Bappebti Regulation Number 6 of 2018 Concerning Approval of Clearing and Guarantee Institutions for Commodity Auction Markets

REGULATION OF THE HEAD OF THE COMMODITY FUTURES TRADING REGULATORY AGENCY OF THE REPUBLIC OF INDONESIA NUMBER 6 OF 2018 CONCERNING APPROVAL OF CLEARING AND GUARANTEE INSTITUTIONS FOR COMMODITY AUCTION MARKETS

BY THE GRACE OF GOD THE ALMIGHTY,

THE HEAD OF THE COMMODITY FUTURES TRADING REGULATORY AGENCY OF THE REPUBLIC OF INDONESIA,

Considering:
a. that in order to implement the provisions of Article 88 and Article 89 of Government Regulation Number 24 of 2018 concerning Integrated Electronic Business Licensing Services, the provisions regarding the approval of Clearing and Guarantee Institutions for Commodity Auction Markets need to be amended and adjusted; b. that based on the considerations referred to in letter a, it is necessary to establish a Regulation of the Head of the Commodity Futures Trading Regulatory Agency concerning Approval of Clearing and Guarantee Institutions for Commodity Auction Markets;

Recalling:

1. Law Number 7 of 2014 concerning Trade (State Gazette of the Republic of Indonesia Year 2014 Number 45, Supplement to the State Gazette of the Republic of Indonesia Number 5512);
2. Law Number 23 of 2014 concerning Regional Government (State Gazette of the Republic of Indonesia Year 2014 Number 244);
3. Government Regulation Number 24 of 2018 concerning Integrated Electronic Business Licensing Services (State Gazette of the Republic of Indonesia Year 2018 Number 90, Supplement to the State Gazette of the Republic of Indonesia Number 6215);
4. Presidential Regulation Number 7 of 2015 concerning the Organization of State Ministries (State Gazette of the Republic of Indonesia Year 2015 Number 8);
5. Presidential Regulation Number 48 of 2015 concerning the Ministry of Trade (State Gazette of the Republic of Indonesia Year 2015 Number 90);
6. Presidential Decree Number 86/TPA of 2018 concerning Dismissal and Appointment From and Within Senior Leadership Positions in the Environment of the Ministry of Trade;
7. Decree of the Minister of Industry and Trade Number 650/MPP/Kep/10/2004 concerning Provisions for the Implementation of Commodity Auction Markets with Forward Delivery;
8. Minister of Trade Regulation Number 08/M-DAG/PER/2/2016 concerning the Organization and Work Structure of the Ministry of Trade (State Newspaper of the Republic of Indonesia Year 2016 Number 202);
9. Minister of Trade Regulation Number 77 of 2018 concerning Integrated Electronic Business Licensing Services in the Trade Sector (State Newspaper of the Republic of Indonesia Year 2018 Number 938);

DECIDES:

To establish: A REGULATION OF THE HEAD OF THE COMMODITY FUTURES TRADING REGULATORY AGENCY CONCERNING APPROVAL OF CLEARING AND GUARANTEE INSTITUTIONS FOR COMMODITY AUCTION MARKETS.

Article 1
In this Regulation of the Head, the following terms are defined:

1. The Commodity Futures Trading Regulatory Agency, hereinafter referred to as Bappebti, is a government agency whose main duties are to conduct guidance, regulation, development, and supervision of Commodity Futures Trading, Warehouse Receipt Systems, and Commodity Auction Markets.
2. Commodity Auction Market is an organized physical market for buyers and sellers to conduct Commodity transactions through an auction system with commodity delivery.
3. Commodity Auction Market Organizer is a legal entity business entity that conducts Commodity Auction Market activities with commodity delivery.
4. Clearing and Guarantee Institution for Commodity Auction Market is a legal entity business entity that conducts registration and guarantee of the settlement of transactions occurring in the Commodity Auction Market.
5. Integrated Electronic Business Licensing or Online Single Submission, hereinafter abbreviated as OSS, is Business Licensing issued by the OSS Institution for and on behalf of the Minister, Head of Agency, Governor, or Regent/Mayor to Business Actors through an integrated electronic system.
6. Commitment is a statement by the Business Actor to fulfill the requirements for Business License and/or Commercial or Operational License.
7. OSS Managing and Implementing Institution, hereinafter referred to as OSS Institution, is a non-ministerial government agency that conducts government affairs in the field of investment coordination.
8. Business Identification Number, hereinafter abbreviated as NIB, is the identity of the Business Actor issued by the OSS Institution after the Business Actor conducts Registration.
9. Service Level Arrangement, hereinafter abbreviated as SLA, is the service level that must be observed and implemented to conduct Business Licensing services in the trade sector integrated with OSS.

