OJK Regulation No. 27 of 2025 on Asset and Liability Management of Sharia Insurance and Reinsurance Companies

FINANCIAL SERVICES AUTHORITY REGULATION
OF THE REPUBLIC OF INDONESIA
NUMBER 27 OF 2025
CONCERNING
ASSET AND LIABILITY MANAGEMENT OF SHARIA INSURANCE AND SHARIA REINSURANCE COMPANIES WITH THE GRACE OF THE MOST HIGH GOD

THE COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY,

Considering:
a. that Sharia insurance companies and Sharia reinsurance companies, in implementing risk management related to investment placement and maintaining financial health, need to apply the principle of prudence; b. that regulations regarding investment diversification and investment placement with related and non-related parties have not been comprehensively regulated;
c. that the Financial Services Authority Regulation Number 72/POJK.05/2016 concerning the Financial Health of Sharia Insurance Companies and Sharia Reinsurance Companies, as amended several times, lastly with the Financial Services Authority Regulation Number 6 of 2023 concerning the Second Amendment to the Financial Services Authority Regulation Number 72/POJK.05/2016 concerning the Financial Health of Sharia Insurance Companies and Sharia Reinsurance Companies, is no longer in line with the development of the insurance industry, so it needs to be replaced;
d. that based on the considerations referred to in letters a, b, and c, it is necessary to establish a Financial Services Authority Regulation concerning Asset and Liability Management of Sharia Insurance and Sharia Reinsurance Companies;

Recalling:

Law Number 21 of 2011 concerning the Financial Services Authority (State Gazette of the Republic of Indonesia Year 2011 Number 111, Supplement to the State Gazette of the Republic of Indonesia Number 5253), as amended by Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (State Gazette of the Republic of Indonesia Year 2023 Number 4, Supplement to the State Gazette of the Republic of Indonesia Number 6845);
Law Number 40 of 2014 concerning Insurance (State Gazette of the Republic of Indonesia Year 2014 Number 337, Supplement to the State Gazette of the Republic of Indonesia Number 5618), as amended by Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (State Gazette of the Republic of Indonesia Year 2023 Number 4, Supplement to the State Gazette of the Republic of Indonesia Number 6845);

DECIDING:

Establishing: FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING ASSET AND LIABILITY MANAGEMENT OF SHARIA INSURANCE AND SHARIA REINSURANCE COMPANIES.

CHAPTER I
GENERAL PROVISIONS

Article 1
In this Financial Services Authority Regulation, the following terms are defined as:

Company means a Sharia insurance company, a Sharia reinsurance company, and a Sharia unit.
Sharia Insurance Company means a general Sharia insurance company and a life Sharia insurance company as referred to in Law Number 40 of 2014 concerning Insurance, as amended by Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector.
Sharia Unit means a working unit at the head office of an insurance company or reinsurance company that functions as the head office of offices outside the head office that conduct business based on Sharia principles.
General Sharia Insurance Company means a company that conducts risk management business based on Sharia principles for mutual assistance and protection by providing compensation to participants or policyholders for losses, damages, costs arising, loss of profits, or legal liability to third parties that may be suffered by participants or policyholders due to the occurrence of uncertain events.
Life Sharia Insurance Company means a company that conducts risk management business based on Sharia principles for mutual assistance and protection by providing payments based on the death or survival of participants, or other payments to participants or other entitled parties at certain times as regulated in the agreement, the amount of which has been determined and/or based on the results of fund management.
Sharia Reinsurance Company means a company that conducts risk management business based on Sharia principles over risks faced by Sharia Insurance Companies, Sharia guarantee companies, or other Sharia Reinsurance Companies, including Sharia Units of reinsurance companies.
Sharia Supervisory Board, hereinafter abbreviated as DPS, is a board that has the task and function of supervision and providing advice to the Board of Directors regarding the implementation of Company activities to ensure compliance with Sharia principles.
Insurance Product Linked to Investment, hereinafter referred to as PAYDI, is an insurance product that provides at least death risk protection and provides benefits that refer to the investment results of a special fund pool formed for the insurance product, whether declared in unit form or not.
Liability means obligations as referred to in insurance legislation.
Contract means a written agreement containing specific agreements, along with the rights and obligations of the parties according to Sharia principles.
Sharia Principle means Islamic legal principles in insurance activities based on fatwas issued by institutions having authority in setting fatwas in the Sharia field as referred to in Law Number 40 of 2014 concerning Insurance, as amended by Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector.
Underwriting Surplus is the excess of the total contribution of policyholders or participants into the Tabarru’ fund and Tanahud fund plus total claim recovery from reinsurers minus benefit/claim/benefit payments, reinsurance contributions, and increases in technical reserves, in a specific period.
Tabarru’ Fund is a pool of funds originating from contributions of policyholders or participants, the mechanism of which is used in accordance with the Sharia insurance agreement or Sharia reinsurance agreement as referred to in Law Number 40 of 2014 concerning Insurance, as amended by Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector.
Tanahud Fund is a pool of funds originating from Tanahud contributions, investment results of the Tanahud fund, qardh from the Company fund to the Tanahud fund, and/or Tanahud funds from reinsurers, the use of which is in accordance with the Tanahud fund donation Contract.
Guarantee Fund is the asset of a Sharia Insurance Company or Sharia Reinsurance Company that serves as the last resort to protect the interests of policyholders or participants, in the event that the Sharia Insurance Company and Sharia Reinsurance Company are liquidated.
Company Fund is a pool of funds managed by the Company, other than Tabarru’ Fund, Tanahud Fund, and participant investment funds.
Participant Investment Fund is an investment fund originating from contributions of policyholders or participants in Sharia insurance products that provide benefits in the form of fund payments the amount of which is based on the results of fund management.
Permitted Assets are assets calculated in the solvency ratio calculation.
Qardh is a loan from the Company Fund to the Tabarru’ Fund and/or Tanahud Fund.
Assets Available for Qardh is a portion of the Permitted Assets from the Company Fund provided to give Qardh to the Tabarru’ Fund and/or Tanahud Fund.
Risk-Based Minimum Capital, hereinafter abbreviated as MMBR, is the amount of funds needed to anticipate potential losses resulting from deviations in the management of assets and Liabilities of the Company Fund.
Risk-Based Minimum Tabarru’ and Tanahud Funds, hereinafter abbreviated as DTMBR, is the amount of funds needed to anticipate potential losses resulting from deviations in the management of assets and Liabilities of the Tabarru’ Fund and Tanahud Fund.
Tabarru’ and Tanahud Fund Solvency Ratio is the difference between the amount of Permitted Assets from the Tabarru’ Fund and Tanahud Fund minus the Liabilities from the management of the Tabarru’ Fund and Tanahud Fund.
Company Fund Solvency Ratio is the difference between the amount of Permitted Assets from the Company Fund minus the Liabilities from the management of the Company Fund.
Equity is equity based on the financial accounting standards applicable in Indonesia.
Debt securities and/or sukuk without public offering, hereinafter referred to as EBUS Without Public Offering, are debt securities and/or sukuk issued without a public offering mechanism and meeting established criteria.
Net Contribution is the contribution allocated to the Tabarru’ Fund minus outgoing reinsurance tabarru’ contributions plus incoming reinsurance tabarru’ contributions.
Investment Manager means an investment manager as referred to in Law Number 8 of 1995 concerning the Capital Market, as amended by Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector.
Sharia Commercial Bank means a Sharia commercial bank as referred to in Law Number 21 of 2008 concerning Sharia Banking, as amended several times, lastly with Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector.
Sharia People’s Economic Bank, hereinafter referred to as BPR Syariah, means a Sharia people’s economic bank as referred to in Law Number 21 of 2008 concerning Sharia Banking, as amended several times, lastly with Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector.
Custodian Bank means a commercial bank and a Sharia commercial bank that has obtained approval from the Financial Services Authority to conduct business activities as a custodian.
Party means an individual or business entity, whether in the form of a legal entity or not, as referred to in Law Number 40 of 2014 concerning Insurance, as amended by Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector.
Related Party means an individual or company that has a control relationship with the Company, directly or indirectly, through ownership, management, and/or financial relationships.
Investment Recipient Group is 2 (two) or more individuals and/or companies that mutually have a control relationship through ownership, management, and/or financial relationships, which receive funds from the Company and/or issue Sharia securities owned by the Company, in the context of the Company’s investment.
Sub-fund is a fund formed and managed by the Company with a specific investment strategy to provide benefits linked to investment in PAYDI.
Company Actuary means an individual who has obtained certification from the association governing the actuarial field, who is appointed and works full-time as an actuary at the insurance company or Sharia Insurance Company where they work.

CHAPTER II
SEPARATION OF ASSETS AND LIABILITIES

First Section
Separation of Assets and Liabilities

Article 2
(1) Companies are required to separate assets and Liabilities related to the rights of policyholders or participants from other assets and Liabilities of the Company.
(2) The separation of assets and Liabilities as referred to in paragraph (1) is applied to:
a. separation of assets and Liabilities related to the rights of policyholders or participants, into:

Tabarru’ Fund for Companies marketing Sharia insurance or Sharia reinsurance products using Tabarru’ Contracts;
Tanahud Fund for Companies marketing Sharia insurance or Sharia reinsurance products using Tanahud Contracts;
Participant Investment Fund for Companies marketing Sharia insurance products that provide benefits in the form of fund payments the amount of which is based on the results of fund management; and
b. other assets and Liabilities of the Company, namely the Company Fund.
(3) Companies are required to make separate records for the Tabarru’ Fund, Tanahud Fund, Company Fund, and Participant Investment Fund.
(4) Companies are prohibited from transferring assets and Liabilities from one fund to another fund managed by the Company as referred to in paragraph (2), except for the imposition of costs regulated in the policy.

Article 3
(1) Assets and Liabilities of the Tabarru’ Fund and Tanahud Fund as referred to in Article 2 paragraph (2) letter a numbers 1 and 2 are the assets and Liabilities of policyholders or participants collectively. (2) Companies may form more than 1 (one) Tabarru’ Fund or Tanahud Fund. (3) Companies forming more than 1 (one) Tabarru’ Fund or Tanahud Fund are required to:
a. separate Tabarru’ Funds or Tanahud Funds with:

based on the characteristics of Sharia insurance products;
considering the adequacy of Tabarru’ Funds or Tanahud Funds to meet the Liabilities of each fund based on the principle of large numbers; and
first obtaining approval from the DPS and the Company Actuary.
b. have an information technology system that can support the separation of Tabarru’ Funds or Tanahud Funds;
c. have an investment strategy for each Tabarru’ Fund or Tanahud Fund; and
d. monitor and evaluate the performance of each Tabarru’ Fund or Tanahud Fund.
(4) Companies must maintain Permitted Assets in the Tabarru’ Fund and Tanahud Fund with a value of at least equal to the Liabilities of the total Tabarru’ Fund and Tanahud Fund.
(5) Companies are required to inform policyholders or participants and include in the policy regarding the merger/separation of Tabarru’ Funds or Tanahud Funds.
(6) Companies must have guidelines for the formation of Tabarru’ Funds and Tanahud Funds.

Article 4
(1) In the event that a Company forms more than 1 (one) Tabarru’ Fund or Tanahud Fund:
a. every receipt and expense of the Tabarru’ Fund and Tanahud Fund must be booked in each respective Tabarru’ Fund or Tanahud Fund; and b. underwriting surplus/deficit is calculated for each Tabarru’ Fund or Tanahud Fund. (2) Tabarru’ Funds as referred to in paragraph (1) are required to be used for:
a. payment of benefits/claims/benefits to policyholders or participants who experience misfortune or other Parties entitled based on the Sharia insurance policy; b. payment of tabarru’ contributions to reinsurers;
c. repayment of Qardh to the Company Fund;
d. return of Tabarru’ Funds; e. costs related to the management of Tabarru’ Fund assets; and/or f. other costs that can be charged to the Tabarru’ Fund based on Sharia Principles.
(3) Tanahud Funds as referred to in paragraph (1) are required to be used for:
a. payment of benefits/claims/benefits to policyholders, participants, or other Parties entitled based on the Tanahud Contract; b. payment of tanahud contributions to reinsurers;
c. repayment of Qardh to the Company Fund;
d. return of Tanahud Funds if permitted based on the Tanahud Contract; e. costs related to the management of Tanahud Fund assets; and/or f. other costs that can be charged to the Tanahud Fund based on Sharia Principles. (4) The return of Tabarru’ Funds as referred to in paragraph (2) letter d and/or the return of Tanahud Funds as referred to in paragraph (3) letter d can be done as a result of:
a. policy cancellation within the permitted grace period (freelook period); b. policy termination by the policyholder or participant before the insurance period ends;
c. policy termination by the Company before the insurance period ends; and/or
d. payment of Tabarru’ Fund and/or Tanahud Fund contributions that are larger than necessary.
(5) The return of Tabarru’ Funds as referred to in paragraph (2) letter d and/or the return of Tanahud Funds as referred to in paragraph (3) letter d, as well as the conditions causing the return of Tabarru’ Funds and/or Tanahud Funds as referred to in paragraph (4), must be included in the policy.

Article 5
(1) Assets and Liabilities of the Participant Investment Fund as referred to in Article 2 paragraph (2) letter a number 3 are the assets and Liabilities of each policyholder or participant individually. (2) Companies are required to separate the assets and Liabilities of the Participant Investment Fund as referred to in Article 2 paragraph (2) letter a number 3 based on the type of Sharia insurance product, investment management Contract, and investment strategy. (3) In the event that Sharia Insurance Companies and Sharia Units market PAYDI by forming more than 1 (one) Sub-fund, Sharia Insurance Companies and Sharia Units:
a. are required to separate the assets and Liabilities of the Participant Investment Fund as referred to in paragraph (2) in PAYDI for each Sub-fund formed by the Sharia Insurance Company and Sharia Unit. b. are prohibited from transferring assets and Liabilities from one Sub-fund to another Sub-fund formed by the Sharia Insurance Company and Sharia Unit; and
c. are required to manage the portion of contributions intended to provide benefits referring to investment results, in accordance with the Sub-fund chosen by the policyholder or participant.
(4) The prohibition on the transfer of assets and Liabilities of Sub-funds as referred to in paragraph (3) letter b is excepted for the transfer of assets from 1 (one) Sub-fund to another Sub-fund done for portfolio adjustment of the Sub-fund that does not harm the policyholder or participant.

Second Section
Formation of Seed Money Funds

Article 6
(1) Companies may place Company Fund assets in the initial period of forming Participant Investment Funds, Tabarru’ Funds, and Tanahud Funds in order to optimize the yield of Participant Investment Funds, Tabarru’ Funds, and Tanahud Funds. (2) Company Fund assets as referred to in paragraph (1) are recognized as Permitted Assets of the Company Fund. (3) In the event that a Company places Company Fund assets, the Company is required to have a policy formulated in written guidelines containing at least:
a. the amount of Company Fund that can be used for seed money considering the liquidity needs of the Company Fund; b. the purpose of forming seed money;
c. investment policy for seed money that is in accordance with the characteristics of the fund using the seed money;
d. policy on the addition, reduction, and termination of seed money; e. the time limit for providing seed money; f. the mechanism for transferring assets from the Company Fund to funds formed with seed money and vice versa, including the Contracts used; g. accounting and administration policy for the management of seed money; h. risk management for the management of seed money; and
i. approval from the DPS for the formation of seed money.
(4) Funds recognized as Permitted Assets as referred to in paragraph (2) are calculated within the limits on Permitted Assets in the form of investments as referred to in Article 30 paragraph (1). (5) The calculation as referred to in paragraph (4) is done for each underlying asset other than Sub-funds in the formation of initial Sub-funds (seed money). (6) The prohibition on the transfer of assets and Liabilities from one fund to another fund as referred to in Article 2 paragraph (4) is excepted for the return transfer of Company Fund assets that have been placed in the formation of seed money as referred to in paragraph (1).

Second Section
Administrative Sanctions

Article 7
(1) Violations of the provisions as referred to in Article 2 paragraph (1), paragraph (3), and paragraph (4), Article 3 paragraph (3), paragraph (5), and paragraph (6), Article 4 paragraph (2), paragraph (3), and paragraph (5), Article 5 paragraph (2) and paragraph (3), and Article 6 paragraph (3) are subject to administrative sanctions in the form of:
a. written warning; b. restriction of business activities, for part or all business activities;
c. prohibition on marketing insurance products for certain business lines;
d. downgrade of the Company’s health level; and/or e. prohibition on becoming controllers and shareholders, members of the Board of Directors, members of the Board of Commissioners, or equivalent to shareholders, members of the Board of Directors, and members of the Board of Commissioners in legal entities in the form of cooperatives or joint ventures, DPS, or holding executive positions below the Board of Directors, or equivalent to executive positions below the Board of Directors in legal entities in the form of cooperatives or joint ventures in the insurance industry. (2) In the event of a violation of the provisions as referred to in paragraph (1) but the violation has been corrected, the Financial Services Authority provides a written warning sanction that ends automatically. (3) In the event that violations of the provisions as referred to in paragraph (1) letters a, b, and c have been fulfilled, the Financial Services Authority revokes the administrative sanction.

Article 8
Against violations of the provisions as referred to in Article 7 paragraph (1), the Financial Services Authority may conduct a re-evaluation of the Company’s principal parties in accordance with the Financial Services Authority Regulation regarding re-evaluation of principal parties of financial service institutions.

CHAPTER III
UNDERWRITING SURPLUS

First Section
Underwriting Surplus

Article 9
(1) Tabarru’ Fund Underwriting Surplus can be distributed with the following options:
a. entirely added to the Tabarru’ Fund; b. partially added to the Tabarru’ Fund and partially distributed to policyholders or participants; or

c. partially added to the Tabarru’ Fund,
partially distributed to policyholders or participants, and partially distributed to the Company Fund.
(2) The distribution of Underwriting Surplus as referred to in paragraph (1) must first obtain:
a. a recommendation from the Company Actuary or Company expert; and b. approval from the Sharia Supervisory Board (DPS).
(3) In the event that the distribution of Underwriting Surplus is distributed to the Company Fund as referred to in paragraph (1) letter c, the approval of the DPS along with the reasons must be presented in the DPS supervisory report. (4) Policyholders or participants who receive Underwriting Surplus as referred to in paragraph (1) letter b and letter c must meet the following requirements:
a. have paid contributions for the period of the Underwriting Surplus calculation; b. are not in the process of claim settlement;
c. have never received claim payments exceeding the amount of contributions allocated to the Tabarru’ Fund; and
d. do not terminate the policy (inforce) during the period of the Underwriting Surplus calculation.
(5) The choice of distribution of Underwriting Surplus as referred to in paragraph (1) and the proportion of distribution of Underwriting Surplus as referred to in paragraph (1) letter c are prohibited from being changed, except to meet the following provisions:
a. increasing the solvency of the Tabarru’ Fund; and b. not reducing the proportion of the share of policyholders or participants.
(6) Distributable Underwriting Surplus is calculated based on income received in cash on the date of the Underwriting Surplus calculation.
(7) In the event that the distribution of Underwriting Surplus to policyholders or participants economically requires costs greater than the portion to be distributed, the Company is required to distribute the Underwriting Surplus with the following options:
a. adding it to the Tabarru’ Fund; b. accounting for it to reduce the contributions of policyholders or participants in the next period; or
c. utilizing it for social funds.
(8) The choices and requirements for the distribution of Underwriting Surplus as referred to in paragraph (1), paragraph (5), and paragraph (7) as well as the requirements for policyholders or participants as referred to in paragraph (4) must be included in the policy.

