Circular Letter of the Financial Services Authority Number 39/SEOJK.03/2017 Regarding Annual Reports and Published Financial Statements of Rural Banks

To:
The Board of Directors of Rural Banks
At your office.

COPY
CIRCULAR LETTER OF THE FINANCIAL SERVICES AUTHORITY NUMBER 39/SEOJK.03/2017 REGARDING ANNUAL REPORTS AND PUBLISHED FINANCIAL STATEMENTS OF RURAL BANKS

In connection with the Financial Services Authority Regulation Number 48/POJK.03/2017 regarding Transparency of the Financial Condition of Rural Banks (State Gazette of the Republic of Indonesia Year 2017 Number 154, Additional State Gazette of the Republic of Indonesia Number 6097), hereinafter abbreviated as POJK TKK BPR, and in order to enhance public monitoring of the business condition of Rural Banks, harmonization with applicable regulations, and in connection with the transfer of the function, duties, and authority for the regulation and supervision of financial services in the banking sector from Bank Indonesia to the Financial Services Authority, it is necessary to regulate again the implementation provisions regarding Annual Reports and Published Financial Statements of Rural Banks in this Circular Letter of the Financial Services Authority as follows:

I. GENERAL PROVISIONS

1. In the context of public monitoring of the business condition of Rural Banks (BPR), BPRs are required to submit reports and/or information in accordance with the type, time, scope, and format determined by the Financial Services Authority.

2. The types of reports and/or information determined by the Financial Services Authority as referred to in item 1 are the Annual Report and the Published Financial Statement.

3. The Annual Report is prepared to provide a complete picture of the BPR's performance over a period of 1 (one) year, which among others contains the Annual Financial Statement and general information.

4. The Published Financial Statement is prepared to provide information regarding financial reports, other information, the composition of the Board of Directors and Board of Commissioners, and the composition of shareholders including controlling shareholders on a quarterly basis to various parties interested in the development of the BPR's business.

5. Referring to POJK TKK BPR, in order for the Annual Report and Published Financial Statement to be comparable, the presentation of these reports must be based on the accounting standards applicable to BPRs and the Accounting Guidelines for BPRs (PA BPR).

6. Referring to Article 2 paragraph (2) of POJK TKK BPR, the Annual Report and Published Financial Statement must be prepared in the Indonesian language.

7. Referring to Article 5 paragraph (1) of POJK TKK BPR, the Annual Financial Statement for BPRs with total assets of at least IDR 10,000,000,000.00 (ten billion rupiah) must be audited by a public accountant registered with the Financial Services Authority.

8. Figures in the Annual Report and Published Financial Statement are presented in Rupiah currency and in thousands of Rupiah.

9. The Annual Report and Published Financial Statement are submitted by the BPR's head office.

II. ANNUAL REPORT

1. The Annual Report must contain at least:

a. General Information, which includes among others:

1. Management structure, which includes members of the Board of Directors, members of the Board of Commissioners, and executive officials, with information covering positions and summaries of biographies;

2. Ownership, consisting of the names of shareholders including controlling shareholders and the nominal value and percentage of share ownership;

3. Development of the BPR's business, containing at least:

a) A brief history of the establishment of the BPR, including at least:
(1) The number and date of the deed of establishment and the latest amendment to the articles of association, approval from the competent authority; (2) The date operations began; (3) The line of business according to the articles of association; and (4) The domicile and main location of business activities;

b) A summary of important financial data, at least covering operating income and expenses, non-operating income and expenses, profit before Income Tax (PPh), estimated PPh, and net profit;

c) Financial ratios, presented at least covering KAP (Productive Asset Quality), KPMM (Maximum Lending Limit), NPL (Non-Performing Loans), PPAP (Credit Loss Allowance), ROA (Return on Assets), BOPO (Operating Cost to Operating Income Ratio), cash ratio, and LDR (Loan to Deposit Ratio);

d) Explanation regarding NPL, including the main causes of NPL; and

e) Business development that has a significant impact on the BPR during the reporting period, such as the addition or reduction of business activities and/or office networks.

