Circular Letter No. 56/SEOJK.03/2017 on the Determination of Status and Supervisory Follow-up for Rural Banks and Sharia Rural Financing Banks

To:
The Board of Directors of Rural Banks (BPR) and Sharia Rural Financing Banks (BPRS) At your location.

COPY
CIRCULAR LETTER OF THE FINANCIAL SERVICES AUTHORITY NUMBER 56/SEOJK.03/2017 CONCERNING THE DETERMINATION OF STATUS AND SUPERVISORY FOLLOW-UP FOR RURAL BANKS (BPR) AND SHARIA RURAL FINANCING BANKS (BPRS)

In light of the implementation of Financial Services Authority Regulation Number 19/POJK.03/2017 concerning the Determination of Status and Supervisory Follow-up for Rural Banks (BPR) and Sharia Rural Financing Banks (BPRS) (State Gazette of the Republic of Indonesia Year 2017 Number 97, Supplement to the State Gazette of the Republic of Indonesia Number 6052) effective as of November 1, 2017, hereinafter referred to as the POJK on the Determination of Status and Supervisory Follow-up for BPR and BPRS, the Financial Services Authority (OJK) needs to regulate the implementation of the determination of status and supervisory follow-up for BPR and BPRS in this Financial Services Authority Circular Letter as follows:

I. GENERAL PROVISIONS

1. The Financial Services Authority (OJK) is authorized to determine the supervisory status of BPR or BPRS. The supervisory status of BPR or BPRS consists of normal supervision, intensive supervision, or special supervision.

2. The criteria for BPR or BPRS that are determined to be or released from intensive supervision or special supervision status, and are determined as BPR or BPRS that cannot be rehabilitated, are regulated separately, namely as follows:
   a. in the period since the POJK on the Determination of Status and Supervisory Follow-up for BPR and BPRS took effect until December 31, 2019; and b. since January 1, 2020.

3. The calculation of the Minimum Capital Adequacy Ratio (KPMM), hereinafter abbreviated as KPMM, is calculated based on monthly reports submitted by BPR or BPRS and/or examinations by the Financial Services Authority in the most recent period.

4. The obligation of BPR or BPRS to fulfill the KPMM ratio refers to Financial Services Authority regulations regarding KPMM and the fulfillment of minimum core capital for BPR, as well as Financial Services Authority regulations regarding KPMM and the fulfillment of minimum core capital for BPRS.

5. The calculation of the Cash Ratio (CR), hereinafter abbreviated as CR, is calculated based on the position of monthly reports of BPR or BPRS for the last 6 (six) months, obtained based on monthly reports submitted by BPR or BPRS and/or examinations by the Financial Services Authority in the most recent period.

The term “last 6 (six) months” refers to the position of monthly reports of BPR or BPRS for the 6 (six) months prior to the determination of the supervisory status.

6. The health level of BPR or BPRS is the health level as referred to in provisions of legislation regulating the method of assessing the health level of BPR and the health level assessment system of BPR based on Sharia principles.

7. The action plan submitted by BPR or BPRS to the Financial Services Authority is the commitment of BPR or BPRS that must be fulfilled as referred to in Article 3 paragraph (1), Article 9 paragraph (1) letter a, and Article 24 letter a of the POJK on the Determination of Status and Supervisory Follow-up for BPR and BPRS.

8. Assessment of BPR under normal supervision that has significant problems for the first time is conducted:
   a. since the POJK on the Determination of Status and Supervisory Follow-up for BPR and BPRS took effect until December 31, 2019, for BPR that has a fairly healthy health level but has the potential to be determined under intensive supervision; and b. since January 1, 2020, for BPR that has a composite rating of 3 (three) but has the potential to be determined under intensive supervision, based on the position of the most recent available monthly report.

9. Criteria for BPRS under normal supervision that are assessed to have significant problems refer to provisions of legislation regulating the health level assessment system of BPR based on Sharia principles.