(9) Underwriting Surplus of the Tanahud Fund must be used to be accumulated in the Tanahud Fund and/or other uses in accordance with Sharia Principles.

Article 10
(1) In the event that:
a. there is still Qardh in the Liabilities of the Tabarru’ Fund; b. the solvency level of the Tabarru’ Fund is smaller than the internal target solvency level of the Tabarru’ Fund;
c. the investment adequacy level is not met; or
d. the distribution of Underwriting Surplus of the Tabarru’ Fund may result in conditions as referred to in letter a or letter b, the Company is prohibited from distributing Underwriting Surplus of the Tabarru’ Fund to policyholders or participants, and/or the Company Fund as referred to in Article 9 paragraph (1) letter b and letter c. (2) In the event that conditions as referred to in paragraph (1) occur, all Underwriting Surplus of the Tabarru’ Fund must be added to the Tabarru’ Fund as referred to in Article 9 paragraph (1) letter a. (3) The provisions on the distribution of Underwriting Surplus as referred to in paragraph (1) and paragraph (2) must be included in the policy.

Second Section
Administrative Sanctions

Article 11
(1) Violations of the provisions as referred to in Article 9 paragraph (5), paragraph (7), paragraph (8), paragraph (9), and Article 10 are subject to administrative sanctions in the form of:
a. written warning; b. restriction on business activities, for part or all of the business activities;
c. prohibition on marketing insurance products for certain business lines;
d. downgrade of the Company’s health level; and/or e. prohibition on becoming a controller and shareholder, board of director members, board of commissioner members, or equivalent to shareholders, board of director members, and board of commissioner members in legal entities in the form of cooperatives or joint ventures, DPS, or holding executive positions below the board of directors, or equivalent to executive positions below the board of directors in legal entities in the form of cooperatives or joint ventures in insurance companies. (2) In the event that a violation of the provisions as referred to in paragraph (1) occurs but the violation has been corrected, the Financial Services Authority (OJK) provides a written warning sanction that ends automatically.

(3) In the event that violations of the provisions as referred to in paragraph (1) letter a, letter b, and letter c have been fulfilled, the Financial Services Authority (OJK) revokes the administrative sanction.

Article 12
In the event of violations of the provisions as referred to in Article 11 paragraph (1), the Financial Services Authority (OJK) may conduct a re-evaluation of the Company’s principal parties in accordance with the Financial Services Authority Regulation regarding re-evaluation of principal parties of financial service institutions.

CHAPTER IV
QARDH

First Section
Qardh

Article 13
(1) The Company is required at all times to have the ability to provide Qardh.
(2) In the event that:
a. The Solvency Level of the Tabarru’ Fund and Tanahud Fund is smaller than the internal target Solvency Level of the Tabarru’ Fund and Tanahud Fund; and/or b. the amount of investment in Permitted Assets from the Tabarru’ Fund is smaller than the amount of technical reserves and Liabilities for payment of benefits/claims/retained self-insurance from the Tabarru’ Fund and Tanahud Fund, the Company is required to provide Assets Available for Qardh in the Company Fund. (3) Assets Available for Qardh as referred to in paragraph (2) are calculated as:
a. an addition to Permitted Assets of the Tabarru’ Fund and Tanahud Fund, in the calculation of the Solvency Level of the Tabarru’ Fund and Tanahud Fund; b. an addition to Permitted Assets of the Tabarru’ Fund and Tanahud Fund, in the calculation of the adequacy of investment in Permitted Assets in the form of investment and non-investment; and
c. a reduction in Permitted Assets from the Company Fund, in the calculation of the Solvency Level of the Company Fund.
(4) Assets Available for Qardh as referred to in paragraph (2) must be at least equal to the largest value between:
a. the value required for the Solvency Level of the Tabarru’ Fund and Tanahud Fund to meet the internal target Solvency Level of the Tabarru’ Fund and Tanahud Fund; or b. the value required for the Tabarru’ Fund and Tanahud Fund to meet the provisions regarding

adequacy of investment in Permitted Assets in the form of investment and non-investment.
(5) The provision of Assets Available for Qardh as referred to in paragraph (2) must obtain approval from the board of directors or equivalent.
(6) In the event that:
a. the Tabarru’ Fund and/or Tanahud Fund does not have sufficient liquid assets to pay benefits/claims/benefits to policyholders or participants; and/or b. the total Permitted Assets from the Tabarru’ Fund and/or Tanahud Fund is smaller than the total Liabilities of the Tabarru’ Fund and/or Tanahud Fund, the Company is required to deposit Qardh in cash to the Tabarru’ Fund and/or Tanahud Fund. (7) The return of Qardh to the Company Fund is carried out from the Tabarru’ Fund and/or Tanahud Fund. (8) The Company is prohibited from returning Qardh, in the event that the Solvency Level of the Tabarru’ Fund and Tanahud Fund before considering assets from Qardh and Assets Available for Qardh is less than the internal target Solvency Level of the Tabarru’ Fund and Tanahud Fund. (9) The Company is required to have guidelines for the provision of Qardh that have been approved by the DPS and established by the board of directors. (10) The guidelines for the provision of Qardh as referred to in paragraph (9) contain at least:
a. groups of funds that can be given Qardh; b. conditions that are the Company’s consideration for providing Qardh and returning Qardh;
c. stages of the process that must be carried out by the Company before providing Qardh and returning Qardh, including the approval of the Company Actuary on the amount of Qardh required and the approval of the DPS on the Sharia aspects of the provision of Qardh;
d. the duration of the provision of Qardh (if any); e. provisions regarding the distribution of Underwriting Surplus in the event there is Qardh in the Tabarru’ Fund; f. policies in the event that part or all of the Qardh cannot be returned within a certain period; and g. the deadline for the Company to provide Assets Available for Qardh as referred to in paragraph (2) and the deposit of Qardh as referred to in paragraph (6). (11) In the event that conditions as referred to in paragraph (2) and paragraph (6) occur, the Company may provide grants. (12) In the event of necessity, the Company may provide Qardh to the Participant Investment Fund to maintain the liquidity of the Participant Investment Fund as referred to in Article 5 and/or the formation of seed money as referred to in Article 6.

Second Section
Administrative Sanctions

Article 14
(1) Violations of the provisions as referred to in Article 13 paragraph (1), paragraph (2), paragraph (6), paragraph (8), and paragraph (9) are subject to administrative sanctions in the form of:
a. written warning; b. restriction on business activities, for part or all of the business activities;
c. prohibition on marketing insurance products for certain business lines;
d. downgrade of the Company’s health level; and/or e. prohibition on becoming a controller and shareholder, board of director members, board of commissioner members, or equivalent to shareholders, board of director members, and board of commissioner members in legal entities in the form of cooperatives or joint ventures, DPS, or holding executive positions below the board of directors, or equivalent to executive positions below the board of directors in legal entities in the form of cooperatives or joint ventures in insurance companies. (2) In the event that a violation of the provisions as referred to in paragraph (1) occurs but the violation has been corrected, the Financial Services Authority (OJK) provides a written warning sanction that ends automatically.

Article 15
In the event of violations of the provisions as referred to in Article 14 paragraph (1), the Financial Services Authority (OJK) may conduct a re-evaluation of the Company’s principal parties in accordance with the Financial Services Authority Regulation regarding re-evaluation of principal parties of financial service institutions.

CHAPTER V
FINANCIAL HEALTH

First Section
Scope of Financial Health

Article 16
To ensure that the Company does not fail to meet its obligations to policyholders and participants, the Company is required to meet financial health, including:
a. Solvency Level of the Tabarru’ Fund and Tanahud Fund;

b. Solvency Level of the Company Fund;
c. technical reserves;
d. investment adequacy; e. Equity; f. Guarantee Fund; g. Permitted Assets; h. Participant Investment Fund Assets; and
i. other provisions related to financial health.

Second Section
Solvency Level of the Tabarru’ Fund and Tanahud Fund and Solvency Level of the Company Fund

Article 17
(1) The Company is required to:
a. at all times meet the Solvency Level of the Tabarru’ Fund and Tanahud Fund of at least 100% (one hundred percent) of the DTMBR; b. at all times meet the Solvency Level of the Company Fund of at least 100% (one hundred percent) of the MMBR;
c. every year establish the internal Solvency Level of the Tabarru’ Fund and Tanahud Fund, of at least 120% (one hundred twenty percent) of the DTMBR each; and
d. every year establish the internal Solvency Level of the Company Fund, 120% (one hundred twenty percent) of the MMBR.
(2) The Financial Services Authority (OJK) may order the Company to increase the target internal Solvency Level of the Tabarru’ Fund and Tanahud Fund as referred to in paragraph (1) letter c and the target internal Solvency Level of the Company Fund as referred to in paragraph (1) letter d by considering the Company’s risk profile and considering the results of scenario simulation (stress test). (3) The Company must at all times meet the internal Target Solvency Level of the Tabarru’ Fund and Tanahud Fund as referred to in paragraph (1) letter c and paragraph (2), and the target internal Solvency Level of the Company Fund as referred to in paragraph (1) letter d and paragraph (2).

Article 18
(1) The calculation of DTMBR as referred to in Article 17 paragraph (1) letter a must consider at least:
a. credit risk; b. liquidity risk;
c. market risk;
d. insurance risk; and e. operational risk.

(2) The calculation of MMBR as referred to in Article 17 paragraph (1) letter b must consider at least:
a. credit risk; b. liquidity risk;
c. market risk; and
d. operational risk.
(3) In the event that Sharia Insurance Companies and Sharia Units market PAYDI, the MMBR as referred to in paragraph (2) must be increased by a certain percentage of investment funds sourced from Sub-Funds. (4) Provisions regarding the calculation of the amount of DTMBR and MMBR as referred to in paragraph (1) to paragraph (3) are established by the Financial Services Authority (OJK).

Third Section
Meeting the Working Capital Requirements of Sharia Units

Article 19
In the event that Sharia Units do not meet the provisions:
a. provision of Assets Available for Qardh as referred to in Article 13 paragraph (2); b. deposit of Qardh as referred to in Article 13 paragraph (6); and/or
c. meeting the Solvency Level of the Company Fund as referred to in Article 17 paragraph (1) letter b,
the insurance company or reinsurance company that has a Sharia Unit is required to increase working capital in the Sharia Unit so that the Sharia Unit meets the provisions as referred to in letter a, letter b, and letter c.

Fourth Section
Permitted Assets in the Form of Investment

Article 20
(1) The Company is required to apply the principle of prudence in the placement of investments from all funds it manages.
(2) Permitted Assets from the Tabarru’ Fund, Tanahud Fund, and Company Fund in the form of investment must be placed in the following types:
a. time deposits at Sharia Commercial Banks, Sharia business units at commercial banks, or Sharia Rural Banks, including on-call deposits and deposits with a term of less than or equal to 1 (one) month; b. deposit certificates at Sharia Commercial Banks or Sharia business units at commercial banks;
c. Sharia securities issued by the Republic of Indonesia;
d. Sharia securities issued by Bank Indonesia;

e. Sharia securities issued by countries other than the Republic of Indonesia; f. Sharia securities issued by multinational institutions where the Republic of Indonesia is one of the members or shareholders; g. sukuk or Sharia bonds listed on the stock exchange; h. regional sukuk;
i. EBUS Without Public Offering;
j. Sharia stocks listed on the stock exchange; k. Sharia mutual funds;
l. Sharia asset-backed securities;
m. Sharia real estate investment funds in the form of collective investment contracts; n. Sharia infrastructure investment funds in the form of collective investment contracts; o. repurchase agreement (REPO); and/or p. pure gold. (3) In addition to the types of investment as referred to in paragraph (2), Permitted Assets from the Company Fund in the form of investment can also be placed in:
a. direct participation in limited liability companies whose shares are not listed on the stock exchange and whose business field does not violate Sharia Principles; and/or b. land, buildings with strata title (strata title), or land with buildings, for investment. (4) Permitted Assets in the form of investment as referred to in paragraph (2) and paragraph (3) that can be placed abroad must be in the following types:
a. Sharia securities issued by countries other than the Republic of Indonesia; b. Sharia securities issued by multinational institutions where the Republic of Indonesia is one of the members or shareholders;
c. sukuk or Sharia bonds listed on the stock exchange;
d. Sharia stocks listed on the stock exchange; e. Sharia mutual funds; and/or f. direct participation in companies whose shares are not listed on the stock exchange and whose business field does not violate Sharia Principles. (5) The basis for evaluating each type of investment as referred to in paragraph (2) to paragraph (4) refers to the applicable financial accounting standards for Companies in Indonesia. (6) Provisions regarding the calculation of the amount of DTMBR and MMBR for Companies that place Permitted Assets in the form of investment consisting of:
a. regional sukuk as referred to in paragraph (2) letter h in accordance with the provisions on the calculation of the amount of DTMBR and MMBR for placements of Permitted Assets in the form of investment consisting of sukuk or Sharia bonds listed on the stock exchange as referred to in paragraph (2) letter g; and b. infrastructure investment funds in the form of collective investment contracts as referred to in paragraph (2) letter n in accordance with the provisions on the calculation of the amount of DTMBR and MMBR for placements of Permitted Assets in the form of investment consisting of Sharia real estate investment funds in the form of collective investment contracts as referred to in paragraph (2) letter m.

Article 21
(1) Placements of Permitted Assets in the form of investment consisting of Sharia securities issued by multinational institutions where the Republic of Indonesia is one of the members or shareholders as referred to in Article 20 paragraph (2) letter f, must meet the following provisions:
a. have an investment grade rating from a recognized international securities rating company; b. be sold through a public offering; and
c. information regarding the transaction can be accessed in Indonesia.
(2) Placements of Permitted Assets in the form of investment consisting of sukuk or Sharia bonds as referred to in Article 20 paragraph (2) letter g, must be carried out on sukuk or Sharia bonds that have an investment grade rating from a securities rating company that has been recognized by the Financial Services Authority (OJK). (3) Placements of Permitted Assets in the form of investment consisting of regional sukuk as referred to in Article 20 paragraph (2) letter h, must meet the following provisions:
a. have received an effective statement from the Financial Services Authority (OJK); and b. have an investment grade rating from a securities rating company that has been recognized by the Financial Services Authority (OJK). (4) Placements of Permitted Assets in the form of investment consisting of EBUS Without Public Offering as referred to in Article 20 paragraph (2) letter i, must meet the following provisions:
a. meet the requirements and/or criteria as regulated in the Financial Services Authority Regulation regarding the issuance of debt securities and/or sukuk carried out without through a public offering; b. have an AAA rating or the highest investment rating issued by a securities rating company recognized by the Financial Services Authority (OJK);
c. are guaranteed/covered with a guarantee/collateral worth at least 100% (one hundred percent) of the nominal value of EBUS Without Public Offering; and
d. are issued by state-owned enterprises or institutions given special authority based on statutory regulations for the management of central government investment guaranteed by the central government. (5) Placements of Permitted Assets in the form of investment consisting of Sharia stocks as referred to in Article 20 paragraph (2) letter j within the country, must be included in the list of Sharia securities issued by the Financial Services Authority (OJK) or the issuer of the Sharia securities list as referred to in the Financial Services Authority Regulation regarding criteria and issuance of the Sharia securities list. (6) In the event that Sharia stocks as referred to in paragraph (5) are no longer included in the list of Sharia securities, the Sharia stocks are recognized as Permitted Assets for a period of at most 10 (ten) working days since they are no longer listed in the Sharia securities list. (7) Placements of Permitted Assets in the form of investment consisting of Sharia mutual funds as referred to in Article 20 paragraph (2) letter k, must meet the following provisions:
a. for Sharia mutual funds offered through a public offering, have received an effective statement from the Financial Services Authority (OJK); or b. for Sharia limited partnership mutual funds that have been listed with the Financial Services Authority (OJK), by meeting the following provisions:

guaranteed/covered with a guarantee/collateral worth at least 100% (one hundred percent) of the nominal value; and
have an investment grade rating from a securities rating company recognized by the Financial Services Authority (OJK).
(8) Placements of Permitted Assets in the form of investment consisting of Sharia asset-backed securities as referred to in Article 20 paragraph (2) letter l and Sharia real estate investment funds in the form of collective investment contracts as referred to in Article 20 paragraph (2) letter m, must meet the following provisions:
a. have received an effective statement from the Financial Services Authority (OJK); and b. have an investment grade rating from a securities rating company recognized by the Financial Services Authority (OJK). (9) Placements of Permitted Assets in the form of investment consisting of infrastructure investment funds in the form of collective investment contracts as referred to in Article 20 paragraph (2) letter n, must meet the following provisions:
a. their management does not contradict Sharia principles in the capital market;

b. for infrastructure investment funds in the form of collective investment contracts issued through a public offering, have received an effective statement from the Financial Services Authority (OJK);
c. for infrastructure investment funds in the form of collective investment contracts issued not through a public offering, have been listed with the Financial Services Authority (OJK);
d. have an investment grade rating from a securities rating company recognized by the Financial Services Authority (OJK); and e. one of the investment portfolios of the infrastructure investment funds in the form of collective investment contracts consisting of infrastructure assets has generated income. (10) Companies that invest in the form of investment consisting of repurchase agreement (REPO) as referred to in Article 20 paragraph (2) letter o, must meet the following requirements:
a. the results of the evaluation of the Company’s health level based on the latest evaluation at the time of investment placement by the Financial Services Authority (OJK) are composite rating 1 or composite rating 2 as referred to in the Financial Services Authority Regulation regarding health level assessment for Companies; b. use contracts standardized by the Financial Services Authority (OJK);
c. transactions in the form of buying Sharia securities with a promise to sell back at a predetermined time and price;
d. the type of collateral is limited to Sharia securities issued by the Republic of Indonesia and/or Sharia securities issued by Bank Indonesia; e. the duration does not exceed 90 (ninety) days; f. the value of the repurchase agreement (REPO) is at most 80% (eighty percent) of the market value of the Sharia securities pledged; and g. the repurchase agreement (REPO) transaction is registered at the Indonesia Central Securities Depository or Bank Indonesia Scriptless Securities Settlement System (BI-S4). (11) Placements of Permitted Assets in the form of investment consisting of pure gold as referred to in Article 20 paragraph (2) letter p, must meet the following provisions:
a. meet specification requirements and are transacted at:

commodity exchanges that have obtained permits from the competent authority; and/or
organizers of bullion business activities that have obtained business permits from the Financial Services Authority (OJK); and

b. stored at:

Custodian Bank;
Other parties who have obtained permission or approval from the competent authority to provide custody services; or
The Company itself, provided that it is insured with another Sharia Insurance Company.
(12) Placement of Permitted Assets in the form of investments in land, buildings with strata rights (strata title), or land with buildings, for investment purposes, as referred to in Article 20 paragraph (3) letter b, must meet the following provisions:
a. owned and controlled by the Company, proven by land and/or building ownership certificates in the name of the Company; and b. not placed on land, buildings, or land with buildings that are currently pledged, in dispute, or blocked by other parties.

