: July 24, 2008

C. FORMS IN THE PLEDGE OF WAREHOUSE RECEIPTS

MODEL FORM NUMBER: SRG-OPR.012
Number: ............... , ...........................20..
Attachment:
Subject: Application for Verification of Warehouse Receipt to be Encumbered with Security Rights to the Registration Center

To:
Director General of PT…......................
as Director of the Warehouse Receipt System Registration Center
in ..........................

Hereby we submit an application for verification of the Warehouse Receipt to be encumbered with security rights to us.
Hereby we submit confirmation data that the Warehouse Receipt with the following data:
a. Type of Warehouse Receipt: Bearer Warehouse Receipt or Order Warehouse Receipt *) b. Name and address of the goods owner:
c. Location of the warehouse where goods are stored:
d. Date of issuance:
e. Issuance number:
f. Due date:
g. Description of goods:

Thus this application letter is submitted, we thank you for your attention.

Applicant
( ...................................... )
Name:
Position:
*) Choose one

APPENDIX to the Regulation of the Head of the Commodity Futures Trading Regulatory Agency
Number: 09/BAPPEBTI/PER-SRG/7/2008
Date: July 24, 2008

MODEL FORM NUMBER: SRG-OPR.13
Number: ..............., ...........................20..
Attachment:
Subject: Confirmation Evidence that Warehouse Receipt Can/Cannot be Encumbered with Security Rights*)

To:
Director General of PT…...................
in ......................

Referring to Your Letter Number............date............subject Application for Verification of Warehouse Receipt to be Encumbered with Security Rights to the Registration Center, hereby we notify the verification results of the Warehouse Receipt as follows:
a. Warehouse Receipt Identity
Type of Warehouse Receipt
Name and address of the goods owner
Location of the warehouse where goods are stored Date of issuance Issuance number Due date Description of goods :
:
:
:
:
:
:
:
Bearer Warehouse Receipt or Order Warehouse Receipt *)
........................................................................
........................................................................
........................................................................
........................................................................
........................................................................
........................................................................
........................................................................

b. Warehouse Receipt Specifications: Bearer/Non-Bearer Warehouse Receipt Bearer/Order *) No. ……….. date ………..

c. Identity of the Pledgor party
Name
Address
ID Number
Phone Number
:
:
:
:
……………………………………………………
……………………………………………………
……………………………………………………
……………………………………………………

d. Term of Warehouse Receipt
:
.........................................................................

e. Value of Warehouse Receipt at the Time of Issuance :
Rp. ……………………………

f. Status of Warehouse Receipt
:

• Not yet encumbered with security rights.
• Already encumbered with security rights.

APPENDIX to the Regulation of the Head of the Commodity Futures Trading Regulatory Agency
Number: 09/BAPPEBTI/PER-SRG/7/2008
Date: July 24, 2008

Thus this confirmation is submitted, we thank you for your attention.

Registration Center
Stamp
(......................................)
Name:
Position:
NIP:
*) Choose one

APPENDIX to the Regulation of the Head of the Commodity Futures Trading Regulatory Agency
Number: 09/BAPPEBTI/PER-SRG/7/2008
Date: July 24, 2008

MODEL FORM NUMBER: SRG-OPR.14

AGREEMENT ON ENCUMBRANCE OF SECURITY RIGHTS OVER WAREHOUSE RECEIPTS Number:……… On this day ……….., date ……………………………………., we who sign below:

1. …………………, in this case acting for and on behalf of self/business group/CV/Firm/Foundation/Cooperative/Limited Company*) ..............., located at ................., based on .................., as Pledgor, hereinafter referred to as PARTY ONE;
2. …………………; Director General/Director in this case acting for and on behalf of self/business group/CV/Firm/Foundation/Cooperative/Limited Company*) ................................., located at ................., based on .................., as Secured Party, hereinafter referred to as PARTY TWO;
   Both parties first declare:
   a. that PARTY ONE has received Financing Facilities ............, hereinafter referred to as ................, from PARTY TWO in the amount of Rp…… (……) and based on the terms and conditions as described in the Main Agreement, namely Credit Agreement Number ......... date …..........., including Credit Agreement Addendum Number ......... date ........; b. that according to the Main Agreement, PARTY ONE is required to provide collateral in the form of WAREHOUSE RECEIPTS;
   c. that PARTY ONE states to own the WAREHOUSE RECEIPTS to be encumbered with Security Rights, in accordance with the specifications of the WAREHOUSE RECEIPTS as follows:

• Issuance Number: ….....................…..............
• Registration Code: ….....................…..............
• Type of Warehouse Receipt: ….....................…..............
• Goods Owner
• Name: ….....................…..............
• Address: ….....................…..............
• Warehouse Operator: ....................

APPENDIX to the Regulation of the Head of the Commodity Futures Trading Regulatory Agency
Number: 09/BAPPEBTI/PER-SRG/7/2008
Date: July 24, 2008