10. Determination of BPR or BPRS under intensive supervision or BPR or BPRS under special supervision using the criteria as referred to in the POJK on the Determination of Status and Supervisory Follow-up for BPR and BPRS for the first time is conducted:
    a. since the POJK on the Determination of Status and Supervisory Follow-up for BPR and BPRS took effect until December 31, 2019, for BPR or BPRS that meet the criteria as referred to in Article 5 paragraph (1), Article 18 paragraph (1), and Article 25 paragraph (1) letter a of the POJK on the Determination of Status and Supervisory Follow-up for BPR and BPRS; and b. since January 1, 2020, for BPR or BPRS that meet the criteria as referred to in Article 5 paragraph (2), Article 18 paragraph (2), and Article 25 paragraph (1) letter b of the POJK on the Determination of Status and Supervisory Follow-up for BPR and BPRS, based on the position of the most recent available monthly report.

II. BPR AND BPRS UNDER NORMAL SUPERVISION

1. Normal supervision is supervision of BPR or BPRS that does not meet the criteria to be determined under intensive supervision or special supervision.

2. BPR or BPRS under normal supervision that has significant problems must submit an action plan as referred to in Article 3 paragraph (1) of the POJK on the Determination of Status and Supervisory Follow-up for BPR and BPRS after the date of the written request from the Financial Services Authority regarding BPR or BPRS assessed to have significant problems.

3. The procedure for submitting the action plan and the realization report of the action plan is implemented with the following provisions:
   a. For BPR:
   1) Action Plan
   a) The action plan contains at least the problems faced by the BPR and the improvement steps to be implemented, along with the target time for resolving the problems. b) The BPR submits the action plan in writing to the Financial Services Authority at the latest 10 (ten) working days after the date of the written request submitted by the Financial Services Authority. c) The BPR adjusts the action plan submitted by the BPR upon request of the Financial Services Authority.
   2) Realization Report of Action Plan
   The BPR submits the realization report of the action plan to the Financial Services Authority at the end of each month at the latest 10 (ten) working days of the following month. b. For BPRS, refer to provisions of legislation regulating the health level assessment system of BPR based on Sharia principles.

4. BPR or BPRS is deemed not to have submitted the action plan as referred to in number 2, if by the end of the submission deadline for the action plan as referred to in number 3 letter a item 1).b) and number 3 letter b, the BPR or BPRS has not yet submitted the action plan.

III. BPR AND BPRS UNDER INTENSIVE SUPERVISION

1. The Financial Services Authority determines BPR or BPRS under intensive supervision if the BPR or BPRS is assessed to have potential difficulties that endanger the continuity of the business.

2. BPR or BPRS is determined under intensive supervision if it meets the criteria as referred to in Article 5 of the POJK on the Determination of Status and Supervisory Follow-up for BPR and BPRS.

3. The duration of determination of BPR or BPRS under intensive supervision is for a maximum period of 1 (one) year calculated from the date of the Financial Services Authority notification letter.

4. If the end of the intensive supervision period as referred to in number 3 falls on a holiday, the final deadline for the intensive supervision period is on the next working day.
   The term “holiday” refers to Saturday, Sunday, or holidays established by the Government.

5. If BPR or BPRS does not meet the normal supervision criteria within the period as referred to in number 3, the Financial Services Authority is authorized to extend the intensive supervision period by 1 (one) time for a maximum period of 1 (one) year.

6. The extension of the intensive supervision period as referred to in number 5 may be granted by the Financial Services Authority if the BPR or BPRS meets the requirements:
   a. the average KPMM and CR ratios for the last 6 (six) months show improvement based on the realization of the action plan that has been submitted; and/or b. the health level of BPR or BPRS is still not or has met the normal supervision criteria.

7. The term “improvement” as referred to in number 6 letter a is an increase in the average KPMM and CR ratios for the last 6 (six) months in the last month, indicated by the realization of improvement efforts to achieve the targets as stated in the action plan that has been submitted by BPR or BPRS.