Article 2
(1) Clearing and guarantee activities for Commodity Auction Markets may only be conducted by legal entity business entities that have obtained approval as a Clearing and Guarantee Institution for Commodity Auction Market from the Head of Bappebti. (2) The legal entity business entity referred to in paragraph (1) must be in the form of a Limited Liability Company (Perseroan Terbatas). (3) Clearing and guarantee activities referred to in paragraph (1) may be conducted for Auction Markets with forward delivery and/or Auction Markets with immediate (spot) delivery. (4) The implementation of the authority to issue approval as referred to in paragraph (1) is conducted through the OSS Institution. (5) The OSS Institution referred to in paragraph (4) issues the approval of the Clearing and Guarantee Institution for Commodity Auction Market for and on behalf of the Head of Bappebti based on the provisions of Government Regulations concerning Integrated Electronic Business Licensing Services and Minister of Trade Regulations regulating Integrated Electronic Business Licensing Services in the Trade Sector.

Article 3
The Clearing and Guarantee Institution for Commodity Auction Market must have paid-up capital of at least IDR 100,000,000,000.00 (one hundred billion rupiah).

Article 4
The Clearing and Guarantee Institution for Commodity Auction Market is prohibited from being controlled, directly or indirectly, by an individual who:
a. has been declared bankrupt or served as a director or commissioner who was declared guilty causing a company to be declared bankrupt within the last 5 (five) years; b. has been sentenced based on a final court decision for committing criminal acts in the economic or financial sector with a penalty threat of more than 5 (five) years;
c. is proven to have violated provisions of laws and regulations in the field of Commodity Auction Markets;
d. does not have good ethics and morals; and/or e. does not have knowledge in the field of Commodity Auction Markets.

Article 5
(1) The Clearing and Guarantee Institution for Commodity Auction Market must have sufficient facilities to conduct clearing and guarantee activities for Commodity Auction Markets.
(2) Sufficient facilities as referred to in paragraph (1) must at least include:
a. office buildings, whether owned or rented; and b. information and communication technology infrastructure.

Article 6
(1) The Clearing and Guarantee Institution for Commodity Auction Market must have personnel with the necessary competencies in the implementation of Commodity Auction Markets.
(2) Competencies as referred to in paragraph (1) must at least include:
a. understanding laws and regulations in the field of Commodity Auction Markets; and b. having knowledge regarding clearing and guarantee activities for Commodity Auction Markets.

Article 7
The Clearing and Guarantee Institution for Commodity Auction Market must have cooperation with Commodity Auction Market Organizers.

Article 8
(1) The Clearing and Guarantee Institution for Commodity Auction Market must have an NIB to be able to submit an application for approval as a Clearing and Guarantee Institution for Commodity Auction Market. (2) The Clearing and Guarantee Institution for Commodity Auction Market is issued an NIB in accordance with Government Regulations regulating Integrated Electronic Business Licensing Services and Minister of Trade Regulations regulating Integrated Electronic Business Licensing Services in the Trade Sector.