Article 22
In the event that sukuk or Sharia bonds issued by Sharia financing companies do not have an investment grade level as referred to in Article 21 paragraph (2), placement may be carried out with the following provisions:
a. having a rating one (1) level below investment grade; and b. the Sharia financing company is not currently subject to administrative sanctions in the form of business activity restrictions, suspension of business activities, or suspension of specific business activities by the Financial Services Authority.

Article 23
(1) The Company may conduct transactions in the form of selling Sharia securities issued by the Republic of Indonesia as referred to in Article 20 paragraph (2) letter c with a repurchase agreement at a predetermined time and price, to maintain the Company's liquidity conditions. (2) The implementation of transactions in the form of selling Sharia securities issued by the Republic of Indonesia with a repurchase agreement at a predetermined time and price as referred to in paragraph (1) shall be carried out in accordance with the Financial Services Authority Regulation regarding guidelines for repurchase agreement transactions for financial service institutions.

Article 24
(1) In the event that the Company places Permitted Assets in the form of direct investments in limited liability companies whose shares are not listed on the stock exchange as referred to in Article 20 paragraph (3) letter a, the Company is prohibited from placing such investments other than in:
a. financial service institutions; b. companies that utilize information technology to generate financial products as their main business; and/or
c. companies supporting the main business activities of insurance.
(2) The maximum limit for the total placement of investments in the form of direct investments in limited liability companies whose shares are not listed on the stock exchange as referred to in paragraph (1) is set at 50% (fifty percent) of the Company's Equity. (3) The Company must include the plan for direct investment in the Company's business plan. (4) The plan for direct investment in the Company's business plan as referred to in paragraph (3) must contain at least:
a. the name of the investee company, including the investee's business field; b. the purpose of the direct investment;
c. the projected value of the direct investment; and
d. the projected ownership percentage in the investee company, including control aspects.
(5) The Company is required to obtain approval from the Financial Services Authority before conducting direct investment based on the direct investment plan contained in the Company's business plan.

Article 25
(1) The Company is prohibited from conducting investment placements in the form of direct investments in limited liability companies whose shares are not listed on the stock exchange that cause violations of the maximum investment limit as referred to in Article 24 paragraph (2). (2) Investments in the form of direct investments in limited liability companies whose shares are not listed on the stock exchange that exceed the maximum investment limit as referred to in Article 24 paragraph (2) caused by:
a. a decrease in the Company's Equity; b. exchange rate changes;
c. changes in the fair value of assets; and/or
d. business mergers, changes in ownership structure and/or changes in management structure that cause changes in the investee, are categorized as exceeding the maximum investment limit and not as violations of the maximum investment limit as referred to in Article 24 paragraph (2). (3) In the event that the Company violates the maximum investment limit as referred to in Article 24 paragraph (2) and/or an exceeding of the maximum investment limit occurs as referred to in paragraph (2), the nominal value of assets in the form of investments exceeding the maximum investment limit shall not be counted as Permitted Assets and the Company is required to:
a. submit a corrective action plan for resolving the excess of the maximum investment limit in the form of direct investments in limited liability companies whose shares are not listed on the stock exchange exceeding 50% (fifty percent) of the Company's Equity to the Financial Services Authority; and b. resolve the excess of the maximum investment limit in the form of direct investments in limited liability companies whose shares are not listed on the stock exchange exceeding 50% (fifty percent) of the Company's Equity according to the time target set in the corrective action plan as referred to in letter a.

Article 26
(1) In the event that insurance companies and reinsurance companies become shareholders of Sharia Insurance Companies or Sharia Reinsurance Companies, investment placements in the form of direct investments as referred to in Article 20 paragraph (3) letter a may exceed the maximum investment limit as referred to in Article 24 paragraph (2). (2) Investment placements that exceed the maximum investment limit as referred to in paragraph (1) are recognized as Permitted Assets.

Article 27
(1) Placement of Permitted Assets in the form of foreign investments in the form of Sharia securities issued by countries other than the Republic of Indonesia as referred to in Article 20 paragraph (4) letter a, Sharia securities issued by multinational institutions where the Republic of Indonesia is one of the members or shareholders as referred to in Article 20 paragraph (4) letter b, and sukuk or Sharia bonds listed on the stock exchange as referred to in Article 20 paragraph (4) letter c must meet the following provisions:
a. have an investment grade rating from a recognized international securities rating agency; b. be sold through a public offering; and
c. information regarding the transaction can be accessed in Indonesia.
(2) Placement of Permitted Assets in the form of foreign investments in the form of Sharia stocks listed on the stock exchange as referred to in Article 20 paragraph (4) letter d must meet the following provisions:
a. included in the category of Sharia stocks at the place where the stock is listed; b. included in the category of stocks actively traded on the stock exchange at the place where the Sharia stock is listed based on criteria set by the said stock exchange; and
c. information regarding the issuer and the transaction of the Sharia stock can be accessed in Indonesia.
(3) Placement of Permitted Assets in the form of foreign investments in the form of Sharia mutual funds as referred to in Article 20 paragraph (4) letter e must meet the following provisions:
a. managed by an Investment Manager abroad who has obtained permission from the capital market authority in the country where the Investment Manager is domiciled; b. has obtained permission/approval/registration from the capital market authority in the country where the said Investment Manager is domiciled and is conducted through a public offering;
c. managed by an Investment Manager abroad who is not currently subject to administrative sanctions in the form of business activity restrictions or suspension of business activities by the authority in the country where the said Investment Manager is domiciled; and
d. information regarding the mutual fund can be accessed in Indonesia.
(4) Provisions as referred to in Article 24 and Article 25 apply mutatis mutandis to the placement of Permitted Assets in the form of foreign investments in the form of direct investments in companies whose shares are not listed on the stock exchange as referred to in Article 20 paragraph (4) letter f.

Article 28
(1) In the event that Permitted Assets in the form of investments in the form of sukuk or Sharia bonds listed on the stock exchange as referred to in Article 20 paragraph (2) letter g and/or Sharia stocks listed on the stock exchange as referred to in Article 20 paragraph (2) letter j, issued by multinational institutions where the Republic of Indonesia is one of the members or shareholders and denominated in Rupiah, are categorized as domestic investments. (2) In the event that Permitted Assets in the form of investments in the form of sukuk or Sharia bonds as referred to in Article 20 paragraph (2) letter g and/or Sharia stocks as referred to in Article 20 paragraph (2) letter j that are listed on the stock exchange domestically and/or abroad and the issuer is a foreign legal entity, are categorized as foreign investments. (3) In the event that Permitted Assets in the form of investments in the form of sukuk or Sharia bonds as referred to in Article 20 paragraph (2) letter g and/or Sharia stocks as referred to in Article 20 paragraph (2) letter j that are listed on the stock exchange domestically and/or abroad and the issuer is an Indonesian legal entity, are categorized as domestic investments. (4) In the event that Permitted Assets in the form of investments in the form of sukuk or Sharia bonds listed on the stock exchange as referred to in Article 20 paragraph (2) letter g issued by a foreign legal entity where more than 50% (fifty percent) of its shares are owned by an Indonesian legal entity, are categorized as domestic investments. (5) Permitted Assets in the form of investments in the form of sukuk or Sharia bonds as referred to in paragraph (3) and paragraph (4) must meet the following provisions:
a. have an investment grade rating from a securities rating agency recognized by the Financial Services Authority or have an investment grade rating from a recognized international securities rating agency; and b. be sold through a public offering.

Article 29
(1) The Company is prohibited from having foreign investments, except in the types of investments as referred to in Article 20 paragraph (4).
(2) The Company is prohibited from placing the total foreign investments as referred to in Article 20 paragraph (4) letters a to e exceeding:
a. 20% (twenty percent) of the total amount of Tabarru’ Fund and Tanahud Fund investments; and/or b. 20% (twenty percent) of the total amount of Company Fund investments managed by the Company. (3) In the event that the total amount of foreign investments exceeds the limit as referred to in paragraph (2) due to an increase in the value of the investment, the Company is required to adjust the amount of investment in accordance with the provisions as referred to in paragraph (2) within a maximum period of 3 (three) months from the time the increase in the value of the investment is known.

Article 30
(1) Restrictions on Permitted Assets in the form of investments for each Tabarru’ Fund, Tanahud Fund, and Company Fund managed by the Company as referred to in Article 20 paragraph (2) are as follows:
a. investments in time deposits at Sharia Commercial Banks or Sharia business units at commercial banks, including on-call deposits and deposits with a term of less than or equal to 1 (one) month, for each Sharia Commercial Bank or Sharia business unit at commercial banks at most 20% (twenty percent) of the total amount of investments; b. investments in time deposits at Sharia Rural Banks (BPR Syariah), for each Sharia Rural Bank at most 1% (one percent) of the total amount of investments and in total at most 5% (five percent) of the total amount of investments;
c. investments in deposit certificates at Sharia Commercial Banks or Sharia business units at commercial banks, for each Sharia Commercial Bank or Sharia business unit at commercial banks at most 50% (fifty percent) of the total amount of investments in time deposits at Sharia Commercial Banks or Sharia business units at commercial banks as referred to in letter a;
d. investments in Sharia securities issued by countries other than the Republic of Indonesia, for each issuer at most 10% (ten percent) of the total amount of investments; e. investments in sukuk or Sharia bonds listed on the stock exchange, for each issuer at most 20% (twenty percent) of the total amount of investments, and in total at most 50% (fifty percent) of the total amount of investments; f. investments in regional sukuk, for each issuer at most 10% (ten percent) of the total amount of investments, and in total at most 20% (twenty percent) of the total amount of investments; g. investments in EBUS Without Public Offering and Sharia securities issued by multinational institutions where the Republic of Indonesia is one of the members or shareholders, for each issuer at most 20% (twenty percent) of the total amount of investments and in total at most 40% (forty percent) of the total amount of investments; h. investments in Sharia stocks listed on the stock exchange, for each issuer at most 10% (ten percent) of the total amount of investments, and in total at most 40% (forty percent) of the total amount of investments;
i. investments in Sharia mutual funds, for each Investment Manager at most 20% (twenty percent) of the total amount of investments and in total at most 50% (fifty percent) of the total amount of investments;
j. investments in Sharia asset-backed securities, for each Investment Manager at most 10% (ten percent) of the total amount of investments, and in total at most 20% (twenty percent) of the total amount of investments; k. investments in Sharia real estate investment funds in the form of collective investment contracts, for each Investment Manager at most 10% (ten percent) of the total amount of investments and in total at most 20% (twenty percent) of the total amount of investments;
l. investments in Sharia infrastructure investment funds in the form of collective investment contracts, for each Investment Manager at most 10% (ten percent) of the total amount of investments and in total at most 20% (twenty percent) of the total amount of investments;
m. investments in repurchase agreement (REPO), for each counterparty at most 2% (two percent) of the total amount of investments and in total at most 10% (ten percent) of the total amount of investments; n. investments in pure gold, in total at most 10% (ten percent) of the total amount of investments; o. investments in land, buildings with strata rights (strata title), or land with buildings, for investment, in total at most 20% (twenty percent) of the total amount of investments; and p. investments in land for investment, in total at most 1/3 (one third) of the total amount of investments as referred to in letter o. (2) Placement of Permitted Assets in the form of investments in the form of Sharia mutual funds as referred to in Article 20 paragraph (2) letter k, whose underlying assets are entirely Sharia securities issued by the Republic of Indonesia, is exempt from the provisions as referred to in paragraph (1) letter i. (3) Placement of Permitted Assets in the form of investments in the form of Sharia mutual funds as referred to in Article 20 paragraph (2) letter k in the form of limited participation collective investment contracts for each Investment Manager is at most 10% (ten percent) of the total amount of investments and in total at most 20% (twenty percent) of the total amount of investments. (4) Placement of Permitted Assets in the form of investments as referred to in paragraph (1) letters d to m, the total amount is at most 80% (eighty percent) of the total amount of investments. (5) Placement of Permitted Assets in the form of investments in the form of sukuk or Sharia bonds listed on the stock exchange as referred to in Article 20 paragraph (2) letter g issued by institutions granted special authority based on statutory regulations for the management of central government investments guaranteed by the central government, is exempt from:
a. limits as referred to in paragraph (1) letter e and limits as referred to in paragraph (4); and b. requirements as referred to in Article 21 paragraph (2).
(6) Guarantees by the central government as referred to in paragraph (5) must meet the following provisions:
a. the guarantee is unconditional and irrevocable; and b. has a term at least equal to the term of the sukuk or Sharia bonds guaranteed.

Article 31
The maximum investment limit on assets other than Participant Investment Funds is set as follows:
a. investments in Related Parties in total from Tabarru’ Fund, Tanahud Fund, and Company Fund amounting to 10% (ten percent) of the Company's Equity; and b. investments in one party that is not a Related Party or one Investment Recipient Group that is not a Related Party, amounting to:

25% (twenty-five percent) of the total investments of Tabarru’ Fund and Tanahud Fund, in the event that the investment placement comes from Tabarru’ Fund and Tanahud Fund; and
25% (twenty-five percent) of the total investments of Company Fund, in the event that the investment placement comes from Company Fund.

Article 32
(1) Related Parties include:
a. individuals or companies that are controllers of the Company; b. legal entities where the Company acts as the controller of such legal entities;
c. companies that have the same controller as the Company;
d. members of the Board of Directors, members of the Board of Commissioners, or equivalents, and executive officials of the Company; e. Parties having horizontal or vertical family relationships:

from individuals who are controllers of the Company as referred to in letter a; and/or
from members of the Board of Directors and/or members of the Board of Commissioners or equivalents at the Company as referred to in letter d;
f. members of the Board of Directors and/or members of the Board of Commissioners or equivalents at companies as referred to in letter a, letter b, and/or letter c; g. companies that have members of the Board of Directors and/or members of the Board of Commissioners or equivalents who are members of the Board of Commissioners or equivalents at the Company; h. companies where 50% (fifty percent) or more of the members of the Board of Directors and/or members of the Board of Commissioners or equivalents are directors and/or commissioners or equivalents in companies as referred to in letter a, letter b, and/or letter c;
i. companies that:
members of the Board of Directors, members of the Board of Commissioners, or equivalents and/or executive officials of the Company as referred to in letter d act as controllers; and
members of the Board of Directors and/or members of the Board of Commissioners or equivalents from parties as referred to in letter a, letter b, and/or letter c act as controllers;
j. companies that have financial relationships with the Company and/or parties as referred to in letter a to letter i; k. investment recipients in the form of individuals or companies that have financial relationships through the provision of guarantees to parties as referred to in letter a to letter j;
l. investment recipients that have financial relationships through guarantees provided by parties as referred to in letter a to letter j; and
m. other companies in which there is an interest in the form of share ownership of 10% (ten percent) or more individually or jointly, from parties as referred to in letter e.
(2) The determination of Related Parties for investment placements in the form of collective investment contracts is based on the underlying assets of the collective investment contract. (3) Controllers as referred to in paragraph (1) letter a, are individuals or companies directly or indirectly:
a. owning 10% (ten percent) or more of the shares of the Company or other companies individually or jointly; b. owning option rights or other rights to own shares that if exercised cause such Parties to control and/or own 10% (ten percent) or more of the shares of the Company individually or jointly;
c. conducting cooperation or aligned actions to achieve common goals in controlling the Company (acting in concert), with or without written agreements with other Parties so that jointly they control and/or own 10% (ten percent) or more of the shares of the Company;
d. conducting cooperation or aligned actions to achieve common goals in controlling the Company (acting in concert), with or without written agreements with other parties so that jointly they have option rights or other rights to own shares, which if exercised cause such Parties to control and/or own 10% (ten percent) or more of the shares of the Company jointly; e. having the authority and/or ability to approve, appoint, and/or dismiss members of the Board of Commissioners and/or members of the Board of Directors of the Company; f. having the ability to determine (controlling influence) the strategic policies of the Company or other companies; g. controlling 1 (one) or more other companies that collectively own and/or jointly control 10% (ten percent) or more of the shares of the Company; and/or h. exercising control over the controllers as referred to in letter a and letter g. (4) Controllers as referred to in paragraph (1) letter b, are Companies directly or indirectly:
a. owning 10% (ten percent) or more of the shares of other companies individually or jointly; b. owning option rights or other rights to own shares that if exercised cause such parties to control and/or own 10% (ten percent) or more of the shares of other companies individually or jointly;
c. conducting cooperation or aligned actions to achieve common goals in controlling other companies (acting in concert), with or without written agreements with other parties so that jointly they control and/or own 10% (ten percent) or more of the shares of other companies;
d. conducting cooperation or aligned actions to achieve common goals in controlling other companies (acting in concert), with or without written agreements with other parties so that jointly they have option rights or other rights to own shares, which if exercised cause such parties to control and/or own 10% (ten percent) or more of the shares of other companies jointly; e. having the authority and/or ability to approve, appoint, and/or dismiss members of the Board of Commissioners and/or members of the Board of Directors of other companies; f. having the ability to determine (controlling influence) the strategic policies of other companies;

g. controlling 1 (one) or more other companies that collectively own and/or jointly control 10% (ten percent) or more of the shares of other companies; and/or h. exercising control over the controller as referred to in letter a and letter g. (5) The controller as referred to in paragraph (1) letter c and letter i is an individual or company directly or indirectly:
a. owning 10% (ten percent) or more of the shares of other companies and being the largest share ownership portion; b. owning alone or jointly 25% (twenty-five percent) or more of the shares of other companies;
c. holding option rights or other rights to own shares that, if executed, cause the Party to control and/or own shares of other companies as referred to in letter a or letter b;
d. cooperating or taking aligned actions to achieve common goals in controlling other companies (acting in concert), with or without a written agreement with other parties, so that jointly they control and/or own shares of other companies as referred to in letter a or letter b; e. cooperating or taking aligned actions to achieve common goals in controlling other companies (acting in concert), with or without a written agreement with other parties, so that jointly they have option rights or other rights to own shares, which, if those rights are executed, cause the party to control and/or jointly own shares of other companies as referred to in letter a or letter b; f. having the authority and/or ability to approve, appoint, and/or dismiss members of the board of commissioners and/or members of the board of directors of other companies; and/or g. having the ability to determine (controlling influence) the strategic policies of other companies. (6) Financial relationships as referred to in paragraph (1) letter j through letter m are excluded for:
a. investment placements by the Company in the form as referred to in Article 20 paragraph (2) and paragraph (3) letter b; b. the provision of guarantees by insurance companies, Sharia Insurance Companies, reinsurance companies, Sharia Reinsurance Companies, guarantee companies, and/or Sharia guarantee companies in accordance with their business fields; and
c. the provision of guarantees by the central government.
(7) In the event the Company places Participant Investment Funds in the form of Sharia mutual funds as referred to in Article 20 paragraph (2) letter k, the Company must fulfill the following Related Party provisions:
a. submit a list of Related Parties to the Investment Manager, if there are changes to Related Parties; b. obtain reports containing details of investments in Related Parties from the underlying assets of the Company's Sharia mutual funds periodically every 1 (one) month; and
c. calculate the underlying assets of Sharia mutual funds that are Related Parties of the Company as part of the calculation of investments in Related Parties.
(8) The obligation to submit the list of Related Parties as referred to in paragraph (7) letter a is carried out for the first time within a maximum period of 3 (three) months after this Otoritas Jasa Keuangan Regulation takes effect.