8. The extension of the period for BPR or BPRS under intensive supervision as referred to in number 5 takes effect from the end of the intensive supervision period as referred to in number 3.

9. BPR or BPRS that obtains an extension of the intensive supervision period must still submit the action plan that must be realized to be in the normal supervision status.

10. BPR or BPRS under intensive supervision must carry out supervisory actions ordered by the Financial Services Authority as referred to in Article 8 of the POJK on the Determination of Status and Supervisory Follow-up for BPR and BPRS.

11. BPR or BPRS under intensive supervision must submit an action plan according to the problems of BPR or BPRS, a realization report of the action plan, and a complete list of related parties as referred to in Article 9 paragraph (1) of the POJK on the Determination of Status and Supervisory Follow-up for BPR and BPRS.

12. In addition to the obligations as referred to in number 11, BPR or BPRS under intensive supervision must carry out other actions and/or report certain matters upon request of the Financial Services Authority as referred to in Article 9 paragraph (2) of the POJK on the Determination of Status and Supervisory Follow-up for BPR and BPRS.
    The term “other actions” includes, among others, adjusting the business plan of BPR or BPRS.
    The term “reporting certain matters” includes, among others, submitting the most recent financial statements and details of productive assets grouped by quality.

IV. BPR AND BPRS UNDER SPECIAL SUPERVISION

1. The Financial Services Authority determines BPR or BPRS under special supervision if the BPR or BPRS is assessed to have difficulties that endanger the continuity of its business.
   The determination of BPR or BPRS under special supervision can be conducted without being preceded by the determination of BPR or BPRS under intensive supervision.

2. BPR or BPRS is determined under special supervision if it meets the criteria as referred to in Article 18 or Article 25 paragraph (1) of the POJK on the Determination of Status and Supervisory Follow-up for BPR and BPRS.

3. BPR or BPRS that meets:
   a. the criteria as referred to in Article 18 of the POJK on the Determination of Status and Supervisory Follow-up for BPR and BPRS is determined under special supervision for a maximum period of 3 (three) months from the date of the Financial Services Authority notification letter; or b. the conditions as referred to in Article 25 paragraph (1) of the POJK on the Determination of Status and Supervisory Follow-up for BPR and BPRS is determined under special supervision for a maximum period of 2 (two) months from the date of the Financial Services Authority determination.

4. BPR or BPRS under special supervision must increase capital within a period of 3 (three) months as referred to in number 3 letter a to be in the normal supervision status, which is included in the action plan.

5. The action plan as referred to in number 4 is submitted at the latest 5 (five) working days since BPR or BPRS is determined under special supervision.

6. The capital increase as referred to in number 4 is conducted by considering the potential losses and liquidity needs of BPR or BPRS under special supervision for the next 6 (six) months, with the following details:
   a. Potential losses are based on the calculation of costs compared to income received, including, among others, additional formation of Provision for Productive Asset Write-offs (PPAP), decline in credit or financing quality, costs/fees for third-party funds, and operational costs including labor costs. b. Liquidity needs are based on the calculation of fund needs to meet obligations for the next 6 (six) months, including, among others, immediate obligations and obligations to other parties that will mature.

7. To maintain the continuity of the business of BPR or BPRS, the calculation of potential losses and liquidity needs in capital increase as referred to in number 6:
   a. For BPR or BPRS under special supervision that is not prohibited from distributing funds must consider the plan for new credit or financing disbursements during the period under special supervision and after exiting special supervision. b. For BPR or BPRS under special supervision that is prohibited from distributing funds must consider the plan for new credit or financing disbursements after exiting special supervision.

8. BPR or BPRS under special supervision is prohibited from selling or reducing the amount of assets without the approval of the Financial Services Authority as referred to in Article 22 of the POJK on the Determination of Status and Supervisory Follow-up for BPR and BPRS. BPR or BPRS must sell or reduce the amount of assets insofar as such actions are supervisory actions ordered by the Financial Services Authority as referred to in Article 8 letter c and letter f of the POJK on the Determination of Status and Supervisory Follow-up for BPR and BPRS.

