Assessment of Competence and Propriety for Principal Parties of Financing Institutions, Venture Capital Companies, Microfinance Institutions, and Other Financial Service Institutions

To:

The Board of Directors of Financing Companies;
The Board of Directors of Infrastructure Financing Companies;
The Board of Directors of Venture Capital Companies;
The Board of Directors of Microfinance Institutions;
The Board of Directors of Pawnshop Companies;
The Board of Directors of Information Technology-Based Joint Financing Service Providers;
The Board of Directors of the Indonesian Export Financing Institution;
The Board of Directors of PT Permodalan Nasional Madani; and
The Board of Directors of PT Sarana Multi Infrastruktur (Persero),

at their respective addresses.

COPY

CIRCULAR LETTER OF THE FINANCIAL SERVICES AUTHORITY OF THE REPUBLIC OF INDONESIA NUMBER 22/SEOJK.06/2024

CONCERNING

ASSESSMENT OF COMPETENCE AND PROPRIETY FOR PRINCIPAL PARTIES OF FINANCING INSTITUTIONS, VENTURE CAPITAL COMPANIES, MICROFINANCE INSTITUTIONS, AND OTHER FINANCIAL SERVICE INSTITUTIONS

In connection with the refinement of the Financial Services Authority Circular Letter Number 31/SEOJK.05/2016 concerning the Assessment of Competence and Propriety for Principal Parties on Non-Bank Financial Service Institutions, which is a mandate of the provisions of Article 35 of Financial Services Authority Regulation Number 27/POJK.03/2016 concerning the Assessment of Competence and Propriety for Principal Parties of Financial Service Institutions (State Gazette of the Republic of Indonesia Year 2016 Number 147, Supplement to the State Gazette of the Republic of Indonesia Number 5098), and the need for regulations concerning the assessment of competence and propriety for the Indonesian Export Financing Institution and PT Sarana Multi Infrastruktur (Persero), it is necessary to regulate the implementation provisions for the assessment of competence and propriety for principal parties on financing institutions, venture capital companies, microfinance institutions, and other financial service institutions in this Financial Services Authority Circular Letter as follows:

I. GENERAL PROVISIONS

In this Financial Services Authority Circular Letter, the following terms are meant:

Financing Institutions, Venture Capital Companies, Microfinance Institutions, and Other Financial Service Institutions, hereinafter referred to as PVML, are:
a. Financing Institutions, including:
1. Financing Companies; and
2. Infrastructure Financing Companies;
  b. Venture Capital Companies;
  c. Microfinance Institutions; and
  d. Other Financial Service Institutions, including:
3. Pawnshop Companies;
4. Information Technology-Based Joint Financing Service Providers;
5. The Indonesian Export Financing Institution;
6. PT Permodalan Nasional Madani; and
7. PT Sarana Multi Infrastruktur (Persero).
Financing Company is a legal entity that conducts financing activities for goods and/or services to the public, including those conducting business activities based on Sharia principles.
Infrastructure Financing Company is a legal entity specifically established to conduct financing activities in the form of providing funds for infrastructure projects and/or implementing other activities or facilities in support of infrastructure financing, including conducting business activities based on Sharia principles.
Venture Capital Company is a legal entity that conducts venture capital business activities, including those conducting business activities based on Sharia principles.
Microfinance Institution is a financial institution specifically established to provide business development services and community empowerment, either through loans or financing for micro-scale businesses to members and the public, managing deposits, or providing business development consulting services that are not solely profit-oriented, including those conducting business activities based on Sharia principles.
Pawnshop Company is a legal entity that conducts business activities providing loans secured by movable assets, including those conducting business activities based on Sharia principles.
Information Technology-Based Joint Financing Service Provider is an Indonesian legal entity that provides, manages, and operates the provision of financial service facilities to match fund providers with fund recipients to conduct financing either conventionally or based on Sharia principles directly through an electronic system using the internet.
The Indonesian Export Financing Institution is the Indonesian Export Financing Institution as referred to in the Law concerning the Indonesian Export Financing Institution.
PT Permodalan Nasional Madani is a company established based on Government Regulation of the Republic of Indonesia Number 38 of 1999 concerning State Capital Participation in the Establishment of State-Owned Limited Liability Companies (Persero) for the Development of Cooperatives, Small and Medium Enterprises.
PT Sarana Multi Infrastruktur (Persero) is a state-owned enterprise established based on Government Regulation Number 66 of 2007 concerning State Capital Participation in the Establishment of State-Owned Limited Liability Companies (Persero) in the Field of Infrastructure Financing, as last amended by Government Regulation Number 53 of 2020 concerning the Second Amendment to Government Regulation Number 66 of 2007 concerning State Capital Participation in the Establishment of State-Owned Limited Liability Companies (Persero) in the Field of Infrastructure Financing.
Principal Party is a party that owns, manages, supervises, and/or has significant influence on PVML.
Controlling Shareholder, hereinafter abbreviated as PSP, is a legal entity, individual, and/or business group that directly or indirectly owns shares or share equivalents in PVML and/or has the ability to exercise control over the aforementioned PVML.
General Meeting of Shareholders, hereinafter abbreviated as RUPS, is the general meeting of shareholders as referred to in Law Number 40 of 2007 concerning Limited Liability Companies for PVML that are limited liability company legal entities, or equivalent to RUPS for PVML that are cooperative legal entities.
Manager is a party appointed by the PVML Board of Directors of a cooperative legal entity and given authority and power to manage the business of the PVML with a cooperative legal entity.
Board of Directors is the Board of Directors as referred to in Law Number 40 of 2007 concerning Limited Liability Companies for PVML that are limited liability company legal entities, or equivalent to the Board of Directors for PVML that are cooperative legal entities.
Board of Commissioners is the Board of Commissioners as referred to in Law Number 40 of 2007 concerning Limited Liability Companies for PVML that are limited liability company legal entities, or equivalent to the Board of Commissioners for PVML that are cooperative legal entities.
Sharia Supervisory Board is a party that has the task and function of supervising the implementation of PVML activities to ensure compliance with Sharia principles.
Executive Director is a director appointed by the Board of Directors to assist the Executive Director of the Indonesian Export Financing Institution in carrying out operational activities of the Indonesian Export Financing Institution.
Board of Directors is the Board of Directors of the Indonesian Export Financing Institution as referred to in the Law concerning the Indonesian Export Financing Institution.
Statutory Manager is an individual or legal entity designated by the Financial Services Authority to exercise the authority of the Financial Services Authority as referred to in 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.
Ultimate Shareholder is the ultimate owner and controller of a legal entity.

II. SCOPE OF PARTIES SUBJECT TO ASSESSMENT OF COMPETENCE AND PROPRIETY

The assessment of competence and propriety is conducted against candidates for Principal Parties.
Principal Parties required to undergo the assessment of competence and propriety include:
a. For PVML other than Microfinance Institutions, the Indonesian Export Financing Institution, and PT Sarana Multi Infrastruktur (Persero):
1. PSP;
2. members of the Board of Directors;
3. members of the Board of Commissioners;
4. members of the Manager;
5. members of the Sharia Supervisory Board; and
6. Statutory Manager;
  b. For the Indonesian Export Financing Institution:
7. members of the Board of Directors, except for the appointment of members of the Board of Directors originating from government agencies/institutions;
8. Executive Director; and
9. Statutory Manager; and
  c. For Microfinance Institutions and PT Sarana Multi Infrastruktur (Persero):
10. members of the Board of Directors;
11. members of the Board of Commissioners;
12. members of the Manager;
13. members of the Sharia Supervisory Board; and
14. Statutory Manager.
Principal Parties of Microfinance Institutions required to undergo the assessment of competence and propriety as referred to in letter c of item 2 are large-scale business Microfinance Institution Principal Parties as regulated in Financial Services Authority Regulations concerning Microfinance Institutions.
The assessment of competence and propriety for Principal Parties as referred to in item 2 is conducted against:
a. PSP as referred to in item 2 letter a item 1), including:
1. individuals and/or legal entities that will purchase, receive donations, receive inheritance, or other forms of transfer of rights over PVML shares, resulting in them becoming PSP;
2. PVML shareholders who are not classified as PSP (non-PSP) that purchase, receive donations, receive inheritance, or other forms of transfer of rights over PVML shares, resulting in them becoming PSP;
3. non-PSP that increase capital contributions, resulting in them becoming PSP;
4. individuals and/or legal entities that will become PSP in "PVML resulting from merger" (merger);
5. individuals and/or legal entities that will become PSP in "PVML resulting from consolidation" (consolidation);
6. individuals and/or legal entities that will become PSP in PVML to be established; and/or
7. individuals and/or legal entities classified as controllers of PVML due to changes in the PVML business group structure;
  b. Principal Parties other than PSP consisting of members of the Board of Directors, members of the Board of Commissioners, members of the Manager, members of the Sharia Supervisory Board, and Statutory Manager as referred to in item 2 letter a and letter c, as well as members of the Board of Directors, members of the Executive Director, and Statutory Manager as referred to in item 2 letter b, including:
8. individuals who have never served as members of the Board of Directors, members of the Board of Commissioners, members of the Manager, members of the Sharia Supervisory Board, members of the Board of Directors, members of the Executive Director, and Statutory Manager on PVML, who are nominated to become members of the Board of Directors, members of the Board of Commissioners, members of the Manager, members of the Sharia Supervisory Board, members of the Board of Directors, members of the Executive Director, and Statutory Manager on PVML;
9. individuals currently serving as members of the Board of Directors, members of the Board of Commissioners, members of the Manager, members of the Sharia Supervisory Board, members of the Board of Directors, and members of the Executive Director on PVML, who are nominated to become members of the Board of Directors, members of the Board of Commissioners, members of the Manager, members of the Sharia Supervisory Board, members of the Board of Directors, and members of the Executive Director on another PVML, whether in the same financial services sector or a different one;
10. individuals who have previously served as members of the Board of Directors, members of the Board of Commissioners, members of the Manager, members of the Sharia Supervisory Board, members of the Board of Directors, members of the Executive Director, and Statutory Manager on PVML, who are nominated to become members of the Board of Directors, members of the Board of Commissioners, members of the Manager, members of the Sharia Supervisory Board, members of the Board of Directors, members of the Executive Director, and Statutory Manager on the same PVML or on another PVML, examples:
  a) individuals who have previously served as members of the Board of Commissioners who are nominated to become independent commissioners, on the same PVML or on another PVML as long as they meet the requirements related to independent commissioners; and b) individuals who have previously served as members of the Board of Directors who are nominated to become lead commissioners on the same PVML or on another PVML;
11. members of the Board of Directors, members of the Board of Commissioners, members of the Manager, members of the Sharia Supervisory Board, members of the Board of Directors, and members of the Executive Director who will change positions within the same company, examples:
  a) members of the Board of Commissioners who will change positions to become members of the Board of Directors within the same company; b) members of the Board of Directors who will change positions to become members of the Board of Commissioners within the same company; or c) members of the Board of Directors or members of the Board of Commissioners who will change positions to a higher position within the same company, examples:
  (1) members of the Board of Directors who will be appointed as lead directors, or equivalent, within the same company, and/or (2) members of the Board of Commissioners who will be appointed as lead commissioners, or equivalent, within the same company; and/or
12. members of the Board of Directors, members of the Board of Commissioners, members of the Manager, members of the Sharia Supervisory Board, originating from PVML that undergo merger or consolidation, examples:
  a) members of the Board of Directors, members of the Board of Commissioners, members of the Manager, and members of the Sharia Supervisory Board on "PVML resulting from merger" originating from "PVML undergoing merger"; b) members of the Board of Directors, members of the Board of Commissioners, members of the Manager, and members of the Sharia Supervisory Board on "PVML resulting from merger" originating from "PVML receiving merger" including extension of tenure; or c) members of the Board of Directors, members of the Board of Commissioners, members of the Manager, and members of the Sharia Supervisory Board on "PVML resulting from consolidation" originating from "PVML undergoing consolidation".
PSP as referred to in item 2 letter a are individuals, legal entities, and/or business groups that:
a. have share nominal or capital amounting to 25% (twenty-five percent) or more of the issued share nominal and have voting rights; or b. have share nominal or capital less than 25% (twenty-five percent) of the issued share nominal and have voting rights but the concerned party can prove to have exercised Control over PVML, either directly or indirectly.
The assessment of competence and propriety is not conducted for the extension of tenure within the same PVML for members of the Board of Directors, members of the Board of Commissioners, members of the Manager, members of the Sharia Supervisory Board, members of the Board of Directors, members of the Executive Director, and Statutory Manager except:
a. extension of tenure as referred to in Article 34 paragraph (2) of Financial Services Authority Regulation Number 27/POJK.03/2016 concerning the Assessment of Competence and Propriety for Principal Parties of Financial Service Institutions; and b. extension of tenure as referred to in item 4 letter b item 5) letter b).
Extension of tenure as referred to in item 6 is any reassignment to the same, equivalent, or lower position, examples:
a. same position is a marketing director appointed again as marketing director within the same company; b. equivalent position, examples:
1. financial director appointed as risk management director within the same company; and
2. operational director appointed as deputy lead director within the same company; and
  c. lower position is:
3. lead director appointed as director within the same company; or
4. lead commissioner appointed as commissioner within the same company.
Extension of tenure of members of the Board of Directors and members of the Board of Commissioners as referred to in item 6 is reported to the Financial Services Authority no later than 15 (fifteen) working days accompanied by the RUPS decision that has been ratified by the competent authority regarding the establishment of the aforementioned extension of tenure.
In the event of a change in ownership, prospective PSP as referred to in item 2 letter a item 1) must be submitted to the Financial Services Authority first for assessment of competence and propriety before purchasing/taking over PVML shares other than Microfinance Institutions, the Indonesian Export Financing Institution, and PT Sarana Multi Infrastruktur (Persero).
In the event that prospective PSP as referred to in item 9 already holds shares in PVML other than Microfinance Institutions, the Indonesian Export Financing Institution, and PT Sarana Multi Infrastruktur (Persero) before obtaining approval from the Financial Services Authority, the concerned party is prohibited from taking actions as PSP even though they hold shares in PVML other than Microfinance Institutions, the Indonesian Export Financing Institution, and PT Sarana Multi Infrastruktur (Persero).
Actions as PSP as referred to in item 10 include:
a. influencing the policies of PVML other than Microfinance Institutions, the Indonesian Export Financing Institution, and PT Sarana Multi Infrastruktur (Persero); b. proposing/placing members of the Board of Directors, members of the Board of Commissioners, and members of the Manager in PVML other than Microfinance Institutions, the Indonesian Export Financing Institution, and PT Sarana Multi Infrastruktur (Persero); and
c. attending and/or voting in RUPS in the capacity as PSP.
Prospective members of the Board of Directors, members of the Board of Commissioners, members of the Manager, or members of the Sharia Supervisory Board as referred to in item 2 letter a and letter c must be submitted to the Financial Services Authority first for assessment of competence and propriety before being appointed by RUPS.
In the event that prospective members of the Board of Directors, members of the Board of Commissioners, members of the Manager, or members of the Sharia Supervisory Board as referred to in item 12 are appointed first by RUPS before the assessment of competence and propriety is conducted, the concerned party:
a. is prohibited from taking actions, tasks, and functions as members of the Board of Directors, members of the Board of Commissioners, members of the Manager, or members of the Sharia Supervisory Board; and b. is given remuneration lower than that of members of the Board of Directors, members of the Board of Commissioners, members of the Manager, or members of the Sharia Supervisory Board who have been appointed by RUPS and have received the result of the assessment of competence and propriety with an approved rating.
Implementation of tasks and functions as members of the Board of Directors or members of the Manager as referred to in item 13 letter a can be given examples as follows:
a. acting on behalf of PVML other than the Indonesian Export Financing Institution in making decisions that legally bind PVML other than the Indonesian Export Financing Institution; b. taking important decisions that affect the financial condition of PVML other than the Indonesian Export Financing Institution;
c. signing financing agreements of PVML other than the Indonesian Export Financing Institution;
d. signing funding agreements of PVML other than the Indonesian Export Financing Institution; e. having voting rights in PVML meetings other than the Indonesian Export Financing Institution; and f. representing PVML other than the Indonesian Export Financing Institution inside and outside of court.
Implementation of tasks and functions as members of the Board of Commissioners as referred to in item 13 letter a can be given examples as follows:
a. taking important decisions in the context of supervision that affect the operational activities of PVML other than the Indonesian Export Financing Institution; and b. acting on behalf of PVML other than the Indonesian Export Financing Institution in the event that all members of the Board of Directors are unable to act.
Implementation of tasks and functions as members of the Sharia Supervisory Board as referred to in item 13 letter a can be given examples as follows:
a. taking important decisions in the context of supervising the implementation of Sharia Principles that affect the operational activities of PVML other than the Indonesian Export Financing Institution; and b. providing Sharia opinions in the context of operational activities of PVML other than the Indonesian Export Financing Institution.
Prospective members of the Board of Directors or Executive Director as referred to in item 2 letter b must be submitted to the Financial Services Authority first for assessment of competence and propriety before being appointed by the Minister in charge of finance or the Board of Directors.
Prospective Statutory Managers as referred to in item 2 letter a to letter c who will be designated by the Financial Services Authority must first undergo assessment of competence and propriety before being designated by the Financial Services Authority.