Article 33
(1) Ownership, management, and/or financial relationships in the Recipient Investment Group that are not Related Parties include:
a. the investment recipient is the controller of another investment recipient; b. 1 (one) same party is the controller of several investment recipients;
c. 50% (fifty percent) of the members of the board of directors and/or members of the board of commissioners or equivalent of the investment recipient become members of the board of directors and/or members of the board of commissioners or equivalent of another company;
d. the investment recipient has a financial relationship with another investment recipient; and/or e. 1 (one) same party provides a guarantee to take over and/or repay part or all of the obligations of several investment recipients in the event the investment recipient fails to meet obligations to creditors. (2) The controller as referred to in paragraph (1) letter a and letter b is the controller as referred to in Article 32 paragraph (5). (3) The guarantee relationship as referred to in paragraph (1) letter e is excluded for:
a. the provision of guarantees by insurance companies, Sharia Insurance Companies, guarantee companies, and/or Sharia guarantee companies, in accordance with their business fields; and b. the provision of guarantees by the central government.

Article 34
(1) Provisions regarding Related Parties as referred to in Article 32 paragraph (1) are excluded for control caused by direct ownership by the State of the Republic of Indonesia in the Company and other Parties. (2) Provisions regarding the Recipient Investment Group as referred to in Article 33 paragraph (1) are excluded for control caused by direct ownership by the State of the Republic of Indonesia in other Parties. (3) The calculation of the amount of investments in Related Parties is excluded for investment placements in the form of direct participation in limited liability companies whose shares are not listed on the stock exchange as referred to in Article 24. (4) The calculation of the amount of investments in Related Parties, one Party that is not a Related Party, and one Recipient Investment Group that is not a Related Party as referred to in Article 31 paragraph (1) is excluded for investment placements in the form of:
a. Sharia securities issued by the State of the Republic of Indonesia; b. Sharia securities issued by Bank Indonesia;
c. Sharia securities issued by institutions granted special authority based on statutory regulations for the management of central government investments, which are guaranteed by the central government; and/or
d. Sharia mutual funds that have underlying assets entirely consisting of securities issued by the State of the Republic of Indonesia and/or securities issued by Bank Indonesia.
(5) Guarantees by the central government as referred to in paragraph (4) letter c must meet the following requirements:
a. the guarantee is unconditional and irrevocable; and b. it has a minimum duration equal to the duration of the Sharia securities guaranteed.

Article 35
(1) The Company is prohibited from placing investments from Tabarru’ Funds, Tanahud Funds, and Company Funds that cause violations of the maximum investment limits on:
a. Related Parties; and/or b. one Party that is not a Related Party and one Recipient Investment Group that is not a Related Party, as referred to in Article 31.
(2) The determination of violations of the maximum investment limits of Tabarru’ Funds, Tanahud Funds, and Company Funds as referred to in paragraph (1) is determined:
a. for investments in Related Parties, by the excess percentage of the value of Tabarru’ Funds, Tanahud Funds, and Company Funds investments in all Related Parties at the time of investment placement against the Company's Equity in the last monthly report before the investment placement, minus the percentage as referred to in Article 31 letter a; and b. for investments in one Party that is not a Related Party or one Recipient Investment Group that is not a Related Party:

by the excess percentage of the value of Tabarru’ Funds and Tanahud Funds investments in one Party that is not a Related Party or one Recipient Investment Group that is not a Related Party at the time of investment placement against the total value of Tabarru’ Funds and Tanahud Funds investments, minus the percentage as referred to in Article 31 letter b number 1, for the placement of Tabarru’ Funds and Tanahud Funds investments; and
by the excess percentage of the value of Company Funds investments in one Party that is not a Related Party or one Recipient Investment Group that is not a Related Party at the time of investment placement against the total value of Company Funds investments, minus the percentage as referred to in Article 31 letter b number 2, for the placement of Company Funds investments.
(3) Investments in assets other than Participant Investment Funds in Related Parties, one Party that is not a Related Party, and/or one Recipient Investment Group that is not a Related Party that exceed the maximum investment limits as referred to in Article 31 caused by:
a. a decrease in the Company's Equity; b. changes in foreign exchange rates;
c. changes in the fair value of assets;
d. business combinations, changes in ownership structure and/or changes in management structure that cause changes in Related Parties, one Party that is not a Related Party, and/or one Recipient Investment Group that is not a Related Party; and/or e. changes in statutory regulations, are categorized as exceedances of maximum investment limits in Related Parties, one Party that is not a Related Party, and/or in one Recipient Investment Group that is not a Related Party, and are not violations of the provisions as referred to in paragraph (1). (4) Exceedances of maximum investment limits on assets other than Participant Investment Funds as referred to in paragraph (3) are calculated:
a. for investments in Related Parties, by the excess percentage of Tabarru’ Funds, Tanahud Funds, and Company Funds investments in all Related Parties against the Company's Equity on the date of the monthly report, minus the percentage as referred to in Article 31 letter a; and b. for investments in one Party that is not a Related Party or one Recipient Investment Group that is not a Related Party:
by the excess percentage of Tabarru’ Funds and Tanahud Funds investments in one Party that is not a Related Party or one Recipient Investment Group that is not a Related Party on the date of the monthly report, minus the percentage as referred to in Article 31 letter b number 1, for Tabarru’ Funds and Tanahud Funds investments; and
by the excess percentage of Company Funds investments in one Party that is not a Related Party or one Recipient Investment Group that is not a Related Party against the Company's Equity on the date of the monthly report, minus the percentage as referred to in Article 31 letter b number 2, for Company Funds investments.
(5) In the event the Company violates the maximum investment limits as referred to in paragraph (1) and/or exceedances of maximum investment limits occur as referred to in paragraph (3), the nominal value of assets in the form of investments exceeding the maximum investment limits shall not be counted as Permitted Assets, and the Company must:
a. submit an action plan for resolving violations of maximum investment limits and/or exceedances of maximum investment limits to the Otoritas Jasa Keuangan; and b. resolve violations of maximum investment limits and/or exceedances of maximum investment limits in accordance with the time targets set in the action plan as referred to in letter a.

Article 36
(1) The action plan as referred to in Article 35 paragraph (5) letter a must at least contain:
a. actions to be taken by the Company to resolve violations of maximum investment limits and the time target for resolution; and/or b. actions to be taken by the Company to resolve exceedances of maximum investment limits and the time target for resolution. (2) The action plan as referred to in Article 35 paragraph (5) letter a must be submitted to the Otoritas Jasa Keuangan no later than:
a. 1 (one) month since the Otoritas Jasa Keuangan determines that a violation of maximum investment limits as referred to in Article 35 paragraph (2) has occurred; or b. 1 (one) month after the end of the reporting month for exceedances of maximum investment limits caused by matters as referred to in Article 35 paragraph (3) letter a, letter b, letter c, and/or letter d. (3) The time targets for resolution as referred to in paragraph (1) are set for:
a. violations of maximum investment limits as referred to in Article 35 paragraph (1), no later than 1 (one) month; b. exceedances of investment limits in Related Parties, one Party, or in one Recipient Investment Group caused by matters as referred to in Article 35 paragraph (3) letter a, letter b, and/or letter c, no later than 9 (nine) months; or
c. exceedances of investment limits in Related Parties, one Party that is not a Related Party, or in one Recipient Investment Group caused by matters as referred to in Article 35 paragraph (3) letter d and/or letter e, no later than 12 (twelve) months,
since the deadline for submitting the action plan to the Otoritas Jasa Keuangan.
(4) In the event the time targets for resolution of the action plan as referred to in paragraph (3) are deemed unachievable, the Company, based on the approval of the Otoritas Jasa Keuangan, may set different time targets for resolution of the action plan than those referred to in paragraph (3). (5) The Company must submit reports on the implementation of the action plan to the Otoritas Jasa Keuangan no later than 7 (seven) working days after the time target for resolution of the action plan. (6) Reports on the implementation of the action plan to the Otoritas Jasa Keuangan as referred to in paragraph (5) must at least contain information regarding the realization of steps contained in the action plan and the final results or status of the resolution of violations of maximum investment limits as referred to in paragraph (1) letter a and the resolution of exceedances of investment limits as referred to in paragraph (1) letter b.

Article 37
(1) The Company is prohibited from carrying out any form of asset transfers of Tabarru’ Funds, Tanahud Funds, Company Funds, and Participant Investment Funds to shareholders or Related Parties of the Company except through arm’s length transactions. (2) The Company is prohibited from pledging assets of Tabarru’ Funds, Tanahud Funds, Company Funds, and Participant Investment Funds to other Parties. (3) The Company is prohibited from providing loans to shareholders or Related Parties of the Company. (4) The prohibition on transfers of assets of Tabarru’ Funds, Tanahud Funds, Company Funds, and Participant Investment Funds to shareholders or Related Parties of the Company as referred to in paragraph (1) and the prohibition on providing loans to shareholders or Related Parties of the Company as referred to in paragraph (3) do not apply in the event of placements for Permitted Assets in the form of investments.

Article 38
The amount of investments used as the basis for calculating restrictions on Permitted Assets in the form of investments as referred to in Article 30 and the maximum investment limits on one Party that is not a Related Party or one Recipient Investment Group that is not a Related Party as referred to in Article 31 letter b, is calculated from:
a. the total investments of Tabarru’ Funds plus Tanahud Funds for calculating the Permitted Assets limits on Tabarru’ Funds and Tanahud Funds; or b. the total investments of Company Funds for calculating the Permitted Assets limits on Company Funds, per the date of the financial position report.

Fifth Section
Permitted Assets in Non-Investment Forms

Article 39
(1) Permitted Assets in non-investment forms to be placed in Tabarru’ Funds and Tanahud Funds must be of the following types:
a. cash and bank; b. direct closing contribution receivables, including co-insurance contribution receivables that become part of the Company;
c. reinsurance contribution receivables;
d. tabarru’ reinsurance assets; e. tanahud reinsurance assets; f. co-insurance claim receivables; g. reinsurance claim receivables; h. investment receivables; and/or
i. investment return receivables.
(2) Permitted Assets in non-investment forms for Company Funds must be of the following types:
a. cash and bank; b. direct closing ujrah receivables, including co-insurance contribution receivables that become part of the Company;
c. reinsurance ujrah receivables;
d. Company Funds reinsurance assets; e. investment receivables; f. investment return receivables; g. buildings with strata title or land with buildings, for own use; h. deferred acquisition costs; and/or
i. right-to-use assets.
(3) Restrictions on Permitted Assets in non-investment forms as referred to in paragraph (1) and paragraph (2) must be carried out with the following provisions:
a. cash and bank, with the provision that foreign cash and bank allowed entirely are at most 1% (one percent) of the Equity of the current period; b. tabarru’ contribution receivables and direct closing ujrah receivables, including co-insurance contribution receivables that become part of the Company, with a receivable age of at most 2 (two) months calculated from the date:

coverage begins for policies with single contribution payments; or
contribution payment due dates for policies with installment contribution payments;
c. reinsurance contribution receivables and reinsurance ujrah receivables, with a receivable age of at most 2 (two) months calculated from the payment due date;
d. reinsurance assets, consisting of:
reinsurance assets in Tabarru’ Funds and Tanahud Funds sourced from the estimated value of claim recovery on reinsurance portions; and
reinsurance assets in Company Funds sourced from long-term contract agreements for capital-oriented reinsurance programs, with the provisions:
a) only for each new PAYDI whose acquisition costs are paid in advance by the Company (back-end loading); b) Companies that have already recognized assets arising from capital-oriented reinsurance program agreements for one PAYDI are not permitted to recognize deferred acquisition costs for the same PAYDI; and c) each capital-oriented reinsurance program agreement must first obtain approval from the Otoritas Jasa Keuangan; e. co-insurance claim receivables, with a receivable age of at most 2 (two) months calculated from the date of claim payment to the policyholder or participant; f. reinsurance claim receivables, with a receivable age of at most 2 (two) months calculated from the payment due date; g. investment receivables, with a receivable age of at most 1 (one) month calculated from the payment due date; h. investment return receivables, with a receivable age of at most 1 (one) month calculated from the payment due date;
i. buildings with strata title or land with buildings, for own use, with a total value of at most 25% (twenty-five percent) of the Equity of the current period;
j. deferred acquisition costs, with the provisions:
carried out for PAYDIs whose acquisition costs are paid in advance by the Company (back-end loading);
Companies that have already recognized deferred acquisition cost assets for PAYDIs are not permitted to recognize assets arising from capital-oriented reinsurance program agreements for the same PAYDI product; and
each formation of deferred acquisition costs for each PAYDI product must first obtain approval from the Otoritas Jasa Keuangan; and/or
k. right-to-use assets are only obtained from financial service institutions that have obtained business licenses from the Otoritas Jasa Keuangan.
(4) The valuation basis for each type of Permitted Asset in non-investment forms as referred to in paragraph (1) and paragraph (2) refers to the applicable financial accounting standards for Companies in Indonesia. (5) Provisions regarding the procedures for requesting approval from the Otoritas Jasa Keuangan for each capital-oriented reinsurance program agreement as referred to in paragraph (3) letter d number 2 letter c) and the formation of deferred acquisition costs for PAYDIs as referred to in paragraph (3) letter j number 3 are established by the Otoritas Jasa Keuangan.

Sixth Section
Status of Permitted Assets

Article 40
Permitted Assets in investment forms as referred to in Article 20 and Permitted Assets in non-investment forms as referred to in Article 39 must:
a. be owned and controlled by the Company, proven by ownership certificates in the Company's name from the competent authority; b. not be in dispute;
c. not currently be used as collateral; and
d. not currently be blocked by competent parties.

Seventh Section
Liabilities

Article 41
(1) The Company must form technical reserves for Tabarru’ Funds, Tanahud Funds, and Company Funds, to fulfill financial health provisions as referred to in Article 16 letter c.
(2) In addition to the obligation to form technical reserves as referred to in paragraph (1), Companies marketing PAYDI and Sharia insurance products other than PAYDI that provide benefits in the form of fund payments based on fund development results must form technical reserves in Participant Investment Funds. (3) Technical reserves as referred to in paragraph (1) and paragraph (2) must be formed in accordance with the type of Sharia insurance product. (4) The formation of technical reserves as referred to in paragraph (1), paragraph (2), and paragraph (3) is carried out by the Company's Actuary. (5) Liabilities considered in the determination of the Solvency Level calculation for Tabarru’ Funds and Tanahud Funds must include all Tabarru’ Funds and Tanahud Funds Liabilities, including Liabilities in the form of technical reserves in Tabarru’ Funds and Tanahud Funds as referred to in paragraph (1). (6) Liabilities considered in the determination of the Solvency Level calculation for Company Funds must include all Company Funds Liabilities

included in Liabilities in the form of technical provisions in the Company Fund as referred to in paragraph (1).
(7) Liabilities in the form of technical provisions of the Company Fund as referred to in paragraph (6) include ujrah provisions.

Eighth Section
Provisions
Article 42
(1) Liabilities in the form of technical provisions in the Tabarru’ Fund and Tanahud Fund as referred to in Article 41 paragraph (5) include:
a. provisions for tabarru’ or tanahud contributions, for products with a term of more than 1 (one) year whose policy terms and conditions cannot be renewed (non-renewable) on each policy anniversary; and b. provisions for tabarru’ and tanahud contributions that have not yet become income or rights, for:

products with a term of up to 1 (one) year; and
products with a term of more than 1 (one) year whose policy terms and conditions can be renewed (renewable) on each policy anniversary;
c. claim provisions; and
d. catastrophic risk provisions.

(2) The formation of tabarru’ or tanahud contribution provisions as referred to in paragraph (1) letter a must take into account income and expenditures in the Tabarru’ Fund and Tanahud Fund that may occur in the future using central estimate assumptions plus a risk margin. (3) The formation of provisions for tabarru’ or tanahud contributions that have not yet become income or rights as referred to in paragraph (1) letter b must be calculated based on tabarru’ or tanahud contributions by taking into account provisions for all unexpired risks. (4) Claim provisions as referred to in paragraph (1) letter c include:
a. provisions for claims in the process of settlement; b. provisions for claims that have occurred but not yet reported (incurred but not reported or IBNR); and
c. provisions for claims for approved claims where benefit payments are not made in a lump sum.
(5) Catastrophic risk provisions as referred to in paragraph (1) letter d are calculated based on retained insurance benefits by taking into account the likelihood of catastrophic risks occurring.

Article 43
(1) The obligation to form technical provisions as referred to in Article 41 paragraph (2), for PAYDI and Sharia insurance products other than PAYDI that provide benefits based on fund management results, includes at least:
a. provisions for the protection element formed with reference to the provisions as referred to in Article 42 paragraph (1); b. provisions for the accumulation of Participant Investment Fund for the investment element that is not guaranteed, formed at an amount equal to the fund balance accumulation;
c. provisions for the guaranteed investment element formed in the Company Fund; and
d. provisions for other promised benefits to be paid from the Company Fund formed with reference to the formation of ujrah provisions.
(2) Provisions for the fund balance accumulation for the Participant Investment Fund as referred to in paragraph (1) letter b are not taken into account in the calculation of the Solvency Ratio.

Article 44
(1) In the event that unfairness is found in technical provisions or part of the technical provisions formed by the Company, the Financial Services Authority may:
a. request the Company to revalue the amount of technical provisions or part of the technical provisions considered unfair; or b. request a review of the technical provisions or part of the technical provisions by an independent party at the Company's expense. (2) The Company must appoint an independent party within a maximum period of 1 (one) month after the request for a review as referred to in paragraph (1) letter b.

Article 45
Provisions regarding technical provisions as referred to in Article 42 are established by the Financial Services Authority.

Ninth Section
Subordinated Qardh
Article 46
In the calculation of the Company Fund Solvency Ratio, subordinated Qardh is not treated as a Liability element if the subordinated Qardh meets the following conditions:
a. used to meet the Company Fund Solvency Ratio requirements; b. stipulated in a notarial agreement containing at least:

repayment of the loan principal is done if it does not cause the Company to fail to meet the internal Company Fund Solvency Ratio target; and
the loan repayment period is not limited; and
c. subordinated Qardh is provided in the form of cash deposits.

Article 47
The Company is prohibited from returning subordinated Qardh if such action would cause the internal Company Fund Solvency Ratio target as referred to in Article 17 paragraph (1) letters c and d and paragraph (2) to not be met.