9. The Financial Services Authority submits written notification to BPR or BPRS that is prohibited from collecting funds and distributing funds to BPR or BPRS under special supervision that meets the conditions as referred to in Article 25 paragraph (1) of the POJK on the Determination of Status and Supervisory Follow-up for BPR and BPRS.

10. The term “fund collection” as referred to in number 9 is fund collection in the form of savings and/or deposits, the source of which comes from:
    a. fresh money, in the form of cash deposits and/or through transfer to the account of BPR or BPRS in other banks, while that which is not fresh money comes from installments/settlement of credit or financing; b. book transfers that do not include:
    1) book transfer of savings and/or deposit accounts under the same name; and/or
    2) book transfer of expense accounts for the payment of salaries for the managers and employees of the respective BPR or BPRS to the savings account.

11. Prohibited fund collection is third-party fund collection from the public, including through electronic devices such as Automated Teller Machine (ATM)/Automated Deposit Machine (ADM) and/or electronic banking facilities.

12. Prohibited fund collection as referred to in number 11 does not include fund collection from members of the Board of Directors, members of the Board of Commissioners, and/or shareholders of the respective BPR or BPRS.

13. The term “fund distribution” as referred to in number 9 is the distribution of new credit or financing, including commitments for credit or financing that have not yet been realized, except in the context of credit or financing restructuring.

14. Prohibited fund distribution includes the addition of credit or financing, whether already agreed upon or not yet agreed upon in agreements with debtors or prospective debtors.

V. INCREASE AND DISBURSEMENT OF PAID-UP CAPITAL

1. Capital increase can be conducted by shareholders and/or prospective shareholders of BPR or BPRS:
   a. under intensive supervision caused by capital problems; or b. under special supervision.

2. Capital increase can be conducted by shareholders and/or prospective shareholders of BPR or BPRS under normal supervision that has significant problems in the form of capital problems, in the event that the action plan of BPR or BPRS includes a plan for capital increase.

3. Procedure for increasing paid-up capital:
   a. BPR or BPRS under normal supervision that has significant problems as referred to in number 2 and BPR or BPRS under intensive supervision as referred to in number 1 letter a:
   1) For BPR, paid-up capital funds placed in the form of deposits at:
   a) General Banks in Indonesia by stating the name “Commissioner Board of the Financial Services Authority q.q. (name of BPR)” and stating the name of the additional capital contributor; and/or b) The respective BPR by stating the name “Commissioner Board of the Financial Services Authority q.q. (name of contributing shareholder)”,
   2) For BPRS, paid-up capital funds placed in the form of deposits at:
   a) Sharia General Banks and/or Sharia Business Units in Indonesia by stating the name “Commissioner Board of the Financial Services Authority q.q. (name of BPRS)” and stating the name of the additional capital contributor; and/or b) The respective BPRS by stating the name “Commissioner Board of the Financial Services Authority q.q. (name of contributing shareholder)”, and stating that the disbursement can only be conducted after obtaining written approval from the Financial Services Authority. b. BPR or BPRS as referred to in letter a and letter b must submit the completeness of documents for increasing paid-up capital as referred to in Financial Services Authority regulations regarding BPR or Financial Services Authority regulations regarding BPRS. b. BPR or BPRS under special supervision:
   1) For BPR, paid-up capital funds placed in the form of deposits at General Banks in Indonesia by stating the name “Commissioner Board of the Financial Services Authority q.q. (name of BPR)” and stating the name of the additional capital contributor; and/or
   2) For BPRS, paid-up capital funds placed in the form of deposits at Sharia General Banks and/or Sharia Business Units in Indonesia by stating the name “Commissioner Board of the Financial Services Authority q.q. (name of BPRS)” and stating the name of the additional capital contributor,
   and stating that the disbursement can only be conducted after obtaining written approval from the Financial Services Authority.
   c. BPR or BPRS as referred to in letter a and letter b must submit the completeness of documents for increasing paid-up capital as referred to in Financial Services Authority regulations regarding BPR or Financial Services Authority regulations regarding BPRS.