III. REQUIREMENTS IN THE ASSESSMENT OF COMPETENCE AND PROPRIETY

A. Assessment of Integrity Requirements

The assessment of integrity requirements is conducted to ensure the level of compliance and good faith of Principal Parties in managing, supervising, and/or executing business processes so that companies in the PVML sector are able to meet their obligations to creditors, debtors, and/or other consumers.
Criteria for assessing integrity requirements for Principal Parties include:
a. having legal capacity as regulated in applicable legislation; b. having good character and morality, at least shown by a attitude of complying with applicable regulations, including never being sentenced for proven criminal acts within a certain period before nomination, including:
1. criminal acts in the financial services sector that

penalties have been served within the last 20 (twenty) years prior to nomination;
2) criminal offenses, namely offenses stipulated in the Criminal Code (KUHP) and/or equivalents to the KUHP in foreign countries, with a prison sentence threat of 1 (one) year or more, where the penalty has been served within the last 10 (ten) years prior to nomination; and/or
3) other criminal offenses with a prison sentence threat of 1 (one) year or more, including but not limited to corruption, money laundering, narcotics/psychotropics, smuggling, customs, excise, human trafficking, illegal arms trafficking, terrorism, counterfeiting currency, tax offenses, forestry offenses, environmental offenses, and maritime and fisheries offenses, where the penalty has been served within the last 20 (twenty) years prior to nomination.

The phrase "prior to nomination" as referred to in items 1), 2), and 3) is calculated from the date the individual has completed serving their criminal penalty until the date of the PVML application letter to the Financial Services Authority (Otoritas Jasa Keuangan);
c. have a commitment to comply with legislation and support the policies of the Financial Services Authority, among others proven by:
1) never violating prudential principles in the financial services sector; and
2) never violating legislation in the financial services sector;
d. have a commitment to the healthy development of PVML, among others proven by:
1) submission of the prospective PSP's plan for PVML operational development, which must at least contain:
a) direction and strategy for PVML development; b) strategy in the event that the PVML owned and/or controlled by the prospective PSP experiences financial difficulties; and c) PVML capital plan for a period of at least 3 (three) years;
2) never violating commitments previously agreed upon with the supervising and overseeing agency of PVML, namely acts of failing to fulfill some or all of the commitments stipulated in meeting minutes, minutes of proceedings, or stated in a company commitment declaration letter, including but not limited to not executing:
a) recommendations from audit results reports; b) programs for PVML rehabilitation; and c) settlement of PVML obligations to creditors, debtors, and/or other consumers that have been agreed upon;
3) have a commitment not to commit and/or repeat acts and/or actions that cause the individual to be listed in the list of prohibited parties as Principal Parties, for prospective parties who have previously been listed in the list of prohibited parties as Principal Parties;
4) never commit acts that provide unfair benefits to shareholders, controlling parties of insurance companies, Principal Parties, employees, and/or other parties that can harm or reduce the rights of creditors, debtors, and/or other consumers;
5) never commit acts that are inconsistent with their authority or beyond their authority; and
6) never be declared incapable of exercising their authority;
e. have a commitment in handling and resolving consumer complaints specifically for members of the Board of Directors, members of the Board of Commissioners, members of Management, members of the Sharia Supervisory Board, members of the Board of Directors, members of the Executive Director, and Statutory Management who oversee the consumer protection function; and f. are not included as parties prohibited from becoming prospective Principal Parties.

B. Assessment of Financial Reputation Requirements

The assessment of financial reputation requirements is conducted to evaluate the financial capability of members of the Board of Directors, members of the Board of Commissioners, members of Management, members of the Sharia Supervisory Board, members of the Board of Directors, members of the Executive Director, and Statutory Management in the criteria for assessing financial reputation requirements.
The financial reputation requirements for Principal Parties as referred to in item 1 must at least:
a. not have non-performing loans, financing, and/or funding; b. never be declared bankrupt and/or never have been a shareholder, controlling party of an insurance company, member of the Board of Directors, member of the Board of Commissioners, member of Management, member of the Sharia Supervisory Board, or member of Statutory Management who was declared guilty of causing a company to be declared bankrupt within the last 5 (five) years prior to nomination;
c. never have been a shareholder, controlling party of an insurance company, member of the Board of Directors, member of the Board of Commissioners, member of Management, member of the Sharia Supervisory Board, or Statutory Management at a company subject to license revocation sanctions; and
d. not have obligations to settle securities transactions at securities companies.
The definition of non-performing loans as referred to in item 2 letter a does not include non-performing loans arising from annual fee credit card bills, credit card administrative fees, and/or other credit card-related bills that do not originate from credit card usage transactions.

C. Assessment of Financial Feasibility Requirements

The assessment of financial feasibility requirements is conducted to evaluate the PSP's financial capability in the criteria for financial feasibility requirements.
The criteria for assessing financial feasibility requirements include:
a. having a financial reputation as referred to in Section B item 2; b. having financial capability that can support the development of PVML business, namely:
1) the PSP's individual financial position capable of supporting the company's business development, accompanied by a declaration letter from the individual PSP stating that they have financial capability, which can be supported by evidence such as the latest Annual Tax Return (SPT) and/or bank statements for the last 3 (three) months; and
2) the position of the latest audited annual financial report by a public accountant for legal entity PSPs, including liquidity position, solvency position, investment placement position, return on assets position, and return on equity position; and
c. having a commitment to undertake necessary measures if PVML faces financial difficulties.

D. Assessment of Competence Requirements

The assessment of competence factors is conducted to evaluate the knowledge, ability, experience, and expertise possessed by members of the Board of Directors, members of the Board of Commissioners, members of the Sharia Supervisory Board, members of Management, members of the Board of Directors, members of the Executive Director, and Statutory Management to ensure they are adequate and relevant to their positions.
The criteria for assessing competence factors for members of the Board of Directors, members of the Board of Commissioners, members of Management, members of the Sharia Supervisory Board, members of the Board of Directors, members of the Executive Director, and Statutory Management include assessment of:
a. knowledge and ability in strategic management performed to ensure that:
1) members of the Board of Directors, members of the Board of Commissioners, members of Management, members of the Sharia Supervisory Board, members of the Board of Directors, members of the Executive Director, and Statutory Management have adequate and relevant knowledge for their positions, among others proven by:
a) knowledge regarding organizational structure, management, job descriptions, and responsibilities; b) potential ability to analyze business processes, lead organizations, and manage human resources, including understanding risk management to achieve organizational goals; c) basic supervisory knowledge including internal controls, specifically for members of the Board of Commissioners, members of the Sharia Supervisory Board, members of the Board of Directors, and Statutory Management performing supervisory functions; d) basic knowledge related to leadership and conflict management specifically for members of the Board of Commissioners, members of the Sharia Supervisory Board, members of the Board of Directors, and Statutory Management; and/or e) ability to evaluate company obligations or other technical aspects;
2) members of the Board of Directors, members of the Board of Commissioners, members of Management, members of the Sharia Supervisory Board, members of the Board of Directors, members of the Executive Director, and Statutory Management have an understanding of legislation, among others proven by:
a) understanding of legislation in the financial services sector, prioritizing legislation in the industry to be held by members of the Board of Directors, members of the Board of Commissioners, members of Management, members of the Sharia Supervisory Board, members of the Board of Directors, members of the Executive Director, and Statutory Management; and b) basic understanding of other relevant legislation, including understanding of legislation regarding limited liability companies, the Financial Services Authority, bankruptcy, labor, consumer protection, and money laundering crimes, along with their implementing regulations;
3) members of the Board of Directors, members of the Board of Commissioners, members of Management, members of the Sharia Supervisory Board, members of the Board of Directors, members of the Executive Director, and Statutory Management have the ability to perform strategic management in the context of healthy business development, among others proven by:
a) for members of the Board of Directors, members of Management, members of the Executive Director, and Statutory Management, namely:
(1) formulating company vision and mission;
(2) analyzing PVML situation;
(3) analyzing PVML internal condition development; (4) setting targets to be achieved regarding the position held; and (5) designing short-term, medium-term, and long-term strategies to achieve company goals, including the ability to anticipate future developments, such as the ability to prepare annual business plans and medium-term and long-term corporate plans using realistic and measurable assumptions; and

b) for members of the Board of Commissioners, members of the Sharia Supervisory Board, members of the Board of Directors, and Statutory Management, namely:
(1) performing basic analysis of PVML situation; (2) analyzing PVML internal condition development, including company financial health conditions, human resources, and information technology; and (3) analyzing the policies of members of the Board of Directors, members of Management, members of the Executive Director, and Statutory Management; b. experience in PVML and/or other fields relevant to their position, among others proven by:
1) experience in relevant financial services institutions; and
2) experience in positions relevant to the plan for the individual's appointment or employment; and
c. expertise in PVML and/or other fields relevant to their position at PVML, including:
1) formal education background at a minimum of Bachelor's degree (S1) level or equivalent; and
2) certifications relevant to the position at PVML referring to regulations governing the development of PVML human resource quality.

IV. APPLICATION PROCEDURES AND ADMINISTRATIVE REQUIREMENTS
A. Application Procedures

Applications for approval to become a Principal Party are submitted by:
a. prospective owners, founders, or members of the Board of Directors of PVML, in the case of PVML business license applications; b. members of the Board of Directors of PVML, in the case where PVML has obtained a business license;
c. the Minister in charge of finance, for LPEI, in the case of submitting approval for prospective Board of Directors members;
d. the Board of Directors, for LPEI, in the case of submitting approval for prospective Executive Directors; and e. the Minister in charge of finance, for PT Sarana Multi Infrastruktur (Persero).
In the event that members of the Board of Directors of PVML as referred to in item 1 letter a or letter b cannot perform their functions or have a conflict of interest with PVML, the application is submitted by:
a. other members of the Board of Directors who do not have a conflict of interest with PVML; b. members of the Board of Commissioners if all members of the Board of Directors cannot perform their functions or have a conflict of interest with PVML; or
c. other parties appointed by the General Meeting of Shareholders (RUPS) if all members of the Board of Directors or members of the Board of Commissioners cannot perform their functions or have a conflict of interest with PVML.
Applications for approval to become a Principal Party as referred to in items 1 and 2 are submitted to the Financial Services Authority using Format 1 as contained in Appendix I which is an integral part of this Financial Services Authority Circular.
Submission of applications for approval to become a Principal Party for prospective Principal Parties submitted by PVML must state the number of Principal Parties corresponding to the targeted position. For example, if there are 2 (two) targeted positions at a PVML, the PVML can only submit 2 (two) prospective Principal Parties for the assessment of competence and propriety.
The targeted positions as referred to in item 4 must be written completely and clearly, for example, Chief Executive Director, Operational Director, Financial Director, or Human Resources Director.
Submission of the application letter for approval to become a Principal Party as referred to in item 3 must be accompanied by administrative requirement documents.
PVML must fill out the list of administrative requirement document fulfillment using Format 2 as contained in Appendix I which is an integral part of this Financial Services Authority Circular.
PVML must first conduct a self-assessment of the members of the Board of Directors, members of the Board of Commissioners, members of Management, members of the Sharia Supervisory Board, members of the Board of Directors, members of the Executive Director, and Statutory Management before submitting them to the Financial Services Authority using Format 3 as contained in Appendix I which is an integral part of this Financial Services Authority Circular.
The self-assessment as referred to in item 8 is conducted by the party having the remuneration and nomination committee at each PVML. For PVMLs that do not have a remuneration and nomination committee, the self-assessment can be conducted by the official overseeing the human resources function.
The results of the self-assessment of prospective Principal Parties are signed by the party conducting the self-assessment as referred to in item 9.
In the context of the competence and propriety assessment process, PVML submits administrative documents in the form of:
a. application for approval to become a Principal Party as referred to in item 3; b. filling out the list of supporting documents required as referred to in item 7; and
c. self-assessment of members of the Board of Directors, members of the Board of Commissioners, members of Management, members of the Sharia Supervisory Board, members of the Board of Directors, members of the Executive Director, and Statutory Management as referred to in item 8,
to the Financial Services Authority electronically via the Financial Services Authority data communication network system.
With the submission of the application for approval to become a Principal Party electronically as referred to in item 11, the Company does not need to submit printed documents.
The application letter for approval to become a Principal Party and/or administrative requirement documents submitted electronically as referred to in item 11 are color scans of the original documents.
In the event that the Financial Services Authority data communication network system is unavailable or there is a technical disturbance or force majeure, the submission of the application for approval to become a Principal Party and/or administrative requirement documents as referred to in item 11 letters a, b, and c is submitted to the Financial Services Authority in the form of electronic documents electronically via email or other media designated by the Financial Services Authority.
In the event of technical disturbances or force majeure as referred to in item 14, the Financial Services Authority announces via the Financial Services Authority website or via email or other media designated by the Financial Services Authority to PVML.
Force majeure as referred to in items 14 and 15 includes but is not limited to fire, mass riots, war, armed conflict, sabotage, pandemic, cyber attacks, and/or natural disasters such as earthquakes or floods.
Submission of electronic documents via email as referred to in item 14 is sent to the address mailingroomwismul@ojk.go.id or other addresses designated by the Financial Services Authority and addressed to:
Head of Executive Supervisor for Financing Institutions, Venture Capital Companies, Microfinance Institutions, and Other Financial Service Institutions u.p. Director of Licensing for Financing Institutions, Venture Capital Companies, Microfinance Institutions, and Other Financial Service Institutions.
In the event that the Financial Services Authority data communication network system or email experiences technical disturbances or PVML experiences disturbances so that it cannot submit electronic documents as referred to in item 14, PVML submits electronic documents using electronic data storage media sent offline accompanied by written notification via a letter signed by the director or equivalent, as follows:
a. for PVMLs with headquarters in Jakarta city, addressed to the Head of Executive Supervisor for Financing Institutions, Venture Capital Companies, Microfinance Institutions, and Other Financial Service Institutions u.p. Director of Licensing for Financing Institutions, Venture Capital Companies, Microfinance Institutions, and Other Financial Service Institutions. Wisma Mulia Building 2, 15th Floor Jalan Jenderal Gatot Subroto Kav. 42 Jakarta 12710; or b. for Financing Companies, Venture Capital Companies, Microfinance Institutions, Pawnshop Companies, and Information Technology-Based Joint Financing Service Providers with headquarters outside Jakarta city, addressed to the Head of the local Financial Services Authority Office.
Submission of applications for approval to become a Principal Party and/or administrative requirement documents offline as referred to in item 18 is done as follows:
a. handed directly to the Financial Services Authority office; or b. sent via a courier service company.
In the event of a change in the Financial Services Authority office address for submission of applications for approval to become a Principal Party and/or administrative requirement documents as referred to in item 18, the Financial Services Authority provides notification of the address change via letter and/or announcement.
PVML must state that the documents submitted offline are true and identical to the original documents.
PVML is deemed to have submitted the Principal Party approval application with the following conditions:
a. for electronic submission via:
1) the Financial Services Authority data communication network system, proven by a receipt from the Financial Services Authority data communication network system; or
2) email to the Financial Services Authority, proven by email delivery proof, in the event that submission via the data communication network cannot be performed; or
b. for offline submission, proven by a receipt from the Financial Services Authority.
PVML must retain printed documents of the Principal Party approval application and administrative requirement documents that have been submitted via the Financial Services Authority data communication network system or via email to the Financial Services Authority for the duration that the Principal Party approval remains valid.
The Financial Services Authority may verify the completeness, truthfulness, and reasonableness of the Principal Party approval application documents and administrative requirement documents submitted by PVML via the Financial Services Authority data communication network system or via email to the Financial Services Authority.