Tenth Section
Investment Adequacy
Article 48
(1) The Company must have Permitted Assets in the form of investments as referred to in Article 20 paragraph (2) plus Permitted Assets in the form of non-investments in the form of cash and banks as referred to in Article 39 paragraph (1) letter a, at least equal to the amount of technical provisions of the Tabarru’ Fund and Tanahud Fund of retained business, plus retained claim payment Liabilities, and other Liabilities to policyholders or participants. (2) Retained claim payment Liabilities as referred to in paragraph (1) are Liabilities for payments for claims that have been agreed upon but not yet paid, reduced by claim expenses that are part of the reinsurer.

Eleventh Section
Administrative Sanctions
Article 49
(1) Violations of the provisions as referred to in Article 16, Article 17 paragraph (1), Article 18 paragraph (3), Article 19, Article 20 paragraph (1), Article 24 paragraph (1) and paragraph (5), Article 25 paragraph (1) and paragraph (3), Article 29, Article 32 paragraph (7), Article 35 paragraph (1) and paragraph (5), Article 36 paragraph (1), paragraph (2), and paragraph (5), Article 37 paragraph (1), paragraph (2), and paragraph (3), Article 41 paragraph (1), paragraph (2), paragraph (3), and paragraph (5), and paragraph (6), Article 42 paragraph (2) and paragraph (3), Article 44 paragraph (2), Article 47, and Article 48 paragraph (1), are subject to administrative sanctions in the form of:
a. written warning; b. restriction of business activities, for part or all of business activities;
c. prohibition on marketing Sharia insurance products for specific business lines;
d. downgrade of the Company's health level; and/or e. prohibition on becoming a controller and shareholder, board of directors members, board of commissioners members, or equivalents to shareholders, board of directors members, and board of commissioners members in a legal entity in the form of a cooperative or joint venture, DPS, or holding executive positions below the board of directors, or equivalents to executive positions below the board of directors in a legal entity in the form of a cooperative or joint venture in the insurance company. (2) In the event of a violation of the provisions as referred to in paragraph (1) but the violation has been corrected, the Financial Services Authority provides a written warning sanction that ends automatically. (3) In the event that violations of the provisions as referred to in paragraph (1) letters a, b, and c have been fulfilled, the Financial Services Authority revokes the administrative sanction.

Article 50
Companies that violate the provisions of Article 24 paragraph (5) are subject to administrative sanctions as referred to in Article 49 paragraph (1) and an administrative fine of Rp100,000,000,00 (one hundred billion rupiah).

Article 51
Regarding violations of the provisions as referred to in Article 49 paragraph (1) and Article 50, the Financial Services Authority may conduct a re-evaluation of the Company's principal parties in accordance with the Financial Services Authority Regulation regarding re-evaluation of principal parties of financial service institutions.

CHAPTER VI
PARTICIPANT INVESTMENT FUND

First Section
General
Article 52
(1) Participant Investment Fund assets in the form of investments are prohibited from being placed, except in the following types of investments:
a. time deposits at Sharia Commercial Banks, Sharia business units at commercial banks, or Sharia Rural Banks, including on-call deposits and deposits with a term of less than or equal to 1 (one) month; b. deposit certificates at Sharia Commercial Banks or Sharia business units at commercial banks;
c. Sharia securities issued by the Republic of Indonesia;
d. Sharia securities issued by Bank Indonesia; e. Sharia securities issued by countries other than the Republic of Indonesia; f. Sharia securities issued by multinational institutions of which the Republic of Indonesia is a member or shareholder; g. sukuk or Sharia bonds listed on the stock exchange; h. regional sukuk;
i. EBUS Without Public Offering;
j. Sharia stocks listed on the stock exchange; k. Sharia mutual funds;
l. Sharia asset-backed securities;
m. transactions of Sharia securities through repurchase agreement (REPO); and/or n. pure gold.

(2) Participant Investment Fund assets in the form of non-investments must be in the following types:
a. cash and banks; b. receivables for Participant Investment Fund contributions from direct closure;
c. investment receivables; and/or
d. investment result receivables.

(3) The types of investments as referred to in paragraph (1) must be adjusted to the product descriptions reported to the Financial Services Authority and promised to prospective policyholders or participants. (4) Participant Investment Fund assets sourced from PAYDI and other products providing guaranteed cash values are not counted as Permitted Assets. (5) The valuation basis for each type of investment for the Participant Investment Fund as referred to in paragraph (1) and Participant Investment Fund assets in the form of non-investments as referred to in paragraph (2) refers to generally accepted financial accounting standards for Companies in Indonesia.

Article 53
Placements of Participant Investment Fund assets in the form of investments as referred to in Article 52 paragraph (1) and in the form of non-investments as referred to in Article 52 paragraph (2) must meet the following provisions:
a. placements of Permitted Assets in the form of investments as referred to in Article 21, Article 22, Article 27, and Article 28; and b. status of Permitted Assets as referred to in Article 40.

Article 54
(1) Investment placements of Participant Investment Fund abroad by the Company must meet the following provisions:
a. carried out for Participant Investment Fund from PAYDI insurance policies denominated in foreign currency; and b. at most 30% (thirty percent) of the total investment of all Participant Investment Funds owned by the Company. (2) Investment placements of Participant Investment Fund abroad sourced from Sharia insurance products other than PAYDI must meet the provision of at most 30% (thirty percent) of the total investment of all Participant Investment Funds sourced from Sharia insurance products other than PAYDI.

Article 55
(1) Placements of Participant Investment Fund assets must meet the following limits:
a. investments in Related Parties at most 10% (ten percent) of the total investment value:

for each Sub-fund, for investments from Sub-funds; and
for each Sharia insurance product other than PAYDI that provides payments based on fund development results; and
b. investments in one party that is not a Related Party or one Investment Recipient Group that is not a Related Party at most 25% (twenty-five percent) of the total investment value:
for each Sub-fund, for investments from Sub-funds; or
for each Sharia insurance product other than PAYDI that provides payments based on fund development results.
(2) Related Parties as referred to in paragraph (1) letter a are subject to the provisions of Related Parties as referred to in Article 32 and Article 34.
(3) Investment Recipient Groups as referred to in paragraph (1) letter b are subject to the provisions of Investment Recipient Groups as referred to in Article 33 and Article 34.
(4) In the event that the placement of Sub-fund investment assets or cash value assets of Sharia insurance products other than PAYDI that provide payments based on fund development results exceeds the limits as referred to in paragraph (1), the Company must adjust the composition of such investment assets to meet the limits as referred to in paragraph (1) at the latest:
a. 10 (ten) business days since the occurrence of the investment limit violation caused by transactions conducted by the Company; or b. 90 (ninety) business days since the occurrence of the investment limit violation not caused by transactions conducted by the Company.

Article 56
(1) The Company must account for all Sub-fund assets at a Custodian Bank.
(2) The Custodian Bank as referred to in paragraph (1) is prohibited from having a Related Party relationship with the Company, except for Related Party relationships arising from ownership or capital participation by the Republic of Indonesia.

Second Section
Administrative Sanctions
Article 57
(1) Violations of the provisions as referred to in Article 52 paragraph (1) and paragraph (3), Article 53, Article 54, Article 55 paragraph (1) and paragraph (4), and Article 56 are subject to administrative sanctions in the form of:
a. written warning; b. restriction of business activities, for part or all of business activities;
c. prohibition on marketing Sharia insurance products for specific business lines;
d. downgrade of the Company's health level; and/or e. prohibition on becoming a controller and shareholder, board of directors members, board of commissioners members, or equivalents to shareholders, board of directors members, and board of commissioners members in a legal entity in the form of a cooperative or joint venture, DPS, or holding executive positions below the board of directors, or equivalents to executive positions below the board of directors in a legal entity in the form of a cooperative or joint venture, in the insurance company. (2) In the event of a violation of the provisions as referred to in paragraph (1) but the violation has been corrected, the Financial Services Authority provides a written warning sanction that ends automatically. (3) In the event that violations of the provisions as referred to in paragraph (1) letters a, b, and c have been fulfilled, the Financial Services Authority revokes the administrative sanction.

Article 58
Regarding violations of the provisions as referred to in Article 57 paragraph (1), the Financial Services Authority may conduct a re-evaluation of the Company's principal parties in accordance with the Financial Services Authority Regulation regarding re-evaluation of principal parties of financial service institutions.

CHAPTER VII
PROHIBITION ON DIVIDEND PAYMENTS

First Section
Prohibition on Dividend Payments
Article 59
(1) The Company is prohibited from paying dividends or providing remuneration in any form to shareholders or equivalents if:
a. it causes the Company's Equity to decrease below the minimum Equity requirements as regulated in the Financial Services Authority Regulation regarding business licensing and institutional structure of insurance companies, reinsurance companies, Sharia Insurance Companies, and Sharia Reinsurance Companies; b. it causes the Company to lack the ability to provide Qardh; and/or
c. it causes the failure to achieve the internal Tabarru’ Fund and Tanahud Fund Solvency Ratio targets as referred to in Article 17 paragraph (1) letters c and paragraph (2) and the internal Company Fund Solvency Ratio targets as referred to in Article 17 paragraph (1) letters d and paragraph (2).
(2) Payment of dividends or provision of remuneration in any form to shareholders or equivalents must be carried out in accordance with statutory provisions.

Second Section
Administrative Sanctions
Article 60
(1) Violations of the provisions as referred to in Article 59 are subject to administrative sanctions in the form of:
a. written warning; b. restriction of business activities, for part or all of business activities;
c. prohibition on marketing Sharia insurance products for specific business lines;
d. downgrade of the Company's health level; and/or e. prohibition on becoming a controller and shareholder, board of directors members, board of commissioners members, or equivalents to shareholders, board of directors members, and board of commissioners members in a legal entity in the form of a cooperative or joint venture, DPS, or holding executive positions below the board of directors, or equivalents to executive positions below the board of directors in a legal entity in the form of a cooperative or joint venture, in the insurance company.

(2) In the event of a violation of the provisions as referred to in paragraph (1) but the violation has been corrected, the Financial Services Authority provides a written warning sanction that ends automatically. (3) In the event that violations of the provisions as referred to in paragraph (1) letters a, b, and c have been fulfilled, the Financial Services Authority revokes the administrative sanction.

Article 61
Regarding violations of the provisions as referred to in Article 60 paragraph (1), the Financial Services Authority may conduct a re-evaluation of the Company's principal parties in accordance with the Financial Services Authority Regulation regarding re-evaluation of principal parties of financial service institutions.

CHAPTER VIII
GUARANTEE FUND

First Section
Formation of Guarantee Fund
Article 62
(1) The Company must form a Guarantee Fund of at least 20% (twenty percent) of the minimum Equity requirements as regulated in the Financial Services Authority Regulation regarding business licensing and institutional structure of insurance companies, reinsurance companies, Sharia insurance companies, and Sharia reinsurance companies. (2) The amount of the Guarantee Fund as referred to in paragraph (1) is adjusted to the development of the Company's business activities with the following provisions:
a. for Sharia Life Insurance Companies, must form a Guarantee Fund equal to 2% (two percent) of provisions for PAYDI providing investment principal guarantees plus 5% (five percent) of provisions for tabarru’ and tanahud contributions, plus provisions for tabarru’ contributions that have not yet become income; b. for Sharia General Insurance Companies or Sharia Reinsurance Companies, must form a Guarantee Fund equal to 1% (one percent) of Net Contributions plus 0.25% (zero point two five percent) of reinsurance tabarru’ contributions plus 2% (two percent) of provisions for PAYDI providing investment principal guarantees;
c. for Sharia Units at life insurance companies, must form a Guarantee Fund equal to 2% (two percent) of provisions for PAYDI providing investment principal guarantees plus 5% (five percent) of provisions for tabarru’ contributions that have not yet become income; and

d. for Sharia Units at general insurance companies or reinsurance companies, must form a Guarantee Fund equal to 1% (one percent) of Net Contributions plus 0.25% (zero point two five percent) of reinsurance tabarru’ contributions plus 2% (two percent) of provisions for PAYDI.

(3) The formation of the Guarantee Fund as referred to in paragraph (1) and paragraph (2) is sourced from the Company Fund.
(4) In the event that the amount of Guarantee Fund formation as referred to in paragraph (1) is smaller than the amount of the Guarantee Fund as referred to in paragraph (2), the Company must form a Guarantee Fund equal to the amount of the Guarantee Fund as referred to in paragraph (2). (5) The Guarantee Fund for Sharia Units as referred to in paragraph (2) letters c and d must be separated from the Guarantee Fund formed by insurance companies or reinsurance companies for non-Sharia Principle insurance or reinsurance business. (6) The Guarantee Fund as referred to in paragraph (1) and paragraph (2) must be placed in the form of:
a. deposits with automatic renewal at Sharia Commercial Banks or Sharia business units at commercial banks that are not Related Parties of the Company; and/or b. Sharia securities issued by the Republic of Indonesia that, at the time of placement as a Guarantee Fund, have a maturity of at least 1 (one) year.

(7) The Guarantee Fund as referred to in paragraph (1) and paragraph (2) is prohibited from being pledged or encumbered with any rights.

Article 63
(1) The amounts of provisions for tabarru’ and tanahud contributions, provisions for tabarru’ contributions that have not yet become income, provisions for PAYDI providing investment principal guarantees, Net Contributions, and outgoing reinsurance tabarru’ contributions as referred to in Article 62 paragraph (2) letters a to d are obtained from financial reports as of the last December 31 based on statutory provisions in the field of insurance. (2) In the event that the Guarantee Fund is less than the amount as referred to in Article 62 paragraph (4), the Company must add to its Guarantee Fund within a maximum period of 5 (five) working days after April 30 of the current year. (3) In the event that the owned Guarantee Fund is greater than the amount as referred to in Article 62 paragraph (4), the Company may reduce its owned Guarantee Fund after first obtaining approval from the Financial Services Authority.

Second Section
Accounting of Guarantee Fund
Article 64
(1) The Company must account for all Guarantee Funds at a Custodian Bank.
(2) The Custodian Bank as referred to in paragraph (1) is not a Related Party of the Company, except for Related Party relationships arising from ownership or capital participation by the Republic of Indonesia.

Article 65
Accounting of the Guarantee Fund at the Custodian Bank as referred to in Article 64 paragraph (1) must be based on an agreement between the Company and the Custodian Bank containing at least:
a. delegation or authorization by the Company to the Custodian Bank to liquidate, transfer, or hand over the Guarantee Fund after obtaining approval from the Financial Services Authority; b. the obligation of the Custodian Bank to place funds obtained from the liquidation of the Guarantee Fund in the form of Sharia securities issued by the Republic of Indonesia that have matured into time deposits of 1 (one) month at Sharia Commercial Banks or Sharia business units at commercial banks in the name of the Company, in the event that the Company has not yet replaced the matured Guarantee Fund; and
c. provisions that the Custodian Bank cannot execute instructions from the Company or other parties to liquidate, transfer, and hand over deposits or Sharia securities issued by the Republic of Indonesia used as the Guarantee Fund, unless approval from the Financial Services Authority has been obtained.

Third Section
Changes to Guarantee Fund
Article 66
(1) The Company may make changes to the Guarantee Fund in the form of formation, addition, replacement, transfer, and/or liquidation of the Guarantee Fund.
(2) Formation or addition of the Guarantee Fund may be carried out with the following provisions:
a. new placement of deposits at Sharia Commercial Banks or Sharia business units at commercial banks and/or Sharia securities issued by the Republic of Indonesia as the Guarantee Fund; b. placement of deposits at Sharia Commercial Banks or Sharia business units at commercial banks that

previously not the Guarantee Fund into the Guarantee Fund; and/or
c. placement of Sharia securities issued by the State of the Republic of Indonesia that were previously not the Guarantee Fund into the Guarantee Fund.
(3) The Company may transfer or replace the Guarantee Fund with the following provisions:
a. from deposits at Sharia Commercial Banks or Sharia business units of commercial banks into Sharia securities issued by the State of the Republic of Indonesia or vice versa; b. changing the maturity period of deposits at Sharia Commercial Banks or Sharia business units of commercial banks;
c. changing the Sharia Commercial Bank or Sharia business unit of commercial bank where the deposits are placed; and/or
d. exchanging Sharia securities issued by the State of the Republic of Indonesia with other Sharia securities issued by the State of the Republic of Indonesia.
(4) In the event the Company intends to transfer or replace the Guarantee Fund as referred to in paragraph (3), the Company must first place the replacement Guarantee Fund at least equal to the value of the Guarantee Fund to be transferred or replaced. (5) In the event there is a Guarantee Fund in the form of Sharia securities issued by the State of the Republic of Indonesia that will mature, the Company must first place new Guarantee Fund at least equal to the value of the Sharia securities issued by the State of the Republic of Indonesia that will mature, at the latest 1 (one) day before the maturity date. (6) The Company may liquidate the Guarantee Fund if the amount of the Guarantee Fund exceeds the minimum amount required as referred to in Article 62 paragraph (4). (7) The amount of the Guarantee Fund that can be liquidated as referred to in paragraph (6) is the excess over the minimum amount required as referred to in Article 62 paragraph (4). (8) The Company is prohibited from transferring or liquidating the Guarantee Fund, unless it has obtained approval from the Financial Services Authority. (9) The transfer or liquidation of the Guarantee Fund is carried out by submitting a request document containing at least:
a. reasons for the transfer or liquidation of the Guarantee Fund; b. approval from the Board of Directors or equivalent for the transfer or liquidation of the Guarantee Fund; and
c. supporting documents proving the reasons for the transfer or liquidation of the Guarantee Fund.

Article 67
To fulfill the Guarantee Fund provisions as referred to in Article 62 paragraph (1), paragraph (2), and Article 66, the Guarantee Fund in the form of securities issued by the State of the Republic of Indonesia is valued based on fair market value.

Article 68
(1) The Financial Services Authority may order the Company to increase the amount of the Guarantee Fund up to the amount of technical reserves, in the event:
a. the Company cannot meet the solvency ratio requirements as referred to in Article 17; and b. the Company is subject to business activity restriction sanctions.
(2) The Company must increase the amount of the Guarantee Fund as referred to in paragraph (1) within a maximum period of 1 (one) month from the date of the order to increase the amount of the Guarantee Fund.

Fourth Section
Administrative Sanctions

Article 69
(1) Violations of the provisions as referred to in Article 62 paragraph (1), paragraph (2), paragraph (4), paragraph (5), paragraph (6), and paragraph (7), Article 63 paragraph (2), Article 64 paragraph (1), Article 65, Article 66 paragraph (4), paragraph (5), and paragraph (8), and Article 68 paragraph (2), are subject to administrative sanctions in the form of:
a. written warning; b. restriction of business activities, for part or all of the business activities;
c. prohibition on marketing insurance products for specific business lines;
d. downgrade of the Company's Health Level; and/or e. prohibition on becoming a controller and shareholder, Board of Directors member, Board of Commissioners member or equivalent to shareholders, Board of Directors members, and Board of Commissioners members of legal entities in the form of cooperatives or joint ventures, DPS, or holding executive positions below the Board of Directors, or equivalent to executive positions below the Board of Directors in legal entities in the form of cooperatives or joint ventures in the insurance company. (2) In the event of a violation of the provisions as referred to in paragraph (1) but the violation has been corrected, the Financial Services Authority provides a written warning sanction that ends automatically. (3) In the event that the violations of the provisions as referred to in paragraph (1) letters a, b, and c have been fulfilled, the Financial Services Authority revokes the administrative sanction.

