Assessment of Competence and Propriety for Prospective Principal Parties of Securities Rating Companies

To:
The Board of Directors of Securities Rating Companies, At their place.

COPY

CIRCULAR LETTER OF THE FINANCIAL SERVICES AUTHORITY REPUBLIC OF INDONESIA NUMBER 21/SEOJK.04/2021

CONCERNING

ASSESSMENT OF COMPETENCE AND PROPRIETY FOR PROSPECTIVE PRINCIPAL PARTIES OF SECURITIES RATING COMPANIES

In connection with the Financial Services Authority Regulation Number 27/POJK.03/2016 dated July 27, 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, Additional State Gazette of the Republic of Indonesia Number 5098), hereinafter referred to as the POJK on Assessment of Competence and Propriety, it is necessary to regulate implementation provisions regarding the assessment of competence and propriety for prospective principal parties of securities rating companies in this Financial Services Authority Circular Letter as follows:

I. GENERAL PROVISIONS

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

a. Securities Rating Company is an investment advisor in the form of a limited liability company that conducts rating activities and provides ratings.

b. Financial Service Institution, hereinafter abbreviated as LJK, is a Financial Service Institution as referred to in the Financial Services Authority Regulation Number 27/POJK.03/2016 concerning the Assessment of Competence and Propriety for Principal Parties of Financial Service Institutions.

c. Principal Party is a party that owns, manages, supervises, and/or has significant influence on the Securities Rating Company.

d. Control is an action aimed at influencing the management and/or policies of the Securities Rating Company in any way, either directly or indirectly.

e. Controlling Shareholder for Securities Rating Company, hereinafter abbreviated as PSP, is a legal entity and/or individual who owns shares of the Securities Rating Company and has the ability to exercise Control over the Securities Rating Company.

f. General Meeting of Shareholders of the Securities Rating Company, hereinafter referred to as RUPS, is the organ of the Securities Rating Company that has authority not given to the Board of Directors or Board of Commissioners within the limits determined by laws concerning limited liability companies and/or the Articles of Association of the Securities Rating Company.

g. Board of Directors is the organ of the Securities Rating Company that has the authority and is fully responsible for the administration of the Securities Rating Company for the interests of the Securities Rating Company, in accordance with the purposes and objectives of the Securities Rating Company and represents the Securities Rating Company, both inside and outside the court, in accordance with the provisions of the Articles of Association of the Securities Rating Company.

h. Board of Commissioners is the organ of the Securities Rating Company that is tasked with conducting general and/or specific supervision in accordance with the Articles of Association of the Securities Rating Company and providing advice to the Board of Directors.

i. Affiliation is:

family relationship due to marriage and descent up to the second degree, both horizontally and vertically;
relationship between a party and employees, members of the Board of Directors, or members of the Board of Commissioners of that party;
relationship between 2 (two) companies where there is one or more members of the Board of Directors or members of the Board of Commissioners that are the same;
relationship between a company and a party, either directly or indirectly, controlling or controlled by that company;
relationship between 2 (two) companies that are controlled, either directly or indirectly, by the same party; or
relationship between a company and major shareholders.

A party is declared as a PSP if it directly or indirectly owns:

a. at least 20% (twenty percent) of the shares issued by one Securities Rating Company and has voting rights; or b. less than 20% (twenty percent) of the shares issued by one Securities Rating Company and has voting rights but it can be proven that they have exercised Control, either directly or indirectly, over the Securities Rating Company.

A party is declared to exercise Control over a Securities Rating Company among others if:

a. it has 20% (twenty percent) or more of voting rights, either with its own share ownership or together with its Affiliates or together with other parties; b. it conducts cooperation or actions in concert to achieve common goals in controlling the Securities Rating Company (acting in concert) with or without a written agreement with other parties, so that together they own and/or control 20% (twenty percent) or more of the shares of the Securities Rating Company, either directly or indirectly;
c. it has the right to arrange and determine the financial and operational policies of the Securities Rating Company based on the Articles of Association or agreements;
d. it is able to appoint or dismiss members of the Board of Directors and members of the Board of Commissioners; and/or e. it is able to control the majority of votes in the Board of Directors meeting.

The assessment of competence and propriety is a process to assess the fulfillment of competence and propriety requirements in the context of granting approval by the Financial Services Authority to prospective Principal Parties.

II. PARTIES REQUIRED TO UNDERGO COMPETENCE AND PROPRIETY ASSESSMENT

The assessment of competence and propriety is conducted by the Financial Services Authority against parties nominated as Principal Parties as follows:

a. prospective PSP; b. prospective members of the Board of Directors; and
c. prospective members of the Board of Commissioners.

Prospective PSPs as referred to in item 1 letter a include:

a. individuals and/or legal entities that will become PSPs in the company applying for a business license as a Securities Rating Company; b. individuals and/or legal entities that purchase, receive gifts, receive inheritance, or other forms of transfer of rights over shares of the Securities Rating Company so that they meet the PSP criteria;
c. shareholders of the Securities Rating Company who are not classified as PSPs who increase capital contributions, purchase shares of the Securities Rating Company, receive gifts of shares of the Securities Rating Company, receive inheritance, or other forms of transfer of rights over shares of the Securities Rating Company, thereby causing them to meet the PSP criteria;
d. shareholders of the Securities Rating Company who are not classified as PSPs but are assessed by the Financial Services Authority as exercising Control; and e. individuals and/or legal entities that will become PSPs in a Securities Rating Company resulting from a merger or consolidation.

Prospective members of the Board of Directors or prospective members of the Board of Commissioners as referred to in item 1 letters b and c include:

a. individuals nominated to become members of the Board of Directors or members of the Board of Commissioners in a company in the process of applying for a business license for a Securities Rating Company; b. individuals who have never been members of the Board of Directors or members of the Board of Commissioners, who are nominated to become members of the Board of Directors or members of the Board of Commissioners;
c. individuals currently serving as members of the Board of Directors or members of the Board of Commissioners, who are nominated to become members of the Board of Directors or members of the Board of Commissioners in another Securities Rating Company;
d. individuals who no longer serve as members of the Board of Directors or members of the Board of Commissioners, who are nominated to become members of the Board of Directors or members of the Board of Commissioners in the same Securities Rating Company or in another Securities Rating Company; e. members of the Board of Commissioners nominated to become members of the Board of Directors in the same Securities Rating Company; f. members of the Board of Directors nominated to become members of the Board of Directors with different duties and authorities from their previous duties and authorities in the same Securities Rating Company; g. members of the Board of Directors nominated to become members of the Board of Commissioners in the same Securities Rating Company; h. individuals nominated to become members of the Board of Directors or members of the Board of Commissioners in a Securities Rating Company resulting from a merger, including extension of tenure, and consolidation.

The assessment of competence and propriety is not conducted for the extension of tenure of members of the Board of Directors and/or members of the Board of Commissioners in the same Securities Rating Company, except for the extension of tenure as referred to in item 3 letter h.
The plan for the extension of tenure of members of the Board of Directors and/or members of the Board of Commissioners in the same Securities Rating Company as referred to in item 4 is reported to the Financial Services Authority together with the RUPS agenda, accompanied by a statement letter from the prospective members of the Board of Directors/prospective members of the Board of Commissioners using the Statement Letter format as contained in the Appendix which is an integral part of this Financial Services Authority Circular Letter, at most 14 (fourteen) working days before the summons for the RUPS.
The extension of tenure of members of the Board of Directors and/or members of the Board of Commissioners in the same Securities Rating Company as referred to in item 4 is reported to the Financial Services Authority accompanied by the RUPS decision establishing the extension of tenure, at the latest 7 (seven) working days after the RUPS.

III. FACTORS FOR COMPETENCE AND PROPRIETY ASSESSMENT

Factors assessed in the competence and propriety assessment, against parties nominated as Principal Parties, include:

a. integrity and financial suitability for prospective PSPs; and b. integrity, financial reputation, and competence for prospective members of the Board of Directors and prospective members of the Board of Commissioners.