B. Administrative Requirement Documents

Completeness of administrative requirement documents as referred to in Section A item 6 for parties nominated as individual PSPs of PVML, namely digital copies (softcopy):
a. a completed list using Format 4 letter A as contained in Appendix I which is an integral part of this Financial Services Authority Circular, attaching digital copies (softcopy):
1) identity documents in the form of a valid National Identity Card (KTP) or passport;
2) Taxpayer Identification Number (NPWP) for Indonesian citizens or equivalent documents valid for foreign citizens;
3) latest color passport photo;
4) Annual Tax Return (SPT) for the last year; and
5) bank statements for the last 3 (three) months;
b. a completed CV of the individual PSP of PVML using Format 6 as contained in Appendix I which is an integral part of this Financial Services Authority Circular; and
c. a completed declaration letter, stamped with sufficient stamp duty, and signed by the nominated party using Format 5 letter A as contained in Appendix I which is an integral part of this Financial Services Authority Circular, at least containing a statement of meeting integrity aspects, financial feasibility aspects, and not currently undergoing competence and propriety assessment at a financial services institution.
Completeness of administrative requirement documents as referred to in Section A item 6 for parties nominated as legal entity PSPs, namely digital copies (softcopy):
a. a completed list using Format 4 letter B as contained in Appendix I which is an integral part of this Financial Services Authority Circular, containing legal entity data, attaching digital copies (softcopy):
1) establishment documents in the form of the legal entity establishment deed, including the latest amended articles of association approved by the competent authority or equivalent documents for foreign business entities according to regulations in the country of origin; and
2) Taxpayer Identification Number (NPWP) for Indonesian legal entities or equivalent documents valid for foreign legal entities,
b. the latest audited annual financial report by a public accountant;
c. a completed CV of the board of directors and board of commissioners members using Format 6 as contained in Appendix I which is an integral part of this Financial Services Authority Circular, attaching digital copies (softcopy):
1) identity documents in the form of a valid National Identity Card (KTP) or passport;
2) Taxpayer Identification Number (NPWP) for Indonesian citizens

Indonesia or equivalent documents valid for foreign citizens; and
3) latest color passport-sized photos;
d. a legal entity statement represented by the board of directors, which has been fully filled out and stamped with sufficient stamp duty, using format 5 letter A as contained in Appendix I which is an integral part of this Financial Services Authority Circular, at least containing statements regarding the fulfillment of integrity aspects, financial feasibility aspects, and not undergoing a competence and propriety assessment process at a financial service institution; e. the company's ownership structure up to the ultimate shareholder; f. an ultimate shareholder statement that has been drafted and stamped with sufficient stamp duty, containing a detailed explanation regarding the nature of the relationship between the ultimate shareholder of the prospective controlling shareholder and the company to be acquired; g. an ultimate shareholder statement that has been drafted and stamped with sufficient stamp duty, containing a statement that there is no nominee practice, loan of share names, or acting in concert, which has the potential to cause negative impacts on the acquired PVML; and h. other documents related to indirect shareholders up to the ultimate shareholder (if required by the Financial Services Authority).

Completeness of administrative requirement documents as referred to in letter A number 6 for parties nominated as members of the Board of Directors, members of the Board of Commissioners, members of the Management, members of the Sharia Supervisory Board, members of the Board of Directors, members of the Executive Director, and Statutory Management, namely digital copies (softcopy):
a. a curriculum vitae that has been fully filled out using format 6 as contained in Appendix I which is an integral part of this Financial Services Authority Circular, with attachments of digital copies (softcopy):
1) personal data:
a) identity documents in the form of an Indonesian Identity Card (KTP) or a valid passport; b) taxpayer identification number (NPWP) for Indonesian citizens or equivalent documents valid for foreign citizens; and c) latest color passport-sized photos;
2) formal education history documents:
a) last diploma; b) certifications relevant to the position at PVML with reference to regulations governing the quality development of PVML human resources; and c) skill certificates (if available and/or if there are obligations as regulated in legislation);
3) documents of training previously attended, in the form of
pass certificates or attendance certificates for training and/or seminars previously attended (if available); and
4) work history documents:
a) letters of work experience; b) recommendation letters and/or letters of intent to resign from previous employment; and c) recommendations from institutions having authority in determining fatwas in the Sharia field specifically for members of the Sharia Supervisory Board; b. a statement letter that has been fully filled out, stamped with sufficient stamp duty, and signed by the party nominated as a member of the Board of Directors, member of the Board of Commissioners, member of the Management, member of the Sharia Supervisory Board, member of the Board of Directors, member of the Executive Director, and Statutory Management, using format 5 letter B as contained in Appendix I which is an integral part of this Financial Services Authority Circular, at least containing statements regarding the fulfillment of integrity aspects, financial reputation aspects, and not undergoing a competence and propriety assessment process at a financial service institution;
c. a writing regarding plans to be carried out after appointment in the targeted position using format 7 as contained in Appendix I which is an integral part of this Financial Services Authority Circular, including:
1) vision and mission;
2) programs to be carried out during the term of office; and
3) targets to be achieved during the term of office; and
d. a statement letter of non-affiliation with PVML that has been fully filled out, stamped with sufficient stamp duty, and signed by the nominated party using format 5 letter C as contained in Appendix I which is an integral part of this Financial Services Authority Circular, for independent commissioner candidates.

C. List of Fulfillment of Administrative Requirement Documents

Before PVML submits the list of fulfillment of administrative requirement documents to the Financial Services Authority in the nomination application, PVML must first fill out the list of fulfillment of administrative requirements as referred to in letter A number 7.
PVML must submit the results of the list of fulfillment of administrative requirement documents as referred to in number 1 to the Financial Services Authority, signed by:
a. prospective owners, founders, or officials of PVML with authority in the case of PVML establishment license applications; or b. PVML officials with authority in the case where PVML has obtained a business license.
The submission of the results of the list of fulfillment of administrative requirement documents as referred to in number 2 is accompanied by an explanation stating that the submitted administrative requirement documents:
a. are complete and correct in terms of quantity, format, and substance; and b. state that the administrative requirement documents in the form of "statements" and "fill-in lists" are true and have been filled out and signed by the proposed candidates.
The list of fulfillment of administrative requirement documents as referred to in number 2 is submitted together with the submission of administrative requirement documents of the proposed candidates.

D. Self Assessment

Self-assessment of members of the Board of Directors, members of the Board of Commissioners, members of the Management, and members of the Sharia Supervisory Board, members of the Board of Directors, members of the Executive Director, and Statutory Management, as referred to in letter A number 8, is conducted by PVML before being submitted to the relevant Financial Services Authority, concerning:
a. assessment of the fulfillment of integrity, financial reputation, and competence requirements for prospective members of the Board of Directors, members of the Board of Commissioners, members of the Management, members of the Sharia Supervisory Board, members of the Board of Directors, members of the Executive Director, and Statutory Management to be submitted. The assessment must at least cover the assessment of track records including sanctions previously given by PVML, educational background both formal and informal, and achievements achieved in the execution of duties, the candidate's ability to hold the position to be held, concurrent positions, ownership of credits, financing, and/or non-performing funding, as well as the obligation to settle securities transactions at securities companies; and b. fulfillment of requirements in accordance with legislation.
The results of the self-assessment as referred to in number 1 are submitted to the Financial Services Authority at the time of the application submission.

V. PROCEDURE FOR COMPETENCE AND PROPRIETY ASSESSMENT
The implementation of competence and propriety assessment for prospective PSPs, prospective members of the Board of Directors, members of the Board of Commissioners, members of the Management, members of the Sharia Supervisory Board, members of the Board of Directors, members of the Executive Director, and/or Statutory Management includes the stages:
a. administrative assessment; and b. determination of the results of the competence and propriety assessment.

A. Administrative Assessment

Administrative assessment is conducted to assess whether the application to obtain approval as a Principal Party has met the integrity, financial reputation or financial feasibility, and/or competence requirements.
In the event that the administrative requirement documents received by the Financial Services Authority are incomplete and non-compliant, the Financial Services Authority requests PVML to complete the administrative requirement documents as referred to in Roman IV letter B within a maximum period of 20 (twenty) working days from the date of the Financial Services Authority's letter.
In the event that PVML does not submit the missing administrative requirement documents within a maximum period of 20 (twenty) working days as referred to in number 2, PVML is deemed to have canceled the application to obtain approval as a Principal Party.
The Financial Services Authority issues a rejection letter for the application to obtain approval as a Principal Party submitted by PVML if the administrative requirement documents are declared incorrect.
In the context of administrative assessment in the implementation of competence and propriety assessment as referred to in number 1, the Financial Services Authority may request information and/or recommendation letters regarding Principal Parties from other authorized parties.
The Financial Services Authority may return the application if the administrative requirement documents submitted in the Financial Services Authority's data communication network system are incomplete. Incomplete documents include among others:
a. lack of documents that do not meet requirements; b. administrative errors in data entry; and/or
c. supervisory considerations.

B. Presentation or Exposition by Prospective PSP

In the context of administrative assessment for prospective PSPs, the concerned party must conduct a presentation or exposition.
In the event that the prospective PSP is the central government or local government, the presentation or exposition as referred to in number 1 is conducted if deemed necessary.
The presentation or exposition must be conducted by the prospective PSP in the context of administrative assessment as referred to in number 1, at least regarding:
a. the prospective PSP's plans for the development of the PVML to be owned and/or controlled for the shortest period of 5 (five) years since ownership; and b. the prospective PSP's adequate strategy in the event that the PVML to be owned and/or controlled experiences financial difficulties.
The implementation of the presentation or exposition as referred to in number 1 is conducted through:
a. direct face-to-face meetings at the Financial Services Authority office or other places designated by the Financial Services Authority; or b. face-to-face meetings via video conference media.
The implementation of the presentation or exposition via face-to-face meetings using video conference media as referred to in number 4 letter b must be accompanied by a statement letter from the director or equivalent who oversees the compliance function, among others stating that:
a. PVML and/or the prospective Principal Party of PVML has reliable infrastructure to be able to follow the implementation of the presentation or exposition via face-to-face meetings using video conference media; b. PVML will ensure that the prospective Principal Party of PVML following the implementation of the presentation or exposition is the prospective Principal Party and not represented by others; and
c. PVML and the prospective Principal Party will maintain the confidentiality of information used in the implementation of the presentation or exposition.
The Financial Services Authority notifies the schedule for the implementation of the presentation or exposition as referred to in number 1 to PVML through the Financial Services Authority's data communication network system, email, and/or physical letters, at the latest 10 (ten) working days after the competence and propriety assessment application as referred to in Roman IV letter A number 3 together with the administrative requirement documents as referred to in Roman IV letter A number 6 are received completely and correctly by the Financial Services Authority.
Prospective PSPs who cannot attend the scheduled implementation of the presentation or exposition as referred to in number 6 must submit a written notification accompanied by valid reasons to the Financial Services Authority at the latest 1 (one) working day before the implementation of the competence and propriety assessment.
Based on the written notification as referred to in number 7, the Financial Services Authority may provide 1 (one) opportunity for presentation or exposition and submit a new schedule for the implementation of the presentation or exposition to the prospective PSP.
In the event that:
a. the prospective PSP does not attend the implementation of the presentation or exposition without notification or with notification but the reason for absence is not accepted by the Financial Services Authority; b. the Financial Services Authority does not provide an opportunity for presentation or exposition to the prospective PSP as referred to in number 8; or
c. the prospective PSP does not attend the implementation of the presentation or exposition according to the new schedule without notification,
the Financial Services Authority cancels the application to obtain approval as a Principal Party for the prospective PSP concerned.
The Financial Services Authority notifies the cancellation of the prospective PSP's application as referred to in number 9.
The presentation or exposition as referred to in number 1 is conducted in the Indonesian language.
Prospective PSPs who cannot speak Indonesian must provide their own interpreter services during the implementation of the presentation or exposition.
In the event that the prospective PSP is a legal entity, the presentation or exposition as referred to in number 1 may be conducted by the board of directors of that legal entity or the board of directors of another legal entity in its business group or the owners and ultimate controllers of that legal entity (ultimate shareholders).
In the event that the board of directors of another legal entity in its business group or the owners and ultimate controllers of that legal entity (ultimate shareholders) as referred to in number 13 are unable to attend, they may be represented by another official 1 (one) level below the director based on appointment by letter of attorney (power of attorney).