Article 70
Regarding violations of the provisions as referred to in Article 69 paragraph (1), the Financial Services Authority may conduct a re-evaluation of the Company's Principal Parties in accordance with the Financial Services Authority Regulation regarding re-evaluation for principal parties of financial service institutions.

CHAPTER IX
SUBMISSION OF PERIODIC REPORTS

First Section
Report Preparation

Article 71
(1) The Company is required to prepare:
a. annual financial reports for the period from January 1 to December 31 based on applicable financial accounting standards in Indonesia; b. annual financial reports for the period from January 1 to December 31 based on insurance legislation regulations;
c. monthly reports for the period from the 1st to the end of the current month; and
d. annual actuarial reports for the period from January 1 to December 31.
(2) The annual financial reports as referred to in paragraph (1) letter a must be audited by a public accountant registered with the Financial Services Authority.
(3) The annual financial reports as referred to in paragraph (1) letter a must be approved by the General Meeting of Shareholders at the latest 6 (six) months after the end of the fiscal year. (4) The approval of the General Meeting of Shareholders as referred to in paragraph (3) is recorded in the form of an approval deed. (5) The approval deed as referred to in paragraph (4) must be submitted to the Financial Services Authority at the latest 15 (fifteen) working days after the approval of the General Meeting of Shareholders. (6) In the event the public accountant provides a management letter to the Company, the annual financial reports must be completed with the management letter. (7) The annual financial reports as referred to in paragraph (1) letter b must be reviewed and assessed for compliance with insurance legislation regulations on the financial health of insurance companies by the Company's Actuary or a public accountant registered with the Financial Services Authority. (8) The annual actuarial report as referred to in paragraph (1) letter d is a report that describes the Company's estimated ability to meet its future obligations. (9) The annual actuarial report as referred to in paragraph (1) letter d must be signed by the Company's Actuary. (10) The annual actuarial report as referred to in paragraph (1) letter d must be reviewed and assessed for the fairness of its presentation by an actuarial consultant registered with the Financial Services Authority at least 1 (one) time in 3 (three) years. (11) Provisions regarding the form and structure of the reports as referred to in paragraph (1) letters b to d are determined by the Financial Services Authority.

Article 72
(1) The Company is required to have and account for a detailed list of Related Parties as referred to in Article 32 and Groups of Investment Recipients who are not Related Parties as referred to in Article 33, for:
a. investments from Tabarru' Fund, Tanahud Fund, and Company Fund as referred to in Article 31; and b. investments from Participant Investment Fund as referred to in Article 55 paragraph (1). (2) The detailed list of Related Parties as referred to in paragraph (1) must contain at least the name of the Related Party and the relationship between the Related Party and the Company. (3) The detailed list of Groups of Investment Recipients as referred to in paragraph (1) must contain at least the name of the Party, the name of the Group of Investment Recipients who are not Related Parties, and the relationship between the Party and other parties within the Group of Investment Recipients who are not Related Parties. (4) The Company is required to submit to the Financial Services Authority:
a. reports on the detailed list of Related Parties and Groups of Investment Recipients who are not Related Parties receiving investments from Tabarru' Fund, Tanahud Fund, Company Fund, or Participant Investment Fund; b. reports on investment placements on:

Related Parties;
one Party who is not a Related Party; and
one Group of Investment Recipients who are not Related Parties,
receiving investments from Tabarru' Fund and Tanahud Fund;
c. reports on investment placements on:
Related Parties;
one Party who is not a Related Party; and
one Group of Investment Recipients who are not Related Parties,
receiving investments from Company Fund; and d. reports on investment placements on Related Parties, one Party who is not a Related Party receiving investments from Participant Investment Fund. (5) The reports as referred to in paragraph (4) must be submitted:
a. every month as part of the monthly reports as referred to in Article 71 paragraph (1) letter c; and b. according to the deadline requested by the Financial Services Authority if the Financial Services Authority requests the Company to submit such reports.

Article 73
Insurance companies and reinsurance companies that have Sharia Units are required to prepare annual financial reports as referred to in Article 71 paragraph (1) letter a for the Sharia Units separately from the annual financial reports for the insurance and reinsurance companies.

Article 74
In the reports as referred to in Article 71 paragraph (1), every asset and Liability in foreign currency units must be presented in Rupiah based on the middle exchange rate set by Bank Indonesia on the report date.

Second Section
Report Submission

Article 75
Provisions regarding the procedures for submitting reports as referred to in Article 71 are determined by the Financial Services Authority.

Third Section
Report Publication

Article 76
(1) The Company is required to publish a summary of the audited annual financial reports as referred to in Article 71 paragraph (2) on the Company's website and in a daily newspaper in Indonesian circulating nationally within a maximum period of 1 (one) month after the deadline for submitting annual financial reports as regulated in insurance legislation regulations, containing at least:
a. financial position; b. financial performance; and
c. financial health condition.
(2) Proof of publication as referred to in paragraph (1) must be submitted to the Financial Services Authority within a maximum period of 2 (two) working days after the publication in the newspaper. (3) The Company is required to publish a summary of the monthly reports as referred to in Article 71 paragraph (1) letter c on the Company's website within a maximum period of 10 (ten) working days after the end of the relevant month. (4) Provisions regarding the form and structure of the summary of annual financial reports as referred to in paragraph (1) are determined by the Financial Services Authority.

Article 77
In the event there are parts that need to be corrected in the reports that have been published as referred to in Article 76 paragraph (1) and paragraph (3), the Company is required to correct the reports and republish them on the Company's website.

Fourth Section
Administrative Sanctions

Article 78
(1) Violations of the provisions as referred to in Article 71 paragraph (1), paragraph (2), paragraph (3), paragraph (5), paragraph (6), paragraph (7), and paragraph (10), Article 72 paragraph (1), paragraph (4), and paragraph (5), Article 73, Article 74, Article 76 paragraph (1), paragraph (2), and paragraph (3), and Article 77, are subject to administrative sanctions in the form of:
a. written warning; b. restriction of business activities, for part or all of the business activities;
c. prohibition on marketing insurance products for specific business lines;
d. downgrade of the Company's Health Level; and/or e. prohibition on becoming a controller and shareholder, Board of Directors member, Board of Commissioners member or equivalent to shareholders, Board of Directors members, and Board of Commissioners members of legal entities in the form of cooperatives or joint ventures, DPS, or holding executive positions below the Board of Directors, or equivalent to executive positions below the Board of Directors in legal entities in the form of cooperatives or joint ventures in the insurance company. (2) In the event of a violation of the provisions as referred to in paragraph (1) but the violation has been corrected, the Financial Services Authority provides a written warning sanction that ends automatically. (3) In the event that the violations of the provisions as referred to in paragraph (1) letters a, b, and c have been fulfilled, the Financial Services Authority revokes the administrative sanction.

Article 79
Companies that violate the provisions of Article 76 paragraph (1) are subject to administrative sanctions as referred to in Article 78 paragraph (1) and an administrative fine of Rp2,500,000.00 (two million five hundred thousand Rupiah) per day and at most Rp50,000,000.00 (fifty million Rupiah).

Article 80
Regarding violations of the provisions as referred to in Article 78 paragraph (1) and Article 79, the Financial Services Authority may conduct a re-evaluation of the Company's Principal Parties in accordance with the Financial Services Authority Regulation regarding re-evaluation for principal parties of financial service institutions.

CHAPTER X
CONSUMER PROTECTION

Article 81
(1) The Company applies consumer and community protection in accordance with legislation regulations regarding consumer and community protection in the financial service sector.
(2) The mechanism and procedures for applying the principles of consumer and community protection as referred to in paragraph (1) are implemented in accordance with the Financial Services Authority Regulation regarding consumer and community protection in the financial service sector.

CHAPTER XI
OTHER PROVISIONS

Article 82
The Financial Services Authority may provide approval or policy different from this Financial Services Authority Regulation based on certain considerations.

CHAPTER XII
TRANSITIONAL PROVISIONS

Article 83
(1) At the time this Financial Services Authority Regulation comes into force, Companies that already have placements of Permitted Assets in the form of direct investment participation as referred to in Article 20 paragraph (3) letter a but have not yet met the provisions:
a. placements of Permitted Assets in the form of direct investment participation as referred to in Article 24 paragraph (1); and/or b. maximum limit of total investment placements in the form of direct investment participation as referred to in Article 24 paragraph (2), must adjust to the provisions in this Financial Services Authority Regulation within a maximum period of 2 (two) years from the time this Financial Services Authority Regulation comes into force. (2) During the adjustment period as referred to in paragraph (1), investment placements in the form of direct investment participation that do not comply with the provisions in Article 24 paragraph (1) and paragraph (2) are still recognized as Permitted Assets. (3) In the event the Company does not meet the provisions within the period as referred to in paragraph (1):
a. investment placements in the form of direct investment participation that do not comply with the provisions in Article 24 paragraph (1), the entire investment is not recognized as Permitted Assets; and/or b. investment placements that exceed the maximum limit of total investment placements as referred to in Article 24 paragraph (2), the excess investment is not recognized as Permitted Assets, and are not subject to administrative sanctions for violations of the obligations as referred to in Article 24 paragraph (1) and paragraph (2).

Article 84
At the time this Financial Services Authority Regulation comes into force, placements of Permitted Assets in the form of investment through financing mechanisms in cooperation with other Parties in the form of credit granting cooperation (executing) that existed before this Financial Services Authority Regulation comes into force, are recognized as Permitted Assets until the end of the cooperation agreement period.

Article 85
Violations of Financial Services Authority Regulation Number 72/POJK.05/2016 concerning the Financial Health of Insurance Companies and Reinsurance Companies with Sharia Principles as last amended by Financial Services Authority Regulation Number 6 of 2023 concerning the Second Amendment to Financial Services Authority Regulation Number 72/POJK.05/2016 concerning the Financial Health of Insurance Companies and Reinsurance Companies with Sharia Principles, which are known since this Financial Services Authority Regulation comes into force, are subject to administrative sanctions based on the provisions in Financial Services Authority Regulation Number 72/POJK.05/2016 concerning the Financial Health of Insurance Companies and Reinsurance Companies with Sharia Principles as amended several times last by Financial Services Authority Regulation Number 6 of 2023 concerning the Second Amendment to Financial Services Authority Regulation Number 72/POJK.05/2016 concerning the Financial Health of Insurance Companies and Reinsurance Companies with Sharia Principles.

Article 86
Provisions regarding Minimum Equity as regulated in Financial Services Authority Regulation Number 72/POJK.05/2016 concerning the Financial Health of Insurance Companies and Reinsurance Companies with Sharia Principles as amended several times last by Financial Services Authority Regulation Number 6 of 2023 concerning the Second Amendment to Financial Services Authority Regulation Number 72/POJK.05/2016 concerning the Financial Health of Insurance Companies and Reinsurance Companies with Sharia Principles are declared to remain in force until December 31, 2026.

CHAPTER XIII
CLOSING PROVISIONS

Article 87
Placements of Permitted Assets in the form of investment in Sharia Medium Term Notes that existed before this Financial Services Authority Regulation comes into force, must be understood as Private Placement without Public Offering as long as they do not conflict with this Financial Services Authority Regulation.

Article 88
At the time this Financial Services Authority Regulation comes into force, all implementation provisions of Financial Services Authority Regulation Number 72/POJK.05/2016 concerning the Financial Health of Insurance Companies and Reinsurance Companies with Sharia Principles (State Gazette of the Republic of Indonesia Year 2016 Number 305, Supplement to the State Gazette of the Republic of Indonesia 5995) as amended several times last by Financial Services Authority Regulation Number 6 of 2023 concerning the Second Amendment to Financial Services Authority Regulation Number 72/POJK.05/2016 concerning the Financial Health of Insurance Companies and Reinsurance Companies with Sharia Principles (State Gazette of the Republic of Indonesia Year 2023 Number 9/OJK, Supplement to the State Gazette of the Republic of Indonesia Number 34/OJK) are declared to remain in force as long as they do not conflict with the provisions in this Financial Services Authority Regulation.

Article 89
At the time this Financial Services Authority Regulation comes into force, Financial Services Authority Regulation Number 72/POJK.05/2016 concerning the Financial Health of Insurance Companies and Reinsurance Companies with Sharia Principles (State Gazette of the Republic of Indonesia Year 2016 Number 305, Supplement to the State Gazette of the Republic of Indonesia 5995) as amended several times last by Financial Services Authority Regulation Number 6 of 2023 concerning the Second Amendment to Financial Services Authority Regulation Number 72/POJK.05/2016 concerning the Financial Health of Insurance Companies and Reinsurance Companies with Sharia Principles (State Gazette of the Republic of Indonesia Year 2023 Number 9/OJK, Supplement to the State Gazette of the Republic of Indonesia Number 34/OJK) is revoked and declared invalid.

Article 90
This Financial Services Authority Regulation comes into force on the date of its promulgation.
To ensure that everyone knows it, it orders the promulgation of this Financial Services Authority Regulation by placing it in the State Gazette of the Republic of Indonesia.

Established in Jakarta on November 10, 2025
CHAIRMAN OF THE BOARD OF COMMISSIONERS
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA,
Œ
MAHENDRA SIREGAR
Promulgated in Jakarta on the date Д
MINISTER OF LAW OF THE REPUBLIC OF INDONESIA,
Ѽ
SUPRATMAN ANDI AGTAS
STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2025 NUMBER Ж

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
OF THE REPUBLIC OF INDONESIA
NUMBER 27 OF 2025
CONCERNING
ASSET AND LIABILITY MANAGEMENT OF SHARIA INSURANCE AND REINSURANCE COMPANIES

I. GENERAL
Financial Services Authority Regulation Number 72/POJK.05/2016 concerning the Financial Health of Insurance Companies and Reinsurance Companies with Sharia Principles, which has been amended several times last by Financial Services Authority Regulation Number 6 of 2023 concerning the Second Amendment to Financial Services Authority Regulation Number 72/POJK.05/2016 concerning the Financial Health of Insurance Companies and Reinsurance Companies with Sharia Principles, serves as the legal basis for the Financial Services Authority in assessing the financial health of Sharia Insurance and Reinsurance Companies. This Financial Services Authority Regulation serves as a guideline for Companies to apply prudent principles in implementing risk management related to investment placements and maintaining financial health. In the current provisions, there is no distinction in investment limits between Company Assets within the framework of risk management and PAYDI Sub-Funds Assets within the framework of investment portfolio diversification, investment placements on Related Parties and non-Related Parties, and optimization of investment returns for policyholders. Therefore, it is necessary to adjust the direct investment participation provisions for Company Assets and adjust the investment provisions on Related Parties, including for PAYDI Sub-Funds. Considering current conditions, there is a decrease in PAYDI Sub-Fund investments in Sharia mutual funds, requiring adjustments in regulations to provide the best performance for PAYDI policyholders. In addition, to avoid multiple interpretations regarding provisions on assessing the Company's health level, it is necessary to adjust the title of Financial Services Authority Regulation Number 72/POJK.05/2016 concerning the Financial Health of Insurance Companies and Reinsurance Companies with Sharia Principles, which has been amended several times last by Financial Services Authority Regulation Number 6 of 2023 concerning the Second Amendment to Financial Services Authority Regulation Number 72/POJK.05/2016 concerning the Financial Health of Insurance Companies and Reinsurance Companies with Sharia Principles, to better reflect the substance regulated. Considering the above conditions, the Financial Services Authority needs to establish a Financial Services Authority Regulation concerning Asset and Liability Management of Sharia Insurance and Reinsurance Companies, which regulates provisions including, among others, investment placements, particularly direct investment participation provisions,

investment in Related Parties for PAYDI Sub-funds, investment of PAYDI Sub-funds in Sharia mutual funds, solvency ratios, liability calculations, and Guarantee Funds.

II. ARTICLE BY ARTICLE

Article 1
Clearly stated.

Article 2
Paragraph (1)
Clearly stated.

Paragraph (2)
Clearly stated.

Paragraph (3)
Clearly stated.

Paragraph 4
Example of transfer from one fund to another fund for the imposition of fees as regulated in the policy:
Transfer of a portion of Participant Investment Funds to Tabarru’ Funds for the payment of Tabarru’ contributions and to Company Funds for the payment of ujrah for the management of Participant Investment Funds in accordance with policy provisions.

Article 3
Paragraph (1)
Clearly stated.

Paragraph (2)
Letter a
Example of separation of Tabarru’ Funds or Tanahud Funds based on the characteristics of Sharia insurance products is separation based on business lines and market segments of Sharia insurance products.

Letter b
Clearly stated.

Letter c
Clearly stated.

Letter d
Clearly stated.

Paragraph (4)
Clearly stated.

Paragraph (5)
Clearly stated.

Paragraph (6)
Clearly stated.

Article 4
Paragraph (1)
Clearly stated.

Paragraph (2)
Letter a
Clearly stated.

Letter b
Tabarru’ contributions to reinsurers may be limited only to Tabarru’ contributions or contributions and ujrah, as long as they comply with Sharia Principles.

Letter c
Clearly stated.

Letter d
Return of Tabarru’ Funds is given to the policyholder or participant who paid the contribution.

Letter e
Examples of asset management costs for Tabarru’ Funds are account administration fees, stamp duty, and taxes on investment returns.

Letter f
Clearly stated.

Paragraph (3)
Letter a
Clearly stated.

Letter b
Tanahud contributions to reinsurers may be limited only to Tanahud contributions or contributions and ujrah, as long as they comply with Sharia Principles.

Letter c
Clearly stated.

Letter d
Return of Tanahud Funds is given to the policyholder or participant who paid the contribution.

Letter e
Examples of asset management costs for Tanahud Funds are account administration fees, stamp duty, and taxes on investment returns.

Letter f
Clearly stated.

Paragraph (4)
Clearly stated.

Paragraph (5)
Clearly stated.

Article 5
Paragraph (1)
Clearly stated.

Paragraph (2) a. Example of separation of assets and Liabilities based on the type of Sharia insurance product:
assets and Liabilities of Participant Investment Funds from PAYDI Sub-funds are separated from assets and Liabilities of Participant Investment Funds from other Sharia insurance products that provide benefits in the form of payments based on fund development results; and

b. Example of separation of assets and Liabilities based on the type of investment management Akad:
assets and Liabilities of Participant Investment Funds managed based on the Akad wakalah bil ujrah are separated from assets and Liabilities of Participant Investment Funds managed based on the Akad mudharabah and mudaharabah musytarakah.

c. Example of separation of assets and Liabilities based on the type of investment strategy:
Assets and Liabilities of Participant Investment Funds with a money market investment strategy are separated from assets and Liabilities of Participant Investment Funds with a fixed income investment strategy.

Paragraph (3)
Clearly stated.