Integrity for Prospective Principal Parties
Prospective Principal Parties must meet integrity requirements as regulated in the POJK on Assessment of Competence and Propriety, including:

a. having the legal capacity to perform legal acts as referred to in the Civil Code; b. having good ethics and morals, at least shown by a behavior of complying with applicable regulations, including never being sentenced for proven criminal acts within a certain period before nomination, namely:

criminal acts in the financial services sector whose sentence has been completed within the last 20 (twenty) years before nomination;
felony criminal acts, namely criminal acts contained in the Criminal Code (KUHP) and/or similar to the KUHP abroad with a prison sentence threat of 1 (one) year or more whose sentence has been completed within the last 10 (ten) years before nomination; and/or
other criminal acts with a prison sentence threat of 1 (one) year or more, including 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 environment, in the field of marine and fisheries, whose sentence has been completed within the last 20 (twenty) years before nomination;
c. having a commitment to comply with legislation and support the policies of the Financial Services Authority;
d. having a commitment to the development of a healthy Securities Rating Company, namely prospective PSPs, prospective members of the Board of Directors, and/or prospective members of the Board of Commissioners must have:
a plan for the operational development of a healthy Securities Rating Company, which at least contains the direction and strategy for the development of the Securities Rating Company, for a minimum period of 5 (five) years for prospective PSPs and prospective members of the Board of Directors;
a supervision plan in the context of the operational development of a healthy Securities Rating Company, which at least contains the direction and strategy for the supervision of the Securities Rating Company for a minimum period of 5 (five) years for prospective members of the Board of Commissioners; and
a commitment not to transfer shares of the Securities Rating Company owned by PSPs for a minimum period of 5 (five) years without approval from the Financial Services Authority, which is embodied in a written statement letter;
e. not being included as parties prohibited from becoming Principal Parties due to material violations of capital market legislation, including being subject to administrative sanctions such as revocation of license, cancellation of approval, and/or cancellation of registration by the Financial Services Authority within a minimum period of 5 (five) years before nomination as a Principal Party; f. never having been subject to administrative sanctions for violations of financial legislation within the last 2 (two) years before nomination, for prospective members of the Board of Directors and prospective members of the Board of Commissioners; g. not having an Affiliation relationship with members of the Board of Directors and/or members of the Board of Commissioners for prospective members of the Board of Directors and prospective members of the Board of Commissioners; h. not holding concurrent positions in any capacity in other companies for members of the Board of Directors;
i. not holding concurrent positions in any capacity in other companies that conduct business activities as securities rating companies for members of the Board of Commissioners;
j. not being a direct or indirect shareholder in more than one Securities Rating Company that has a business license from the Financial Services Authority for PSPs, except for ownership or capital participation by the Government for prospective PSPs; and k. having a commitment not to influence, directly or indirectly, the independence and objectivity of the securities rating process by the Securities Rating Company for prospective PSPs.

Financial Reputation for Prospective Directors and Prospective Commissioners
Prospective members of the Board of Directors or prospective members of the Board of Commissioners must meet financial reputation requirements as regulated in Article 6 of the POJK on Assessment of Competence and Propriety, which include:

a. not having bad loans and/or financing; and b. never having been declared bankrupt and/or never having been a controller, manager, or supervisor of a company that, based on a RUPS decision or another organ equivalent to RUPS, is declared responsible for the bankruptcy of the company within the last 5 (five) years before the date of the application to obtain approval as a Principal Party.

Financial Suitability for Prospective PSPs
Prospective PSPs must meet financial suitability requirements as regulated in Article 7 of the POJK on Assessment of Competence and Propriety, including:

a. having a financial reputation as referred to in item 3; b. having financial capacity that can support the business development of the Securities Rating Company, which among others is based on:

financial capacity analysis conducted based on the latest financial reports, having no short-term and long-term obligation issues for the company, and financial projections for a minimum period of 3 (three) years for prospective PSPs that are legal entities.
financial capacity analysis conducted through tax document analysis and having no short-term and long-term obligation issues for prospective PSPs that are individuals;
the source of funds used in the ownership of shares of the Securities Rating Company does not originate from and/or for the purpose of money laundering and/or terrorism financing; and
c. having a commitment to undertake necessary measures if the Securities Rating Company faces financial difficulties, including strengthening the capital of the Securities Rating Company.

Competence for Prospective Members of the Board of Directors and Prospective Members of the Board of Commissioners
Prospective members of the Board of Directors and prospective members of the Board of Commissioners must meet competence requirements as regulated in Article 8 of the POJK on Assessment of Competence and Propriety, including:

a. for prospective members of the Board of Directors:

having adequate and relevant knowledge in the fields of capital markets, finance, and/or securities ratinging related to their position, including:
a) knowledge in the fields of investment management, lending, and insurance; or b) knowledge about the operations of the Securities Rating Company including understanding of securities rating methodologies and risk management;
having experience in the fields of capital markets, finance, and/or securities ratinging for at least 3 (three) years in managerial positions, including:
a) experienced in the fields of capital markets and finance, such as having served as a director of lending; or b) experienced as an analyst in the field of securities ratinging at a manager level.
In addition, the experience requirements in the fields of capital markets, finance, and/or securities ratinging:
a) for members of the Board of Directors must consider that at least 2 (two) members of the Board of Directors must have expertise in the fields of capital markets or finance; and b) one of the members of the Board of Directors as referred to in letter a) must have work experience in the field of securities ratinging for at least 3 (three) years; and
having an understanding of legislation in the fields of capital markets and finance.
b. for prospective members of the Board of Commissioners:
having adequate knowledge in the field of securities ratinging or capital markets or having at least 2 (two) years of experience in companies operating in the fields of capital markets and/or finance; and
having adequate knowledge regarding good corporate governance principles.

IV. ADMINISTRATIVE REQUIREMENTS FOR PROSPECTIVE PRINCIPAL PARTIES

Applications to obtain approval as a Principal Party are submitted by:

a. prospective PSPs or prospective members of the Board of Directors if the application to obtain approval as a Principal Party is submitted at the time of applying for a business license for the Securities Rating Company; or b. members of the Board of Directors if the Securities Rating Company has obtained a business license, to the Financial Services Authority in accordance with the Format for Application for Approval to Become a Principal Party and accompanied by the Administrative Requirements Documents for Prospective PSPs and Administrative Requirements Documents for Prospective Members of the Board of Directors and Prospective Members of the Board of Commissioners as contained in the Appendix which is an integral part of this Financial Services Authority Circular Letter.

In the event that members of the Board of Directors as referred to in item 1 letter b cannot perform their functions or have conflicts of interest, the application is submitted by:

a. other members of the Board of Directors who do not have conflicts of interest; b. members of the Board of Commissioners if all members of the Board of Directors cannot perform their functions or have conflicts of interest; or
c. other parties appointed by the RUPS if all members of the Board of Directors or members of the Board of Commissioners cannot perform their functions or have conflicts of interest.

In the event that the Financial Services Authority deems it necessary, prospective Principal Parties submit supporting documents for the administrative requirement documents as required in items 1 and 2.
In the event that the administrative requirement documents received by the Financial Services Authority as referred to in items 1 and 2 are incomplete, prospective Principal Parties complete the administrative requirement documents within a maximum period of 20 (twenty) working days.
In the event that prospective Principal Parties do not submit the missing administrative requirement documents within the maximum period of 20 (twenty) working days as referred to in item 4, prospective Principal Parties are deemed to have cancelled the application to obtain approval as a Principal Party.
In the event that the application to obtain approval as a Principal Party is submitted at the time of applying for a business license for the Securities Rating Company, the application and administrative requirement documents of prospective Principal Parties are submitted together with the application and documents for obtaining a business license for the Securities Rating Company applied for.

V. SUBMISSION OF ADMINISTRATIVE REQUIREMENT DOCUMENTS

Before the Securities Rating Company submits the application and administrative requirement documents to become a Principal Party, the Securities Rating Company must first compile a list of fulfillment of administrative requirement documents (compliance checklist) in accordance with the format of the List of Fulfillment of Requirements (Compliance Checklist) for Completeness of PSP Nomination Application Documents – Individuals, List of Fulfillment of Requirements (Compliance Checklist) for Completeness of PSP Nomination Application Documents – Legal Entities/Ultimate Shareholders, and List of Fulfillment of Requirements (Compliance Checklist) for Completeness of Nomination Application Documents for Members of the Board of Directors and Members of the Board of Commissioners, as contained in the Appendix which is an integral part of this Financial Services Authority Circular Letter.
The list of fulfillment of administrative requirement documents (compliance checklist) as referred to in item 1 is accompanied by an explanation stating that the administrative requirement documents submitted:

a. are complete and correct in terms of quantity and format as well as the substance of the administrative requirement documents submitted in accordance with the requirements in this Financial Services Authority Circular Letter; and b. state that the administrative requirements in the form of "statements" and "fill-in lists" have been correctly filled out and signed by the nominated candidates (fill-in lists are only for prospective PSPs).

The list of fulfillment of administrative requirement documents (compliance checklist) as referred to in item 1 is compiled and signed by:

a. prospective PSPs or prospective members of the Board of Directors if the application for approval of prospective Principal Parties is submitted at the time of applying for a business license for the Securities Rating Company; or b. members of the Board of Directors who have duties and authorities regarding the compliance function or officials responsible for the compliance function, in the event that the Securities Rating Company has obtained a business license.

In the event that members of the Board of Directors who have duties and authorities regarding the compliance function or officials responsible for the compliance function have conflicts of interest with prospective Principal Parties or cannot perform their duties, the list of fulfillment of administrative requirement documents (compliance checklist) is compiled and signed by other members of the Board of Directors or replacement officials as has been

determined within the quality control system of the Securities Rating Company.