Article 9
(1) Prospective Clearing and Guarantee Institutions for Commodity Auction Markets must fulfill Commitment and SLA requirements for the issuance of business licensing in the trade sector in accordance with Minister of Trade Regulations regulating Integrated Electronic Business Licensing Services in the Trade Sector. (2) Prospective Clearing and Guarantee Institutions for Commodity Auction Markets in fulfilling Commitment and SLA requirements for the issuance of Business Licensing in the trade sector as referred to in paragraph (1) must complete them within the time period determined in accordance with Minister of Trade Regulations regulating Integrated Electronic Business Licensing Services in the Trade Sector. (3) In the event that fulfilling Commitment and SLA requirements for the issuance of Business Licensing in the trade sector incurs costs, prospective Clearing and Guarantee Institutions for Commodity Auction Markets must pay the costs in the manner determined in accordance with laws and regulations. (4) In the event that a prospective Clearing and Guarantee Institution for Commodity Auction Market cannot complete the Commitment within the established time period as referred to in paragraph (2), the Clearing and Guarantee Institution for Commodity Auction Market cannot conduct its business activities and must submit a new application for business licensing in the trade sector to the OSS Institution. (5) Approval of the Clearing and Guarantee Institution for Commodity Auction Market becomes effective once all Commitment requirements are fulfilled and payment has been made.

Article 10
(1) In granting approval for the Clearing and Guarantee Institution for Commodity Auction Market, Bappebti:
a. examines the completeness and truthfulness of required documents; b. conducts an assessment of the 3 (three) year business plan;
c. grants approval for the Rules and Regulations (PTT);
d. conducts interviews for suitability and feasibility tests regarding ethics, morals, knowledge in the field of Commodity Auction Markets for directors and commissioners, and ensures freedom from criminal acts as stated in the integrity pact; and e. examines physical infrastructure and facilities. (2) Bappebti provides notification to the OSS Institution no later than 3 (three) working days from the fulfillment of Commitment completeness. (3) Notification as referred to in paragraph (2) may consist of fulfilled Commitment or unfulfilled Commitment.

Article 11
(1) The Clearing and Guarantee Institution for Commodity Auction Market must report to the OSS Institution any changes in name and/or address no later than 5 (five) working days after the change occurs. (2) The Clearing and Guarantee Institution for Commodity Auction Market must report every change in board of directors members, board of commissioners members, and shareholders to:
a. the OSS Institution no later than 5 (five) working days after the change is implemented; and b. Bappebti no later than 5 (five) working days after the change is implemented using Form Number I.LKP accompanied by documents required in Form Number I.LKP.1.A as listed in the Appendix which is an integral part of this Regulation of the Head. (3) Bappebti may conduct suitability and feasibility tests on board of directors and board of commissioners members of the Clearing and Guarantee Institution for Commodity Auction Market, regarding ethics, morals, and knowledge in the field of Commodity Auction Markets for changes reported to Bappebti as referred to in paragraph (2) letter b, if necessary.

Article 12
In the event that the OSS Institution is unable to process the issuance of business licensing in the trade sector regulated in this Regulation of the Head, the Head of Bappebti issues approval as a Clearing and Guarantee Institution for Commodity Auction Market with the following provisions:
a. Prospective Clearing and Guarantee Institutions for Commodity Auction Markets must submit an application electronically via http://plk.bappebti.go.id to the Head of Bappebti by attaching requirements as referred to in Article 9 paragraph (1), with the provision that document requirements for Rules and Regulations (PTT) have obtained approval from the Head of Bappebti. b. Bappebti examines the validity and truthfulness of documents as referred to in Article 9 paragraph (1), conducts interviews and suitability tests, and examines physical infrastructure and facilities within 20 (twenty) working days from the receipt of complete documents.
c. The Head of Bappebti issues approval for the Clearing and Guarantee Institution for Commodity Auction Market within the time period as referred to in letter b using Electronic Signature (e-Signature) which does not require a stamp and wet signature, and includes a QR Code (Quick Response Code) after requirements as referred to in letter b are complete and correct.
d. In the event that requirements as referred to in Article 9 paragraph (1) are incomplete, the application for approval of the Clearing and Guarantee Institution for Commodity Auction Market cannot be processed further. e. In the event that requirements as referred to in letter b are incomplete and incorrect, the application for approval of the Clearing and Guarantee Institution for Commodity Auction Market is rejected electronically. f. Bappebti provides notification to the OSS Institution no later than 3 (three) working days from the issuance of approval as referred to in letter c.

