Circular Letter of the Financial Services Authority Number 30/SEOJK.04/2015 Regarding Custodian Bank Membership Fees for the Investor Protection Fund

5. Bank...

To:

1. The Board of Directors of PT Penyelenggara Program Perlindungan Investor Efek Indonesia;
2. The Board of Directors of Custodian Banks;
3. The Board of Directors of PT Bursa Efek Indonesia;
4. The Board of Directors of PT Kliring Penjaminan Efek Indonesia; and
5. The Board of Directors of PT Kustodian Sentral Efek Indonesia,

At their respective locations.

COPY

CIRCULAR LETTER OF THE FINANCIAL SERVICES AUTHORITY NUMBER 30/SEOJK.04/2015

REGARDING

CUSTODIAN BANK MEMBERSHIP FEES
FOR THE INVESTOR PROTECTION FUND

In order to regulate the amount of membership fees for Custodian Banks in the Investor Protection Fund as an implementation of the provisions of Article 5 letter c of the Chairman of Bapepam and LK Decision Number Kep-715/BL/2012 dated December 28, 2012 regarding the Investor Protection Fund, the Financial Services Authority needs to regulate provisions regarding the membership fees for Custodian Banks for the Investor Protection Fund in this Financial Services Authority Circular Letter as follows:

I. GENERAL PROVISIONS

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

1. Investor Assets are Securities and other assets related to Securities, and/or Investor funds entrusted to the Custodian.
2. Investor Protection Fund is a collection of funds formed to protect Investors from the loss of Investor Assets.
3. Investor is a customer of a Securities Broker who administers the customer's Securities account and the Custodian Bank.
4. Investor Protection Fund Organizer is a Company that has received a business license from the Financial Services Authority to organize and manage the Investor Protection Fund.

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Investor...

5. Custodian Bank is a Commercial Bank that has received approval from the Financial Services Authority to carry out activities as a Custodian.
6. Risk Ratio is the magnitude of the Custodian Bank's risk divided by the sum of the magnitude of the risk of the Securities Broker administering the customer's Securities account and the magnitude of the risk of the Custodian Bank.
7. Risk Weight is the percentage of the risk level of the possible use of the Investor Protection Fund for each type of risk.
8. Risk Factor is one element in determining the amount of the annual membership fee for Custodian Banks for the Investor Protection Fund, which is the total risk value multiplied by the Risk Weight.

II. INITIAL MEMBERSHIP FEES FOR CUSTODIAN BANKS

The initial membership fee for Custodian Banks for the Investor Protection Fund is IDR 100,000,000 (one hundred million rupiah) for each Custodian Bank.

III. ANNUAL MEMBERSHIP FEES FOR CUSTODIAN BANKS

1. The annual membership fee for Custodian Banks for the Investor Protection Fund is the sum of all Risk Factors multiplied by 0.001% (one ten-thousandth) of the average monthly total value of Investor Assets in the previous year entrusted to the Custodian Bank.
2. The magnitude of the Risk Factor as referred to in item 1 is calculated based on the type of risk as follows:
   a. Investor Risk, calculated by multiplying the Investor Risk Value by the Investor Risk Weight. b. Custodian Risk, calculated by multiplying the Custodian Risk Value by the Custodian Risk Weight.
   c. Investor Asset Risk, calculated by multiplying the Investor Asset Risk Value by the Investor Asset Risk Weight.
3. The calculation of the risk value for each type of risk is carried out as follows:
   a. The Investor Risk Value is the ratio of the average monthly number of Investors at the Custodian Bank to the average monthly number of Investors at the Securities Broker administering the customer's Securities account and the Custodian Bank. b. The Custodian Risk Value is the ratio of the number of Custodian Banks to the number of Securities Brokers administering the customer's Securities account and the Custodian Bank.
   c. The Investor Asset Risk Value is the ratio of the average monthly value of Investor Assets at the Custodian Bank to the average monthly value of Investor Assets at the Securities Broker administering the customer's Securities account and the Custodian Bank.
4. The risk weights for each type of risk are as follows:
   a. Investor risk is 50% (fifty percent); b. Custodian risk is 35% (thirty-five percent); and
   c. Investor Asset risk is 15% (fifteen percent).
5. The calculation of the Risk Value uses data from the year before the year of annual fee payment.
   For the Risk Value of 2016, 2015 data is used; for the Risk Value of 2017, 2016 data is used; and so on.
6. The calculation of the Risk Value is done to 2 decimal places with rounding up.
   Example of Rounding in the Calculation of Risk Value:
   • A Risk Value of 0.217 is rounded to 0.22.
   • A Risk Value of 0.213 is rounded to 0.22.
7. The magnitude of the Risk Factor is calculated and issued by the Investor Protection Fund Organizer.
8. The Investor Protection Fund Organizer is required to publish the magnitude of the Risk Factor no later than January 15 of the current year.
9. In the event that January 15 as referred to in item 8 falls on a holiday, the magnitude of the Risk Factor must be published no later than the next working day.

IV. PAYMENT OF CUSTODIAN BANK MEMBERSHIP FEES

1. The initial membership fee for Custodian Banks as referred to in the provisions of Section II must be paid no later than January 31, 2016.
2. The annual membership fee for Custodian Banks as referred to in the provisions of Section III must be paid no later than January 31 of the current year.

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3. The initial membership fee as referred to in the provisions of Section IV item 1 is paid jointly by the Stock Exchange, the Clearing and Guarantee Institution, and the Securities Settlement and Custody Institution.

V. CLOSING

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

Established in Jakarta on September 30, 2015

EXECUTIVE HEAD OF CAPITAL MARKET SUPERVISOR,

signed

NURHAIDA

Copy matches the original

Legal Director 1
Legal Department

signed

Sudarmaji