The list of administrative requirement documents (compliance checklist) is submitted to the Financial Services Authority (OJK) simultaneously with the submission of the administrative requirement documents for the Principal Candidate application.

VI. PROCEDURES FOR ASSESSMENT OF COMPETENCE AND FIT AND PROPER CRITERIA

The procedure for assessing the competence and fit and proper criteria for Principal Candidates is conducted through an administrative assessment as regulated in Article 13 and Article 16 of the OJK Regulation on Assessment of Competence and Fit and Proper Criteria.
In the context of the administrative assessment of the Principal Candidate (PSP), the PSP candidate must present or explain at least:
a. the PSP candidate's plans for the development of the Securities Rating Company that will be owned and controlled by them, for a minimum period of 5 (five) years from becoming a PSP; and b. the PSP candidate's strategy in the event that the Securities Rating Company that will be owned and controlled by them experiences financial difficulties.
In the event that the PSP candidate is a legal entity:
a. the administrative assessment of the PSP candidate legal entity is conducted by assessing:
1. the legal entity concerned;
2. the members of the Board of Directors and members of the Board of Commissioners of the legal entity concerned; and
3. parties who, based on the assessment of the Financial Services Authority, are the ultimate shareholders of the legal entity.
  b. in the event that the ultimate shareholders are the government of another country and the law in that country does not permit such ultimate shareholders to provide data and documents, the Financial Services Authority designates other ultimate shareholders who are directly controlled by the government of that other country, based on valid supporting documents, as substitutes for the ultimate shareholders of the other country's government.
  c. valid supporting documents as referred to in letter b include documents containing the appointment of the legal entity controlled by the other country's government as ultimate shareholders, and documents confirming that the law of that country prohibits the relevant government from providing data and documents.
The Securities Rating Company must first conduct a self-assessment of the candidate members of the Board of Directors and/or candidate members of the Board of Commissioners before submission to the Financial Services Authority, regarding:
a. fulfillment of requirements as referred to in point III number 1 letter b; and b. fulfillment of requirements in accordance with applicable legislation, including regulations regarding limited liability companies and labor laws, which are prepared in accordance with the format of Self-Assessment for Candidate Members of the Board of Directors/Candidate Members of the Board of Commissioners as stated in the Appendix, which is an integral part of this Financial Services Authority Circular Letter.
The self-assessment as referred to in point 4 is signed by:
a. the PSP candidate or members of the Board of Directors of the PSP candidate legal entity, in the event that the application for approval to become a Principal Candidate is submitted at the time of the application for the business license of the Securities Rating Company; or b. members of the Board of Directors responsible for the compliance function or officials responsible for the compliance function, in the event that the Securities Rating Company has obtained its business license.
The results of the self-assessment as referred to in point 4 are submitted simultaneously with the application for approval to become members of the Board of Directors and/or members of the Board of Commissioners to the Financial Services Authority.
In the event that the member of the Board of Directors responsible for the compliance function or the official responsible for the compliance function has a conflict of interest with the Principal Candidate or cannot perform their duties, the results of the self-assessment are signed by other members of the Board of Directors or substitute officials as determined in the quality control system of the Securities Rating Company.
In the context of the administrative assessment of candidate members of the Board of Directors and candidate members of the Board of Commissioners, the Financial Services Authority may conduct clarifications with the relevant candidates face-to-face if:
a. the candidate members of the Board of Directors and/or candidate members of the Board of Commissioners submitted have negative data or information obtained by the Financial Services Authority, including information that the candidate members of the Board of Directors and/or candidate members of the Board of Commissioners submitted have previously been subject to administrative sanctions by the Financial Services Authority; b. the candidate members of the Board of Directors and/or candidate members of the Board of Commissioners submitted do not have relevant experience in the capital market, financial, and/or securities rating fields, considering the position, size, complexity, and issues of the Securities Rating Company where they will be nominated;
c. the candidate members of the Board of Directors and/or candidate members of the Board of Commissioners submitted have previously been deemed not approved in the nomination of Principal Candidates of a Securities Rating Company (LJK) previously in the clarification process regarding competence aspects; and/or
d. there are other considerations from the Financial Services Authority.
Other considerations include, among others, suspected Affiliate relationships with candidate members of the Board of Directors or candidate members of the Board of Commissioners.
In the event that conditions arise causing the presentation or explanation as referred to in point 2 and clarification as referred to in point 8 to not be conducted face-to-face directly, such activities may be conducted via video conference media.
Suspension of Assessment of Competence and Fit and Proper Criteria
a. The Financial Services Authority suspends the assessment of competence and fit and proper criteria for Principal Candidates as referred to in Article 19 paragraph (1) of the OJK Regulation on Assessment of Competence and Fit and Proper Criteria if, at the time of assessment, the candidate:
1. is undergoing legal processes;
2. is undergoing competence and fit and proper criteria assessment at another Securities Rating Company (LJK); and/or
3. is in the process of re-assessment due to indications of integrity issues, financial soundness/reputation, and/or competence at another LJK.
  b. What is meant by undergoing legal processes is that the Principal Candidate is in judicial proceedings related to bankruptcy or has the status of a suspect or defendant in a criminal case.
  c. What is meant by undergoing competence and fit and proper criteria assessment at another LJK is that the Principal Candidate is submitted as a Principal Candidate at another LJK.
  d. What is meant by being in the process of re-assessment due to indications of integrity issues, financial soundness/reputation, and/or competence at another LJK is that the Principal Candidate is in the process of re-assessment due to indications of integrity issues, financial soundness/reputation, and/or competence in their capacity as a Principal Candidate at another LJK. e. The Financial Services Authority notifies the Securities Rating Company submitting the nomination in writing of the suspension of the assessment of competence and fit and proper criteria. f. Principal Candidates whose assessment of competence and fit and proper criteria is suspended may be submitted again to the Financial Services Authority to become Principal Candidates if they:
4. have completed legal processes, evidenced by:
  a) a Letter of Order to Stop Investigation (SP3); b) a Letter of Order to Stop Prosecution; c) a court decision that has acquired permanent legal force stating that the person concerned is not guilty; or d) a court decision that has acquired permanent legal force stating that the person concerned is not declared bankrupt; or
5. are not proven to have issues related to integrity, financial soundness/reputation, and/or competence in the re-assessment process due to indications of integrity, financial soundness/reputation, and/or competence at another LJK.

VII. RESULTS OF ASSESSMENT OF COMPETENCE AND FIT AND PROPER CRITERIA

The Financial Services Authority determines the results of the assessment of competence and fit and proper criteria as follows:
a. approved; or b. not approved.
The Financial Services Authority notifies the results of the assessment of competence and fit and proper criteria in writing to the Securities Rating Company.
The timeframe for determining the results of the assessment of competence and fit and proper criteria is a maximum of 30 (thirty) working days after all administrative requirement documents are received completely.
In the event that the application for approval of Principal Candidates is submitted at the time of the application for the business license of the Securities Rating Company, merger, or consolidation of Securities Rating Companies resulting in a new Securities Rating Company, the Financial Services Authority determines the results of the assessment of competence and fit and proper criteria within the timeframe according to regulations governing the licensing of Securities Rating Companies.
Principal Candidates approved by the Financial Services Authority are declared to meet the requirements to become Principal Candidates at the Securities Rating Company submitting the nomination.
Candidate members of the Board of Directors and/or candidate members of the Board of Commissioners approved by the Financial Services Authority are appointed by the General Meeting of Shareholders (GMS) within 60 (sixty) days from the determination of the results of the assessment of competence and fit and proper criteria by the Financial Services Authority.
In the event that the GMS is held to replace members of the Board of Directors or members of the Board of Commissioners who no longer meet the requirements as regulated in regulations governing the licensing of Securities Rating Companies, the timeframe for convening the GMS as referred to in point 6 follows regulations governing the licensing of Securities Rating Companies.
Approval from the Financial Services Authority becomes invalid if, by the end of the timeframe as referred to in point 6 or point 7, the candidate members of the Board of Directors and candidate members of the Board of Commissioners are not appointed by the GMS.
Approval from the Financial Services Authority for PSP candidates becomes invalid if, within 3 (three) months from the date of determination of the results of the assessment of competence and fit and proper criteria by the Financial Services Authority, there are no changes to the PSP.
The Securities Rating Company reports changes to Principal Candidates to the Financial Services Authority no later than 7 (seven) working days after:
a. the GMS appointment of candidate members of the Board of Directors and/or candidate members of the Board of Commissioners; or b. changes to the PSP accompanied by a list of names and data of the ultimate shareholders.
Candidate members of the Board of Directors and/or candidate members of the Board of Commissioners not approved by the Financial Services Authority are declared not to meet the requirements to become members of the Board of Directors and/or members of the Board of Commissioners at the Securities Rating Company submitting the nomination, with the following provisions:
a. candidate members of the Board of Directors and/or candidate members of the Board of Commissioners not approved by the Financial Services Authority who originate from the transition of positions as referred to in point II number 3 letters e to g, may continue to perform their duties and functions as members of the Board of Directors or members of the Board of Commissioners at the relevant Securities Rating Company, as long as they have not been dismissed from their previous positions in accordance with the Articles of Association of the Securities Rating Company. b. candidate members of the Board of Directors or candidate members of the Board of Commissioners not approved by the Financial Services Authority who originate from officials below the Board of Directors who are currently serving at the Securities Rating Company, may continue to perform their duties and functions as officials below the Board of Directors at the relevant Securities Rating Company, as long as they have not been dismissed from their previous positions in accordance with the Articles of Association of the Securities Rating Company.
Candidate members of the Board of Directors and/or candidate members of the Board of Commissioners not approved by the Financial Services Authority may be nominated again no earlier than 6 (six) months from the date of the determination of non-approval by the Financial Services Authority.
PSP candidates not approved by the Financial Services Authority due to not meeting integrity requirements but who already hold shares in the Securities Rating Company:
a. must transfer all their share ownership in the relevant Securities Rating Company and cease control; b. shareholder rights, namely the right to attend, calculate quorum, vote in the General Meeting of Shareholders, and the right to receive distributed dividends, are not recognized; and
c. the transfer of share ownership as referred to in letter a must be conducted no later than 1 (one) year from the date of determination of non-approval by the Financial Services Authority.
PSP candidates not approved by the Financial Services Authority due to not meeting financial soundness requirements but who already hold shares in the Securities Rating Company:
a. must transfer part of their share ownership in the relevant Securities Rating Company, so that the number of shares owned returns to the initial amount, if the PSP candidate is an existing shareholder; shareholder rights, namely the right to attend, calculate quorum, vote in the General Meeting of Shareholders, and the right to receive distributed dividends, are only recognized up to the amount of the initial shares; and b. the transfer of share ownership as referred to in letter a must be conducted no later than 1 (one) year from the date of determination of non-approval by the Financial Services Authority. In the event that the PSP candidate does not transfer share ownership within the specified timeframe, shareholder rights are not recognized until the person concerned transfers the share ownership.
The transfer of share ownership as referred to in points 13 and 14 may be conducted through gifts or sales to parties other than those with Affiliate relationships.
The Securities Rating Company reports changes to the Articles of Association related to changes in ownership to the Financial Services Authority no later than 7 (seven) working days after the GMS ratifies the transfer of share ownership.