Paragraph (4)
What is meant by "adjustment of Sub-fund investment portfolio" includes, among others, a reduction in investments in 1 (one) Party that is not a Related Party from 1 (one) Sub-fund that has exceeded the investment limit in 1 (one) Party that is not a Related Party to another Sub-fund that has not yet exceeded the investment limit in 1 (one) Party that is not a Related Party.

What is meant by "not harming the policyholder or participant" is when the transfer of assets from 1 (one) Sub-fund to another Sub-fund is done at fair value, followed by the transfer of assets from the other Sub-fund to the relevant Sub-fund at the same fair value, and is based on the Company's analysis that the transferred assets are not subject to legal issues and/or decline in investment performance.

Example 1:
Sub-fund 1 (one) has an investment in Sharia stock A that exceeds the maximum investment limit in one Party, while Sub-fund 2 (two) does not yet have an investment in Sharia stock A. The Company transfers a portion of the investment in stock A from Sub-fund 1 (one) to Sub-fund 2 (two) at fair value at the time, followed by the transfer of assets in the form of Sharia deposits from Sub-fund 2 (two) to Sub-fund 1 (one) with the same value. Before the asset transfer is carried out, the Company has conducted an analysis of the investment performance of Sharia stock A and there are no indications of deteriorating investment performance in Sharia stock A.

Example 2:
Sub-fund 1 (one) needs liquidity while Sub-fund 2 (two) has sufficient liquidity, then the Company transfers a portion of cash/bank assets from Sub-fund 2 (two) to Sub-fund 1 (one), followed by the transfer of sukuk or Sharia bond A from Sub-fund 1 (one) to Sub-fund 2 (two) using fair value. The Company has conducted an analysis of the investment performance of Sharia bond A and there are no indications of deteriorating investment performance in bond A.

Article 6
Clearly stated.

Article 7
Paragraph (1)
Clearly stated.

Paragraph (2)
Example:
The Company commits a violation of the provisions in this Financial Services Authority Regulation on January 31, 2026, but has been corrected on February 10, 2026, and is known by the Financial Services Authority on March 1, 2026. Regarding this condition, the Financial Services Authority imposes an administrative sanction in the form of a written warning that ends automatically.

Paragraph (3)
Example:
The Company commits a violation of the provisions in this Financial Services Authority Regulation on January 31, 2026, and is known by the Financial Services Authority on March 1, 2026. Regarding this condition, the Financial Services Authority imposes an administrative sanction in the form of a written warning. Company A resolves the cause of the problem leading to the imposition of the administrative sanction in the form of a written warning on March 31, 2026, so that the Financial Services Authority revokes the administrative sanction in the form of a written warning.

Article 8
Clearly stated.

Article 9
Paragraph (1)
Clearly stated.

Paragraph (2)
Letter a
Recommendations from the Company Actuary or Company experts are given based on an analysis of the fairness of the calculation of Underwriting Surplus and the impact of the distribution of Underwriting Surplus on the Solvency Ratio of Tabarru’ Funds and Tanahud Funds.

Letter b
Approval from the Board of Commissioners is given at least regarding the provisions:
a. Sharia insurance policy or Sharia reinsurance agreement; b. company internal procedures or guidelines regarding Underwriting Surplus usage policy that regulate the distribution of Underwriting Surplus; and
c. requirements or conditions for the distribution of Underwriting Surplus.

Paragraph (3)
Clearly stated.

Paragraph (4)
Clearly stated.

Paragraph (5)
Clearly stated.

Paragraph (6)
Clearly stated.

Paragraph (7)
Clearly stated.

Paragraph (8)
Clearly stated.

Paragraph (9)
Other examples of usage include, among others, the payment of Qardh.

Article 10
Paragraph (1)
Letter a
In the event that the Company establishes more than 1 (one) Tabarru’ Fund, the aforementioned Tabarru’ Fund is the Tabarru’ Fund that will distribute Underwriting Surplus.

Letter b
Clearly stated.

Letter c
Clearly stated.

Letter d
Clearly stated.

Paragraph (2)
Clearly stated.

Paragraph (3)
Clearly stated.

Article 11
Paragraph (1)
Clearly stated.

Article 12
Clearly stated.

Article 13
Paragraph (1)
Clearly stated.

Paragraph (2)
Letter a
What is meant by the Solvency Ratio of Tabarru’ Funds and Tanahud Funds being smaller than the internal target Solvency Ratio of Tabarru’ Funds and Tanahud Funds in this paragraph is the Solvency Ratio before taking into account Qardh and Assets Available for Qardh as an addition to Permitted Assets for Tabarru’ Funds.

Letter b
Clearly stated.

Paragraph (3)
Clearly stated.

Paragraph (4)
Clearly stated.

Paragraph (5)
Board of Directors or equivalent approval includes among others details of assets and their values used as Assets Available for Qardh.

Paragraph (6)
The deposit of Qardh to Tabarru’ Funds is supported by evidence including:
a. Board of Directors decision regarding the provision of Qardh containing information regarding the purpose of providing Qardh, the Tabarru’ Funds or Tanahud Funds receiving Qardh, the amount of Qardh, the form of Qardh assets, and the term of Qardh (if any); and b. proof of deposit into the Tabarru’ Fund/Tanahud Fund account.

Paragraph (7)
The repayment of Qardh is supported by evidence including:
a. Board of Directors decision regarding the repayment of Qardh containing information regarding the Tabarru’ Funds or Tanahud Funds to which Qardh repayment is made, the amount of Qardh repayment, and the form of assets used for Qardh repayment; and b. proof of deposit into the Company account.

Paragraph (8)
Clearly stated.

Paragraph (9)
Clearly stated.

Paragraph (10)
Clearly stated.

Paragraph (11)
Clearly stated.

Paragraph (12)
Clearly stated.

Article 14
Paragraph (1)
Clearly stated.

Paragraph (2)
See explanation of Article 7 paragraph (2).

Paragraph (3)
See explanation of Article 7 paragraph (3).

Article 15
Clearly stated.

Article 16
Clearly stated.

Article 17
Paragraph (1)
Letter a
Clearly stated.

Letter b
Clearly stated.

Letter c
Clearly stated.

Letter d
Clearly stated.

Paragraph (2)
The Company's risk profile considers among others geographical location, the Company's products, business plans, and claim experience in measuring the risk profile and considers scenario changes (stress test). In addition, the Company may consider other risks that may arise, including those arising from changes in strategy and/or business development plans of the Company.

Paragraph (3)
Clearly stated.

Article 18
Paragraph (1)
Credit risk, liquidity risk, market risk, insurance risk, and operational risk refer to provisions regarding the assessment of the health level of the Company.

Paragraph (2)
Clearly stated.

Paragraph (3)
What is meant by "certain percentage" is a percentage that reflects the risk of Sub-fund management.

Paragraph (4)
Clearly stated.

Article 19
Clearly stated.

Article 20
Paragraph (1)
What is meant by "prudence principle" is the placement of investments that considers security, optimal returns, liquidity needs, and the Company's Liability profile, as well as the suitability of the investment portfolio with Sharia Principles.

Paragraph (2)
Letter a
Clearly stated.

Letter b
What is meant by "deposit certificate" is a deposit in the form of a deposit based on Sharia Principles whose proof of deposit certificate can be transferred.

Letter c
Clearly stated.

Letter d
Clearly stated.

Letter e
Clearly stated.

Letter f
Clearly stated.

Letter g
What is meant by "sukuk or Sharia bonds" is sukuk or Sharia bonds issued by business entities, including institutions given special authority to manage government central investment based on applicable legislation.

Letter h
What is meant by "regional sukuk" is a Sharia security in the form of a certificate or proof of ownership that has the same value and represents an inseparable or undivided portion of the underlying assets, issued by regional governments in accordance with applicable legislation regarding regional loans.

Letter i
Clearly stated.

Letter j
Clearly stated.

Letter k
Clearly stated.

Letter l
Clearly stated.

Letter m
Clearly stated.

Letter n
What is meant by "infrastructure investment fund in the form of collective investment contract" is a container in the form of a collective investment contract used to raise funds from investor public for the most part to be invested in infrastructure assets by the Investment Manager.

Letter o
Clearly stated.

Letter p
Clearly stated.

Paragraph (3)
Clearly stated.

Paragraph (4)
Clearly stated.

Paragraph (5)
Clearly stated.

Paragraph (6)
Clearly stated.

Article 21
Paragraph (1)
Clearly stated.

Paragraph (2)
What is meant by "investment grade" is the eligibility given to types of investments issued by companies that receive ratings from rating agencies recognized by the Financial Services Authority or equivalent to BBB.

Paragraph (3)
Clearly stated.

Paragraph (4)
Clearly stated.

Paragraph (5)
Clearly stated.

Paragraph (6)
Clearly stated.

Paragraph (7)
Letter a
Sharia mutual funds offered through public offerings include among others:

Sharia money market mutual funds, Sharia fixed income mutual funds, Sharia mixed mutual funds, and Sharia equity mutual funds;
Sharia mutual funds traded on the Indonesia Stock Exchange (Exchange Traded Fund) including underlying securities and non-securities in accordance with Financial Services Authority Regulations in the capital market sector;
Sharia mutual funds offered through public offerings for a limited period including among others Sharia protected mutual funds, Sharia guaranteed mutual funds, and Sharia index mutual funds; and
Sharia limited participation mutual funds offered through public offerings.

Letter b
Clearly stated.

Paragraph (8)
Clearly stated.

Paragraph (9)
Letter a
What is meant by "Sharia principles in the capital market" are Islamic law principles in Sharia activities in the capital market based on fatwas of the National Sharia Council - Indonesian Ulema Council, as long as the aforementioned fatwa does not conflict with Financial Services Authority Regulations on the Application of Sharia Principles in the Capital Market and/or other Financial Services Authority Regulations based on fatwas of the National Sharia Council - Indonesian Ulema Council.

Letter b
Clearly stated.

Letter c
Clearly stated.

Letter d
Clearly stated.

Letter e
Clearly stated.

Paragraph (10)
Clearly stated.

Paragraph (11)
Clearly stated.

Paragraph (12)
Clearly stated.

Article 22
Clearly stated.

Article 23
Clearly stated.

Article 24
Paragraph (1)
Violations of these provisions impact investment placements that are not counted as Permitted Assets.

Letter a
What is meant by "financial service institution" is:

financial service institutions in accordance with the Law on Financial Services Authority; or
institutions that:
a) based on provisions or statements from competent authorities are financial service institutions; and b) their business activities can be equated with the business activities of financial service institutions in accordance with the Law on Financial Services Authority, for companies located outside the territory of Indonesia.

Letter b
The use of information technology is utilized to produce financial products only or accompanied by financial transaction facilities.
Example: Payment system organizer service company.

Letter c
Companies supporting the main business activities of insurance include among others companies providing services to support:
a. development of Sharia insurance products; b. risk selection process (underwriting);
c. marketing of Sharia insurance products; and
d. claim handling.

Paragraph (2)
Clearly stated.

Paragraph (3)
Clearly stated.

Paragraph (4)
Clearly stated.

Paragraph (5)
Clearly stated.

Article 25
Clearly stated.

Article 26
Clearly stated.

Article 27
Clearly stated.

Article 28
Clearly stated.

Article 29
Clearly stated.

Article 30
Paragraph (1)
Letter a
Clearly stated.

Letter b
Clearly stated.

Letter c
Example of application of investment limits for deposit certificates:
Sharia Insurance Company has a time deposit at Bank A amounting to Rp10,000,000,000.00 (ten billion rupiah) and at Bank B amounting to Rp30,000,000,000.00 (thirty billion rupiah), then the Sharia Insurance Company can only have investments in the form of deposit certificates as follows:
a. at most Rp5,000,000,000.00 (five billion rupiah) (50% x Rp10,000,000,000.00 (ten billion rupiah)) at Bank A. b. at most Rp15,000,000,000.00 (fifteen billion rupiah) (50% x Rp30,000,000,000.00 (thirty billion rupiah)) at Bank B.

Letter d
Permitted Assets in the form of Sharia securities issued by the Republic of Indonesia or Bank Indonesia are not subject to investment limits, so they can all be counted as Permitted Assets.

Letter e
Clearly stated.

Letter f
Clearly stated.

Letter g
Clearly stated.

Letter h
Clearly stated.

Letter i
Clearly stated.

Letter j
Clearly stated.

Letter k
Clearly stated.

Letter l
Clearly stated.

Letter m
Clearly stated.

Letter n
Clearly stated.

Letter o
Clearly stated.

Letter p
Clearly stated.

Paragraph (2)
What is meant by "Sharia mutual fund having underlying assets entirely in the form of Sharia securities issued by the Republic of Indonesia and/or securities issued by Bank Indonesia" is a Sharia mutual fund whose underlying assets are Sharia securities issued by the Republic of Indonesia and/or Sharia securities issued by Bank Indonesia amounting to at least 80% (eighty percent) of the net asset value, referring to applicable capital market legislation.

Paragraph (3)
Clearly stated.

Paragraph (4)
Clearly stated.

Paragraph (5)
Clearly stated.

Paragraph (6)
Clearly stated.

Article 31
Letter a
Clearly stated.

Letter b
PT Sharia Insurance Y has total investments amounting to Rp150,000,000,000.00 (one hundred fifty billion rupiah). The Company has investments in one Group of Investment Recipients that is not a Related Party consisting of:

Sharia bonds of PT Financing Y1 amounting to Rp20,000,000,000.00 (twenty billion rupiah);
deposits at PT Sharia Bank Y2 amounting to Rp20,000,000,000.00 (twenty billion rupiah); and
Sharia shares of PT Sharia Bank Y2 amounting to Rp5,000,000,000.00 (five billion rupiah).
Thus:
Total investment in one Party or Group of Investment Recipients that is not a Related Party = Rp20,000,000,000.00 (twenty billion rupiah) + Rp20,000,000,000.00 (twenty billion rupiah) + Rp5,000,000,000.00 (five billion rupiah) = Rp45,000,000,000.00 (forty-five billion rupiah). Whereas the percentage of investment in one Party or Group of Investment Recipients against total investment = (Rp45,000,000,000.00 (forty-five billion rupiah) ÷ Rp150,000,000,000.00 (one hundred fifty billion rupiah) x 100% (one hundred percent) = 30% (thirty percent).
The maximum investment limit in one Group of Investment Recipients that is not a Related Party in percentage is 25% (twenty-five percent) of total investment. Whereas the maximum investment limit in one Party or Group of Investment Recipients in nominal value = 25% (twenty-five percent) x Rp150,000,000,000.00 (one hundred fifty billion rupiah) = Rp37,500,000,000.00 (thirty-seven billion five hundred million rupiah).
There is an excess investment in one Group of Investment Recipients that is not a Related Party, in percentage = 30% (thirty percent) - 25% (twenty-five percent) = 5% (five percent) or in nominal value amounting to 5% (five percent) x Rp150,000,000,000.00 (one hundred fifty billion rupiah) = Rp7,500,000,000.00 (seven billion five hundred million rupiah).

Article 32
Paragraph (1)
Letter a
Clearly stated.

Letter b
Clearly stated.

Letter c
Example:
PT A is controlled by the same controller as PT Sharia Insurance B, so PT A is referred to as a Related Party.

Letter d
What is meant by "Company executive officials" are division heads, regional office heads, branch office heads, functional office heads with the lowest position equivalent to branch office heads, heads of risk management work units, heads of compliance work units, heads of internal audit work units, and/or other equivalent officials.

Letter e
Horizontal or vertical family relationships are:

biological/step/adopted parents;
biological/step/adopted siblings;
biological/step/adopted children;
biological/step/adopted grandparents;
biological/step/adopted grandchildren;
biological/step/adopted siblings of parents;
husband or wife;
in-laws;
husband or wife of biological/step/adopted children;
grandparents of husband or wife;
husband or wife of biological/step/adopted grandchildren; or
biological/step/adopted siblings of husband or wife together with the husband or wife of the relevant sibling.

Letter f
Clearly stated.

Letter g
Clearly stated.

Letter h
The amount of 50% (fifty percent) or more is calculated from the cumulative number of directors and/or commissioners.

Letter i
Clearly stated.

Letter j
Financial relationships are analyzed from several factors, namely:

there is financial assistance from the Company and/or Related Parties or financial assistance to the Company and/or other Related Parties with requirements that cause the Party providing financial assistance to have the ability to determine (controlling influence) the strategic policies of the recipient of financial assistance;
there are significant business chain linkages in the operational business of the Company or Related Parties with other companies so that there is dependence between one Party and another Party resulting in:
a. one Party is unable to easily transfer business transactions to the other Party; and b. the inability to easily transfer business transactions causes the cash flow of one Party to experience significant disruption so as to experience difficulties in meeting obligations; and/or
there is credit risk transfer through guarantees where the guarantor Party will take over part or all of the financial risks of the guaranteed Party, excluding guarantees in reinsurance and co-insurance mechanisms.

Letter k
What is meant by "guarantee" is a promise given by one Party to take over and/or repay part or all of the obligations of the debtor Party in the event that the debtor Party fails to meet obligations (default).

Letter l
Clearly stated.

Letter m
Clearly stated.

Paragraph (2)
Example:

Sharia Insurance Company A and Sharia Insurance Company B are Related Parties.
Sharia Insurance Company A places investments in Sharia mutual funds where one of the underlying assets is Company B bonds.
The value of Company B bonds in the mutual fund is 10% (ten percent) of the net asset value of the mutual fund.
If the net asset value of the mutual fund is Rp1,000,000,000,000.00 (one trillion rupiah) and Sharia Insurance Company A has participation units

as many as 100 (one hundred) units from the total 2000 (two thousand) units of participation, then the investment in Related Parties for ownership of that Sharia mutual fund = (100/2000)x10%xRp1,000,000,000,000.00 (one trillion rupiah) = Rp5,000,000,000.00 (five billion rupiah). Paragraph (3) What is meant by "joint control" is joint control by the owners of the subsidiary based on a contractual agreement. Joint control must be proven by the existence of a written agreement or commitment from the owners to provide financial and non-financial support according to their respective ownership. Indirectly owning shares means controlling or owning shares jointly or through other parties, including:

shares of the Company or other companies owned by other parties whose voting rights can be used or controlled by the controller;
shares of the Company or other companies owned by parties controlled by the controller;
shares of the Company or other companies owned by affiliated parties of the controller, namely:
a. members of the board of commissioners, members of the board of directors, or equivalents, or their proxies, officials, or employees of the controlling company; b. managers, supervisors, administrators, or their proxies, officials, or employees of the controlling company, specifically for companies with a cooperative legal entity status;
c. parties providing services to the controlling company, including but not limited to public accountants, appraisers, legal consultants, and other consultants proven to be controlled by the controller;
d. parties having a family relationship with the controller due to marriage and/or descent; or e. parties who, in the assessment of the Financial Services Authority, participate in influencing the management of the controller, including shareholders and their families, families of board of commissioner members, families of supervisors, families of board of director members, and families of managers;
shares of the Company or other companies owned by subsidiaries of the company controlled by the controller;
shares of the Company or other companies owned by parties acting on behalf of and for the name of the controller (nominee shares) based on or not based on a specific agreement;
shares of the Company or other companies owned by other parties whose transfer requires approval from the controller;
shares of other companies owned by the Company through companies controlled by the Company in a hierarchical manner up to the last company (ultimate subsidiary);
shares of the Company or other companies other than shares as referred to in items 1 to 7 which are controlled by the Company or the controller.
Shares mean all types of shares that have voting rights.
Letter a
Clear enough.
Letter b
Clear enough.
Letter c
Clear enough.
Letter d
Clear enough.
Letter e
Clear enough.
Letter f
Strategic policy refers to policies concerning the determination of direction and goals of business implementation that have a significant impact.
Letter g
Clear enough.
Letter h
Clear enough.
Paragraph (4)
Letter a
Clear enough.
Letter b
Clear enough.
Letter c
Clear enough.
Letter d
Clear enough.
Letter e
Clear enough.
Letter f
See explanation of paragraph (3) letter f.
Letter g
Clear enough.
Letter h
Clear enough.

