Circular Letter No. 8/8/DPbS - Conversion Business of Conventional Commercial Banks Conducting Business Based on Sharia Principles and establishment of Bank Offices Conducting Business Based on Sharia Principles by Conventional Commercial Banks

B A N K I N D O N E S I A
BI 100 (A4B) - 50r - 5 - 2005 AM
I. GENERAL...
No. 8 / 8 /DPbS Jakarta, March 1, 2006
CIRCULAR LETTER
To
ALL CONVENTIONAL COMMERCIAL BANKS CONVERTING ITS BUSINESS TO COMMERCIAL BANKS CONDUCTING BUSINESS BASED ON SHARIA PRINCIPLES AND CONVENTIONAL COMMERCIAL BANKS CONDUCTING BUSINESS BASED ON SHARIA PRINCIPLES IN INDONESIA Re: Conversion Business of Conventional Commercial Banks Conducting Business Based on Sharia Principles and establishment of Bank Offices Conducting Business Based on Sharia Principles by Conventional Commercial Banks. ___________________________________________________________ With the following of Bank Indonesia Regulation Number. 8/3/PBI/2006 dated January 30, 2006 concerning Conversion of Business of Conventional Commercial Banks to Commercial Banks Conducting Business Based on Sharia Principles and establishment of Bank Offices Conducting Business Based on Sharia Principles by Conventional Commercial Banks. (State Gazette of the Republic of Indonesia Number 5 of 2006, Supplement to the State Gazette of the Republic of Indonesia Number 4599), need to be stipulated in an implementation regulation regarding Conversion of Business of Conventional Commercial Banks to Commercial Banks Conducting Business Based on Sharia Principles and establishment of Bank Offices Conducting Business Based on Sharia Principles by Conventional Commercial Banks in a Bank Indonesia Circular Letter containing the following matters:

BI 101 (A4B) - 150r - 7 - 2000 - ERC
Halaman ....... B A N K I N D O N E S I A
I. GENERAL
1. Submission of application for license or plan and or report as regulated in Bank
Indonesia Regulation Number 8/3/PBI/2006 must use the formats as attached in the attachment of this CircularLetter.
2. In the case of Bank Indonesia Regulation Number 8/3/PBI/2006 refers to
Bank Indonesia Regulation Number 6/24/PBI/2004 dated October 14, 2004 concerning Commercial Banks Conducting Business based on Sharia Principles, the format of application for license or plan and or report of the implementation must use formats as attached in the attachment of this Circular Letter Number 7/5/DPbS dated February 8, 2005 concerning Commercial Banks Conducting Business Based on Sharia Principles.
3. In the case of the format of application for license or plan and or implementation
report is not specially regulated in this Circular Letter and External Circular Letter Number 7/5/DPbS dated February 8, 2005 concerning Commercial Banks Conducting Business Based on Sharia Principles, the format used is up to the respective banks.
II. SETTLEMENT OF RIGHT AND LIABILITIES FOR CONVENTIONAL
COMMERCIAL BANKS CONVERTING INTO COMMERCIAL BANKS CONDUCTING BUSINESS BASED ON SHARIA PRINCIPLES
1. Settlement of all rights and liabilities of debtors and creditors from the
conventional business must be settled at the latest 360 (three hundred and sixty) days as of the issuance of the permit letter of business conversion. For example:

• A Bank submitted application of the business conversion on January 1 ,
  2006;
• The document of the business conversion license is completely received
  on January 15 , 2006 by Bank Indonesia;
• Bank Indonesia issues a permit for business conversion on February 15 ,
  2006.
  Consequently...

BI 101 (A4B) - 150r - 7 - 2000 - ERC
Halaman ....... B A N K I N D O N E S I A
Consequently all the rights and liabilities of debtors and creditors from the conventional business must be settled on February 11, 2007.
2. In the case of a difference between the date of the permit business conversion
issued by Bank Indonesia with the effective date of the permit validity to convert of the Bank business according to the date of approval from the competent authority, the Bank can only execute Sharia business since the valid effective date of the permit to convert of the Bank business according to the approval date of the competent authority. For example:

• Bank Indonesia issues a permit for the conversion in the business on March
  1, 2006;
• Amendments to the Articles of Association of the Bank is approved by the
  competent authority on April 1, 2006;
• There are Bank customers owning deposits maturing on March 27, 2006,
  so therefore:
  a. if the customer wants to withdraw his deposit, the Bank will directly pay; b. if the customer wants to extend his deposit and willing to use the Sharia scheme, the Bank may extend such customer deposit as of April 1, 2006.
  III. LICENSE APPLICATION AND REPORTING

1. Submission of application for licence to the Governor of Bank Indonesia uses
   the attached format with the following provisions:
   a. Application for Licence for Conversion of Business of Conventional to Business based on Sharia Principles, uses the format attach in Attachment 1; b. Application for Approval in Principle for Establishment of the Sharia Branch Office, uses the format attach in Attachment 3;
   c. Application for Licence for Establishment of the Sharia Branch Office,
   uses the format as attach in Attachment 4; d. Application...