VIII. OTHER PROVISIONS

Assessment of competence and fit and proper criteria for Principal Candidates currently being conducted at the time this regulation comes into force, the consequences of the results of the assessment of competence and fit and proper criteria refer to the provisions in this Financial Services Authority Circular Letter.

This copy is consistent with the original
Legal Director 1
Legal Department signed
Mufli Asmawidjaja

IX. CLOSING

Provisions in this Financial Services Authority Circular Letter come into force on the date of determination.

Determined in Jakarta on 10 August 2021
EXECUTIVE HEAD
CAPITAL MARKET SUPERVISOR
FINANCIAL SERVICES AUTHORITY, signed
HOESEN

APPENDIX
CIRCULAR LETTER OF THE FINANCIAL SERVICES AUTHORITY REPUBLIC OF INDONESIA NUMBER 21 /SEOJK.04/2021 REGARDING ASSESSMENT OF COMPETENCE AND FIT AND PROPER CRITERIA FOR PRINCIPAL CANDIDATES OF SECURITIES RATING COMPANIES

FORMAT OF APPLICATION LETTER TO OBTAIN APPROVAL TO BECOME A PRINCIPAL CANDIDATE

-------- LETTERHEAD --------
(date, month) 20...
Number :
Attachments :
Subject : Application to Obtain
Approval to become PSP/Board of Directors/Board of Commissioners 1) To Hon. Executive Head of Capital Market Supervision Financial Services Authority u.p. Head of Capital Market Supervision Department 2B in Jakarta

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

Name : ………………………………..
Position : as PSP/Board of Directors/Board of Commissioners 1)
Name : ………………………………..
Position : as PSP/Board of Directors/Board of Commissioners 1)
… etc.

Completing this application, we attach administrative requirement documents as follows:
(to be filled with a list of documents as stated in the Appendix Administrative Documents for PSP Candidates of Securities Rating Companies and/or Appendix Administrative Documents for Candidate Members of the Board of Directors and Members of the Board of Commissioners of this Financial Services Authority Circular Letter, according to the position submitted)

Hereby we also submit the list of fulfillment of administrative requirements using the format as stated in the Appendix List of Fulfillment of Requirements (Compliance Checklist) Completeness of Documents for Nomination of Members of the Board of Directors and Members of the Board of Commissioners of this Financial Services Authority Circular Letter.

We can inform that for the purposes of this application, you may contact Mr./Ms. …….. 2), via email address …….. 3) or telephone number …….. 4).

This application is submitted, for your attention Mr./Madam 1), we express our gratitude.

Candidate PSP/Board of Directors/Board of Commissioners/ Other designated party 1) ……..
5)
(Name)

cross out what is not needed
filled with the name of the PIC from the Securities Rating Company
filled with the email address of the Securities Rating Company
filled with the telephone number of the Securities Rating Company
signature

ADMINISTRATIVE REQUIREMENT DOCUMENTS FOR PSP CANDIDATES

Administrative requirement documents for PSP candidates include:

For individual PSP candidates:
a. documents stating identity including:
1. a resume signed by the person concerned using the format as stated in the Appendix Questionnaire for PSP Candidates - Legal Entities/Ultimate Shareholders of this Financial Services Authority Circular Letter;
2. photocopy of identification, which can be an Identity Card for Indonesian Citizens or a passport and Limited Stay Permit (if residing in Indonesia) for Foreign Citizens; and
3. recent color passport photos size 4x6 cm;
  b. documents related to financial soundness, including the Annual Tax Return (SPT) for the last 2 (two) years.
For PSP candidates in the form of legal entities:
a. list of names, addresses, and business fields of the legal entity; b. photocopy of the establishment deed including the articles of association of the legal entity, including the last amendment to the articles of association approved by the competent authority;
c. photocopy of the Taxpayer Identification Number (NPWP) card for Indonesian legal entities;
d. information regarding controlling shareholders, both directly and indirectly, along with the respective share ownership amounts of the legal entity concerned; e. the latest financial statements of the legal entity; f. PSP legal entity ownership structure up to the ultimate shareholders of the legal entity; g. analysis of the PSP candidate's current financial capability in the form of financial projections for a minimum period of 3 (three) years into the future; h. documents for all members of the Board of Directors and members of the Board of Commissioners of the legal entity, including:
1. a resume signed by the person concerned using the format as stated in the Appendix Resume Format of this Financial Services Authority Circular Letter;
2. photocopy of identification, which can be an Identity Card for Indonesian Citizens or a passport and Limited Stay Permit (if residing in Indonesia) for Foreign Citizens; and
3. recent color passport photos size 4x6 cm;
  i. identity documents for all shareholders of the legal entity, including:
4. individuals:
  a) a resume signed by the person concerned using the format as stated in the Appendix Resume Format of this Financial Services Authority Circular Letter; b) photocopy of identification, which can be an Identity Card for Indonesian Citizens or a passport and Limited Stay Permit (if residing in Indonesia) for Foreign Citizens; and c) recent color passport photos size 4x6 cm;
5. legal entities:
  a) photocopy of the establishment deed including the articles of association of the legal entity, including the last amendment to the articles of association approved by the competent authority, including for foreign legal entities in accordance with applicable regulations in the country of origin of the legal entity; and b) the latest financial statements of the legal entity;
A statement letter for the assessment of competence and fit and proper criteria from the PSP candidate using the format as stated in the Appendix Statement Letter Format of this Financial Services Authority Circular Letter, stating that the person concerned:
a. is not undergoing legal processes, is not in the process of competence and fit and proper criteria assessment, and/or is not undergoing re-assessment due to indications of integrity and/or financial soundness/reputation issues at another LJK; b. has never been sentenced for proven criminal acts including:
1. criminal acts in the financial services sector whose sentence has been fully served within the last 20 (twenty) years before nomination;
2. criminal acts, namely criminal acts stated in the Criminal Code (KUHP) and/or similar to the KUHP abroad with a prison sentence threat of 1 (one) year or more whose sentence has been fully served within the last 10 (ten) years before nomination;
  and/or
3. other criminal acts with a prison sentence threat of 1 (one) year or more, including corruption, money laundering, narcotics, smuggling, customs, excise, human trafficking, illegal arms trade, terrorism, counterfeiting currency, in the tax field, in the forestry field, in the environmental field, in the maritime field, and fisheries, whose sentence has been fully served within the last 20 (twenty) years before nomination;
  c. commits to complying with applicable legislation, particularly in the capital market field, and is willing to support the policies of the Financial Services Authority;
  d. commits to the healthy operational development of the Securities Rating Company; e. commits to not transferring share ownership of the Securities Rating Company owned, for a period of 5 (five) years without approval from the Financial Services Authority; f. is not prohibited from becoming a Principal Candidate due to material violations of applicable legislation in the capital market field, including being subject to administrative sanctions such as license revocation, approval cancellation, and/or registration cancellation by the Financial Services Authority within the last 5 (five) years before nomination as a Principal Candidate; g. is not a direct or indirect shareholder of more than one Securities Rating Company;

h. will not affect the independence and objectivity of the rating process by the Securities Rating Company, either directly or indirectly;

i. do not have non-performing loans or financing;

j. have never been declared bankrupt and/or have never been a controller, manager, or supervisor of a company that, based on a decision of the General Meeting of Shareholders (GMS) or another organ equivalent to the GMS, was declared responsible for the company's bankruptcy within the last 5 (five) years prior to nomination;

k. the source of funds used in share ownership does not come from and is not for the purpose of money laundering and/or terrorism financing;

l. commit to taking necessary measures if the Securities Rating Company faces financial difficulties; and

m. 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 (OJK);