C. Clarification of Prospective Members of the Board of Directors, Members of the Board of Commissioners, Members of the Management, Members of the Sharia Supervisory Board, Members of the Board of Directors, Members of the Executive Director, and Statutory Management

Based on the results of the administrative assessment conducted as referred to in letter A number 2 letter a as well as information and/or recommendation letters obtained by the Financial Services Authority regarding Principal Parties from other authorized parties as referred to in letter A number 7, the Financial Services Authority may determine prospective members of the Board of Directors, members of the Board of Commissioners, members of the Management, members of the Sharia Supervisory Board, members of the Board of Directors, members of the Executive Director, and Statutory Management who require a clarification process, if:
a. there is negative information regarding prospective members of the Board of Directors, members of the Board of Commissioners, members of the Management, members of the Sharia Supervisory Board, members of the Board of Directors, members of the Executive Director, and Statutory Management; b. the proposed candidate comes from a PVML controlled by the central government;
c. the proposed candidate is proposed by a ministry/institution for a PVML owned by the central government;
d. prospective members of the Board of Directors, members of the Board of Commissioners, members of the Management, members of the Sharia Supervisory Board, members of the Board of Directors, members of the Executive Director, and Statutory Management do not yet have experience at a PVML in Indonesia relevant to the targeted position and considering the job position, size, complexity, and/or problems of the PVML where the person will be nominated; and/or e. prospective members of the Board of Directors, members of the Board of Commissioners, members of the Management, members of the Sharia Supervisory Board, members of the Board of Directors, members of the Executive Director, and Statutory Management have previously been determined as not approved in previous nominations.
Based on certain considerations, the Financial Services Authority may conduct clarification of prospective Directors, members of the Board of Commissioners, members of the Management, members of the Sharia Supervisory Board, members of the Board of Directors, Executive Directors, and/or Statutory Management other than based on the criteria as referred to in number 1.
The provisions regarding the need for clarification implementation for PVML based on the experience of prospective members of the Board of Directors, members of the Board of Commissioners, members of the Management, members of the Sharia Supervisory Board, members of the Board of Directors, members of the Executive Director, and Statutory Management as referred to in number 1 letter b are implemented based on the criteria in the table as contained in Appendix II which is an integral part of this Financial Services Authority Circular.
The Financial Services Authority conducts clarification of prospective members of the Board of Directors, members of the Board of Commissioners, members of the Management, members of the Sharia Supervisory Board, members of the Board of Directors, members of the Executive Director, and Statutory Management as referred to in number 1 to obtain explanations from the concerned party regarding information obtained by the Financial Services Authority or to conduct an assessment of the concerned party's experience or expertise.
Prospective members of the Board of Directors, members of the Board of Commissioners, members of the Management, members of the Sharia Supervisory Board, members of the Board of Directors, members of the Executive Director, and Statutory Management must attend the clarification implementation as referred to in number 1 through:
a. direct face-to-face meetings at the Financial Services Authority office or other places designated by the Financial Services Authority; or b. indirect face-to-face meetings via video conference media.
The implementation of clarification via indirect face-to-face meetings using video conference media as referred to in number 4 letter b must be accompanied by a statement letter from the remuneration and nomination committee at each PVML. For PVMLs that do not have a remuneration and nomination committee, this function can be performed by the human resources function, among others stating that:
a. PVML and/or the prospective Principal Party has reliable infrastructure to be able to follow the implementation of clarification via face-to-face meetings using video conference media; b. PVML will ensure that the prospective Principal Party following the implementation of clarification is the prospective Principal Party and not represented by others; and
c. PVML and the prospective Principal Party will maintain the confidentiality of information used in the implementation of clarification.
The Financial Services Authority notifies the schedule for the implementation of clarification as referred to in number 1 in writing to the Board of Directors at the latest 10 (ten) working days after the competence and propriety assessment application as referred to in Roman IV letter A number 3 together with the administrative requirement documents as referred to in Roman IV letter A number 6 are received completely and correctly by the Financial Services Authority.
Prospective members of the Board of Directors, members of the Board of Commissioners, members of the Management, members of the Sharia Supervisory Board, members of the Board of Directors, members of the Executive Director, and Statutory Management who cannot attend the scheduled implementation of clarification as referred to in number 5 must submit a written notification accompanied by valid reasons to the Financial Services Authority at the latest 1 (one) working day before the implementation of clarification.
Based on the written notification as referred to in number 8, the Financial Services Authority may provide 1 (one) opportunity for clarification and submit a new schedule for the implementation of clarification to prospective members of the Board of Directors, members of the Board of Commissioners, members of the Management, members of the Sharia Supervisory Board, members of the Board of Directors, members of the Executive Director, and Statutory Management.
In the event that based on the written notification as referred to in number 8 the Financial Services Authority does not provide an opportunity for clarification to prospective members of the Board of Directors, members of the Board of Commissioners, members of the Management, members of the Sharia Supervisory Board, members of the Board of Directors, members of the Executive Director, and Statutory Management or the concerned party does not attend the implementation of clarification according to the new schedule without notification, the Financial Services Authority cancels the competence and propriety assessment application of the concerned party.
The Financial Services Authority notifies the cancellation of the application to obtain approval as a Principal Party for prospective members of the Board of Directors, members of the Board of Commissioners, members of the Management, members of the Sharia Supervisory Board, members of the Board of Directors, members of the Executive Director, and Statutory Management if the reason for absence as referred to in number 8 is not accepted or the concerned party does not submit notification regarding their absence in the clarification as referred to in number 8.
In the event that prospective members of the Board of Directors, members of the Board of Commissioners, members of the Management, members of the Sharia Supervisory Board, members of the Board of Directors, members of the Executive Director, and Statutory Management do not attend the implementation of clarification without notification or with notification but the reason for absence is not accepted by the Financial Services Authority, then the Financial Services Authority cancels the competence and propriety assessment application.
Clarification as referred to in number 1 is conducted in the Indonesian language.
Prospective members of the Board of Directors, members of the Board of Commissioners, members of the Management, members of the Sharia Supervisory Board, members of the Board of Directors, members of the Executive Director, and Statutory Management who cannot speak Indonesian must provide their own interpreter services during the implementation of clarification.

VI. CESSATION OF COMPETENCE AND PROPRIETY ASSESSMENT

The Financial Services Authority ceases the competence and propriety assessment of prospective Principal Parties if the prospective party:
a. is undergoing legal proceedings; b. is undergoing a competence and propriety assessment process at the Financial Services Authority;
c. is undergoing a reassessment process due to indications of integrity, financial feasibility, financial reputation, and/or competence problems at a financial service institution; and/or
d. is permanently unable to serve or deceased.
What is meant by undergoing legal proceedings as referred to in number 1 letter a is if the prospective Principal Party is undergoing bankruptcy proceedings, investigation processes, or judicial processes (including appeals and cassations) in cases involving:
a. criminal offenses in the financial services sector; b. criminal offenses, namely criminal offenses contained in the Indonesian Criminal Code (KUHP) and/or similar KUHPs in foreign countries with a prison sentence threat of 1 (one) year or more;
c. other criminal offenses with criminal sentence threats