4. The capital increase as referred to in number 3 is accompanied by a statement from the shareholder or prospective shareholder making the capital contribution that the paid-up capital funds do not come from loans or financing facilities in any form from banks and/or other parties, and/or do not come from and for money laundering.

5. The Financial Services Authority grants approval or rejection of the request for increasing paid-up capital by BPR or BPRS by referring to Financial Services Authority regulations regarding BPR or Financial Services Authority regulations regarding BPRS.

6. In the event that based on research conducted by the Financial Services Authority to grant approval or rejection, it is known that:
   a. paid-up capital increase of BPR or BPRS that meets the provisions as referred to in Financial Services Authority regulations regarding BPR, Financial Services Authority regulations regarding KPMM and fulfillment of minimum core capital for BPR, Financial Services Authority regulations regarding BPRS, or Financial Services Authority regulations regarding KPMM and fulfillment of minimum core capital for BPRS, the capital increase can be classified in the Paid-Up Capital Equity position for BPR or the Paid-Up Capital position for BPRS, and is calculated in the KPMM component; b. paid-up capital increase of BPR or BPRS that does not meet the provisions as referred to in letter a, the capital increase cannot be classified in the Paid-Up Capital Equity position for BPR or the Paid-Up Capital position for BPRS, and cannot be calculated in the KPMM component.

7. In the event that the paid-up capital increase conducted by BPR or BPRS under intensive supervision or special supervision as referred to in number 6 letter a increases the KPMM and/or CR ratios, so that they are in the normal supervision status:
   a. BPR or BPRS is released from intensive supervision or special supervision without waiting for the completion of the legal process, namely the process conducted to meet the requirements according to provisions of legislation in the context of capital increase; and b. after the Financial Services Authority approves the paid-up capital increase, BPR or BPRS under intensive supervision or special supervision follows up the approval of the Financial Services Authority regarding the paid-up capital increase of BPR or BPRS according to the mechanism of Financial Services Authority regulations as referred to in number 6 letter a, including among others:
   1) holding a General Meeting of Shareholders (GMS) to approve the paid-up capital increase; and
   2) notification of amendment of the articles of association or approval from the competent authority.

8. In the event that BPR or BPRS does not follow up the mechanism for increasing paid-up capital as referred to in number 7 letter b, the capital increase in the Paid-Up Capital Equity position for BPR or the Paid-Up Capital position for BPRS, which was previously calculated in the KPMM component, becomes unrecognized as the Paid-Up Capital Equity position for BPR or the Paid-Up Capital position for BPRS, so that BPR or BPRS is determined again under intensive supervision or special supervision.

9. The determination of BPR or BPRS under intensive supervision or special supervision as referred to in number 8 refers to Article 6 paragraph (1), Article 19, and Article 25 paragraph (1) of the POJK on the Determination of Status and Supervisory Follow-up for BPR and BPRS.

10. The procedure for submitting a request for the disbursement of deposits in the Paid-Up Capital Equity position for BPR or the Paid-Up Capital position for BPRS as referred to in number 6 letter a and number 8 refers to Financial Services Authority regulations regarding BPR or Financial Services Authority regulations regarding BPRS.

11. Requests for the disbursement of deposits that cannot be classified in the Paid-Up Capital Equity position for BPR or the Paid-Up Capital position for BPRS as referred to in number 6 letter b are submitted by BPR or BPRS to the Financial Services Authority.

VI. ANNOUNCEMENT, REPORTING, AND CORRESPONDENCE ADDRESS

1. Announcements Related to BPR or BPRS Under Special Supervision
   Announcements regarding the prohibition of fund collection and fund distribution for BPR or BPRS that meet the criteria as referred to in Roman numeral IV number 9 are conducted by BPR or BPRS that

corresponding on the same day as the date of the notification letter.