The operational development plan of the Securities Rating Company made by the prospective PSP, which at least contains the direction and development strategy for a period of at least 5 (five) years ahead;
Documents containing the appointment of a legal entity controlled by the government of another country as ultimate shareholders for prospective PSPs whose ultimate shareholders are the government of another country and the law in the relevant country does not allow such ultimate shareholders to provide data and documents; and
Documents confirming that the law of that country prohibits the relevant government from providing data and documents for prospective PSPs whose ultimate shareholders are the government of another country and the law in the relevant country does not allow such ultimate shareholders to provide data and documents.
The Application Form for prospective PSPs – Individuals/Legal Entities/Ultimate Shareholders for the competence and propriety assessment of prospective PSPs using the format as contained in the Appendix of the Application Form for Prospective PSPs – Individuals or the Appendix of the Application Form for Prospective PSPs – Legal Entities/Ultimate Shareholders of this Financial Services Authority Circular.

APPLICATION FORM FOR PROSPECTIVE PSP - INDIVIDUAL (Use a separate answer sheet if the available pages are insufficient)

Full name
Other names (if any)
Place and date of birth
(dd/mm/yyyy)
Address according to identity proof
Domicile/correspondence address
(if different from address according to item 4)
Your professional qualifications and
their periods. (state in full)
Explain your profession/business activities and
professional membership in the last two years. Explain including the name of the company, business field, position, professional association followed and other relevant information.
Taxpayer Identification Number (NPWP) (for Indonesian Citizens) or equivalent
(for Foreign Citizens)
Explain the companies you own (directly and indirectly).
Explain your position in the companies you own
as per item 10 above?
Are you a PSP at another Securities Rating Company? Explain.
Are you a PSP at a company other than
a Securities Rating Company? Explain.
Does the company you own in question number 10
have a business relationship with the Securities Rating Company whose shares you will own? Explain the type of business relationship in detail.
Do you intend to become a PSP of a Securities Rating Company
for the purpose of long-term investment? Elaborate on your reasons.
Do you currently hold shares in the Securities Rating Company
whose shares you will own (directly or indirectly). Explain the composition in detail along with the names of those recorded as shareholders of the Securities Rating Company already owned by you. Explain the reasons if the shares mentioned are under the name of another party.
How many shares will you buy? What is the purchase value? What is the proportion of the total shares of the Securities Rating Company? If you already owned shares of the Securities Rating Company
previously, what is the proportion if added to the number of shares you will buy now?
Explain the source of funds you will use to
buy/take over shares of the Securities Rating Company, for example:

Personal wealth.
Domestic loans.
Foreign loans.
Others
(state the source)

Do you intend to transfer either all or part of the shares of your Securities Rating Company within a certain period?
Do you cooperate or take actions
in concert to control the Securities Rating Company that will be owned (acting in concert) with other shareholders?
Do you and/or your business group have plans to conduct other business in
Indonesia or in other countries that will affect the Securities Rating Company that will be owned? Explain.
Is your business activity, or your company or
your business group currently or will be guaranteed by another party? Explain.
Do you have a commitment not to influence, either directly or indirectly, the independence and
objectivity of the rating process by the Securities Rating Company for prospective PSPs?
Has there ever been a bankruptcy case against you in
Indonesia or other countries? Explain in detail.
Have you ever been a controller, manager, or supervisor
at a company, where that company experienced a bankruptcy case by authorities either in Indonesia or other countries?
Have you ever been asked to stop working,
dismissed, subjected to disciplinary actions/sanctions by a company or subjected to a prohibition sanction to practice your profession?
Have you, your company, or your business group
ever been sentenced for proven criminal acts? Explain.
Have you, your company, or your business group ever had their license frozen/cancelled/revoked by
authorities in Indonesia or other countries? Explain.
Have you, your company, or your business group ever had a license application rejected in the capital market/other financial service institutions by authorities in
Indonesia or in other countries? Explain.
Explain the direction and strategy you want to
achieve in the context of developing a healthy Securities Rating Company.
Explain if there is other information that can become
consideration for the Financial Services Authority in processing your application.

The undersigned below declares that:

has 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.
will inform the Financial Services Authority within 30 (thirty) days if there are significant changes in information.
if the above statement/information is proven to be untrue, is willing to accept all decisions of the Financial Services Authority along with the consequences in accordance with legislation, including resigning from the PSP of the Securities Rating Company.
(City), ...........…
(Signature above stamp duty is sufficient)
(Full Name)

APPLICATION FORM FOR PROSPECTIVE PSP - LEGAL ENTITIES/ULTIMATE SHAREHOLDERS (Use a separate answer sheet if the available pages are insufficient)

Company name
Company address
Full name of the person representing the company and position in the company
Explain your obligations and responsibilities as the person representing the company
Place and date of company establishment
Supervisory Body or Regulator of your company:

Name of Agency:
Address:
Website:

Main business of the company currently
Inform in detail the list of all shareholders in your company and explain their PSP status.
Explain the companies owned by your company (directly and indirectly).
Is your company currently a PSP at another Securities Rating Company? Explain.
Is your company currently a PSP at a company other than a Securities Rating Company? Explain.
Does the company in question number 9 have a business relationship with the Securities Rating Company that your company will own? Explain.
Does your company intend to become a PSP of a Securities Rating Company for the purpose of long-term investment? Elaborate on your reasons.
Does your company currently hold shares in the Securities Rating Company whose shares will be owned by your company (directly or indirectly)? Explain the composition in detail along with the names of those recorded as shareholders of the Securities Rating Company already owned by your company. Explain the reasons if the shares mentioned are under the name of another party.
Elaborate in detail, the nominal amount/percentage of ownership of shares of the Securities Rating Company
that will be owned by your company or your business group.
Explain the source of funds that will be used by your company to own the Securities Rating Company, for example:

Company wealth.
Domestic loans.
Foreign loans.
Others.
(state the source)

Does your company intend to transfer either all or part of the shares of the Securities Rating Company whose shares your company will own?
Does your company cooperate or take actions
in concert to control the Securities Rating Company that will be owned (acting in concert) with other shareholders?
Does your company and/or your business group have
plans to conduct other business in Indonesia or in other countries that will affect the Securities Rating Company that will be owned? Explain.
Does your company currently control directly or indirectly the Securities Rating Company that will be owned? Explain.
Are the activities of your company/other companies in your business group guaranteed or will be guaranteed by another party? Explain.
Do you have a commitment not to influence, either directly or indirectly, the independence and
objectivity of the rating process by the Securities Rating Company for prospective PSPs?
Has there ever been a bankruptcy case against your company in Indonesia or other countries? Explain in detail.
Has your company or your business group ever been sentenced for proven criminal acts? Explain.
Has your company become a controller of another company whose business license was ever
frozen/cancelled/revoked by authorities in Indonesia or other countries? Explain.
Has your company or your business group ever had a license application rejected in the capital market/other financial service institutions by the competent authority in
Indonesia or in other countries? Explain.
Explain the direction and strategy you want to
achieve in the context of developing a healthy Securities Rating Company.
Explain if there is other information that can become
consideration for the Financial Services Authority in processing your application.