Paragraph (5)
Clear enough.
Paragraph (6)
Letter a
Clear enough.
Letter b
The provision of guarantees by insurance companies, Sharia Insurance Companies, reinsurance companies, Sharia Reinsurance Companies, guarantee companies, and Sharia guarantee companies in accordance with the Financial Services Authority Regulation regarding the conduct of business of each respective company. Letter c Clear enough. Paragraph (7) Clear enough. Paragraph (8) Clear enough.
Article 33
Paragraph (1)
Letter a
Clear enough.
Letter b
Clear enough.
Letter c
Clear enough.
Letter d
Financial relationships between investment recipients are analyzed based on several factors, namely:

there is financial assistance from one investment recipient to another investment recipient with terms that cause the investment recipient providing the financial assistance to have the ability to determine (controlling influence) the strategic policy of the investment recipient receiving the financial assistance;
there is a significant business chain linkage in the business operations of the investment recipient with another investment recipient so that there is interdependence between investment recipients resulting in:
a. one of the investment recipients is unable to easily transfer such business transactions to other parties; and b. the inability to easily transfer such business transactions causes the cash flow of one of the investment recipients to experience significant disruption so as to experience difficulties in meeting obligations; and/or
there is credit risk transfer through guarantees where one of the investment recipients providing the guarantee will take over part or all of the financial risks of the guaranteed investment recipient, excluding guarantees in the reinsurance and co-insurance mechanisms.
Letter e
Clear enough.

Paragraph (2)
Clear enough.
Paragraph (3)
Clear enough.
Article 34
Paragraph (1)
Examples of Related Parties that are excluded due to control caused by direct ownership by the Republic of Indonesia:

Sharia Insurance Companies are state-owned enterprises and Other Parties are state-owned enterprises; and
Sharia Insurance Companies are companies owned by the Republic of Indonesia through dual-class shares and Other Parties are state-owned enterprises.
Paragraph (2)
Examples of Investment Recipient Groups that are excluded due to control caused by direct ownership by the Republic of Indonesia:
Financial service institution A which is a state-owned enterprise is not the same Investment Recipient Group as company B which is a state-owned enterprise.
Paragraph (3)
Clear enough.
Paragraph (4)
Letter a
Clear enough.
Letter b
Clear enough.
Letter c
Clear enough.
Letter d
See explanation of Article 30 paragraph (2).
Paragraph (5)
Clear enough.
Article 35
Paragraph (1)
Clear enough.
Paragraph (2)
Letter a
Based on the financial report for January 2022, PT Sharia Insurance Y has Equity amounting to Rp300,000,000,000.00 (three hundred billion rupiah). On February 15, 2022, PT Sharia Insurance Y conducted an investment placement transaction with Related Parties amounting to Rp40,000,000,000.00 (forty billion rupiah). Thus:

Percentage of investment placement with Related Parties against the sum of Equity =
(Rp40,000,000,000.00 ÷ Rp300,000,000,000.00) × 100% = 13.33% (thirteen point three three percent).
Violation of maximum investment limit =
13.33% - 10% = 3.33% (three point three three percent).
The nominal violation of the maximum investment limit with Related Parties is 3.33% × Rp300,000,000,000.00 = Rp9,990,000,000.00 (nine billion nine hundred ninety million rupiah).
Letter b
Based on the financial report for January 2022, PT Sharia Insurance Y has total investments amounting to Rp300,000,000,000.00 (three hundred billion rupiah). Furthermore, PT Sharia Insurance Y only has investments in one Party or Investment Recipient Group amounting to Rp100,000,000,000.00 (one hundred billion rupiah). On February 15, 2022, PT Sharia Insurance Y conducted an investment placement transaction with one Party or Investment Recipient Group amounting to Rp50,000,000,000.00 (fifty billion rupiah). Thus:
Percentage of investment placement with one Party or Investment Recipient Group against total investments = (Rp150,000,000,000.00 [one hundred fifty billion rupiah] ÷ Rp300,000,000,000.00 [three hundred billion rupiah]) x 100% (one hundred percent) = 50%
(fifty percent).
Violation of maximum investment limit = 50%
(fifty percent) - 25% (twenty five percent)
= 25% (twenty five percent). The nominal violation of the maximum investment limit with one Party or Investment Recipient Group is 25% (twenty five percent) x Rp300,000,000,000.00 (three hundred billion rupiah) = Rp75,000,000,000.00 (seventy five billion rupiah). Paragraph (3) Letter a Clear enough. Letter b Exchange rate changes can cause an increase in the carrying value of investments in the form of foreign currency, thereby causing an exceedance of the maximum investment limit. In accordance with financial accounting standards, adjustments for exchange rates are only made for financial instrument accounts. Letter c What is meant by "change in fair value of assets" includes changes in value in the recording of participations using the Equity method which has been more than 1 (one) year or the recording of securities measured at fair value through profit or loss or through Equity (mark to market). Letter d Business combinations, whether in the form of takeovers, mergers, or other ownership structure changes, and/or changes in management structure carried out by the Company and/or the investment recipient party can cause changes in the Party designated as a Related Party or Investment Recipient Group. Thus, as a result of business combinations and/or changes in management structure, the Company must re-evaluate the amount of exposure held over Investment Recipient Groups in relation to the limits established for Related Parties and/or Investment Recipient Groups. Letter e Clear enough. Paragraph (4) What is meant by "monthly report" is the report submitted by the Company to the Financial Services Authority on a monthly basis based on regulations regarding periodic reports of the Company. Based on the reports for January 2022 and February 2022, the data for PT Sharia Insurance X is as follows (amounts in billion Rupiah):
Assets, Equity, and Liabilities January
February
Investments a. Investments in Related Parties
Sharia Stock PT X1 20 35 b. Non-Related Parties

Bank A Deposit 160 160
Bank B Deposit 150 150
Sharia Stock PT C 130 180
Investments in Group
Investment Recipient D 140 180
Total Investments 600 705
Non-Investments 100 100
Total Assets 700 805
Equity 200 305
Liabilities 500 500
Equity and Liabilities 700 805
During February 2022, PT Sharia Insurance X did not add investments in Related Parties or Non-Related Parties, so changes in investment value were only caused by price changes of each investment. Thus, there is an exceedance of the maximum investment limit as follows:
a. Investments in Related Parties
Exceedance of maximum investment limit =
(Rp35,000,000,000.00 (thirty five billion rupiah)÷ Rp305,000,000,000.00 (three hundred five billion rupiah) x 100% (one hundred percent)) – 10% (ten percent) = 1.48% (one point four eight percent) or nominally amounting to 1.48% (one point four eight percent) x Rp 305,000,000,000.00 (three hundred five billion rupiah) = Rp4,514,000,000.00 (four billion five hundred fourteen million rupiah).

b. Investments in Non-Related Parties
Investments in Sharia Stock PT C =
((Rp180,000,000,000.00 (one hundred eighty billion rupiah) ÷ Rp705,000,000,000.00 (seven hundred five billion rupiah) x 100% (one hundred percent)) – 25% (twenty five percent) = 0.53% or nominally amounting to 0.53% (zero point five three percent) x Rp705,000,000,000.00 (seven hundred five billion rupiah) = Rp3,750,000,000.00 (three billion seven hundred fifty million rupiah).
c. Investments in Investment Recipient Group D =
((Rp180,000,000,000.00 (one hundred eighty billion rupiah) ÷ Rp705,000,000,000.00 (seven hundred five billion rupiah) x 100% (one hundred percent)) – 25% (twenty five percent) = 0.53% (zero point five three percent) or nominally amounting to 0.53% (zero point five three percent) x Rp705,000,000,000.00 (seven hundred five billion rupiah) = Rp3,750,000,000.00 (three billion seven hundred fifty million rupiah). Paragraph (5) Clear enough.
Article 36
Paragraph (1)
The action plan submitted by the Company is the Company's commitment to the Financial Services Authority.
Paragraph (2)
Clear enough.
Paragraph (3)
Clear enough.
Paragraph (4)
Clear enough.
Paragraph (5)
Clear enough.
Paragraph (6)
Clear enough.
Article 37
Paragraph (1)
Examples of transactions that are considered normal, including but not limited to sales and purchases with the Company, shareholders and/or Related Parties at fair market prices.
Paragraph (2)
Clear enough.
Paragraph (3)
Clear enough.
Paragraph (4)
Clear enough.
Article 38
Clear enough.
Article 39
Paragraph (1)
Clear enough.

Paragraph (2)
Letter a
Clear enough.
Letter b
Clear enough.
Letter c
Clear enough.
Letter d
Clear enough.
Letter e
Clear enough.
Letter f
Clear enough.
Letter g
Clear enough.
Letter h
What is meant by "acquisition costs" are commission costs, policy costs, and overriding commission costs.
Letter i
What is meant by "right-of-use assets" are assets recognized by the Company based on lease contracts.
Paragraph (3)
Clear enough.
Paragraph (4)
Clear enough.
Paragraph (5)
Clear enough.
Article 40
Clear enough.
Article 41
Clear enough.
Article 42
Paragraph (1)
The technical provisions referred to in this paragraph include those for the protection element in Sharia insurance products that have cash value.
Letter a
Clear enough.
Letter b
Clear enough.
Letter c
Clear enough.
Letter d
What is meant by "disaster risk" is the risk of loss arising from natural phenomena or pure accident risks that cause significant losses to the Company.
Paragraph (2)
Clear enough.

Paragraph (3)
What is meant by tabarru' contribution is the contribution from policyholders or participants that is allocated to the Tabarru' Fund.
Paragraph (4)
Clear enough.
Paragraph (5)
Clear enough.
Article 43
Paragraph (1)
Letter a
Clear enough.
Letter b
Accumulated fund balance is the balance of contributions allocated to the Participant Investment Fund after considering investment results (including investment results set aside to provide more uniform results to policyholders or participants), increases/decreases in asset market value, and expenses in the Participant Investment Fund. Letter c Clear enough. Letter d Clear enough. Paragraph (2) Clear enough.
Article 44
Clear enough.
Article 45
Among other things, the method of formation for each type of technical provision and the assumptions used will be regulated.
Article 46
What is meant by "subordinated Qardh" is a loan from the Company's shareholders to the Company's Fund with the obligation to repay the loan amount equal to the principal loan without compensation to the lender, and in the event of liquidation, the claim right over such loan applies last among all existing loans.
Article 47
Clear enough.
Article 48
Paragraph (1)
What is meant by "other liabilities to policyholders or participants" includes but is not limited to contribution deposits.
Paragraph (2)
Clear enough.
Article 49
Paragraph (1)
Clear enough.

Paragraph (2)
See explanation of Article 7 paragraph (2).
Paragraph (3)
See explanation of Article 7 paragraph (3).
Article 50
Clear enough.
Article 51
Clear enough.
Article 52
Clear enough.
Article 53
Clear enough.
Article 54
Paragraph (1)
Example:
Sub-fund A Stocks (Rp) Rp100,000,000.00
Sub-fund B Sukuk ($) ≈Rp75,000,000.00
Sub-fund C Sukuk (Rp) Rp150,000,000.00
Sub-fund D Stocks ($) ≈Rp75,000,000.00

Total Sub-fund investments =
Rp100,000,000.00+Rp75,000,000.00+
Rp150,000,000.00+Rp75,000,000.00 = Rp400,000,000.00 (four hundred million rupiah).
Investment limit for overseas investments = 30% of
Rp400,000,000.00 =Rp120,000,000.00 (one hundred twenty million rupiah).
Total overseas investments =
Rp75,000,000.00+Rp75,000,000.00= Rp150,000,000.00 (one hundred fifty million rupiah).
Adjustment of the total Sub-fund overseas investment limit to Rp120,000,000.00 (30% of total investments).
The Company violates the Sub-fund overseas investment limit regulations because it exceeds 30% (thirty percent) of total investments.
The Company must adjust the Sub-fund overseas investment limit by Rp120,000,000.00 (one hundred twenty
million rupiah).
Paragraph (2)
Example:
Sub-fund A Stocks (Rp) Rp100,000,000.00
Sharia insurance product B other than PAYDI
Stocks (Rp) Rp100,000,000.00
Sharia insurance product C other than PAYDI
Sukuk ($) ≈Rp75,000,000.00
Sharia insurance product D other than PAYDI
Sukuk (Rp) Rp150,000,000.00
Sharia insurance product E other than PAYDI
Stocks ($) ≈Rp75,000,000.00
Total Participant Investment Fund investments from Sharia insurance products other than PAYDI =

Rp100,000,000.00+Rp75,000,000.00+
Rp150,000,000.00+Rp75,000,000.00 = Rp400,000,000.00 (four hundred million rupiah).

Investment limit for Sharia insurance products other than PAYDI overseas = 30% of Rp400,000,000.00
=Rp120,000,000.00 (one hundred twenty million rupiah).
Total overseas investments for Sharia insurance products other than PAYDI = Rp75,000,000.00+Rp75,000,000.00=
Rp150,000,000.00 (one hundred fifty million rupiah).
Adjustment of the total investment limit for Sharia insurance products other than PAYDI overseas to Rp120,000,000.00 (30%
of total Participant Investment Fund investments from Sharia insurance products other than PAYDI).
The Company violates the investment limit regulations for Sharia insurance products other than PAYDI overseas because it exceeds 30% (thirty percent) of total Participant Investment Fund investments from Sharia insurance products other than PAYDI.
The Company must adjust the investment limit for Sharia insurance products other than PAYDI overseas by Rp120,000,000.00 (one hundred twenty million rupiah).
Article 55
Paragraph (1)
Letter a
Clear enough.
Letter b
What is meant by "net asset value" is the asset value minus Liabilities of each respective Sub-fund.
Paragraph (2)
Clear enough.
Paragraph (3)
Clear enough.
Paragraph (4)
What is meant by "trading day" is the day when securities trading is held at the stock exchange, namely Monday to Friday, except if such day is a national holiday or declared as a stock exchange holiday by the stock exchange.
Article 56
Clear enough.
Article 57
Paragraph (1)
Clear enough.
Paragraph (2)
See explanation of Article 7 paragraph (2).
Paragraph (3)
See explanation of Article 7 paragraph (3).
Article 58
Clear enough.
Article 59
What is meant by "regulations" includes but is not limited to Financial Services Authority Regulations regarding the implementation of anti-fraud strategies for financial service institutions and Financial Services Authority Regulations regarding the implementation of anti-money laundering programs, counter-terrorism financing prevention, and counter-proliferation financing prevention in the financial service sector.
Article 60
Paragraph (1)
Clear enough.
Paragraph (2)
See explanation of Article 7 paragraph (2).
Paragraph (3)
See explanation of Article 7 paragraph (3).
Article 61
Clear enough.
Article 62
Clear enough.
Article 63
Paragraph (1)
Example:
Outward reinsurance tabarru' contributions used in calculating the Minimum Guarantee Fund as of June 20x1 is the sum of outward reinsurance tabarru' contributions in July to December 20x0 and January to June 20x1. Paragraph (2) Clear enough. Paragraph (3) Clear enough.
Article 64
Clear enough.
Article 65
Clear enough.
Article 66
Clear enough.
Article 67
Clear enough.
Article 68
Clear enough.
Article 69
Paragraph (1)
Clear enough.
Paragraph (2)
See explanation of Article 7 paragraph (2).
Paragraph (3)
See explanation of Article 7 paragraph (3).

Article 70
Clear enough.
Article 71
Clear enough.
Article 72
Clear enough.
Article 73
Clear enough.
Article 74
What is meant by mid-rate is the selling rate plus the buying rate divided by two.
Article 75
Clear enough.
Article 76
Clear enough.
Article 77
Clear enough.
Article 78
Paragraph (1)
Clear enough.
Paragraph (2)
See explanation of Article 7 paragraph (2).
Paragraph (3)
See explanation of Article 7 paragraph (3).
Article 79
Clear enough.
Article 80
Clear enough.
Article 81
Clear enough.
Article 82
The provision of approval or different policies is intended among other things to:
a. support national policy; b. protect public interest;
c. maintain industry growth;
d. maintain healthy business competition; and/or e. provide relaxation to insurance industry actors affected by disasters.
Examples of conditions requiring specific consideration include but are not limited to extraordinary events that can cause significant increases in morbidity and mortality and also impact the economy and society, thus requiring attention and handling by all relevant parties and regulated in other provisions regarding considerations in facing possible extraordinary events. What is meant by "disaster" is an event or series of events that threaten and disrupt the life and livelihood of the community caused by natural and/or non-natural factors or human factors so as to cause human casualties, environmental damage, property loss, psychological impact, disruption of performance of industry actors in the financial service sector, and/or affect the economic conditions of the community.
Article 83
Paragraph (1)
Clear enough.
Paragraph (2)
Clear enough.
Paragraph (3)
Letter a
Example:
In December 2025, the Company has investment placements in the form of direct participation in non-financial service institutions. This Financial Services Authority Regulation applies in January 2026. The Company is given a period of 2 (two) years to adjust and the investment placement in the form of direct participation in such non-financial service institutions is still recognized as Permitted Assets, until January 2028. In the event that in February 2028, the Company has not adjusted such investments, all investments in the form of direct participation in non-financial service institutions are not recognized as Permitted Assets and no administrative sanctions will be imposed. Letter b Example:
In December 2025, the Company has investment placements in the form of direct participation in financial service institutions and exceeds the 50% (fifty percent) limit of the Company's Equity. This Financial Services Authority Regulation applies in January 2026. The Company is given a period of 2 (two) years to adjust and the investment placement in the form of direct participation in such financial service institutions is still recognized as Permitted Assets, until January 2028. In the event that in February 2028, the Company has not adjusted such investments, the excess investment in the form of direct participation in non-financial service institutions is not recognized as Permitted Assets and no administrative sanctions will be imposed.
Article 84
Clear enough.
Article 85
Clear enough.

Article 86
Clear enough.
Article 87
Clear enough.
Article 88
Clear enough.
Article 89
Clear enough.
Article 90
Clear enough.
SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER ⸙ ---

OJK Regulation No. 27 of 2025 on Asset and Liability Management of Sharia Insurance and Reinsurance Companies

Lineage: In force

Timeline

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