penalty of 1 (one) year or more, including but not limited to corruption, money laundering, narcotics/psychotropics, smuggling, customs, excise, human trafficking, illegal arms trafficking, terrorism, counterfeiting money, in the field of taxation, in the field of forestry, in the field of the environment, in the field of marine and fisheries; and/or d. bankruptcy cases.
3. What is meant by undergoing the assessment process for competence and propriety at the Financial Services Authority as referred to in item 1 letter b is when the prospective Principal Party is submitting an application for competence and propriety assessment to the Financial Services Authority as a prospective Principal Party at a financial service institution.
4. The Financial Services Authority stops the competence and propriety assessment against the prospective Principal Party undergoing the competence and propriety assessment process at the Financial Services Authority as referred to in item 1 letter b for the latest nomination submitted by the PVML to the Financial Services Authority.
5. What is meant by undergoing a reassessment process due to indications of integrity, financial feasibility or financial reputation problems, and/or competence at a financial service institution as referred to in item 1 letter c is when the prospective Principal Party is in the process of reassessment due to indications of integrity, financial feasibility or financial reputation problems, and/or competence in their capacity as a party who owns, manages, supervises, and/or has significant influence on the financial service institution as regulated in the Financial Services Authority Regulation regarding Reassessment for Principal Parties of Financial Service Institutions.
6. The Financial Services Authority notifies in writing the cessation of the competence and propriety assessment to the PVML submitting the nomination accompanied by the reasons for cessation.
7. The PVML may re-submit the party whose competence and propriety assessment process was stopped, if the prospective Principal Party has completed the process as referred to in item 1 which is proven by:
a. a letter of order to stop investigation (SP3); b. a court decision that has obtained permanent legal force stating that the party is declared not guilty;
c. information/court decision that has obtained permanent legal force proving that the prospective Principal Party is not declared bankrupt/declared guilty of the company's bankruptcy; or
d. a statement by the Financial Services Authority that the prospective Principal Party is not proven to have problems related to integrity, financial feasibility, financial reputation, and/or competence.
VII. PROCEDURES FOR DETERMINING ASSESSMENT RESULTS AND CONSEQUENCES
A. Classification of Assessment Results
1. The results of the competence and propriety assessment of Principal Parties of PVMLs other than the Export Financing Institution and PT Sarana Multi Infrastruktur (Persero) are classified into 2 (two)
predicates as follows:
a. approved; or b. not approved.
2. The results of the competence and propriety assessment of Principal Parties of the Export Financing Institution and PT Sarana Multi Infrastruktur (Persero) are classified into 2 (two)
predicates as follows:
a. recommended; or b. not recommended.
3. Prospective Principal Parties of PVMLs other than the Export Financing Institution and PT Sarana Multi Infrastruktur (Persero) who obtain the predicate approved as referred to in item 1 letter a and prospective Principal Parties of the Export Financing Institution and PT Sarana Multi Infrastruktur (Persero) who obtain the predicate recommended as referred to in item 2 letter a are declared to meet the requirements and obtain approval or recommendation from the Financial Services Authority to become Principal Parties at the PVML submitting the nomination as referred to in Roman IV letter A item 1.
4. Prospective Principal Parties of PVMLs other than the Export Financing Institution and PT Sarana Multi Infrastruktur (Persero) who obtain the predicate not approved as referred to in item 1 letter b and prospective Principal Parties of the Export Financing Institution and PT Sarana Multi Infrastruktur (Persero) who obtain the predicate not recommended as referred to in item 2 letter b are declared not to meet the requirements and do not obtain approval or recommendation from the Financial Services Authority to become Principal Parties at the PVML submitting the nomination as referred to in Roman IV letter A item 1.
B. Determination and Submission of Competence and Propriety Assessment Results
1. The Financial Services Authority determines the results of the competence and propriety assessment against prospective Principal Parties no later than 30 (thirty) working days after all application documents are received completely and correctly.
2. In the event that the competence and propriety assessment process for prospective Principal Parties is conducted at the time of business license applications, approval applications for takeovers, mergers, and/or consolidations of PVMLs other than the Export Financing Institution and PT Sarana Multi Infrastruktur (Persero), the Financial Services Authority provides the determination of the results of the competence and propriety assessment within a time frame in accordance with regulations governing the issuance of business licenses, approval of takeovers, mergers, and/or consolidations of PVMLs other than the Export Financing Institution and PT Sarana Multi Infrastruktur (Persero).
3. The results of the competence and propriety assessment in the form of the predicate approved or predicate not approved as referred to in letter A item 1 and predicate recommended or predicate not recommended as referred to in letter A item 2 regarding the application of prospective Principal Parties are submitted in writing to the PVML or the party submitting the nomination as referred to in Roman IV letter A item 1.
4. The Financial Services Authority may notify the results of the competence and propriety assessment to interested parties in the implementation of the functions, duties, and authorities of the Financial Services Authority or as required by legislation, including the government, shareholders of the PVML, or other parties deemed necessary by the Financial Services Authority.
C. Consequences of Assessment Results
1. For prospective PSPs who obtain the predicate approved as referred to in letter A item 1 letter a by the Financial Services Authority, the party concerned may purchase, receive gifts, receive inheritance, or other forms of transfer of rights over shares of PVMLs other than Microfinance Institutions, the Export Financing Institution, and PT Sarana Multi Infrastruktur (Persero).
2. For prospective PSPs who obtain the predicate approved as referred to in item 1, which results in the party concerned having to make additional capital contributions, the prospective PSP concerned must realize the additional capital contribution no later than 3 (three) months from the date the results of the competence and propriety assessment are determined.
3. In the event that after the time frame as referred to in item 2 has passed, the PSP who obtained the predicate approved by the Financial Services Authority has not yet realized the additional capital contribution, the PVML other than Microfinance Institutions, the Export Financing Institution, and PT Sarana Multi Infrastruktur (Persero) submitting the nomination notifies the Financial Services Authority of the reasons for the non-realization of the additional capital contribution no later than 10 (ten) working days from the time frame as referred to in item 2.
4. For prospective PSPs who obtain the predicate not approved as referred to in letter A item 1 letter b or whose approval is revoked by the Financial Services Authority but already hold shares of PVMLs other than Microfinance Institutions, the Export Financing Institution, and PT Sarana Multi Infrastruktur (Persero), the party concerned:
a. is required to transfer all of their share ownership and not exercise control over the PVML other than Microfinance Institutions, the Export Financing Institution, and PT Sarana Multi Infrastruktur (Persero), in the event of non-approval due to not meeting integrity requirements; b. is required to transfer part of their share ownership in the PVML other than Microfinance Institutions, the Export Financing Institution, and PT Sarana Multi Infrastruktur (Persero) so that the number of shares owned returns to the initial amount before the share addition that caused the party concerned to become a prospective PSP and not exercise control, in the event of non-approval due to not meeting financial feasibility requirements;
c. restrictions are placed on shareholder rights, namely all shareholder rights of the party concerned are not recognized, in the event of non-approval due to not meeting integrity requirements; and/or
d. restrictions are placed on shareholder rights, namely shareholder rights are recognized only up to the initial number of shares before the share addition that caused the party concerned to become a prospective PSP, in the event of non-approval due to not meeting financial feasibility requirements.
5. The transfer of share ownership as referred to in item 4 letter a and letter b must be carried out within a time frame no later than 1 (one) year from the date of non-approval or revocation as a PSP.
6. What is meant by shareholder rights as referred to in item 4 letter c and letter d includes, for example, the right to attend, calculate quorum, cast votes in the General Meeting of Shareholders (RUPS), and the right to receive distributed dividends.
7. In the event that the prospective PSP does not transfer share ownership within the time frame as referred to in item 5, the shareholder rights as referred to in item 6 become unrecognized until the party concerned carries out the transfer of share ownership.
8. The Financial Services Authority may designate parties who are not allowed to receive share transfers as referred to in item 4 letter a and letter b.
9. Parties who are not allowed to receive share transfers as referred to in item 8 are parties affiliated with the prospective PSP, consisting of:
a. parties who have a family relationship up to the second degree with the prospective PSP, including to their business group; b. parties who are the ultimate beneficial owners of the prospective PSP concerned;
c. parties where the prospective PSP acts as the controller; and
d. parties who have financial interdependence with the prospective PSP.
10. What is meant by family relationship up to the second degree as referred to in item 9 letter a is a relationship both vertically and horizontally, including parents-in-law, children-in-law, and siblings-in-law, covering:
a. biological/step/adopted parents; b. biological/step/adopted siblings along with their husbands or wives;
c. biological/step/adopted children;
d. biological/step/adopted grandparents; e. biological/step/adopted grandchildren; f. biological/step/adopted siblings of parents along with their husbands or wives; g. husbands/wives; h. parents-in-law;
i. siblings-in-law;
j. husbands/wives of biological/step/adopted children; k. grandparents of husbands/wives;
l. husbands/wives of biological/step/adopted grandchildren; and
m. biological/step/adopted siblings of husbands/wives along with their husbands or wives.
11. PVMLs other than Microfinance Institutions, the Export Financing Institution, and PT Sarana Multi Infrastruktur (Persero) are required to report the transfer of share ownership as referred to in item 5 to the Financial Services Authority by referring to regulations governing the reporting of articles of association changes related to ownership changes applicable to PVMLs other than Microfinance Institutions, the Export Financing Institution, and PT Sarana Multi Infrastruktur (Persero).
12. In the event that the transfer of share ownership as referred to in item 4 letter a and letter b is carried out by transferring shares to parties not allowed to receive share transfers as referred to in item 9, then:
a. the transfer is not considered as a transfer of ownership as referred to in item 4 letter a and letter b; b. PVMLs other than Microfinance Institutions, the Export Financing Institution, and PT Sarana Multi Infrastruktur (Persero) are prohibited from recording the party receiving the transfer in the shareholder register of the PVML other than Microfinance Institutions, the Export Financing Institution, and PT Sarana Multi Infrastruktur (Persero); and
c. the party receiving the transfer does not obtain their rights as a shareholder.
13. For prospective members of the Board of Directors, Board of Commissioners, Management, and Sharia Supervisory Board members at PVMLs other than the Export Financing Institution and PT Sarana Multi Infrastruktur (Persero) who obtain the predicate approved as referred to in letter A item 1 letter a by the Financial Services Authority, they must be appointed to their positions in accordance with the positions submitted at the time of the competence and propriety assessment application no later than 3 (three) months from the date the results of the competence and propriety assessment are determined.
14. In the event that after the time frame as referred to in item 13 has passed, the Principal Party who obtained the predicate approved as referred to in letter A item 1 letter a by the Financial Services Authority has not yet been appointed, the PVML other than the Export Financing Institution and PT Sarana Multi Infrastruktur (Persero) submitting the nomination notifies the Financial Services Authority of the reasons for the non-appointment of the Principal Party concerned no later than 10 (ten) working days from the time frame as referred to in item 13.
15. Based on the notification as referred to in item 14, the Financial Services Authority may extend the appointment time frame no later than 3 (three) months from the date of the time extension notification letter.
16. PVMLs other than the Export Financing Institution and PT Sarana Multi Infrastruktur (Persero) are required to report the appointment of prospective members of the Board of Directors, Board of Commissioners, Management, and Sharia Supervisory Board members as referred to in item 13 to the Financial Services Authority by referring to regulations governing the reporting of Principal Party changes related to management changes applicable to PVMLs other than the Export Financing Institution and PT Sarana Multi Infrastruktur (Persero).
17. The Financial Services Authority determines Statutory Managers who obtain the predicate approved as referred to in letter A item 1 letter a no later than 3 (three) months from the date the results of the competence and propriety assessment are determined.
18. The Financial Services Authority revokes approval as referred to in letter A item 1 letter a, if after approval is given:
a. it is found that information or documents submitted in the competence and propriety assessment process were incorrect, resulting in the approved Principal Party no longer meeting competence and propriety requirements; b. there is information obtained from other authorities resulting in the approved party no longer meeting competence and propriety requirements; and/or
c. the Financial Services Authority considers that the reasons for the non-realization of additional capital contributions by the PSP submitted by the PVML other than Microfinance Institutions, the Export Financing Institution, and PT Sarana Multi Infrastruktur (Persero) as referred to in item 3 are not acceptable for any reason.
19. The revocation of the results of the competence and propriety assessment by the Financial Services Authority as referred to in item 18 is conveyed through a revocation letter.
20. The Financial Services Authority's approval for prospective Principal Parties other than PSPs of PVMLs other than the Export Financing Institution and PT Sarana Multi Infrastruktur (Persero) becomes invalid if within the time frame as referred to in item 15 there is no appointment for the prospective Principal Party who has been approved by the Financial Services Authority.
21. For prospective members of the Board of Directors, Board of Commissioners, Management, and/or Sharia Supervisory Board members who are not approved by the Financial Services Authority as referred to in letter A item 1 letter b but have already been appointed as members of the Board of Directors, Board of Commissioners, Management, or Sharia Supervisory Board members, the PVML other than the Export Financing Institution and PT Sarana Multi Infrastruktur (Persero) is required to convene a General Meeting of Shareholders (RUPS) to revoke the appointment of the concerned party within a time frame no later than 3 (three) months from the date the party's application is declared not approved.
22. PVMLs other than the Export Financing Institution and PT Sarana Multi Infrastruktur (Persero) are required to report the convening of the RUPS to revoke the appointment of members of the Board of Directors, Board of Commissioners, Management, and/or Sharia Supervisory Board members as referred to in item 20 to the Financial Services Authority by referring to regulations governing the reporting of Principal Party changes applicable to PVMLs other than the Export Financing Institution and PT Sarana Multi Infrastruktur (Persero).
23. For members of the Board of Directors, Board of Commissioners, Management, and/or Sharia Supervisory Board members of PVMLs other than the Export Financing Institution and PT Sarana Multi Infrastruktur (Persero) who will transfer positions within the same company as referred to in Roman II item 4 letter b item 4) letter c) and are not approved by the Financial Services Authority as referred to in letter A item 1 letter b due to integrity requirements, the members of the Board of Directors, Board of Commissioners, Management, and/or Sharia Supervisory Board members of the PVML other than the Export Financing Institution and PT Sarana Multi Infrastruktur (Persero) concerned are required to be dismissed from their current positions no later than 3 (three) months from the date the members of the Board of Directors, Board of Commissioners, Management, and/or Sharia Supervisory Board members of the PVML other than the Export Financing Institution and PT Sarana Multi Infrastruktur (Persero) are declared not approved by the Financial Services Authority.
D. Mechanism for Re-submitting Competence and Propriety Assessment Applications
1. Prospective Principal Parties may be nominated again in the competence and propriety assessment process to the Financial Services Authority if they meet:
a. the prospective Principal Party's application is returned due to incomplete documents as referred to in Roman V letter A item 6; b. prospective members of the Board of Directors, Board of Commissioners, Management, Sharia Supervisory Board members, and/or Statutory Managers who are not approved by the Financial Services Authority as referred to in letter A item 1 letter b; and/or
c. prospective members of the Board of Directors, Executive Directors, and/or Statutory Managers who are not recommended by the Financial Services Authority as referred to in letter A item 2 letter b.
2. Prospective members of the Board of Directors, Board of Commissioners, Management, Sharia Supervisory Board members, Board of Directors, Executive Directors, and/or Statutory Managers as referred to in item 1 letter b and letter c may be submitted again to the Financial Services Authority no earlier than 6 (six) months from the date of being declared not approved and/or not recommended by the Financial Services Authority.
3. In the event that after the time frame as referred to in item 1 letter b and letter c, the prospective Principal Party who is not approved or not recommended by the Financial Services Authority turns out to:
a. still be included as a party prohibited from becoming a Principal Party, including still being listed in the Disqualified List (DTL); b. still be within the prohibition period due to having been declared bankrupt and/or having been a shareholder, controller of an insurance company, member of the Board of Directors, member of the Board of Commissioners, member of Management, or member of the Sharia Supervisory Board who was declared guilty causing a company to be declared bankrupt based on a court decision; or
c. still be within the prohibition period due to criminal offenses in the financial service sector, criminal offenses, and/or other criminal offenses with a penalty of imprisonment of 1 (one) year or more,
the prospective Principal Party concerned may only be re-submitted after the prohibition has ended.
4. Re-submission of prospective Principal Parties as referred to in item 1 caused by competence requirements accompanied by supporting documents proving that the prospective Principal Party being re-submitted has improved competence, for example, obtaining necessary competence certifications according to the job level in the industry targeted by the prospective Principal Party.
5. Re-submission of prospective Principal Parties due to competence requirements as referred to in item 4 may be submitted before 6 (six) months, namely no earlier than 1 (one) month after being declared not approved/not recommended if re-submitted for:
a. a different job field at the same level or a lower level position at the same PVML; b. a position at another PVML with a smaller size and lower complexity; and
c. a position at a financial service institution other than a PVML.
VIII. MECHANISM FOR IMPOSING ADMINISTRATIVE SANCTIONS
1. PVMLs that violate regulations as regulated in Article 31 of Financial Services Authority Regulation Number 27/POJK.03/2016 regarding Competence and Propriety Assessment for Principal Parties of Financial Service Institutions, are subject to administrative sanctions in the form of:
a. written warnings; b. restrictions on business activities for part or all business activities; and/or
c. revocation of business licenses.
2. Administrative sanctions as in item 1 letter b and letter c may be imposed with or without prior imposition of administrative sanctions in the form of written warnings as referred to in item 1 letter a.
3. In the event that violations of regulations as referred to in item 1 occur but the violations have been corrected, the Financial Services Authority provides written warning sanctions that end automatically.
4. In addition to sanctions as referred to in item 1, the Financial Services Authority may impose additional administrative sanctions in the form of:
a. reduction of health rating; b. revocation of competence and propriety assessment results;
c. order for management replacement;
d. inclusion of management in the list of parties prohibited from becoming Principal Parties; and/or e. revocation of approvals, registrations, and ratifications.

This copy is in accordance with the original
Director of Legal Development
Legal Department
Aat Windradi
IX. TRANSITIONAL PROVISIONS
1. Educational requirements for prospective Principal Parties who have submitted competence and propriety assessments before this Financial Services Authority Circular takes effect are carried out in accordance with the provisions in Financial Services Authority Circular Number 31/SEOJK.05/2016 regarding Competence and Propriety Assessment for Principal Parties of Non-Bank Financial Service Institutions.
2. Submission of application documents for competence and propriety assessments for prospective Principal Parties of Financing Companies and Technology-Based Joint Financing Service Providers whose headquarters are located outside the Jakarta metropolitan area to the Head of the local Financial Services Authority Office begins to take effect in accordance with notification letters from the Financial Services Authority.
X. CLOSING
1. At the time this Financial Services Authority Circular takes effect, Financial Services Authority Circular Number 31/SEOJK.05/2016 regarding Competence and Propriety Assessment for Principal Parties of Non-Bank Financial Service Institutions is revoked and declared invalid.
2. Provisions in this Financial Services Authority Circular take effect on the date of determination.
Determined in Jakarta on December 24, 2024

CHIEF EXECUTIVE OF THE SUPERVISOR OF FINANCING INSTITUTIONS, VENTURE CAPITAL COMPANIES, MICROFINANCE INSTITUTIONS, AND OTHER FINANCIAL SERVICE INSTITUTIONS OF THE FINANCIAL SERVICES AUTHORITY OF THE REPUBLIC OF INDONESIA, AGUSMAN

signed signed

APPENDIX I
CIRCULAR LETTER OF THE FINANCIAL SERVICES AUTHORITY OF THE REPUBLIC OF INDONESIA NUMBER 22/SEOJK.06/2024 CONCERNING ASSESSMENT OF COMPETENCE AND PROPRIETY FOR PRINCIPAL PARTIES OF FINANCING INSTITUTIONS, VENTURE CAPITAL COMPANIES, MICROFINANCE INSTITUTIONS, AND OTHER FINANCIAL SERVICE INSTITUTIONS

EXAMPLE FORMAT 1 APPLICATION LETTER TO OBTAIN APPROVAL TO BECOME A PRINCIPAL PARTY COMPANY LETTERHEAD Number: (date/month/year) Attachment:
Subject: Application to Obtain Approval to Become Principal Party PSP/President Director/Director/Independent Commissioner/Manager/Executive Director/Board of Directors/Statutory Manager*)

To:
Chief Executive of the Supervisor of Financing Institutions, Venture Capital Companies, Microfinance Institutions, and Other Financial Service Institutions Financial Services Authority u.p. Director of Licensing for Financing Institutions, Venture Capital Companies, Microfinance Institutions, and Other Financial Service Institutions Wisma Mulia 2, 15th Floor Jalan Jendral Gatot Subroto No. 42 South Jakarta, Jakarta 10110

Hereby we submit an application to obtain approval to become a Principal Party for:

Name: ........................................................ (Filled in according to ID Card)
Position: As PSP/President Director/Director.../Independent Commissioner/Manager/Executive Director/Board of Directors/Statutory Manager*) (Filled in according to PVML organizational structure)
Name: ........................................................ (Filled in according to ID Card)
Position: As PSP/President Director/Director.../Independent Commissioner/Manager/Executive Director/Board of Directors/Statutory Manager*) (Filled in according to PVML organizational structure)
... etc:

To complete the aforementioned application, we enclose the administrative requirement documents in digital (softcopy) format as follows:

questionnaire);
curriculum vitae list;
identity documents in the form of an identity card (KTP) or valid passport;
tax identification number (NPWP) for Indonesian citizens/Indonesian legal entities, or equivalent valid documents for foreign citizens/foreign legal entities;
recent color passport-size photo;
establishment documents in the form of a legal entity deed, including the latest amended articles of association approved by the competent authority, or equivalent documents for foreign businesses according to regulations in the country of origin*);
statement letter meeting aspects of integrity, financial reputation, or financial feasibility, and not currently undergoing a competence and propriety assessment at a financial service institution;
company ownership structure up to the ultimate shareholder*);
ultimate shareholder statement letter containing detailed explanations regarding the nature of the relationship between the ultimate shareholder of the prospective controlling shareholder and the company to be acquired*);
completed and stamped ultimate shareholder statement letter, containing statements that the nominee practice, name-lending shares, or acting in concert practices are not conducted, which may potentially have negative impacts on the acquired PVML*);
final education certificate documents*);
relevant certification documents related to the position in PVML, referring to regulations governing the development of PVML human resource quality*);
skill certificate documents (if any)*);
training documents previously attended, in the form of photocopies of graduation certificates or attendance certificates for training previously attended (if any)*);
employment experience certificate letter*);
recommendation letter and/or letter of intent to resign from previous workplace*);
recommendation from an institution having authority in determining fatwas in the Sharia field, specifically for members of the Sharia Supervisory Board;
latest audited financial statements by a public accountant);
annual tax return letter (SPT));
bank statements for the last 3 (three) months);
writing regarding plans to be carried out after being appointed to the targeted position*);
statement letter of non-affiliation with PVML, for prospective independent commissioners; and
other documents related to indirect shareholders up to the ultimate shareholder (if required by the Financial Services Authority)*).