The undersigned below declares that:

has understood the provisions related to rights and obligations as a PSP as regulated in the applicable provisions.
the information provided above is true, complete, and accurate.
will inform the Financial Services Authority within 30 (thirty) days if there are significant changes in information.
if the above statement/information is proven to be untrue, is willing to accept all decisions of the Financial Services Authority along with the consequences in accordance with legislation, including resigning from the PSP of the Securities Rating Company.
(City), ..........................
(Signature above stamp duty is sufficient)
Name & Position: _________________________
Name of Company Represented: _________
Legal Basis for Representation: ___________

ADMINISTRATIVE REQUIREMENTS DOCUMENT FOR PROSPECTIVE DIRECTORS AND PROSPECTIVE COMMISSIONERS

List of prospective Directors and prospective Commissioners;
Curriculum vitae signed by the relevant party using the format as contained in the Appendix of the Curriculum Vitae Format of this Financial Services Authority Circular;
Copy of identification, which can be an Identity Card for Indonesian Citizens or passport and KITAS (for Foreign Citizens);
Latest color photos size 4 x 6 cm with a red background, 2 (two) sheets;
Copy of the Taxpayer Identification Number (NPWP) card for prospective Directors or prospective Commissioners who are required to have a Taxpayer Identification Number based on tax legislation;
A statement letter from prospective Directors and prospective Commissioners using the format as contained in the Appendix of the Statement Letter Format of this Financial Services Authority Circular, which states that the relevant party:

a. is not undergoing legal proceedings, is not in the process of competence and propriety assessment, and/or is not undergoing a re-assessment process due to indications of integrity and/or financial feasibility/reputation problems at a Financial Service Institution (LJK);

b. has never been sentenced for proven criminal acts consisting of:

criminal acts in the Financial Services Sector whose sentence has been completed within the last 20 (twenty) years prior to nomination;
criminal acts, namely criminal acts contained in the Criminal Code (KUHP) and/or similar KUHP abroad with a prison sentence threat of 1 (one) year or more whose sentence has been completed within the last 10 (ten) years prior to nomination;

and/or

other criminal acts with a prison sentence threat of 1 (one) year or more, including 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, whose sentence has been completed within the last 20 (twenty) years prior to nomination;

c. commits to complying with laws and regulations, especially in the capital market, and supporting the policies of the Financial Services Authority;

d. commits to the operational development of a healthy Securities Rating Company and the development of the rating industry in particular and the capital market in general, for prospective Directors;

e. commits to supervision in the context of operational development of a healthy Securities Rating Company and the development of the rating industry in particular and the capital market in general, for prospective Commissioners;

f. is not prohibited from becoming a Principal Party due to material violations of laws and regulations in the capital market, including being subjected to administrative sanctions such as license revocation, approval cancellation, and/or registration cancellation by the Financial Services Authority for a period of at least 5 (five) years prior to nomination as a Principal Party;

g. has never been subjected to administrative sanctions for violations of laws and regulations in the financial sector within the last 2 (two) years prior to nomination;

h. does not have an Affiliation relationship with members of the Board of Directors or members of the Board of Commissioners for Prospective Directors and Prospective Commissioners;

i. does not hold concurrent positions in any capacity at other companies for Directors;

j. does not hold concurrent positions in any capacity at other companies conducting business activities as a securities rating company for Commissioners;

k. does not have non-performing loans and/or financing;

l. is not a controller, manager, or supervisor of a company that has non-performing loans or financing;

m. has never been declared bankrupt and/or has never been a controller, manager, or supervisor of a company that, based on a decision of the GMS or another organ equivalent to the GMS, was declared responsible for the company's bankruptcy within the last 5 (five) years prior to the date of application submission; and

n. is 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.

The operational development plan of the Securities Rating Company made by the prospective PSP, which at least contains the direction and development strategy for a period of at least 5 (five) years ahead;
The supervision plan in the context of operational development of a healthy Securities Rating Company, which at least contains the direction and supervision strategy of the Securities Rating Company for a period of at least 5 (five) years for prospective Commissioners;
Copy of the latest formal education diploma which has been legalized;
Copy of expertise certificates in the capital market, finance, and/or securities rating fields, if possessing such expertise certificates;
Copy of expertise/training certificates regarding good corporate governance principles for prospective Commissioners, if possessing such expertise/training certificates; and
Self-Assessment for prospective Directors/prospective Commissioners for the competence and propriety assessment using the format as contained in the Appendix of the Self-Assessment for Prospective Directors/Commissioners of this Financial Services Authority Circular.

CURRICULUM VITAE FORMAT

CURRICULUM VITAE

PERSONAL DATA
Full Name : ……………………………………………………..
Nickname : ……………………………………………………..
Place of Birth : ……………………………………………………..
Date of Birth : ……………………………………………………..
Gender : ……………………………………………………..
Religion : ……………………………………………………..
Nationality : ……………………………………………………..
Marital Status : ……………………………………………………..
Occupation : ……………………………………………………..
Home Phone No. : ……………………………………………………..
Mobile Phone No. : ……………………………………………………..
Email Address : ……………………………………………………..
IDENTITY DATA
Type of Identity : ……………………………………………………..
Identity Number : ……………………………………………………..
Address : ……………………………………………………..
RT/RW : ……………………………………………………..
Village/Sub-district : ……………………………………………………..
District : ……………………………………………………..
City/Regency : ……………………………………………………..
Province : ……………………………………………………..
Country : ……………………………………………………..
Postal Code : ……………………………………………………..
NPWP : ……………………………………………………..
Photo attached
DOMICILE DATA
Domicile Address : ……………………………………………………..
RT/RW : ……………………………………………………..
Village/Sub-district : ……………………………………………………..
District : ……………………………………………………..
City/Regency : ……………………………………………………..
Province : ……………………………………………………..
Country : ……………………………………………………..
Postal Code : ……………………………………………………..
EDUCATION HISTORY
Level of Education | Year of Graduation | Institution Name | Faculty / Major | Degree Achieved
TRAINING ATTENDED
Training Name* | Year | Organizer | Location
*) including certification training
WORK HISTORY
Period (Year) | Company Name | Position | Description of Responsibilities | Achievements | Awards | Date of Leaving Work
SPECIFIC EXPERIENCE
(Describe your specific experience at work that demonstrates your ability to handle difficult situations/successes you have achieved).

This Curriculum Vitae is compiled truthfully.
(City), .....................
(Signature above stamp duty is sufficient)
(Name)

STATEMENT LETTER FORMAT FOR PROSPECTIVE PSP/ULTIMATE SHAREHOLDERS ----------------- LETTERHEAD ----------------- STATEMENT LETTER

I, the undersigned below:
Name : ..........................................................
Place and Date of Birth : ..........................................................
ID Card/Passport No. : .........................................................
Address : ..........................................................
acting as prospective PSP/Ultimate Shareholders 1) ……..
2) for and on behalf of myself, declare that I:/acting for and on behalf of …….. 3) as prospective PSP/Ultimate Shareholders 1) ……..
2)
, declare that …….. 3):

is not undergoing legal proceedings, is not in the process of competence and propriety assessment, and/or is not undergoing a re-assessment process due to indications of integrity and/or financial feasibility/reputation problems at a Financial Service Institution (LJK);
has never been sentenced for proven criminal acts consisting of:

a. criminal acts in the financial services sector whose sentence has been completed within the last 20 (twenty) years prior to nomination;

b. criminal acts, namely criminal acts contained in the Criminal Code (KUHP) and/or similar KUHP abroad with a prison sentence threat of 1 (one) year or more whose sentence has been completed within the last 10 (ten) years prior to nomination; and/or

c. other criminal acts with a prison sentence threat of 1 (one) year or more, including 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, whose sentence has been completed within the last 20 (twenty) years prior to nomination.

commits to complying with laws and regulations, especially in the capital market, and is willing to support the policies of the Financial Services Authority;
commits to the operational development of …….. 2) that is healthy;
commits to not transferring shares of …….. 2) owned, for a period of 5 (five) years without approval from the Financial Services Authority;
is not prohibited from becoming a Principal Party due to material violations of laws and regulations in the capital market, including being subjected to administrative sanctions such as license revocation, approval cancellation, and/or registration cancellation by the Financial Services Authority for a period of at least 5 (five) years prior to nomination as a Principal Party;
is not a direct or indirect shareholder in more than one Securities Rating Company;

will not affect the independence and objectivity of the rating process by ……..

, either directly or indirectly;
9. do not have non-performing loans or financing;
10. have never been declared bankrupt and/or have never been a controller, manager, or supervisor of a company that, based on a decision of the General Meeting of Shareholders (GMS) or other organs equivalent to the GMS, was declared responsible for the company's bankruptcy within the last 5 (five) years prior to nomination;
11. the source of funds used for share ownership does not come from and is not for the purpose of money laundering and/or terrorism financing;
12. commit to taking necessary measures if ……..
2) faces financial difficulties; and
13. are willing to accept the decision of the competence and fit and proper assessment results and will not file any claims or lawsuits against the competence and fit and proper assessment results established by the Financial Services Authority.
If it turns out that the above statement is proven false, and/or I violate the above commitments, then I accept all decisions of the Financial Services Authority along with its consequences in accordance with applicable laws and regulations, including transferring the ownership of shares of …….. 2). This statement of declaration is made with full consciousness and without coercion from any party, so that it can be used as appropriate.

