Calculation Method for Adjusted Net Working Capital for Gateway Securities Brokers Executing Tax Amnesty Transactions

COPY

To:

1. The Board of Directors of Securities Brokers designated as Gateways in the context of tax amnesty;
2. The Board of Directors of PT Indonesia Stock Exchange;
3. The Board of Directors of PT Indonesia Clearing and Guarantee;
4. The Board of Directors of PT Indonesia Central Securities Depository,

At their respective locations.

CIRCULAR LETTER OF THE FINANCIAL SERVICES AUTHORITY NUMBER 8 /SEOJK.04/2017

ON

THE CALCULATION METHOD FOR ADJUSTED NET WORKING CAPITAL FOR SECURITIES BROKERS DESIGNATED AS GATEWAYS EXECUTING SECURITIES TRANSACTIONS FOR CLIENTS IN THE CONTEXT OF IMPLEMENTING LAW NO. 11 OF 2016 ON TAX AMNESTY

In order to support the duties of Securities Brokers designated as Gateways in the implementation of Law No. 11 of 2016 on Tax Amnesty (State Gazette of the Republic of Indonesia Year 2016 Number 131, Supplement to the State Gazette of the Republic of Indonesia Number 5899), it is necessary to specifically regulate the calculation method for Adjusted Net Working Capital on the Liabilities to Clearing and Guarantee Institution account and the Liabilities to Client Account Holder account arising as a result of client transactions by Gateway Securities Brokers, as follows in this Financial Services Authority Circular Letter:

I. GENERAL PROVISIONS

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

1. Adjusted Net Working Capital, hereinafter abbreviated as ANWC, is the amount of the Securities Company's current assets minus all of the Securities Company's liabilities and ranking liabilities, plus subordinated debt, and subject to other adjustments.

2. Gateway Securities Broker, hereinafter referred to as Gateway SB, is a Securities Broker designated by the Minister of Finance of the Republic of Indonesia as a gateway for the placement and management of Taxpayer funds in investment instruments in the context of implementing Tax Amnesty.

3. ANWC Reporting Center System, hereinafter abbreviated as SPP-ANWC, is a system managed by PT Indonesia Clearing and Guarantee used to submit ANWC reports by Securities Companies as referred to in Decision Number Kep-22/BL/2012 dated January 30, 2012 regarding the Appointment of PT Indonesia Clearing and Guarantee as the Recipient of Adjusted Net Working Capital Reports.

II. CALCULATION METHOD FOR ANWC RELATED TO CLIENT TRANSACTIONS IN THE CONTEXT OF IMPLEMENTING TAX AMNESTY

1. Securities Companies conducting business activities as Securities Brokers administering client securities accounts must have an ANWC of at least Rp25,000,000,000.00 (twenty-five billion rupiah) or 6.25% (six point two five percent) of total liabilities without subordinated debt and debt in the context of public offerings/limited offerings plus ranking liabilities, whichever is higher.

2. The calculation method for ANWC based on Circular Letter of the Capital Market Supervisory Agency and Financial Institution Body Number SE-07/BL/2011 regarding Guidelines for Preparing ANWC Forms remains applicable to Gateway SBs as long as it is not otherwise regulated in this Financial Services Authority Circular Letter.

3. The Sub-Account for Stock Exchange Transactions from the Liabilities to Clearing and Guarantee Institution Account (Line 129) and the Sub-Sub-Account for Securities Sales Transactions from the Client Account Holder Liabilities Account (Line 133) as referred to in Form V.D.5-2 regarding Daily Trial Balance Report – Liabilities and Equity, which is an attachment to the Circular Letter of the Capital Market Supervisory Agency and Financial Institution Body Number SE-07/BL/2011 regarding Guidelines for Preparing ANWC Forms, arising as a result of transactions by Gateway SB clients, are not calculated in the 6.25% (six point two five percent) calculation of total liabilities without subordinated debt and debt in the context of public offerings/limited offerings plus ranking liabilities of Gateway SBs during the verification of Gateway SB ANWC.

4. The provisions in item 3 above only apply if the funds and/or securities of Gateway SB clients in the context of implementing tax amnesty, which are used as collateral for the settlement of such client transactions, are stored in sub-securities accounts and/or client fund accounts under the control of the Gateway SB.

III. VALIDATION AND VERIFICATION OF ANWC REPORTING BY GATEWAY SBs

1. In the event that validation by the SPP-ANWC over the ANWC report of Gateway SBs as referred to in the Circular Letter of the Capital Market Supervisory Agency and Financial Institution Body Number 02/BL/2012 regarding Additional Explanation of Circular Letter Number 07/BL/2011 and Validation of Adjusted Net Working Capital Reporting indicates insufficient reported ANWC values compared to the ANWC values required in item II number 1, Gateway SBs are required to submit to the Stock Exchange and the SPP-MKBD manager, documents and calculation notes showing the magnitude of liability values and supported by detailed transactions regarding the liability values arising from Gateway SB client transactions in the context of implementing tax amnesty, meeting the criteria as referred to in item II number 3.

2. The submission of documents and calculation notes regarding insufficient ANWC values as referred to in item 1 is implemented with the following provisions:

a. Gateway SBs report documents and calculation notes showing the magnitude of Gateway SB client liabilities in the context of implementing tax amnesty, supported by detailed transactions conducted by clients regarding the liability values, to the Stock Exchange and the SPP-MKBD manager according to the ANWC reporting time limits as regulated in Regulation Number V.D.5, attachment of the Decision of the Chairman of the Capital Market Supervisory Agency and Financial Institution Body Number Kep-566/BL/2012 dated October 31, 2011 regarding the Maintenance and Reporting of Adjusted Net Working Capital.

b. The SPP-MKBD manager is required to verify the report as referred to in letter a and coordinate with the Stock Exchange regarding the minimum ANWC value of Gateway SBs caused by Gateway SB client transactions in the context of implementing tax amnesty.

c. In the event that the ANWC value of Gateway SBs, which has been verified based on reports of documents and notes on total liabilities conducted by clients in the context of implementing tax amnesty, remains below the minimum ANWC value required, then the aforementioned Gateway SBs are prohibited from conducting stock exchange transactions by the Stock Exchange as regulated in item 4 letter d of Regulation Number V.D.5, attachment of the Decision of the Chairman of the Capital Market Supervisory Agency and Financial Institution Body Number Kep-566/BL/2012 dated October 31, 2011 regarding the Maintenance and Reporting of Adjusted Net Working Capital.

d. In the event that Gateway SBs do not submit documents and calculation notes on total liabilities related to client transactions in the context of implementing tax amnesty until the time limit as referred to in letter a, the daily ANWC value calculation of Gateway SBs will be determined according to the SPP-MKBD validation.

IV. CLOSING

This Financial Services Authority Circular Letter takes effect on the date it is established.

Established in Jakarta on February 20, 2017

EXECUTIVE HEAD
CAPITAL MARKET SUPERVISOR,

signed
NURHAIDA