Along with this, we also submit the list of fulfillment of administrative requirements as referred to in Format 2 of Appendix I of this SEOJK to obtain approval to become a Principal Party.

We would like to inform that for reporting purposes, you may contact Mr./Ms. ... via email ... or phone number ...

This application is submitted, and we thank you for your attention, Sir/Madam*).
Owner/Founder/Board of Directors/Board of Commissioners/Other Party* PVML PT/Cooperative/Financing Institution
Export Indonesia*) ................
(clear name)
………………………………
(position)
*) strike out what is not necessary
) this requirement is submitted for the application of prospective PSP *) this requirement is submitted for the application of prospective PSP in the form of a legal entity ) this requirement is submitted for the application of prospective PSP as an individual

*) this requirement is submitted for the application of prospective members of the Board of Directors, members of the Board of Commissioners, members of the Management, members of the Sharia Supervisory Board, members of the Executive Director, members of the Board of Directors, and Statutory Managers. Other parties are the Minister in charge of finance, the Board of Directors, other parties designated by the General Meeting of Shareholders.

EXAMPLE FORMAT 2 LIST OF FULFILLMENT OF ADMINISTRATIVE REQUIREMENT DOCUMENTS A. LIST OF FULFILLMENT OF ADMINISTRATIVE REQUIREMENT DOCUMENTS FOR APPLICATION TO OBTAIN APPROVAL TO BECOME A PRINCIPAL PARTY FOR INDIVIDUAL PRINCIPAL PARTY (PSP) List of Fulfillment of Administrative Requirement Documents for Application to Obtain Approval to Become a Principal Party for Individual Principal Party (PSP) Company Name :
Company Type:
Application Letter Number : Filled in according to the number of the application cover letter Application Letter Date : Filled in according to the date of the application cover letter The company submits the following individual name to be proposed as a prospective Individual Principal Party (PSP):
No Candidate PSP Name Company Domicile Ownership Percentage Brief description of the background of the application to obtain approval to become a Principal Party :
Contact Person (Name, Phone Number, e-mail) :
No Description Document Details Substance Yes No

Company application letter
Is the application letter signed by the prospective owner/founder/Board of Directors/Board of Commissioners/other party?
Has the appropriate format according to Format 1 in Appendix I of this SEOJK been used?
Questionnaire
Has the questionnaire been in accordance with Format 4 letter A in Appendix I of this SEOJK?
Has it been attached with a valid KTP/Passport?
Has it been attached with an NPWP for Indonesian citizens or equivalent documents valid for foreign citizens?
Has it been attached with a recent color passport-size photo?
Has it been attached with the latest year's tax SPT?
Has it been attached with bank statements for the last 3 (three) months?
Curriculum Vitae
Has the curriculum vitae been in accordance with Format 6 in Appendix I of this SEOJK?
Statement Letter
Has the statement letter from the individual PSP been in accordance with Format 5 letter A in Appendix I of this SEOJK?
Signed above on stamped paper
We declare that the above entries are in accordance with the actual documents, and if there are discrepancies, corrections will be made.
Owner/Founder/Competent PVML Official
PT/Cooperative*) ................
(signature)
(clear name)
………………………………
(position)

*) strike out what is not necessary

B. LIST OF FULFILLMENT OF ADMINISTRATIVE REQUIREMENT DOCUMENTS FOR APPLICATION TO OBTAIN APPROVAL TO BECOME A PRINCIPAL PARTY FOR LEGAL ENTITY PRINCIPAL PARTY (PSP) List of Fulfillment of Administrative Requirement Documents for Application to Obtain Approval to Become a Principal Party for Legal Entity Principal Party (PSP) Company Name :
Company Type :
Reporting Letter Number : Filled in according to the number of the application cover letter Reporting Letter Date : Filled in according to the date of the application cover letter The company submits the following legal entity to be proposed as a prospective Legal Entity Principal Party (PSP):
No Company Name Name of Company Representative Position of Principal Party Representative Domicile Ownership Percentage Brief description of the background of the application to obtain approval to become a Principal Party :
Contact Person (Name, Phone Number, e-mail)
:
No Description Document Details Substance Yes No

Company application letter
Is the application letter signed by the prospective owner/founder/Board of Directors/Board of Commissioners/other party*)?
Has the appropriate format according to Format 1 in Appendix I of this SEOJK been used?
Company Representative
Is the legal entity/business group of the prospective PSP represented by the Board of Directors/official equivalent to the Board of Directors?
Has the company questionnaire used the appropriate format according to Format 4 letter B in Appendix I of this SEOJK?
Has it been attached with a photocopy of establishment documents in the form of a legal entity deed or equivalent documents for foreign businesses according to regulations in the country of origin?
Has it been attached with a photocopy of the NPWP for Indonesian legal entities or equivalent documents valid for foreign legal entities?
Annual Financial Report
Has it been attached with the latest audited financial statements by a public accountant?
Curriculum Vitae
Has the curriculum vitae been in accordance with Format 6 in Appendix I of this SEOJK?
Has it been attached with a valid KTP/Passport?
Has it been attached with an NPWP for Indonesian citizens or equivalent documents valid for foreign citizens?
Has it been attached with a recent color passport-size photo?
Statement Letter
Has the statement letter from the Board of Directors or officials equivalent to the Board of Directors representing the legal entity/PSP been in accordance with Format 5 letter A in Appendix I of this SEOJK?
Signed above on stamped paper
Has it been attached with an ultimate shareholder statement letter containing detailed explanations regarding the nature of the relationship between the ultimate shareholder of the prospective controlling shareholder and the company to be acquired? Signed above on stamped paper Has it been attached with an ultimate shareholder statement letter containing statements that the nominee practice, name-lending shares, or acting in concert practices are not conducted, which may potentially have negative impacts on the acquired PVML? Signed above on stamped paper
Ownership Structure
Has it been attached with the company ownership structure up to the ultimate shareholder?
Other Documents
Has it been attached with other documents related to indirect shareholders up to the ultimate shareholder?
If required by the Financial Services Authority We declare that the above entries are in accordance with the actual documents, and if there are discrepancies, corrections will be made.
Owner/Founder/Competent PVML Official
PT/Cooperative*) ................
(signature)
(clear name)
………………………………
(position)
*) strike out what is not necessary

C. LIST OF FULFILLMENT OF ADMINISTRATIVE REQUIREMENT DOCUMENTS FOR APPLICATION TO OBTAIN APPROVAL TO BECOME A PRINCIPAL PARTY FOR MEMBERS OF THE BOARD OF DIRECTORS/MEMBERS OF THE BOARD OF COMMISSIONERS/MEMBERS OF THE MANAGEMENT/MEMBERS OF THE SHARIA SUPERVISORY BOARD/MEMBERS OF THE EXECUTIVE DIRECTOR/MEMBERS OF THE BOARD OF DIRECTORS/STATUTORY MANAGERS
List of Fulfillment of Administrative Requirement Documents for Application to Obtain Approval to Become a Principal Party for Members of the Board of Directors/Members of the Board of Commissioners/Members of the Management/Members of the Sharia Supervisory Board/Members of the Executive Director/Members of the Board of Directors/Statutory Managers Company Name :
Company Type :
Reporting Letter Number : Filled in according to the number of the application cover letter Reporting Letter Date : Filled in according to the date of the application cover letter The company submits the following individual names to be proposed as prospective Principal Parties of the company:
No Name Position
1 Filled in according to ID Card Filled in according to the position in the cover letter Brief description of the background of the application for nomination as Director/Board of Commissioners/Management/Sharia Supervisory Board/Executive Director/Board of Directors/Statutory Managers *) :
Filled with a brief description of the background of the application.
Reason for nomination :
Filled with a brief description of the reasons why the prospective principal party was appointed to the nominated position.
Name of the replaced official :
Reason for replacement of the previous position :
Filled with a brief description of the reasons why the previous official ceased to hold their position.
Term of Office :
Filled with the term of office for the prospective principal party. In the event that the prospective principal party has been appointed by the General Meeting of Shareholders, the number and date of the notarial deed and proof of acceptance and recording from the relevant agency regarding the notarial deed containing the appointment of the aforementioned principal party should be described. Contact Person (Name, Phone Number, e-mail) :
No Description Document Details Substance Yes No

Company application letter
Is the application letter signed by the owner/founder/Board of Directors/Board of Commissioners/other party*?
Document signed by ….. as ….. PT ….
Has the appropriate format according to Format 1 in Appendix I of this SEOJK been used?
Curriculum Vitae
Has the curriculum vitae been in accordance with Format 6 of Appendix I of this SEOJK?
Has it been attached with a valid KTP/Passport?
Has it been attached with an NPWP for Indonesian citizens or equivalent documents valid for foreign citizens?
Has it been attached with a recent color passport-size photo?
Has it been attached with formal education history documents in the form of the final diploma, certifications relevant to the position in PVML, and skill certificates?
Attached:

Final Diploma
Relevant Certification with Position in PVML
Skill Certificate (if any)
Has it been attached with training and/or seminar documents previously attended (if any)?
Has it been attached with employment experience certificate letters?
Attached all employment experience certificate letters of the prospective Principal Party Has it been attached with recommendation letters and/or letters of intent to resign from previous workplaces?
Attached recommendation letter from previous workplace in the event that the prospective principal party will hold a concurrent position.
Attached letter of intent to resign from previous workplace in the event that the prospective principal party will not hold a concurrent position.
Has it been attached with recommendations from institutions having authority in determining fatwas in the Sharia field?
Filled only for Sharia Supervisory Board positions.

Statement Letter
Has the statement letter from the nominated party as a member of the Board of Directors/members of the Board of Commissioners/members of the Management/members of the Sharia Supervisory Board/members of the Executive Director/members of the Board of Directors/Statutory Managers*) been in accordance with Format 5 letter B in Appendix I of this SEOJK? Signed above on sufficient stamped paper. - Has the statement letter of non-affiliation with PVML been in accordance with Format 5 letter C in Appendix I of this SEOJK? Signed above on sufficient stamped paper. Filled only for independent commissioner positions.
Writing
Has the writing regarding plans to be carried out after being appointed to the targeted position been in accordance with Format 7 in Appendix I of this SEOJK?
Attached work plan documents prepared by the prospective principal party and at minimum containing: • Vision and Mission of the prospective principal party (not Vision and Mission of the Company)

Work programs to be carried out
Short, medium, and long-term targets to be achieved from each work program
The writing of the prospective principal party should be linked to the assessment of competence factors conducted by the nomination and remuneration committee as stated in the self-assessment form.
We declare that the above entries are in accordance with the actual documents, and if there are discrepancies, corrections will be made.
Owner/Founder/Board of Directors/Board of Commissioners/Other Party PT/Cooperative/Financing Institution
Export Indonesia*) ................
(signature)
(clear name)
………………………………
(position)
*) strike out what is not necessary

EXAMPLE FORMAT 3 SELF-ASSESSMENT FOR MEMBERS OF THE BOARD OF DIRECTORS/MEMBERS OF THE BOARD OF COMMISSIONERS/MEMBERS OF THE MANAGEMENT/MEMBERS OF THE SHARIA SUPERVISORY BOARD/EXECUTIVE DIRECTOR/BOARD OF DIRECTORS/STATUTORY MANAGERS A. SELF-ASSESSMENT OF INTEGRITY REQUIREMENTS I INTEGRITY REQUIREMENTS YES NO DESCRIPTION A. Competent to perform legal acts as regulated in applicable laws and regulations B. Possessing good ethics and morals
1. Never committed criminal offenses in the financial services sector whose sentence has been fully served within the last 20 (twenty) years before nomination.
2. Never committed criminal offenses, namely offenses stipulated in the Criminal Code (KUHP) and/or similar foreign criminal codes with a prison sentence penalty of 1 (one) year or more whose sentence has been fully served within the last 10 (ten) years before nomination.
3. Never committed other criminal offenses with a prison sentence penalty of 1 (one) year or more, whose sentence has been fully served within the last 20 (twenty) years before nomination.
C. Committed to complying with laws and regulations and supporting Financial Services Authority policies
1. Never violated prudential principles in the financial services sector.
2. Never violated laws and regulations in the financial services sector.
D. Committed to the healthy development of PVML
1. Never violated commitments agreed upon with the supervising and supervisory agency of PVML.
2. Committed to not committing and/or repeating acts and/or actions that cause the individual to be listed as a party prohibited from being a Principal Party, for candidates who have previously been listed as parties prohibited from being Principal Parties.

I INTEGRITY REQUIREMENTS YES NO DESCRIPTION
3. Never committed acts that provide unfair benefits to shareholders, controlling parties of insurance companies, Principal Parties, employees, and/or other parties that can harm or reduce the rights of creditors, debtors, and/or other consumers.
4. Never committed acts that are not within their authority or beyond their authority.
5. Never declared incompetent to exercise their authority.
E. Committed to handling and resolving consumer complaints, specifically for members of the Board of Directors, members of the Board of Commissioners, members of the Management, members of the Sharia Supervisory Board, members of the Board of Directors, members of the Executive Director, and Statutory Managers who oversee consumer protection functions. F. Not included as a party prohibited from becoming a Principal Party

B. SELF-ASSESSMENT OF FINANCIAL REPUTATION REQUIREMENTS II FINANCIAL REPUTATION REQUIREMENTS YES NO DESCRIPTION

Does not have non-performing loans, financing, and/or funding.
Never declared bankrupt and/or never been a shareholder, controlling party of insurance companies, member of the Board of Directors, member of the Board of Commissioners, member of the Management, member of the Sharia Supervisory Board, or Statutory Manager declared guilty causing a company to be declared bankrupt within the last 5 (five) years before nomination.
Never been a shareholder, controlling party of insurance companies, member of the Board of Directors, member of the Board of Commissioners, member of the Management, member of the Sharia Supervisory Board, or Statutory Manager in a company subject to business license revocation sanctions.
Does not have obligations to settle securities transactions in securities companies.