(place), (date, month, year) stamp
.................................................
(full name)

cross out what is not needed
filled with the name of the Securities Rating Company
filled with the name of the Legal Entity PSP

FORMAT OF STATEMENT LETTER FOR CANDIDATE DIRECTOR/CANDIDATE COMMISSIONER ----------------- LETTERHEAD ----------------- STATEMENT LETTER I, the undersigned below:
Name : ..........................................................
Place and Date of Birth : ..........................................................
ID Card/Passport No. : .........................................................
Address : ..........................................................
acting as a candidate for Director/Commissioner 1) ……..
2) for
and on behalf of myself, declare that I:

am not undergoing legal proceedings, am not undergoing a competence and fit and proper assessment, and/or am not undergoing a re-assessment process due to indications of integrity issues and/or financial eligibility/reputation at a Reporting Entity;
have never been sentenced for proven criminal offenses consisting of:
a. criminal offenses in the Financial Services Sector whose sentence has been served within the last 20 (twenty) years prior to nomination; b. 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 sentence has been served within the last 10 (ten) years prior to nomination; and/or
c. 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 trade, terrorism, counterfeiting money, in the tax field, in the forestry field, in the environmental field, in the marine and fisheries field, whose sentence has been served within the last 20 (twenty) years prior to nomination;
commit to complying with laws and regulations, particularly in the capital market field, and supporting the policies of the Financial Services Authority;
commit to the healthy operational development of ……..

which includes the development of the rating industry in particular and the capital market in general for candidate Directors;

commit to supervision in the context of healthy operational development of ……..

which includes the development of the rating industry in particular and the capital market in general for candidate Commissioners;

are not prohibited from becoming a Principal Party due to material violations of laws and regulations in the capital market field, including being subject to administrative sanctions such as license revocation, approval cancellation, and/or registration cancellation by the Financial Services Authority within the last 5 (five) years prior to nomination as a Principal Party;
have never been subject to administrative sanctions for violations of laws and regulations in the financial field within the last 2 (two) years prior to nomination;
do not have an Affiliation relationship with members of the Board of Directors or members of the Board of Commissioners of the Securities Rating Company.
do not hold concurrent positions in any capacity at other companies for members of the Board of Directors of the Securities Rating Company;
do not hold concurrent positions in any capacity at other companies conducting business activities as a securities rater for members of the Board of Commissioners of the Securities Rating Company;
do not have non-performing loans and/or financing;
are not a controller, manager, or supervisor of a company having non-performing loans or financing;
have never been declared bankrupt and/or have never been a controller, manager, or supervisor of a company that, based on a decision of the GMS or other organs equivalent to the GMS, was declared responsible for the company's bankruptcy within the last 5 (five) years prior to the date of application submission; and
are willing to accept the decision of the competence and fit and proper assessment results and will not file any claims or lawsuits against the competence and fit and proper assessment results established by the Financial Services Authority 3)
If it turns out that the above statement is proven false, and/or I violate the above commitments, then I accept all decisions of the Financial Services Authority along with its consequences in accordance with applicable laws and regulations. This statement of declaration is made with full consciousness and without coercion from any party, so that it can be used as appropriate.

(place), (date, month, year) stamp
.................................................
(full name)

cross out what is not needed
filled with the name of the Securities Rating Company
included for fulfillment of competence and fit and proper assessment requirements

SELF-ASSESSMENT FOR CANDIDATE DIRECTOR/CANDIDATE COMMISSIONER (Use a separate answer sheet if the available pages are insufficient) NO QUESTION ANSWER Identity of the proposed candidate Full name Place, date of birth (dd/mm/yyyy) Address according to identity proof Residential address

INTEGRITY ASSESSMENT
Yes /
No
EXPLANATION
A. Competent to perform legal acts
Are you competent to perform legal acts as referred to in the Civil Code? Explain.
B. Having good ethics and morals
Have you ever committed a criminal offense in the financial services sector whose sentence has been served within the last 20 (twenty) years prior to nomination? Explain.
Have you ever committed a felony offense, namely a criminal offense 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 sentence has been served within the last 10 (ten) years prior to nomination? Explain.
Have you ever committed 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 trade, terrorism, counterfeiting money, in the tax field, in the forestry field, in the environmental field, in the marine and fisheries field, whose sentence has been served within the last 20 (twenty) years prior to nomination? Explain.
C. Having a commitment to comply with laws and regulations and supporting Financial Services Authority policies
Have you personally or in a company (as a manager/supervisor) ever been subject to administrative sanctions (including fines) for violations of laws and regulations in the financial field within the last 2 (two) years prior to nomination? Explain.
Do you have an Affiliation relationship with members (or candidate members) of the Board of Directors or members (or candidate members) of the Board of Commissioners of the Securities Rating Company? Explain.
Are you currently working in any capacity at another company? Explain. For candidate Directors.
Are you currently working in any capacity at another company conducting business activities as a securities rater? Explain. For candidate Commissioners of the Securities Rating Company.
D. Having a commitment to the healthy development of the Securities Rating Company
Do you have a plan for the operational development of the Securities Rating Company? Explain the direction and strategy for the development of the Securities Rating Company that you will carry out for a period of at least 5 (five) years ahead? For candidate Directors.
Do you have a supervision plan in the context of healthy operational development of the Securities Rating Company? Explain the direction and strategy for the supervision of the Securities Rating Company for a period of at least 5 (five) years ahead? For candidate Commissioners of the Securities Rating Company.
E. Not included as a party prohibited from becoming a Principal Party
Have you personally or in a company (as a manager/supervisor) ever been subject to administrative sanctions such as license revocation, approval cancellation, and/or registration cancellation by the Financial Services Authority within the last 5 (five) years prior to nomination as a member of the Board of Directors or member of the Board of Commissioners of the Securities Rating Company? Explain.
FINANCIAL REPUTATION ASSESSMENT
Yes /
No
EXPLANATION
Do you have non-performing loans or financing? Explain.
Are you currently/ever a controller, manager, or supervisor of a company having non-performing loans or financing? Explain.
Have you personally been declared bankrupt within the last 5 (five) years? Explain.
Have you ever been a controller, manager, or supervisor of a company that, based on a decision of the GMS or other organs equivalent to the GMS, was declared responsible for the company's bankruptcy within the last 5 (five) years? Explain.

COMPETENCE ASSESSMENT
ASSESSMENT SCALE*
) EXPLANATION
1 2 3 4 5
A. Knowledge in the capital market, financial field, and/or securities rating

Your understanding of the role, function, and responsibilities of the proposed position? Explain.
Your understanding of company operations, code of conduct, and good corporate governance principles of the Securities Rating Company according to the proposed position? Explain.
Your knowledge and expertise in the capital market and/or financial field including investment management, lending, insurance, or marketing? Explain.
Your strategic management capability in the context of healthy development of the Securities Rating Company, including anticipation of economic, financial, and rating developments and achievement of the vision and mission of the Securities Rating Company? Explain. Specifically for candidate Directors.
Your ability to perform supervisory functions towards the healthy development of the Securities Rating Company, including anticipation of economic, financial, and rating developments and achievement of the vision and mission of the Securities Rating Company? Explain. Specifically for candidate Commissioners of the Securities Rating Company.
Your ability to lead the organization and empower existing human resource potential to achieve organizational goals? Explain. Specifically for candidate Directors.
Your ability and commitment to perform improvement in all aspects of the organization, particularly related to Director duties (related)? Explain. Specifically for candidate Directors.
Your ability to perform supervision including internal control? Explain. Specifically for candidate Commissioners of the Securities Rating Company.
B. Experience in the capital market, financial field, and/or securities rating
Do you have experience in the Capital Market, financial field, and/or securities rating field for at least 3 years for candidate Directors or at least 2 years for candidate Commissioners of the Securities Rating Company? Explain.
(column not filled) Example:
Bank XYZ/
Financial Director/3 years.
Credit Rating
Agencies XY/
Senior Rating
Analyst/3 years.
Do you have professional and/or academic proficiency certificates in the capital market, financial field, and/or securities rating field? Explain.
(column not filled) Example:
Yes/No,
Professional/ academic proficiency certificates owned:
a. Certified
Financial
Analyst (CFA); b. STTD AP;
c. Investment
Manager
Representative
(WMI); d. Master of
Accounting.
C. Having an understanding of laws and regulations in the capital market and financial field
Your understanding of laws and regulations in the capital market, financial field, and securities rating field.
Your basic understanding of other relevant laws and regulations including but not limited to laws and regulations in the limited liability company field, bankruptcy field, labor field, money laundering and terrorism financing criminal offense field, etc.
*) 1 = Very Poor; 2 = Poor; 3 = Fair; 4 = Good; 5 = Very Good

The undersigned below declares that:

has understood the provisions related to the rights and obligations of the Board of Directors/Board of Commissioners as regulated in applicable laws and regulations.
the information provided above is true, complete, and accurate.
will inform the Financial Services Authority within 30 (thirty) days if there are significant changes in information.
if the above statement/information is proven false, is willing to accept all decisions of the Financial Services Authority along with its consequences in accordance with applicable laws and regulations, including resigning from the member of the Board of Directors/member of the Board of Commissioners of the Securities Rating Company.
(City), ..............
(Signature above stamp is sufficient)
(Name/position)

COMPLIANCE CHECKLIST
COMPLETENESS OF DOCUMENTS FOR PSP CANDIDACY APPLICATION – INDIVIDUAL Name of Applicant Securities Rating Company:
Identity of Proposed Candidate Description
Name
Address
Place & Date of Birth
Last Education
Occupation
Position to be held
No. Description (√/x)* Description
1 list of resumes signed by the person concerned using the format as contained in the Appendix of the Questionnaire Form for Candidate PSP - Legal Entity/Ultimate Shareholders of this Financial Services Authority Circular Letter. 2 photocopy of identity card, can be ID Card for Indonesian Citizens or passport and KITAS (if residing in Indonesia) for Foreign Citizens. 3 latest 4x6 cm color photo 4 documents related to financial eligibility including but not limited to Annual Tax Return (SPT) for the last 2 (two) years.