Article 13
Upon the commencement of this Regulation of the Head, approvals for Clearing and Guarantee Institutions for Commodity Auction Markets that have been obtained and are still valid are declared to remain valid and must be registered by the approval holders into the OSS system.

Article 14
Upon the commencement of this Regulation of the Head, the Regulation of the Head of the Commodity Futures Trading Regulatory Agency Number 6 of 2016 concerning Approval of Clearing and Guarantee Institutions for Auction Markets with Forward Delivery is repealed and declared invalid.

APPENDIX TO THE REGULATION OF THE HEAD OF THE COMMODITY FUTURES TRADING REGULATORY AGENCY
NUMBER 6 OF 2018
CONCERNING
APPROVAL OF CLEARING AND GUARANTEE INSTITUTIONS FOR COMMODITY AUCTION MARKETS

Form Number I. LKP

To: The Head of the Commodity Futures Trading Regulatory Agency At: Place

In connection with changes in the board of directors/commissioners/shareholders* at …………………., we hereby submit a report on the aforementioned changes accompanied by supporting documents as required in accordance with laws and regulations.

We hereby submit this, and thank you for your attention and permission.

………,…………..20

Respectfully,

Stamp Duty

(Chief Director Name)

Note:
*Choose one

A. Board of Directors Composition:

1. Chief Director (old) : ……………………………………………………….
   Chief Director (new) : ……………………………………………………….
2. Board of Directors (old) : ……………………………………………………….
   Board of Directors (new) : ……………………………………………………….
3. …………………………………………………………………………………………

B. Board of Commissioners Composition:

1. Chief Commissioner (old) :
   ………………………………………………………
   Chief Commissioner (new) : ………………………………………………………
2. Commissioner (old) : ………………………………………………………………
   Commissioner (new) : ………………………………………………………………
3. ………………………………………………………………………………………..

C. Shareholder Composition:

Shareholder Name (old)	Number of Shares	Shareholder Name (new)	Number of Shares

Form Number I. LKP.1.A

1. Deed of Company Change (old);
2. Deed of Company Change (new);
3. Minutes of the General Meeting of Shareholders (RUPS) signed by the Board of Directors, Board of Commissioners, and Shareholders.

LIST OF INTEGRITY QUESTIONS FOR APPLICANT

Instructions for Answering Questions:

1. All questions must be answered by the applicant;
2. Signed by directors, board of commissioners, or shareholders on stamped paper;
3. Place an X in the box in front of the word "yes" if the applicant's answer is "yes", or place an X in the box in front of the word "no" if the applicant's answer is "no".

For every "yes" answer, the applicant must provide a detailed and clear answer on a separate sheet which includes among others:
a. the institutions involved; b. the cases and dates of actions taken;
c. the court or institution taking action; and
d. the actions and sanctions taken.

Answer the following questions!

Are you, as a director/commissioner/shareholder *) of a business entity, ever:

1. Warned, suspended, had license revoked, or had license rejected by Bappebti?
   ☐ yes ☐ no

2. Sentenced for proven criminal acts in the economic sector including trade, industry, agriculture, banking, insurance, capital market, or taxation within the last 10 (ten) years?
   ☐ yes ☐ no

3. Proven to have violated laws and regulations in the Trade sector within the last 10 (ten) years?
   ☐ yes ☐ no

4. Declared bankrupt or served as a director or commissioner who was declared guilty causing a company to be declared bankrupt within the last 10 (ten) years?
   ☐ yes ☐ no

5. Currently undergoing examination or trial due to suspected violations of laws and regulations in the Trade sector or suspected criminal acts in the economic sector including industry, agriculture, banking, insurance, capital market, or taxation?
   ☐ yes ☐ no

6. Lacking good moral ethics?
   ☐ yes ☐ no

7. Included in the banking blacklist?
   ☐ yes ☐ no

8. Not compliant in paying financial obligations, especially tax payments?
   ☐ yes ☐ no

.................,.....................
(Place and Date)

(Director / Commissioner / Shareholder *)

Stamp Duty

Clear Name
(.............................)

Note:
*Choose one