Example format for the announcement of the prohibition on fund collection and fund distribution by BPR or BPRS as referred to in the Appendix which is an integral part of this Financial Services Authority Circular.

2. Reporting
   a. To monitor the development of the condition of BPR or BPRS under special supervision and rehabilitation, BPR or BPRS under special supervision must submit to the Financial Services Authority:
   1) daily balance sheets on a weekly basis, submitted on the first working day of the following week; and
   2) realization reports for each implementation and/or achievement level of the action plan, submitted no later than 5 (five) working days since the implementation and/or achievement of the action plan was carried out.

Example:
On February 6, 2018 (Tuesday), BPR "A" or BPRS "B" was placed under special supervision. BPR "A" or BPRS "B" submitted the daily balance sheet for the first time on February 12, 2018 (Monday) for the daily balance sheet position on February 6, 7, 8, and 9, 2018 (Tuesday, Wednesday, Thursday, and Friday). On March 6, 2018 (Tuesday), BPR "A" or BPRS "B" made a capital deposit addition in accordance with the action plan. In relation to this, BPR "A" or BPRS "B" submitted a report on the implementation and/or achievement of the action plan accompanied by supporting evidence to the Financial Services Authority no later than March 12, 2018 (Monday), which is 5 (five) working days since the action plan was implemented.

b. For BPR or BPRS under special supervision where the duration of the special supervision ends in less than 5 (five) working days, the submission of daily balance sheet reports and realization reports for each implementation and/or achievement level of the action plan as referred to in letter a number 1) and number 2)

no later than the date of the end of the special supervision period.

Example:
The special supervision period for BPR "C" or BPRS "D" will end on October 18, 2018 (Thursday). On October 16, 2018 (Tuesday), BPR "C" or BPRS "D" made a capital deposit addition in accordance with the action plan, so the realization report of the action plan regarding the capital addition mentioned above was submitted no later than October 18, 2018.

c. In the event that the submission day of the weekly daily balance sheet report exceeds the end date of the special supervision period, the report mentioned above must be submitted no later than 1 (one) working day since the end of the special supervision period.

Example:
The special supervision period for BPR "E" or BPRS "F" ends on April 26, 2018 (Thursday), so BPR "E" or BPRS "F" submits the daily balance sheet for April 23, 24, 25, and 26, 2018 (Monday, Tuesday, Wednesday, and Thursday) no later than April 27, 2018 (Friday).

3. Correspondence Address
   Correspondence from BPR or BPRS submitted to the Financial Services Authority concerning BPR or BPRS under normal supervision that has significant problems, intensive supervision, and special supervision is directed to:
   a. Regional Office of the Financial Services Authority, for BPR and BPRS whose headquarters are in the working area of the Regional Office of the Financial Services Authority; b. Office of the Financial Services Authority, for BPR and BPRS whose headquarters are in the working area of the Office of the Financial Services Authority; or
   c. Sharia Banking Department for BPRS whose headquarters are in the working area of the Head Office in the DKI Jakarta Province, Bogor Regency/City, Depok City, and Bekasi Regency/City, as well as Banten Province.

VII. OTHERS

1. At the time the POJK Determination of Status and Supervisory Follow-up for BPR and BPRS was promulgated until October 31, 2017, BPR or BPRS was placed under special supervision for a maximum period of 180 (one hundred eighty) days calculated from the date of the notification letter from the Financial Services Authority.
   The duration of the determination of BPR or BPRS under special supervision mentioned above cannot be extended.

2. In the period from the promulgation of the POJK Determination of Status and Supervisory Follow-up for BPR and BPRS until October 31, 2017, BPR or BPRS placed under special supervision as referred to in number 1 must comply with the provisions as referred to in Article 3, Article 4, Article 6, Article 9, and Article 11 of Bank Indonesia Regulation Number 11/20/PBI/2009 concerning Follow-up Handling of Rural Banks in Special Supervision Status and Article 3, Article 4, Article 7, Article 9, and Article 11 of Bank Indonesia Regulation Number 13/6/PBI/2011 concerning Follow-up Handling of Sharia Rural Financing Banks in Special Supervision Status.