No. Description (√/x)* Description
5 Statement letter for the competence and fit and proper assessment of the candidate PSP using the format as contained in the Appendix of the Statement Letter Format of this Financial Services Authority Circular Letter (signed above stamp is sufficient) 6 Operational development plan of the Securities Rating Company made by the candidate PSP, which at least contains the direction and strategy of development for a period of at least 5 (five) years ahead 7 documents containing the appointment of a legal entity controlled by a foreign government as ultimate shareholders for Candidate PSPs whose ultimate shareholders are foreign governments and the law in the relevant country does not allow the ultimate shareholders to provide data and documents 8 documents confirming that the law of that country prohibits the government concerned from providing data and documents for Candidate PSPs whose ultimate shareholders are foreign governments and the law in the relevant country does not allow the ultimate shareholders to provide data and documents 9 Questionnaire Form for Candidate PSP – Individual for the competence and fit and proper assessment of the candidate PSP using the format as contained in the Appendix of the Questionnaire Form for Candidate PSP – Individual of this Financial Services Authority Circular Letter *) (√) = requirement document has been attached in the application and is in accordance (X) = requirement document has not been attached The undersigned below declares that:
a. The submitted documents are complete and correct in terms of quantity and format, and the substance of the submitted administrative requirement documents is in accordance with what is required in this Financial Services Authority Circular Letter. b. The administrative requirement documents in the form of "statement" and "questionnaire" have indeed been filled out and signed by the proposed candidate.
(City), ..............
(Signature above stamp is sufficient)
(Name/position)

COMPLIANCE CHECKLIST
COMPLETENESS OF DOCUMENTS FOR PSP CANDIDACY APPLICATION – LEGAL ENTITY/ULTIMATE SHAREHOLDERS Name of Applicant Securities Rating Company:
Identity of Candidate Description
Company Name
Company Address
Full name of the person representing the company and position in the company Explain your obligations and responsibilities as the person representing the company Place and Date of Establishment

list of names, addresses, and business fields of legal entities.
photocopy of the deed of establishment including the articles of association of the legal entity including the latest amendment to the articles of association that has been approved by the competent authority.
photocopy of the Taxpayer Identification Number (NPWP) card for Indonesian legal entities.
information regarding controlling shareholders, both directly and indirectly, including the size of each share ownership of the relevant legal entity.
latest financial statements of the legal entity.
PSP ownership structure of the legal entity up to the final owner and controller of the legal entity (ultimate shareholders).
financial capability analysis of the candidate PSP currently in the form of financial projections for a period of at least 3 (three) years ahead.
documents of all board of directors and board of commissioners members of the legal entity, including:
a. list of resumes signed by the person concerned using the format as contained in the Appendix of the Questionnaire Form for Candidate PSP - Legal Entity/Ultimate Shareholders of this Financial Services Authority Circular Letter; b. photocopy of identity card, can be ID Card for Indonesian Citizens or passport and Limited Stay Permit Card (if residing in Indonesia) for Foreign Citizens; and
c. latest 4x6 cm color photo
identity documents of all shareholders of the legal entity, including:
a. list of resumes signed by the person concerned using the format as contained in the Appendix of the Questionnaire Form for Candidate PSP - Legal Entity/Ultimate Shareholders of this Financial Services Authority Circular Letter for individual shareholders. b. photocopy of identity card, can be ID Card for Indonesian Citizens or passport and Limited Stay Permit Card (if residing in Indonesia) for Foreign Citizens for individual shareholders.
c. latest 4x6 cm color photo for individual shareholders
d. photocopy of the deed of establishment including the articles of association of the legal entity including the latest amendment to the articles of association that has been approved by the competent authority, including for foreign legal entities in accordance with the provisions in the country of origin of the legal entity for corporate shareholders.

e. latest financial statements of the legal entity.
10. Statement letter for the competence and fit and proper assessment of the candidate PSP using the format as contained in the Appendix of the Statement Letter Format of this Financial Services Authority Circular Letter.
11. Operational development plan of the Securities Rating Company made by the candidate PSP, which at least contains the direction and strategy of development for a period of at least 5 (five) years ahead.
12. documents containing the appointment of a legal entity controlled by a foreign government as ultimate shareholders for Candidate PSPs whose ultimate shareholders are foreign governments and the law in the relevant country does not allow the ultimate shareholders to provide data and documents.
13. documents confirming that the law of that country prohibits the government concerned from providing data and documents for Candidate PSPs whose ultimate shareholders are foreign governments and the law in the relevant country does not allow the ultimate shareholders to provide data and documents
14. Questionnaire Form for Candidate PSP – Legal Entity/Ultimate Shareholder for the competence and fit and proper assessment of the candidate PSP using the format as contained in the Appendix of the Questionnaire Form for Candidate PSP – Legal Entity/Ultimate Shareholder of this Financial Services Authority Circular Letter
(√) = requirement document has been attached in the application and is in accordance (X) = requirement document has not been attached The undersigned below declares that:
a. The submitted documents are complete and correct in terms of quantity and format, and the substance of the submitted administrative requirement documents is in accordance with what is required in this Financial Services Authority Circular Letter. b. The administrative requirement documents in the form of "statement" and "questionnaire" have indeed been filled out and signed by the proposed candidate.
(City), ..............
(Signature above stamp is sufficient)
(Name/position)

COMPLIANCE CHECKLIST
COMPLETENESS OF DOCUMENTS FOR CANDIDACY APPLICATION FOR BOARD OF DIRECTORS AND BOARD OF COMMISSIONERS MEMBERS Name of Applicant Securities Rating Company:
Identity of Proposed Candidate Description
Name
Address
Place & Date of Birth
Last Education
Occupation
Position to be held
No. Description (√/x) Description

List of candidate members of the Board of Directors and candidate members of the Board of Commissioners.
List of resumes signed by the person concerned using the format as contained in the Appendix of the Resume Format of this Financial Services Authority Circular Letter.
Photocopy of identity card, can be ID Card for Indonesian Citizens or passport and Limited Stay Permit Card (for Foreign Citizens).
Latest 4x6 cm color photo with red background, 2 (two) sheets.

No. Description (√/x) Description
5. Photocopy of the Taxpayer Identification Number card for prospective members of the Board of Directors or prospective members of the Board of Commissioners who are required to have a Taxpayer Identification Number based on tax legislation.
6. Statement letter from prospective Directors and Commissioners of Commissioners using the format as stated in the Appendix of the Statement Letter Format of this Financial Services Authority Circular.
7. Photocopy of the latest formal education diploma that has been legalized.
8. Photocopy of skill certificates in the capital market, finance, and/or securities rating fields, if possessing such skill certificates.
9. Photocopy of skill/training certificates regarding good corporate governance principles for prospective members of the Board of Commissioners, if possessing such skill/training certificates.
10. Self Assessment for prospective members of the Board of Directors/prospective members of the Board of Commissioners in the framework of competence and propriety assessment using the format as stated in the Appendix of Self Assessment for Prospective Members of the Board of Directors/Prospective Members of the Board of Commissioners of this Financial Services Authority Circular

*) (√) = requirement documents have been attached in the application and are in accordance (X) = requirement documents have not been attached

The undersigned hereby declares that:
a. The submitted documents are complete and correct in terms of quantity and format, and the substance of the submitted administrative requirement documents is in accordance with the requirements stipulated in this Financial Services Authority Circular. b. The administrative requirement documents in the form of "statement" and "questionnaire" have indeed been filled out and signed by the proposed candidate.

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

Determined in Jakarta on August 10, 2021
HEAD OF EXECUTIVE SUPERVISOR OF CAPITAL MARKET FINANCIAL SERVICES AUTHORITY REPUBLIC OF INDONESIA, signed HOESEN

Assessment of Competence and Propriety for Prospective Principal Parties of Securities Rating Companies

Lineage: In force