BI 101 (A4B) - 150r - 7 - 2000 - ERC
Halaman ....... B A N K I N D O N E S I A d. Application for Approval in Principle for Establishment of Sharia Branch Office by Converting a Branch Office or upgrading the Status of Office below Branch Office to Sharia Branch Office, uses the format as attach in Attachment 6; e. Application for Licence for Establishment of the Sharia Branch Office by Converting a Branch Office or upgrading the Status of Office below Branch Office to Sharia Branch Office, uses the format as attach in Attachment 7; f. Application for Licence for Establishment a Sharia Unit, uses the format as attach in Attachment 9; g. Application for Licence for Establishment of the Sharia Branch Office by Converting a Branch Office that previously opened a Sharia Unit to a Sharia Branch Office or upgrading a Sub-Branch Office that previously opened a Sharia Unit to a Sharia Branch Office, uses the format as attach in Attachment 11; h. Application for Licence for Establishment of the Sharia Branch Office originating from a Sharia Unit of a Branch Office and/or Sub-Branch Office in the same location or outside the location of the Branch Office and/or Sub-Branch Office in which the Sharia Unit previously operated, uses the format as attach in Attachment 13;
i. Application for Licence for Closure of a Sharia Unit, uses the format as
attach in Attachment 18.
2. Submission of report to Bank Indonesia uses the attached format with the
following provisions:
a. Report of the implementation of Conversion of Business of Conventional to Business based on Sharia Principles, uses the format attach in Attachment 2; b. Report of the implementation of Establishment of the Sharia Branch Office, uses the format attach in Attachment 5;
c. Report on the Implementation of Establishment of Sharia Branch Office by
Converting a Branch Office or upgrading the Status of Office below Branch Office to Sharia Branch Office, uses the format attach in Attachment 8; d. Report ...

BI 101 (A4B) - 150r - 7 - 2000 - ERC
Halaman ....... B A N K I N D O N E S I A d. Report on the implementation of Establishment a Sharia Unit, uses the format attach in Attachment 10; e. Report on the implementation of Establishment of the Sharia Branch Office by Converting a Branch Office that previously opened a Sharia Unit to a Sharia Branch Office or upgrading a Sub-Branch Office that previously opened a Sharia Unit to a Sharia Branch Office, uses the format attach in Attachment 12; f. Report on the implementation of Establishment of the Sharia Branch Office originating from a Sharia Unit of a Branch Office and/or Sub-Branch Office in the same location or outside the location of the Branch Office and/or Sub-Branch Office in which the Sharia Unit previously operated, uses the format attach in Attachment 14; g. Report for the plan of Establishment of Office below Branch Office, uses the format attach in Attachment 15; h. Report on the implementation of Establishment of Office below Branch Office, uses the format attach in Attachment 16;
i. Report for the plan of Establishment of Sharia Services, uses the format
attach in Attachment 17; j. Report on the implementation of Sharia Services, uses the format as attach in Attachment 20; k. Report for the Plan for Closure of a Sharia Unit, uses the format attach in Attachment 19;
l. Report on the implementation for Closure of a Sharia Unit, uses the format
attach in Attachment 21; m. Report for the Plan for Closure of Office below Branch Office, uses the format attach in Attachment 22; n. Report for the Plan for termination of Sharia Services, uses the format attach in Attachment 23; o. Report on the implementation for termination of Sharia Services, uses the format attach in Attachment 24;
3. Attachments...

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Halaman ....... B A N K I N D O N E S I A
3. Attachments as considered in number 1 and number 2, are an inseparable part
of this Circular Letter.
4. Counting of the days in the case of submitting an application for license or plan
and or report as regulated in Bank Indonesia Regulation Number 8/3/PBI/2006 is based on the calendar day.
5. The period for submitting application for license by Bank to the Governor of
Bank Indonesia and submitting a plan or a report by Bank to Bank Indonesia is counted since the documents is completely received.
IV. ADDRESS TO SUBMIT THE LICENSE APPLICATION AND OR
REPORTING

1. Application for licence to the Governor of Bank Indonesia as considered in
   number III, shall be addressed to Sharia Banking Directorate, Radius Prawiro Tower floor 22, Jl. M.H. Thamrin No. 2 Jakarta 10110.
2. Submission of report to Bank Indonesia as considered in number III, shall be
   addressed to:

• Sharia Banking Directorate, Radius Prawiro Tower floor 22, Jl. M.H.
  Thamrin No. 2 Jakarta 10110, for a Bank located in the working area of Bank Indonesia Head Office.
• Local Bank Indonesia Regional Office, for a Bank located in the working
  area of a Local Bank Indonesia Regional Office.
  V. CLOSING
  Provisions in this Bank Indonesia Circular Letter shall come into force since March 1, 2006. For the public to be informed, it is ordered that this Bank Indonesia Circular Letter be promulgated in the State Gazette of the Republic of Indonesia. Please be ...

BI 101 (A4B) - 150r - 7 - 2000 - ERC
Halaman ....... B A N K I N D O N E S I A
Please be informed accordingly
BANK INDONESIA, signed
HARISMAN
SHARIA BANKING DIRECTOR

Attachment 1
………………, ………………………..
Number :
Attachment :
To
The Governor of Bank Indonesia
Jl. M.H. Thamrin No. 2
JAKARTA 10110
Attention: The Sharia Banking Directorate
Regarding: Application for Licence for Conversion of Business of Conventional to Commercial Bank Conducting Business Based on Sharia Principles Assalamu’ alaikum Wr. Wb. We here by submit of application to obtain the approval for conversion of business of conventional to commercial Bank conducting business based on Sharia principles under the plan name …… domiciled in …. To complete application concerned we here by submit:

1. The Articles of Association of the Bank;
2. Plan of the deed to amend the articles of association which shall at least contain:
   a. name and place of domicile; b. confirmation that the bank conducting business based on Sharia Principles;
   c. capital*);
   d. ownership*); e. authority, responsibility, and tenure of the Board of Directors and the Board of Commissioners; Attachment 1 : Bank Indonesia Circular Letter Number 8/8/DPbS dated March 1, 2006

f. placement of Sharia Supervisory Board and its duties; which has been approved by the general meeting of shareholders and is made in the presence of a notary in Indonesian.
3. Minutes of the General Meeting of Shareholders;
4. Data including*):
a. list of proposed shareholders including details of the respective amount of shares ownership for the Bank in the form a Limited Liability legal entity / Regional Company; b. list of proposed members and details of the principle deposit and mandatory deposit and list of endowment for Banks in the form of Cooperatives.
5. List of the Board of Director members, Board of Commissioner and Sharia Supervisory
Board enclosed required documents;
6. Plan of the organizational structure and personnel formation;
7. Bank business plan for the first year which shall at least contain:
a. feasibility study regarding opportunity of sharia banking market and economic potential completed with supporting data; b. business plan containing the collection and distribution of funds and activity steps to be implemented in realizing such plan; and
c. projection of balance sheet, profit and loss statement and monthly cash flow
report during 12 (twelve) months starting since the Bank conducts operational activities based on Sharia Principles;
8. Medium term and long-term strategic planning (corporate plan);
9. Risk management guidance, internal supervision system plan, information technology
system plan, and scale of authority;
10. System and work procedure;
11. Plan to settle all rights and liabilities of the Bank to its customer refusing to become
a Bank customer based on Sharia Principles; and
12. Proof of operational readness in the form of::
a. list of fixed assets and inventory;
Attachment 1 : Bank Indonesia Circular Letter Number 8/8/DPbS dated March 1, 2006

b. proof of ownership, authority or office building lease agreement;
c. photograph of the office building and space lay out;
d. example of the form / letter to be used for the Bank operational; and e. Tax Number and Company Registration Receipt. Wassalamu ‘alaikum Wr. Wb. BANK CC.: Sharia Banking Directorate … (for Banks with head offices in the working area of Bank Indonesia Head Office) Local Bank Indonesia regional office … (for Banks with head offices outside the working area of Bank Indonesia head office) *): in case of alterations Attachment 1 : Bank Indonesia Circular Letter Number 8/8/DPbS dated March 1, 2006

Attachment 2
………………, ………………………..
Number :
Attachment :
To
The Governor of Bank Indonesia
Jl. M.H. Thamrin No. 2
JAKARTA 10110
Attention: Sharia Banking Directorate or
Bank Indonesia Office *)
Regarding: Report of The Implementation of Conversion of Business of Conventional to Business Based on Sharia Principles Assalamu’ alaikum Wr. Wb. Referring to the Governor of Bank Indonesia Decision Number …….. Dated ………. regarding the Issuance of Licence of Conversion of Business of Conventional to Business Based on Sharia Principles ………………., we hereby report that we have started the business as a Bank conducting Business Based on Sharia Principles on ………. To whom it may concern. Wassalamu ‘alaikum Wr. Wb. BOARD OF DIRECTORS
CC. Sharia Banking Directorate … (for Banks with head offices in the working area of Bank Indonesia
Head Office)
*) For Banks with head offices outside the working area of Bank Indonesia head office Attachment 2 : Bank Indonesia Circular Letter Number 8/8/DPbS dated March 1, 2006

Attachment 3
………………, ………………………..
Number :
Attachment :
To
The Governor of Bank Indonesia
Jl. M.H. Thamrin No. 2
JAKARTA 10110
Attention: Sharia Banking Directorate or
Bank Indonesia Office *)
Regarding: Application for Approval in Principle for Establishment of the Sharia Branch Office Assalamu’ alaikum Wr. Wb. We hereby submit an application for an approval in principle for establishment of the Sharia Branch Office with the address in ……… To complete such request we hereby include:

1. Consolidated Financial statements and details of the quality of productive assets of 2
   (two) last months prior to the date of application letter;

2. Operational plan with regard to establishment of a Sharia Branch Office;

3. The Articles of Association of the Bank for establishment of the first time Sharia
   Branch Office;

4. Plan to amend the Articles of Association for establishment of the first time Sharia
   Branch Office;

5. Organizational structure plan, and list of personnel;
   Attachment 3 : Bank Indonesia Circular Letter Number 8/8/DPbS dated March 1, 2006

6. The Bank business plan for the first year;

7. Document and identity of the Sharia Branch Office head;

8. Document regarding the identity of the candidates Sharia Supervisory Board Members
   to establishment of the first time Sharia Branch Office;

9. Document and identity of the Sharia Divisions head for establishment of the first time
   Sharia Branch Office;

10. Results of feasibility study which at least contain economic potential, market
    opportunity, and level of sound competitiveness between Banks conducting business based on Sharia Principles, saturation level of number of Banks conducting business based on Sharia Principles completed with supporting data from related institutions;

11. Monthly cash flow projection during 12 (twelve) months and

12. Business Plan of the Sharia Branch Office at least during 12 (twelve) months; and

13. Reasons for establishment of a Sharia Branch Office.
    Wassalamu ‘alaikum Wr. Wb.
    BANK
    CC. Sharia Banking Directorate … (for Banks with head offices in the working area of Bank Indonesia
    Head Office)
    Local Bank Indonesia regional office … (for Banks with head offices outside the working area of Bank Indonesia head office) *) For Banks with head offices outside the working area of Bank Indonesia head office Attachment 3 : Bank Indonesia Circular Letter Number 8/8/DPbS dated March 1, 2006

Attachment 4
………………, ………………………..
Number :
Attachment :
To
The Governor of Bank Indonesia
Jl. M.H. Thamrin No. 2
JAKARTA 10110
Attention: Sharia Banking Directorate or
Bank Indonesia Office *)
Regarding: Application for Licence for Establishment of a Sharia Branch Office Assalamu’ alaikum Wr. Wb. We herewith submit an application for licence for establishment of a Sharia Branch Office located in ………. according to our bank business plan. For your consideration we hereby submit the following:

1. Organizational structure and personnel plan );
2. Bank business plan for the first year );
3. Medium term and long term corporate plan );
4. Risk management guidance, internal supervision system plan, information technology
   system plan, and authorization scale );
5. Work system and procedure );
6. Prove of Operation preparedness ); and
7. Amendment of the articles of association approved by the competent authority.
   Attachment 4 : Bank Indonesia Circular Letter Number 8/8/DPbS dated March 1, 2006

Wassalamu ‘alaikum Wr. Wb.
BANK
CC. Sharia Banking Directorate … (for Banks with head offices in the working area of Bank Indonesia
Head Office)
Local Bank Indonesia regional office … (for Banks with head offices outside the working area of Bank Indonesia head office) *) For Banks with head offices outside the working area of Bank Indonesia head office ) In case of alterations Attachment 4 : Bank Indonesia Circular Letter Number 8/8/DPbS dated March 1, 2006

Attahcment 5
………………, ………………………..
Number :
Attachment :
To
The Governor of Bank Indonesia
Jl. M.H. Thamrin No. 2
JAKARTA 10110
Attention: Sharia Banking Directorate or
Bank Indonesia Office *)
Regarding: Report of The Implementation of Establishment of the Sharia Branch Office Assalamu’ alaikum Wr. Wb. Based on the license for establishment of a Sharia Branch Office from The Governor of Bank Indonesia Number …….. Dated ………. We hereby report that our Sharia Branch Office in ………………. is officially establish and operating on ………. Wassalamu ‘alaikum Wr. Wb. BOARD OF DIRECTORS
CC. Sharia Banking Directorate … (for Banks with head offices in the working area of Bank Indonesia
Head Office)
Local Bank Indonesia regional office … (for Banks with head offices outside the working area of Bank Indonesia head office) *) For Banks with head offices outside the working area of Bank Indonesia head office Attachment 5 : Bank Indonesia Circular Letter Number 8/8/DPbS dated March 1, 2006

Attachment 6
………………, ………………………..
Number :
Attachment :
To
The Governor of Bank Indonesia
Jl. M.H. Thamrin No. 2
JAKARTA 10110
Attention: Sharia Banking Directorate or
Bank Indonesia Office *)
Regarding: Application for Approval in Principle for Establishment of Sharia Branch Office by Converting a Branch Office or upgrading the Status of Office below Branch Office to Sharia Branch Office) Assalamu’ alaikum Wr. Wb. We hereby submit our application for approval in principle for establishment of Sharia Branch Office located in ……….. which was previously Branch Office / Office below Branch Office ) ………… to become a Sharia Branch Office according to our business plan. To complete such request we hereby include:

1. Consolidated financial statements and details of the quality of productive assets
   quality of the last 2 (two) months prior to the application letter date;

2. Operational preparation plan in regard with the establishment of Sharia Branch
   Office;
   Attachment 6 : Bank Indonesia Circular Letter Number 8/8/DPbS dated March 1, 2006

3. The Articles of Association of the Bank for establishment of the first time Sharia
   Branch Office;

4. Plan to amend the articles of association for establishment of the first time Sharia
   Branch Office;

5. Organization Personnel and structure Plan;

6. The Bank business plan for the first year;

7. Document and identification of the Sharia Branch Office head;

8. Document regarding the identity of the candidate members of the Sharia Supervisory
   Board, for establishment of the first time Sharia Branch Office;

9. Document and identity of the Sharia Divisions head for establishment of the first time
   Sharia Branch Office

10. Result of a feasibility study which at least contain economic potential, market
    opportunity, and level of sound competitiveness between Banks conducting business based on Sharia Principles, saturation level of number of Banks conducting business based on Sharia Principles completed with supporting data from related institutions;

11. Monthly Cash flow projection during 12 (twelve) months;

12. Business plan of the Sharia Branch Office at least during 12 (twelve) months;

13. Reasons for opening Sharia Branch Office; and

14. Plan to settle all rights and liabilities of the Bank to its customer refusing to become
    a Sharia Branch Office customer
    Wassalamu ‘alaikum Wr. Wb.
    BOARD OF DIRECTORS
    CC. Sharia Banking Directorate … (for Banks with head offices in the working area of Bank Indonesia
    Head Office)
    Local Bank Indonesia regional office … (for Banks with head offices outside the working area of Bank Indonesia head office) *) For Banks with head offices outside the working area of Bank Indonesia head office ) Cross out unnecessary matters Attachment 6 : Bank Indonesia Circular Letter Number 8/8/DPbS dated March 1, 2006

Attachment 7
………………, ………………………..
Number :
Attachment :
To
The Governor of Bank Indonesia
Jl. M.H. Thamrin No. 2
JAKARTA 10110
Attention: Sharia Banking Directorate or
Bank Indonesia Office *)
Regarding: Application for Approval in Principle for Establishment of Sharia Branch Office by Converting a Branch Office or upgrading the Status of Office below Branch Office to Sharia Branch Office) Assalamu’ alaikum Wr. Wb. We herewith submit our application for license for Establishment of Sharia Branch Office located in ……….. which was previously a Branch Office / Office below Branch Office ) to a Sharia Branch Office according to our Bank business plan. We here by submit the following documents:

1. Organizational structure and personnel plan *);

2. Bank business plan for the first year *);

3. Medium term and long term strategic plan (corporate plan) *);

4. Guidance to risk management, internal supervisory system plan, information
   technology system plan, and scale of authority *);

5. Work procedure and system *);
   Attachment 7 : Bank Indonesia Circular Letter Number 8/8/DPbS dated March 1, 2006

6. Prove of Operational preparedness *);

7. Amendment of the articles of association which state that the Bank is conducting
   business based on Sharia Principles and the placement and task of the Sharia Supervisory Board, legalized by the competent authority; and