3. Since November 1, 2017, BPR or BPRS placed under special supervision as referred to in number 2 must comply with the provisions as referred to in the POJK Determination of Status and Supervisory Follow-up for BPR and BPRS.

Example for number 1, number 2, and number 3:
BPR "I" or BPRS "J" was placed under special supervision on September 30, 2017. With the promulgation of the POJK Determination of Status and Supervisory Follow-up for BPR and BPRS on May 10, 2017, it is explained as follows:

1. The special supervision period for BPR "I" or BPRS "J" is at most 180 (one hundred eighty) days calculated from September 30, 2017, i.e., at most until March 28, 2018.
2. The special supervision period for BPR "I" or BPRS "J" as referred to in number 1 cannot be extended.
3. If the special supervision period for BPR "I" or BPRS "J" ends after October 31, 2017, the actions

This copy is consistent with the original
Legal Director 1
Legal Department signed
Yuliana supervision, reporting obligations, implementation, adjustment and/or reporting of action plan implementation, prohibition on fund collection and fund distribution, capital addition and capital deposit disbursement, and criteria for BPR or BPRS exiting special supervision must comply with the POJK Determination of Status and Supervisory Follow-up for BPR and BPRS. Based on the example above, BPR "I" or BPRS "J" must meet a KPMM ratio of at least 8% (eight percent) and an average CR over the last 6 (six) months of at least 4% (four percent) to be able to exit special supervision on March 28, 2018.

VIII. CLOSING
At the time this Financial Services Authority Circular takes effect, Bank Indonesia Circular Number 11/19/DKBU regarding Follow-up Handling of Rural Banks in Special Supervision Status and Bank Indonesia Circular Number 13/2/DPBS regarding Follow-up Handling of Sharia Rural Financing Banks in Special Supervision Status are revoked and declared invalid. The provisions in this Financial Services Authority Circular take effect on the date of determination.

Determined in Jakarta on December 21, 2017
EXECUTIVE HEAD OF BANKING SUPERVISOR
FINANCIAL SERVICES AUTHORITY, signed
HERU KRISTIYANA

APPENDIX
FINANCIAL SERVICES AUTHORITY CIRCULAR
NUMBER 56 /SEOJK.03/2017
REGARDING
DETERMINATION OF STATUS AND SUPERVISORY FOLLOW-UP FOR RURAL BANKS AND SHARIA RURAL FINANCING BANKS

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

Example Format for Announcement of Prohibition on Fund Collection and Fund Distribution:

ANNOUNCEMENT

Hereby we inform all customers that
based on the Financial Services Authority letter No. ............. dated ...............
Regarding .............., effective from date ................. 1, our BPR/BPRS:
Name : PT/Regional Public Company/Regional Corporation
Address : Jl. ....................................................................

PROHIBITED FROM COLLECTING FUNDS AND DISTRIBUTING FUNDS

In relation to this matter, in accordance with Article 28 of Financial Services Authority Regulation Number 19/POJK.03/2017 dated May 10, 2017 concerning Determination of Status and Supervisory Follow-up for Rural Banks and Sharia Rural Financing Banks, during the prohibition period we do not accept savings and/or deposits from customers, nor do we distribute new credit or financing. This prohibition applies until further announcement.

Thus be informed.
(City), (date/month/year)
Chief Commissioner, Chief Executive Officer,
(Name of BPR/BPRS ...) (Name of BPR/BPRS ...) signed signed

Note: 1 (filled in according to the date of determination of the prohibition on fund collection and fund distribution)

Determined in Jakarta on December 21, 2017
EXECUTIVE HEAD OF BANKING SUPERVISOR
FINANCIAL SERVICES AUTHORITY, signed
HERU KRISTIYANA