C. SELF-ASSESSMENT OF COMPETENCY REQUIREMENTS
Once Insufficient Fairly Good Very Good
A. Knowledge and strategic management ability

Adequate and relevant knowledge with the position
a. Knowledge regarding organizational structure, management, job descriptions, and responsibilities according to the position.
Filled with descriptions that are the basis for providing the assessment scale regarding the prospective Principal Party's knowledge of organizational structure, management, job descriptions, and responsibilities according to the position. Description 1a should be different from other descriptions because b. Potential ability to conduct business process analysis. Filled with descriptions that are the basis for providing the assessment scale regarding the prospective Principal Party's potential ability to conduct business process analysis. Description 1b should be different from other descriptions because
c. Ability to lead an organization to achieve organizational goals, specifically for members of the Board of Directors, Management, Executive Director, and Statutory Managers.
Special assessment for members of the Board of Directors, Management, Executive Director, and Statutory Managers.
Filled with descriptions that are the basis for providing the assessment scale regarding the prospective Principal Party's ability to lead an organization to achieve organizational goals.
Description 1c should be different from other descriptions because d. Ability to manage human resources to achieve organizational goals, specifically for members of the Board of Directors, Management, Executive Director, and Statutory Managers. Special assessment for members of the Board of Directors, Management, Executive Director, and Statutory Managers. Filled with descriptions that are the basis for providing the assessment scale regarding the prospective Principal Party's ability to manage human resources to achieve organizational goals. Description 1d should be different from other descriptions because e. Ability to understand risk management to achieve organizational goals, specifically for members of the Board of Directors, Management, Executive Director, and Statutory Managers. Special assessment for members of the Board of Directors, Management, Executive Director, and Statutory Managers. Filled with descriptions that are the basis for providing the assessment scale regarding the prospective Principal Party's ability to manage human resources to achieve organizational goals. Description 1e should be different from other descriptions because f. Basic supervisory knowledge including internal controls, specifically for members of the Board of Commissioners, Sharia Supervisory Board, Board of Directors, and Statutory Managers. Special assessment for members of the Board of Commissioners, Sharia Supervisory Board, Board of Directors, and Statutory Managers. Filled with descriptions that are the basis for providing the assessment scale regarding the prospective Principal Party's basic knowledge of supervision including internal controls. Description 1f should be different from other descriptions because

Competence Assessment Scale and Description

Scale	Description
Not Enough
Less
Enough
Good
Very Good

g. Basic knowledge related to leadership and conflict management, specifically for members of the Board of Commissioners, Sharia Supervisory Board, Board of Directors, and Statutory Managers.

Assessment: Specific assessment for members of the Board of Commissioners, Sharia Supervisory Board, Board of Directors, and Statutory Managers.
Description: Filled with descriptions forming the basis for the rating scale regarding the candidate Principal Party's basic knowledge related to leadership and conflict management.
Note: Description 1g should be different from other descriptions because...

h. Ability to evaluate company obligations.

Description: Filled with descriptions forming the basis for the rating scale regarding the candidate Principal Party's ability to evaluate company obligations or other technical aspects.
Note: Description 1h should be different from other descriptions because...

2. Understanding of Legislation

Scale	Description
Not Enough
Less
Enough
Good
Very Good

a. Understanding of legislation in the financial services sector, prioritizing legislation in the relevant industry.

Description: Filled with descriptions forming the basis for the rating scale regarding the candidate Principal Party's understanding of legislation in the financial services sector, prioritizing legislation in the relevant industry.
Note: Description 2a should be different from other descriptions because...

b. Basic understanding of other relevant legislation, including understanding of legislation in the field of limited liability companies, Financial Services Authority (OJK), bankruptcy, labor, consumer protection, and money laundering criminal offenses, along with implementing regulations.

Description: Filled with descriptions forming the basis for the rating scale regarding the candidate Principal Party's basic understanding of other relevant legislation, including understanding of legislation in the field of limited liability companies, Financial Services Authority (OJK), bankruptcy, labor, consumer protection, and money laundering criminal offenses, along with implementing regulations.
Note: Description 2b should be different from other descriptions because...

3. Ability to Perform Strategic Management for Healthy Business Development

Scale	Description
Not Enough
Less
Enough
Good
Very Good

a. Ability to formulate the vision and mission of the company to be led, specifically for members of the Board of Directors, Managers, Executive Directors, and Statutory Managers.

Assessment: Specific assessment for members of the Board of Directors, Managers, Executive Directors, and Statutory Managers.
Description: Filled with descriptions forming the basis for the rating scale regarding the candidate Principal Party's ability to formulate the vision and mission of the company to be led.
Note: Description 3a should be different from other descriptions because...

b. Ability to perform PVML situation analysis.

Description: Filled with descriptions forming the basis for the rating scale regarding the candidate Principal Party's ability to perform PVML situation analysis.
Note: Description 3b should be different from other descriptions because...

c. Ability to perform analysis of PVML internal condition developments.

Description: Filled with descriptions forming the basis for the rating scale regarding the candidate Principal Party's ability to perform analysis of PVML internal condition developments.
Note: Description 3c should be different from other descriptions because...

d. Ability to set targets to be achieved related to the position held, specifically for members of the Board of Directors, Managers, Executive Directors, and Statutory Managers.

Assessment: Specific assessment for members of the Board of Directors, Managers, Executive Directors, and Statutory Managers.
Description: Filled with descriptions forming the basis for the rating scale regarding the candidate Principal Party's ability to set targets to be achieved related to the position held.
Note: Description 3d should be different from other descriptions because...

e. Ability to design short-term, medium-term, and long-term strategies to achieve company goals, specifically for members of the Board of Directors, Managers, Executive Directors, and Statutory Managers.

Assessment: Specific assessment for members of the Board of Directors, Managers, Executive Directors, and Statutory Managers.
Description: Filled with descriptions forming the basis for the rating scale regarding the candidate Principal Party's ability to design short-term, medium-term, and long-term strategies to achieve company goals.
Note: Description 3e should be different from other descriptions because...

f. Ability to perform basic PVML situation analysis, specifically for the Board of Commissioners, Sharia Supervisory Board, Board of Directors, and Statutory Managers.

Assessment: Specific assessment for members of the Board of Commissioners, Sharia Supervisory Board, Board of Directors, and Statutory Managers.
Description: Filled with descriptions forming the basis for the rating scale regarding the candidate Principal Party's ability to perform basic PVML situation analysis.
Note: Description 3f should be different from other descriptions because...

g. Ability to perform analysis of the company's financial health condition development, specifically for the Board of Commissioners, Sharia Supervisory Board, Board of Directors, and Statutory Managers.

Assessment: Specific assessment for members of the Board of Commissioners, Sharia Supervisory Board, Board of Directors, and Statutory Managers.
Description: Filled with descriptions forming the basis for the rating scale regarding the candidate Principal Party's ability to perform analysis of the company's financial health condition development.
Note: Description 3g should be different from other descriptions because...

h. Ability to perform analysis of human resources condition development, specifically for the Board of Commissioners, Sharia Supervisory Board, Board of Directors, and Statutory Managers.

Assessment: Specific assessment for members of the Board of Commissioners, Sharia Supervisory Board, Board of Directors, and Statutory Managers.
Description: Filled with descriptions forming the basis for the rating scale regarding the candidate Principal Party's ability to perform analysis of human resources condition development.
Note: Description 3h should be different from other descriptions because...

i. Ability to perform analysis of information technology condition development, specifically for the Board of Commissioners, Sharia Supervisory Board, Board of Directors, and Statutory Managers.

Assessment: Specific assessment for members of the Board of Commissioners, Sharia Supervisory Board, Board of Directors, and Statutory Managers.
Description: Filled with descriptions forming the basis for the rating scale regarding the candidate Principal Party's ability to perform analysis of information technology condition development.
Note: Description 3i should be different from other descriptions because...

j. Ability to perform analysis of policies of the Board of Directors, Managers, Executive Directors, and Statutory Managers, specifically for the Board of Commissioners, Sharia Supervisory Board, Board of Directors, and Statutory Managers.

Assessment: Specific assessment for members of the Board of Commissioners, Sharia Supervisory Board, Board of Directors, and Statutory Managers.
Description: Filled with descriptions forming the basis for the rating scale regarding the candidate Principal Party's ability to perform analysis of policies of the Board of Directors, Managers, Executive Directors, and Statutory Managers.
Note: Description 3j should be different from other descriptions because...

Competence Requirements and Rating Scale

Competence Requirement	Rating Scale (No/Yes)	Description
B. Experience in PVML and/or other fields relevant to the position	No / Yes	Filled according to work experience history in the curriculum vitae.; ; Company Name: ...; Position: ...; Duration of Position: ...; ; Company Name: ...; Position: ...; Duration of Position: ...
C. Expertise in PVML and/or other fields relevant to the position at PVML	No / Yes	Filled with the latest formal education at least Bachelor's degree (S1) or equivalent and certifications relevant to the position at PVML.

This Self-Assessment is made truthfully by the party having the remuneration and nomination function at PT/Koperasi/Lembaga Pembiayaan Ekspor Indonesia*) ….

(Place), (Date)
(Signature)
(Clear Name)
(Position)

EXAMPLE FORMAT 4: LIST OF FORMS

A. LIST OF FORMS FOR INDIVIDUAL PSP
(Use separate answer sheets if the available pages are insufficient)

Full name (including alias)
Other names (if any)
Place and date of birth
Address according to identity proof
Domicile/correspondence address (if different from address in item 4)
Your professional qualifications and their periods (state fully)
Explain your profession/business activities and professional membership in the last two years. Explain including company name, business field, position, professional association followed, and other relevant information.
Taxpayer Identification Number (NPWP) (for Indonesian Citizens) or equivalent (for Foreign Citizens)
Explain the source of funds you will use to buy PVML shares, whether from:
- Personal wealth?
- Domestic loans?
- Foreign loans?
- Others?
  (Specify the source)
Explain the companies you own (directly and indirectly/nominee)
Explain your obligations and responsibilities in that company
Are you currently a PSP at another PVML? Explain
Are you currently acting as a PSP at a non-PVML company?
Does another PVML in question no. 17 and/or non-PVML company in question no. 18 have a business relationship with the PVML whose shares you will buy? Explain the type of business relationship in detail.
Do you intend to buy the shares for the purpose of long-term investment (strategic partner)? If not, explain.
Do you currently already own shares in the PVML whose shares you will buy (directly or indirectly)? Explain details with composition.
How many shares will you buy? What is the purchase value? What is the proportion of the total PVML shares? If you already owned PVML shares previously, what is the proportion if added to the number of shares you will buy now?
How will you use your voting rights at that PVML, individually (you as an individual) or together with your business group/affiliates?
Have you ever been asked to stop working, subjected to disciplinary actions/sanctions by the company, or subjected to sanctions prohibiting you from practicing your profession?
Have you ever been declared bankrupt by authorities in Indonesia or other countries? Explain specifically.
When you managed or owned a company, was that company ever declared bankrupt by authorities in Indonesia or other countries?
Have you, your company, or your business group ever been published or become the object of investigation by law enforcement authorities regarding criminal matters or other misconduct in the financial field?
Do you have a company whose license was frozen by authorities in Indonesia or other countries? Explain.
Do you or your company have a license to conduct business in Indonesia or other countries? If true, explain the type of business field, how long, where? If there are licenses that were frozen/cancelled, explain specifically.
Have you, your company, or your business group ever had a licensing application rejected in the banking/financial sector by authorities in Indonesia or other countries? Explain in detail.
Do you and/or your business group have plans to conduct other business in Indonesia or other countries that will affect the PVML whose shares you will buy? Explain.
Have you, your company, or your business group ever failed to meet obligations to other parties under the law in Indonesia or other countries (e.g., tax payments, credits, etc.)? Explain.
Is your business activity or your company/business group's business activity currently or will be guaranteed by other parties? Explain.
Explain if there is other information that can provide data as consideration for the Financial Services Authority in processing your application.

The undersigned hereby states that:

I have understood the provisions related to my rights and obligations as a PSP as regulated in the applicable provisions;
The information provided above is true, complete, and accurate;
I will inform the Financial Services Authority within 30 (thirty) days if there are significant changes in information; and
If the above statement/information is proven to be untrue, then within 30 (thirty) days I am willing to resign from the PSP of PVML.

(City), ...........
(Signature above stamp duty is sufficient)
(Name/Position)

*) strike what is not needed
) The statement letter must be signed on Rp10,000 stamp duty according to Law Number 10 of 2020 concerning Stamp Duty.

B. LIST OF FORMS FOR CORPORATE PSP
(Use separate answer sheets if the available pages are insufficient)

Company name and full address:
Place and date of company establishment:
Full name (party representing the company):
Position in the company:
Explain your obligations and responsibilities as the party representing the company:
Supervisory/Regulatory Body of your company:
- Name of Institution:
- Address:
- Website:
  Is the supervisory authority of your company willing to receive the concept of consolidated supervision by the Financial Services Authority?
Main business of the company currently and according to the company's articles of association:
Is your company currently a PSP at another PVML?
Explain.
Is your company currently acting as a PSP at a non-PVML company?
Explain.
Does the company in question no. 8 have a business relationship with the PVML to be taken over or with the PVML in question no. 7?
Explain.
Does your company intend to become a controller/PSP for the purpose of long-term investment (strategic partner)?
If Yes, explain your program.
Does your company currently already own shares in the PVML to be taken over?
If Yes, explain the composition in detail in whose name, explain the reasons.
Describe in detail, the nominal/percentage of ownership to be taken over by your company and your business group.
Explain the use of your company's voting rights at the PVML to be taken over: Is it used individually (your company independently) or together with your business group as a unity?
List the name and position of the "key person" in your company. Explain detailed information including nationality, academic and professional qualifications, and employment in the last five years.
Inform in detail the entire list of shareholders in your company and explain their PSP status.
Does your company currently directly or indirectly control the PVML to be taken over?
If Yes, explain.
Has your company ever been published or become the object of investigation by authorities in Indonesia or other countries in criminal cases or other misconduct in the financial field?
If Yes, explain, including the final result of the resolution.
Is your company a controller of another company whose business license was ever revoked or recommended for revocation by authorities in Indonesia or other countries:
If Yes, explain.
Does your company or your business group have a license to conduct business in Indonesia or other countries and then had the license frozen/cancelled?
If Yes, explain.
Has your company or your business group ever had a licensing application rejected in the banking/financial sector by authorities in Indonesia or other countries?
If Yes, explain.
Do you and/or your business group have plans to conduct other business in Indonesia or other countries that will affect the PVML to be taken over?
If Yes, explain.
Has your company or your business group ever failed to meet obligations (tax payments, credits, etc.) to other parties under the law in Indonesia or other countries?
If Yes, explain.
Is the activity of your company/other companies in your business group currently or will be guaranteed by other parties?
If Yes, explain by whom and how that guarantee will be implemented.
Explain the source of funds that your company will use to take over the PVML (answer must be accompanied by supporting documents).
Explain the reasons/other information that can strengthen the consideration of the Financial Services Authority in processing the application for the takeover of PVML by your company (accompanied by supporting evidence).

The undersigned hereby states that:

I have understood the provisions related to my rights and obligations as a PSP as regulated in the applicable provisions;
The information provided above is true, complete, and accurate;
I will inform the Financial Services Authority within 30 (thirty) days if there are significant changes in information; and
If the above statement/information is proven to be untrue, then within 30 (thirty) days I am willing to resign from the PSP of PVML.

(City), ..........................
(Signature above sufficient stamp duty)
Name & Position: _________________________________________________ Name of Company Represented: _________________________________ Legal basis for representation: ___________________________________

*) strike what is not needed
) The statement letter must be signed on Rp10,000 stamp duty according to Law Number 10 of 2020 concerning Stamp Duty.