8. Realization report and follow up plan for the settlement of the rights and liabilities
   of the Bank to customer who do not wish to become Bank customer based on Sharia Principles. Wassalamu ‘alaikum Wr. Wb. BOARD OF DIRECTORS
   CC. Sharia Banking Directorate … (for Banks with head offices in the working area of Bank Indonesia
   Head Office)
   Local Bank Indonesia regional office … (for Banks with head offices outside the working area of Bank Indonesia head office) *) For Banks with head offices outside the working area of Bank Indonesia head office ) Cross out unnecessary matters *) In case of alterations Attachment 7 : Bank Indonesia Circular Letter Number 8/8/DPbS dated March 1, 2006

Attachment 8
………………, ………………………..
Number :
Attachment :
To
The Governor of Bank Indonesia
Jl. M.H. Thamrin No. 2
JAKARTA 10110
Attention: Sharia Banking Directorate or
Bank Indonesia Office *)
Regarding: Report on the Implementation of Establishment of Sharia Branch Office by Converting a Branch Office or upgrading the Status of Office below Branch Office to Sharia Branch Office) Assalamu’ alaikum Wr. Wb. Based on the license for establishment a Sharia Branch Office from The Governor of Bank Indonesia Number …….. Dated ………. We hereby report that our Sharia Branch Office in ………… previously Branch Office / upgrading office below Branch Office ) ………. has been officiated and operating on ………. Wassalamu ‘alaikum Wr. Wb. BOARD OF DIRECTORS
CC. Sharia Banking Directorate … (for Banks with head offices in the working area of Bank Indonesia
Head Office)
Local Bank Indonesia regional office … (for Banks with head offices outside the working area of Bank Indonesia head office) *) For Banks with head offices outside the working area of Bank Indonesia head office ) Cross out unnecessary matters Attachment 8 : Bank Indonesia Circular Letter Number 8/8/DPbS dated March 1, 2006

Attachment 9
………………, ………………………..
Number :
Attachment :
To
The Governor of Bank Indonesia
Jl. M.H. Thamrin No. 2
JAKARTA 10110
Attention: Sharia Banking Directorate or
Bank Indonesia Office *)
Regarding: Application for Licence for Establishment a Sharia Unit Assalamu’ alaikum Wr. Wb. We hereby apply for a license of opening a Sharia Unit in the Branch Office / Sub- Branch Office ) ………. located in ………. For your consideration, we hereby submit the following documents:

1. Result of the feasibility study regarding the level of sound competition between Banks
   conducting business operation based on Sharia Principles;

2. Operational preparedness with regard to the Sharia unit opening including the
   preparedness of human resources, accounting system and information technology;

3. Fair term period plans regarding the conversion of the Sharia Unit to become a Sharia
   Branch Office;

4. Amendment to the articles of association which clearly state that the Bank conducts
   business based on Sharia Principles and placement and the task of the Sharia Supervisory Board for the first opening of the Sharia Unit; Attachment 9 : Bank Indonesia Circular Letter Number 8/8/DPbS dated March 1, 2006

5. The Bank first year business plan which at least include:
   a. feasibility study regarding market opportunity and economic potential related to sharia banking; b. business operational plan including collection and distribution of funds and operational steps to be conducted in realizing such plan;
   c. projection of balance sheet, profit loss statement and report of the monthly cash
   flow during 12 (twelve) months since the Sharia Unit conducted operational activities;

6. Organizational structure and personnel formation plan to handle the Sharia Unit
   activities;

7. Proof of experience in Sharia Bank operational and or certificate of bank sharia
   operational training for the head of the Branch Office or Sub- Branch Office;

8. Document regarding the identities of the Sharia Supervisory Board member candidates,
   for the opening of the first time Sharia Unit; and

9. Document and identity of the Sharia Business Unit head, for the opening of the first
   time Sharia Unit.
   Wassalamu ‘alaikum Wr. Wb.
   BOARD OF DIRECTORS
   CC. Sharia Banking Directorate … (for Banks with head offices in the working area of Bank Indonesia
   Head Office)
   Local Bank Indonesia regional office … (for Banks with head offices outside the working area of Bank Indonesia head office) *) For Banks with head offices outside the working area of Bank Indonesia head office ) Cross out unnecessary matters Attachment 9 : Bank Indonesia Circular Letter Number 8/8/DPbS dated March 1, 2006

Attachment 10
………………, ………………………..
Number :
Attachment :
To
The Governor of Bank Indonesia
Jl. M.H. Thamrin No. 2
JAKARTA 10110
Attention: Sharia Banking Directorate or
Bank Indonesia Office *)
Regarding: Report on The Implementation of Establishment a Sharia Unit Assalamu’ alaikum Wr. Wb. Based on the license for establishment a Sharia Unit from The Governor of Bank Indonesia Number …….. Date ………. We hereby report that our Sharia Unit in ………… has been officiated and in operation on ………. Wassalamu ‘alaikum Wr. Wb. BOARD OF DIRECTORS
CC. Sharia Banking Directorate … (for Banks with head offices in the working area of Bank Indonesia
Head Office)
Local Bank Indonesia regional office … (for Banks with head offices outside the working area of Bank Indonesia head office) *) For Banks with head offices outside the working area of Bank Indonesia head office Attachment 10 : Bank Indonesia Circular Letter Number 8/8/DPbS dated March 1, 2006

Attachment 11
………………, ………………………..
Number :
Attachment :
To
The Governor of Bank Indonesia
Jl. M.H. Thamrin No. 2
JAKARTA 10110
Attention: Sharia Banking Directorate or
Bank Indonesia Office *)
Regarding: Application for Licence for Establishment of the Sharia Branch Office by Converting a Branch Office that previously opened a Sharia Unit to a Sharia Branch Office or upgrading a Sub-Branch Office that previously opened a Sharia Unit to a Sharia Branch Office) Assalamu’ alaikum Wr. Wb. We hereby submit our application for the license of establishment of the Sharia Branch Office located at ……….. which was previously a Sharia Unit in the Branch Office / Sub-Branch Office ) ……………. according to our Bank business plan. For your consideration we submit the following documents:

1. Organizational structure and personnel plan;

2. The Bank business plan for the first year;

3. Medium term and long term strategic plan (corporate plan);
   Attachment 11 : Bank Indonesia Circular Letter Number 8/8/DPbS dated March 1, 2006

4. Guidance on risk management, internal supervisory system plan, information
   technology system plan to be used, and scale of authority;

5. Work system and procedure;

6. Prove of Operational preparedness in the best regard to the Sharia Branch Office
   establishment;

7. Document and identity of the Sharia Branch Office head; and

8. Settlement report of all rights and liabilities of the Branch Office / Sub- Branch Office
   ) regarding customer who do not want to become customer of the Sharia Branch Office. Wassalamu ‘alaikum Wr. Wb. BOARD OF DIRECTORS
   CC. Sharia Banking Directorate … (for Banks with head offices in the working area of Bank Indonesia
   Head Office)
   Local Bank Indonesia regional office … (for Banks with head offices outside the working area of Bank Indonesia head office) *) For Banks with with head offices outside the working area of Bank Indonesia head office ) Cross out unnecessary matters Attachment 11 : Bank Indonesia Circular Letter Number 8/8/DPbS dated March 1, 2006

Attachment 12
………………, ………………………..
Number :
Attachment :
To
The Governor of Bank Indonesia
Jl. M.H. Thamrin No. 2
JAKARTA 10110
Attention: Sharia Banking Directorate or
Bank Indonesia Office *)
Regarding: Report on the implementation of Establishment of the Sharia Branch Office by Converting a Branch Office that previously opened a Sharia Unit to a Sharia Branch Office or upgrading a Sub-Branch Office that previously opened a Sharia Unit to a Sharia Branch Office) Assalamu’ alaikum Wr. Wb. Based on the license for establishment of the Sharia Branch Office from The Governor of Bank Indonesia Number …….. Date ………. We hereby report that our Sharia Branch Office in ………… was officiated and in operation on ………. Wassalamu ‘alaikum Wr. Wb. BOARD OF DIRECTORS
CC. Sharia Banking Directorate … (for Banks with head offices in the working area of Bank Indonesia
Head Office)
Local Bank Indonesia regional office … (for Banks with head offices outside the working area of Bank Indonesia head office) *) For Banks with head offices outside the working area of Bank Indonesia head office Attachment 12 : Bank Indonesia Circular Letter Number 8/8/DPbS dated March 1, 2006

Attachment 13
………………, ………………………..
Number :
Attachment :
To
The Governor of Bank Indonesia
Jl. M.H. Thamrin No. 2
JAKARTA 10110
Attention: Sharia Banking Directorate or
Bank Indonesia Office *)
Regarding: Application for Licence for Establishment of the Sharia Branch Office originating from a Sharia Unit of a Branch Office and/or Sub-Branch Office in the same location or outside the location of the Branch Office and/or Sub-Branch Office in which the Sharia Unit previously operated Assalamu’ alaikum Wr. Wb. We hereby submit our application for the license for establishment of the Sharia Branch Office Originating from Sharia Unit of the Branch Office and or sub-branch Office ) …………. with the address ……….. according to our Bank business plan. For your consideration we submit the following documents:

1. Consolidated financial statement and details of productive asset quality for the last 2
   (two) months prior to the application letter date;

2. Operational preparedness plan with regard to the opening of Sharia Branch Office;

3. The Bank articles of association for the first time of opening of Sharia Branch
   Office;
   Attachment 13 : Bank Indonesia Circular Letter Number 8/8/DPbS dated March 1, 2006

4. Plan of the amendment of the articles of association, for the opening of the first time
   Sharia Branch Office;

5. Organization and Personnel structure Plan;

6. The Bank business plan for the first year;

7. Document and identity of the Sharia Branch Office head;

8. Result of the feasibility study which at least contain the economic potential, market
   opportunity, and level of sound competitiveness between Bank conducting business based on Sharia Principles, level of saturation of the number of banks conducting business based on Sharia Principles with supporting data from related institution;

9. Monthly Cash flow projection during 12 (twelve) months;

10. Business plan of the Sharia Branch Office at least during 12 (twelve) months;
    Wassalamu ‘alaikum Wr. Wb.
    BOARD OF DIRECTORS
    CC. Sharia Banking Directorate … (for Banks with head offices in the working area of Bank Indonesia
    Head Office)
    Local Bank Indonesia regional office … (for Banks with head offices outside the working area of Bank Indonesia head office) *) For Banks with head offices outside the working area of Bank Indonesia head office ) Cross out unnecessary matters Attachment 13 : Bank Indonesia Circular Letter Number 8/8/DPbS dated March 1, 2006

Attachment 14
………………, ………………………..
Number :
Attachment :
To
The Governor of Bank Indonesia
Jl. M.H. Thamrin No. 2
JAKARTA 10110
Attention: Sharia Banking Directorate or
Bank Indonesia Office *)
Regarding: Report on the implementation of Establishment of the Sharia Branch Office originating from a Sharia Unit of a Branch Office and/or Sub-Branch Office in the same location or outside the location of the Branch Office and/or Sub-Branch Office in which the Sharia Unit previously operated Assalamu’ alaikum Wr. Wb. Based on the license for establishment of the Sharia Branch Office from The Governor of Bank Indonesia Number …….. Date ………. We hereby report that our Sharia Branch Office in ………… originating from the Branch Office / Sub- Branch Office ) …………. Has been officiated and in operation on ………. Wassalamu ‘alaikum Wr. Wb. BOARD OF DIRECTORS Attachment 14 : Bank Indonesia Circular Letter Number 8/8/DPbS dated March 1, 2006