EXAMPLE FORMAT 5: STATEMENT LETTER

A. STATEMENT LETTER FOR INDIVIDUAL/CORPORATE PSP

STATEMENT LETTER
(To be filled by the candidate for individual/corporate PSP)*

Hereby state that I:

Meet the integrity aspects, including:
a. Have the legal capacity to perform legal acts as regulated in the applicable legislation; b. Have never been sentenced for proven criminal offenses in the financial services sector, namely criminal offenses at financial service institutions whose sentences have been completed within the last 20 (twenty) years before nomination;
c. Have never been sentenced for proven felony offenses, namely criminal offenses listed in the Criminal Code (KUHP) and/or similar to the KUHP abroad with a prison sentence threat of 1 (one) year or more whose sentences have been completed within the last 10 (ten) years before nomination;
d. Have never been sentenced for proven other criminal offenses with a prison sentence threat of 1 (one) year or more, including but not limited to corruption, money laundering, narcotics/psychotropics, smuggling, customs, excise, human trafficking, illegal arms trafficking, terrorism, counterfeiting money, taxation, forestry, environment, and marine and fisheries, whose sentences have been completed within the last 20 (twenty) years before nomination; e. Have never violated prudential principles in the financial services sector; f. Have never violated legislation in the financial services sector; g. Have submitted the candidate PSP's plan for PVML operational development; h. Have never violated commitments agreed upon with the supervising and supervisory agencies of PVML;
i. Have a commitment not to commit and/or repeat acts and/or actions that cause the person to be listed in the list of prohibited parties as Principal Parties, for candidates who were previously listed in the list of prohibited parties as Principal Parties;
j. Have never committed acts that provide unfair benefits to shareholders, controlling parties of insurance companies, Principal Parties, employees, and/or other parties that can harm or reduce the rights of creditors, debtors, and/or other consumers; k. Have never committed acts not in accordance with their authority or outside their authority;
l. Have never been declared unable to exercise their authority;
m. Have a commitment in handling and resolving consumer complaints, specifically for members of the Board of Directors, members of the Board of Commissioners, members of Managers, members of the Sharia Supervisory Board, members of the Board of Directors, members of Executive Directors, and Statutory Managers who oversee the consumer protection function; and n. Are not included as parties prohibited from becoming Principal Party candidates;
Meet the financial feasibility aspects, including:
a. Have a financial reputation; b. Have financial capabilities that can support the business development of PVML; and
c. Have a commitment to take necessary measures if PVML faces financial difficulties;
Are not currently undergoing a competence and propriety assessment process at a financial service institution;
Are willing to accept the results of the competence and propriety assessment; and
Will not file claims or lawsuits in any form against the results of the competence and propriety assessment established by the Financial Services Authority.

This statement letter is made truthfully, and if it is later found that my statement is untrue, I am willing to be sued in court according to applicable law.

(Date/Month/Year)
(Signature above sufficient stamp duty)
(Full Name)

*) strike what is not needed
) The statement letter must be signed on Rp10,000 stamp duty according to Law Number 10 of 2020 concerning Stamp Duty.

B. DECLARATION LETTER FOR MEMBERS OF THE BOARD OF DIRECTORS/BOARD OF COMMISSIONERS/MANAGEMENT/SHARIA SUPERVISORY BOARD/EXECUTIVE DIRECTOR/BOARD OF DIRECTORS/STATUTORY MANAGER

DECLARATION LETTER
(to be filled out by candidates for members of the Board of Directors, members of the Board of Commissioners, members of Management, members of the Sharia Supervisory Board, members of the Executive Director, members of the Board of Directors, and Statutory Managers*)

I, the undersigned:
Name : .....................................................................................
Address : .....................................................................................
Position : As President Director/Director/Lead Commissioner/Commissioner/ Independent Commissioner/Manager/Sharia Supervisory Board/Executive Director/Board of Directors/Statutory Manager*) hereby declare that I:

meet the integrity aspect, including:
a. having the legal capacity to perform legal acts as regulated in applicable legislation; b. have never been sentenced for proven criminal offenses in the financial services sector, namely criminal offenses at financial service institutions where the sentence has been fully served within the last 20 (twenty) years prior to nomination;
c. have never been sentenced for proven criminal acts, namely criminal offenses listed in the Criminal Code (KUHP) and/or similar foreign criminal codes with a prison sentence threat of 1 (one) year or more where the sentence has been fully served within the last 10 (ten) years prior to nomination;
d. have never been sentenced for proven commission of other criminal acts with a prison sentence threat of 1 (one) year or more, including but not limited to corruption, money laundering, narcotics/psychotropics, smuggling, customs, excise, human trafficking, illegal arms trade, terrorism, counterfeiting money, taxation, forestry, environment, and maritime and fisheries, where the sentence has been fully served within the last 20 (twenty) years prior to nomination; e. have never violated prudential principles in the financial services sector; f. have never violated applicable legislation in the financial services sector; g. have submitted the candidate PSP's plan for the operational development of PVML; h. have never violated commitments agreed upon with the supervisory and regulatory agencies of PVML;
i. have a commitment not to commit and/or repeat acts and/or actions that cause the individual to be listed in the list of prohibited parties as Principal Parties, for candidates who have previously been listed in the list of prohibited parties as Principal Parties;
j. have never committed acts that provide unfair benefits to shareholders, controlling parties of insurance companies, Principal Parties, employees, and/or other parties that can harm or reduce the rights of creditors, debtors, and/or other consumers; k. have never committed acts that are not in accordance with their authority or beyond their authority;
l. have never been declared incapable of exercising their authority;
m. have a commitment in handling and resolving consumer complaints, specifically for members of the Board of Directors, members of the Board of Commissioners, members of Management, members of the Sharia Supervisory Board, members of the Board of Directors, members of the Executive Director, and Statutory Managers who oversee the consumer protection function; and n. are not included as parties prohibited from becoming Principal Party candidates;
meet the financial reputation aspect, including:
a. do not have non-performing loans, financing, and/or funding; b. have never been declared bankrupt and/or have never been a shareholder, controlling party of an insurance company, member of the Board of Directors, member of the Board of Commissioners, member of Management, member of the Sharia Supervisory Board, or Statutory Manager who was declared guilty of causing a company to be declared bankrupt within the last 5 (five) years prior to nomination;
c. have never been a shareholder, controlling party of an insurance company, member of the Board of Directors, member of the Board of Commissioners, member of Management, member of the Sharia Supervisory Board, or Statutory Manager at a company subject to license revocation sanctions; and
d. do not have obligations to settle securities transactions at securities companies.
are not currently undergoing a competence and propriety assessment process at a financial service institution.
are willing to accept the results of the competence and propriety assessment; and
will not file any claims or lawsuits of any kind against the results of the competence and propriety assessment established by the Financial Services Authority.

This declaration letter is made truthfully, and if it is later found that my declaration is not true, I am willing to be sued in court according to applicable laws.

(date/month/year)
(signature above sufficient stamp duty)
(full name)
*) strike out what is not necessary (The position stated in the declaration letter must match the position stated in the application letter) ) The declaration letter should be signed on Rp10,000 stamp duty according to Law Number 10 of 2020 concerning Stamp Duty.

C. DECLARATION LETTER FOR INDEPENDENT COMMISSIONERS

DECLARATION LETTER
(to be filled out by candidates for Independent Commissioners)

I, the undersigned:
Name : .....................................................................................
Place, Date of Birth : .....................................................................................
Address : .....................................................................................
Position : Candidate Independent Commissioner of PT/Cooperative*) …………….. hereby declare that I:

do not have affiliation relationships with shareholders, members of the Board of Directors, members of the Board of Commissioners, and/or members of the Sharia Supervisory Board at the same PVML; and
have never been a member of the Board of Directors, member of the Board of Commissioners, member of the Sharia Supervisory Board and/or executive official at the same PVML or another company having an affiliation relationship with said PVML within the period according to applicable legislation.

This declaration letter is made truthfully, and if it is later found that my declaration is not true, I am willing to resign as Independent Commissioner of PT/Cooperative*) ...................................

(date/month/year)
(signature above sufficient stamp duty)
(full name)
*) strike out what is not necessary
) The declaration letter should be signed on Rp10,000 stamp duty according to Law Number 10 of 2020 concerning Stamp Duty.

EXAMPLE FORMAT 6 CURRICULUM VITAE

CURRICULUM VITAE
I. Personal Data
1. Name : Filled in according to ID Card
2. Gender : Filled in according to ID Card
3. Place/Date of Birth : Filled in according to ID Card
4. Citizenship :
5. Home Address : Filled in according to ID Card
6. Office Address :
7. ID Card/Passport Number : Filled in according to ID Card
8. Taxpayer Identification Number (NPWP) :
9. Recommendation from the Institution
Having Authority in
Determining Fatwas in the Sharia Field, for
Sharia Supervisory Board
: --
10 Office/Mobile Phone : Fill in the contact phone number of the candidate principal party 11 Email :
II. Formal Education History
No. Year Institution Major/Program
1. From...to... Accompanied by information on program equivalence (equivalent to S1/S2/S3)
in case formal education is obtained from Abroad
2. etc.
III. Training Attended (if any)
No. Year Organizer Topic and Brief Description
1. From...to...
2. etc.
IV. Work History)
No. Work History) Job Description
1. (Filled with information regarding the period
from start to end of tenure, name of agency/company, type of business activity, job title and level below the Board of Directors, from when the candidate principal party completed formal education until the submission of the competence and propriety assessment) Filled with a description of duties and responsibilities for each position From ….. to …… PT/Cooperative*) ….. Company operating in the field of ….. ……………………………
(Position) .....................
This is a …. level position below the Board of Directors
2. From ….. to ……
PT/Cooperative*) …..
Company operating in the field of …..
...................................
(Position) .....................
This is a …. level position below the Board of Directors
3. etc.
Color Photo
4x6 cm

This Curriculum Vitae is made truthfully.

(date/month/year)
(signature)
(full name)
*) strike out what is not necessary
) each work history must be accompanied by proof of work experience letters

EXAMPLE FORMAT 7 STATEMENT

STATEMENT a. Vision and Mission
Vision : …
Mission : … b. Targets (Short, Medium, and Long Term) relevant to the position sought

Short Term : …
Medium Term : …
Long Term : …
c. Work programs and concrete steps to achieve each of the targets as referred to above
… d. Analysis of the current and/or future situation and conditions of the Company … e. Work programs related to consumer/debtor/creditor protection and market conduct.
This Curriculum Vitae is made truthfully.

(date/month/year)
(signature)
(full name)

This copy is in accordance with the original
Director of Legal Development
Legal Department
Aat Windradi
Established in Jakarta on December 24, 2024

EXECUTIVE HEAD OF SUPERVISOR FOR
FINANCING INSTITUTIONS,
VENTURE CAPITAL COMPANIES,
MICROFINANCE INSTITUTIONS, AND
OTHER FINANCIAL SERVICE INSTITUTIONS
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA,

AGUSMAN signed signed

APPENDIX II
CIRCULAR LETTER OF THE FINANCIAL SERVICES AUTHORITY REPUBLIC OF INDONESIA NUMBER 22/SEOJK.06/2024 CONCERNING COMPETENCE AND PROPRIETY ASSESSMENT FOR PRINCIPAL PARTIES OF FINANCING INSTITUTIONS, VENTURE CAPITAL COMPANIES, MICROFINANCE INSTITUTIONS, AND OTHER FINANCIAL SERVICE INSTITUTIONS

TABLE OF CRITERIA FOR CANDIDATE MEMBERS OF THE BOARD OF DIRECTORS/BOARD OF COMMISSIONERS/MANAGEMENT/SHARIA SUPERVISORY BOARD/EXECUTIVE DIRECTOR/BOARD OF DIRECTORS/STATUTORY MANAGER REQUIRING CLARIFICATION PROCESS AT PVML

Experience	Position Sought
Commissioner	Lead Commissioner	Independent Commissioner	Director/Manager	President Director	DPS
Commissioner	N	N1	Y
Lead Commissioner	N	N1	Y
Independent Commissioner	N	N1	N1	Y
Director	N	N	Y	N4	N5	Y
President Director	N	N	Y	N	N4	Y
Manager	Y
DPS	Y	N
Official 1 level below the Board of Directors (executive official) with tenure above 3 (three) years	N2	N2	Y	N2	Y	Y
Official at a ministry/state agency performing regulatory and/or supervisory functions	N	Y
No experience	Y

Notes:

Commissioner / Lead Commissioner / Independent Commissioner = Commissioner/Lead Commissioner/Independent Commissioner is a company organ tasked with conducting general and/or specific supervision in accordance with the Articles of Association and giving advice to the Board of Directors for PVML in the form of a limited liability company or equivalent to commissioner/lead commissioner/independent commissioner for PVML in the form of a cooperative body, Indonesia Export Financing Institution, or a limited partnership.

Director/President Director
= Director/President Director is a company organ authorized and fully responsible for managing PVML for the benefit of PVML, in accordance with the purpose and objectives of PVML and representing PVML, both in and out of court, in accordance with the Articles of Association for PVML in the form of a limited liability company or equivalent to director/president director for PVML in the form of a cooperative body, Indonesia Export Financing Institution, or a limited partnership.

Sharia Supervisory Board (DPS)
= Sharia Supervisory Board is a supervisor recommended by the National Sharia Council, Indonesian Ulema Council, placed at PVML or a Sharia unit, tasked with supervising business activities to ensure they are in accordance with Sharia principles.

Y = Clarification of the candidate Principal Party is required.
N = Clarification of the candidate Principal Party is not required.
N1 = Clarification of the candidate Principal Party is not required, except for commissioners, lead commissioners, or independent commissioners who will serve as commissioners, lead commissioners, or independent commissioners at a PVML with larger size and complexity. N2 = Clarification of the candidate Principal Party is not required, except for officials 1 level below the Board of Directors (executive officials) who will serve as commissioners, lead commissioners, or directors at a PVML with larger size and complexity.

This copy is in accordance with the original
Director of Legal Development
Legal Department
Aat Windradi

N3 = Clarification of the candidate Principal Party is not required, except for commissioners who will serve as lead commissioners at a different company from the previous one.
N4 = Clarification of the candidate Principal Party is not required, except for directors or president directors who will serve as directors or president directors at a PVML with larger size and complexity.
N5 = Clarification of the candidate Principal Party is not required, except for directors who will serve as president directors at a different company from the previous one.

Established in Jakarta on December 24, 2024

EXECUTIVE HEAD OF SUPERVISOR FOR
FINANCING INSTITUTIONS, VENTURE CAPITAL
COMPANIES, MICROFINANCE INSTITUTIONS,
AND OTHER FINANCIAL SERVICE INSTITUTIONS
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA,

AGUSMAN signed signed

Competence Assessment Scale and Description

2. Understanding of Legislation

3. Ability to Perform Strategic Management for Healthy Business Development

Competence Requirements and Rating Scale

EXAMPLE FORMAT 4: LIST OF FORMS

EXAMPLE FORMAT 5: STATEMENT LETTER

Lineage: No known changes

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