CC. Sharia Banking Directorate … (for Banks with head offices in the working area of Bank Indonesia
Head Office)
Local Bank Indonesia regional office … (for Banks with head offices outside the working area of Bank Indonesia head office) *) For Banks with head offices outside the working area of Bank Indonesia head office ) Cross out unnecessary matters Attachment 14 : Bank Indonesia Circular Letter Number 8/8/DPbS dated March 1, 2006

Attachment 15
………………, ………………………..
Number :
Attachment :
To
The Governor of Bank Indonesia
Jl. M.H. Thamrin No. 2
JAKARTA 10110
Attention: Sharia Banking Directorate or
Bank Indonesia Office *)
Regarding: Report for The Plan of Establishment of Office below Branch Office Assalamu’ alaikum Wr. Wb. Based on our Bank business plan, we hereby submit the plan of establishment of Office below Branch Office:
No. Type ) Location Date
1 Sharia Sub- Branch Office a. ….. b. …..
2 Sharia Cash Unit a. ….. b. …..
Best regards.
Wassalamu ‘alaikum Wr. Wb.
BOARD OF DIRECTORS
Attachment 15 : Bank Indonesia Circular Letter Number 8/8/DPbS dated March 1, 2006

CC. Sharia Banking Directorate … (for Banks with head offices in the working area of Bank Indonesia
Head Office)
Local Bank Indonesia regional office … (for Banks with head offices outside the working area of Bank Indonesia head office) *) For Banks with head offices outside the working area of Bank Indonesia head office ) Cross out unnecessary matters Attachment 15 : Bank Indonesia Circular Letter Number 8/8/DPbS dated March 1, 2006

Attachment 16
………………, ………………………..
Number :
Attachment :
To
The Governor of Bank Indonesia
Jl. M.H. Thamrin No. 2
JAKARTA 10110
Attention: Sharia Banking Directorate or
Bank Indonesia Office *)
Regarding: Report on The Implementation of Establishment of Office below Branch Office Assalamu’ alaikum Wr. Wb. Based on our Annual Work Plan, we hereby submit the plan of establishment of Office below Branch Office:
No. Type ) Location Date
1 Sharia Sub-Branch Office a. ….. b. …..
2 Sharia Cash Unit a. ….. b. …..
Wassalamu ‘alaikum Wr. Wb.
BOARD OF DIRECTORS
CC. Sharia Banking Directorate … (for Banks with head offices in the working area of Bank Indonesia
Head Office)
Local Bank Indonesia regional office … (for Banks with head offices outside the working area of Bank Indonesia head office) *) For Banks with head offices outside the working area of Bank Indonesia head office ) Cross out unnecessary matters Attachment 16 : Bank Indonesia Circular Letter Number 8/8/DPbS dated March 1, 2006

Attachment 17
………………, ………………………..
Number :
Attachment :
To
The Governor of Bank Indonesia
Jl. M.H. Thamrin No. 2
JAKARTA 10110
Attention: Sharia Banking Directorate or
Bank Indonesia Office *)
Regarding: Report for The Plan of Establishment of Sharia Services Assalamu’ alaikum Wr. Wb. According to our Bank business plan, we hereby submit the plan of establishment of Sharia Services in ……….. Wassalamu ‘alaikum Wr. Wb. BOARD OF DIRECTORS
CC. Sharia Banking Directorate … (for Banks with head offices in the working area of Bank Indonesia
Head Office)
Local Bank Indonesia regional office … (for Banks with head offices outside the working area of Bank Indonesia head office) *) For Banks with head offices outside the working area of Bank Indonesia head office Attachment 17 : Bank Indonesia Circular Letter Number 8/8/DPbS dated March 1, 2006

Attachment 18
………………, ………………………..
Number :
Attachment :
To
The Governor of Bank Indonesia
Jl. M.H. Thamrin No. 2
JAKARTA 10110
Attention: Sharia Banking Directorate or
Bank Indonesia Office *)
Regarding: Application for Licence for Closure of a Sharia Unit Assalamu’ alaikum Wr. Wb. We hereby submit our application for license for closure of a Sharia Unit located in ……… due to …………. and steps that has been taken which regard to the settlement of the Sharia Unit liabilities to the customer and other parties ……….. Wassalamu ‘alaikum Wr. Wb. BANK BOARD OF DIRECTORS
CC. Sharia Banking Directorate … (for Banks with head offices in the working area of Bank Indonesia
Head Office)
Local Bank Indonesia Regional Office where the Sharia Unit to be closed is located. *) For Banks having it head office outside Bank Indonesia head office ) Cross-out unnecessary matters. Attachment 18 : Bank Indonesia Circular Letter Number 8/8/DPbS dated March 1, 2006

Attachment 19
………………, ………………………..
Number :
Attachment :
To
The Governor of Bank Indonesia
Jl. M.H. Thamrin No. 2
JAKARTA 10110
Attention: Sharia Banking Directorate or
Bank Indonesia Office *)
Regarding: Report for The Plan for Closure of a Sharia Unit Assalamu’ alaikum Wr. Wb. We hereby submit our report regarding the plan to close a Sharia Unit located in ……… due to …………. and steps that has been taken which regard to the settlement of the Sharia Unit liabilities to the customer and other parties ……….. Wassalamu ‘alaikum Wr. Wb. BOARD OF DIRECTORS
CC. Sharia Banking Directory … (If sharia unit to be closed is located inside the working area of the
Bank Indonesia head office)
Local Bank Indonesia Regional Office where the Sharia Unit to be closed is located. *) For Banks having it head office outside Bank Indonesia head office ) Cross-out unnecessary matters. Attachment 17 : Bank Indonesia Circular Letter Number 8/8/DPbS dated March 1, 2006

Attachment 20
………………, ………………………..
Number :
Attachment :
To
The Governor of Bank Indonesia
Jl. M.H. Thamrin No. 2
JAKARTA 10110
Attention: Sharia Banking Directorate or
Bank Indonesia Office *)
Regarding: Report on The Implementation of Sharia Services Assalamu’ alaikum Wr. Wb. Referring to our letter Number …………. date ……….. … regarding ………, and in accordance to our Bank business plan, we hereby report that we have opened Sharia Services in …….. on ……….. Wassalamu ‘alaikum Wr. Wb. BOARD OF DIRECTORS
CC. Sharia Banking Directorate … (for Banks with head offices in the working area of Bank Indonesia
Head Office)
Bank Indonesia Office … (for Banks having its head office outside the working area of Bank Indonesia head office *) Local Bank Indonesia Regional Office where the Sharia Services opened is located. Attachment 20 : Bank Indonesia Circular Letter Number 8/8/DPbS dated March 1, 2006

Attachment 21
………………, ………………………..
Number :
Attachment :
To
The Governor of Bank Indonesia
Jl. M.H. Thamrin No. 2
JAKARTA 10110
Attention: Sharia Banking Directorate or
Bank Indonesia Office *)
Regarding: Report for The Plan for Closure of a Sharia Unit Assalamu’ alaikum Wr. Wb. Referring to our letter Number …………. date ……….. … regarding ………, and in accordance to our Bank business plan, we hereby report the execution of closing the Sharia Unit located in …….. on ……….. included required documents. Wassalamu ‘alaikum Wr. Wb. BOARD OF DIRECTORS
CC. Sharia Banking Directory … (if the closed Sharia Unit is located in the working area of Bank
Indonesia head office)
Local Bank Indonesia Regional Office where the Sharia Unit to be closed is located. *) For Banks having it head office outside Bank Indonesia head office Attachment 21 : Bank Indonesia Circular Letter Number 8/8/DPbS dated March 1, 2006

Attachment 22
………………, ………………………..
Number :
Attachment :
To
The Governor of Bank Indonesia
Jl. M.H. Thamrin No. 2
JAKARTA 10110
Attention: Sharia Banking Directorate or
Bank Indonesia Office *)
Regarding: Report for The Plan for Closure of Office below Branch Office Assalamu’ alaikum Wr. Wb. We hereby report the plan to close the Office below Branch Office as follows:
No. Type ) Location Date
1 Sharia Sub-Branch Office
c. …..
d. …..
2 Sharia Cash Unit
c. …..
d. ….. due to ……… and steps taken with regard to the settlement of the Office below Branch Office’s liabilities to the customer and other parties ……… Wassalamu ‘alaikum Wr. Wb. BOARD OF DIRECTORS Attachment 22 : Bank Indonesia Circular Letter Number 8/8/DPbS dated March 1, 2006

CC. Sharia Banking Directorate … (for Banks with head offices in the working area of Bank Indonesia
Head Office)
Local Bank Indonesia office … (for Banks with head offices outside the working area of Bank Indonesia head office) *) Local Bank Indonesia regional office where the Sharia Branch to be terminated is located. ) Cross-out unnecessary matters. Attachment 22 : Bank Indonesia Circular Letter Number 8/8/DPbS dated March 1, 2006

Attachment 23
………………, ………………………..
Number :
Attachment :
To
The Governor of Bank Indonesia
Jl. M.H. Thamrin No. 2
JAKARTA 10110
Attention: Sharia Banking Directorate or
Bank Indonesia Office *)
Regarding: Report for The Plan for Termination of Sharia Services Assalamu’ alaikum Wr. Wb. We hereby report the plan to terminate Sharia Services located in …………. due to ……….. and the steps taken with regard to the settlement of the Sharia Services liabilities to customer and other parties ………… Best regards. Wassalamu ‘alaikum Wr. Wb. BOARD OF DIRECTORS
CC. Sharia Banking Directorate … (for Banks with head offices in the working area of Bank Indonesia
Head Office)
Local Bank Indonesia office … (for Banks with head offices outside the working area of Bank Indonesia head office) *) Local Bank Indonesia regional office where the Sharia Services to be terminated is located. Attachment 23 : Bank Indonesia Circular Letter Number 8/8/DPbS dated March 1, 2006

Attachment 24
………………, ………………………..
Number :
Attachment :
To
The Governor of Bank Indonesia
Jl. M.H. Thamrin No. 2
JAKARTA 10110
Attention: Sharia Banking Directorate or
Bank Indonesia Office *)
Regarding: Report on The Implementation for Termination of Sharia Services Assalamu’ alaikum Wr. Wb. Referring to our letter Number …………. date ……….. … regarding ………, we hereby report the termination of the Sharia Services located in …….. on ……….. and included required documents. Wassalamu ‘alaikum Wr. Wb. BOARD OF DIRECTORS
CC. Sharia Banking Directorate … (for Banks with head offices in the working area of Bank Indonesia
Head Office)
Local Bank Indonesia office … (for Banks with head offices outside the working area of Bank Indonesia head office) *) Local Bank Indonesia regional office where the Sharia Services to be terminated is located. Attachment 24 : Bank Indonesia Circular Letter Number 8/8/DPbS dated March 1, 2006