4. Management strategies and policies in managing and developing the BPR's business, including information regarding risk management which at least covers risk identification, measurement, monitoring, and control;

5. Management report presenting information regarding BPR management in the context of good corporate governance, at least covering:

a) Organizational structure;

b) Line of business according to the articles of association and main activities during the reporting period;

c) Information technology, including operational systems, security systems, and information technology service providers;

d) Market development and targets;

e) Number, type, and location of offices;

f) BPR cooperation with other banks or institutions for business development;

g) Ownership by members of the Board of Directors, members of the Board of Commissioners, and shareholders within the BPR business group, and changes in ownership from the previous year, if any;

h) Interconnections between shareholders, between members of the Board of Directors or members of the Board of Commissioners, between members of the Board of Directors and members of the Board of Commissioners, and/or between shareholders and members of the Board of Directors and/or members of the Board of Commissioners;

i) Human resources (HR), including the number, education level, and HR development activities during the relevant period;

j) Policies on salaries, allowances, and facilities for members of the Board of Directors and members of the Board of Commissioners, including bonuses, tantiems, and other facilities; and

k) Other important changes occurring in the BPR and/or the BPR business group that affect the BPR's operations during the relevant year.

b. Annual Financial Statements prepared for 1 (one) Fiscal Year and presented with a comparison of 1 (one) previous Fiscal Year, consisting of at least:

1. Balance Sheet;

2. Income Statement for the relevant Fiscal Year;

3. Statement of Changes in Equity;

4. Cash Flow Statement; and

5. Notes to the Financial Statements, including information regarding commitments and contingencies.

c. Opinion from the public accountant if the Annual Financial Statement is audited by a public accountant.

d. In addition to the disclosure as referred to in letter a and letter b, referring to Article 3 paragraph (1) letter e of POJK TKK BPR, BPRs are required to disclose other information which includes:

1. Summary of accounting policies, covering:

a) A statement that the BPR uses the accounting standards applicable to BPRs and PA BPR;

b) The measurement basis and preparation of financial statements; and

c) BPR accounting policies which among others cover the basic measurement concept policy, credit given, credit loss provisions, investment in Bank Indonesia Certificates, collateral taken over, cash and cash equivalents, fixed assets and inventory and depreciation, recognition of interest income, recognition of interest expense, income tax, and employee benefits.

2. Explanation of financial statement items prepared by considering the presentation order of the balance sheet, income statement, cash flow statement, and statement of changes in equity, as well as additional information in accordance with disclosure provisions for each item in the relevant section, added with disclosure regarding:

a) Related party transactions, which include:

(1) Details of the amount of each asset, liability, income, and expense item to parties with related party relationships, along with their percentage of total assets, liabilities, income, and expenses;

(2) Explanation of transactions not related to the main business activities and the amount of debt or receivables related to transactions with parties having related party relationships;

(3) The nature of the relationship, type, and elements of transactions with parties having related party relationships, including a statement on whether the BPR applies the same requirement policies to other parties not having a related party relationship with the BPR; and

(4) Reasons and basis for the formation of credit loss provisions related to parties having related party relationships.

b) Accounting changes and error corrections, which include:

(1) Changes in accounting estimates:

(a) The nature and reason for the change in accounting estimates;

(b) The amount of the change in estimates affecting the current period; and/or

(c) The effect of estimates on future periods;

(2) Changes in accounting policies, at least covering:

(a) The nature, reason, and purpose of the change in accounting policy;

(b) The impact of the change in accounting policy on the current period and previous periods that need to be presented comparatively; and

(c) A statement that comparative information has been restated or a statement that comparative information is not presented because it is considered impractical.

(3) Errors:

(a) The nature of the error;

(b) The amount of the correction value for the current period and previous periods;

(c) The amount of the correction value related to periods prior to the period covered in the comparative information; and

(d) A statement that comparative information has been restated or a statement that comparative information is not presented because it is considered impractical.

3. Commitments and contingencies, which include:

a) Disclosure of commitments, consisting of:

(1) Disclosure of contracts or agreements that create a commitment to use funds in the future, for example, credit granting agreements. Matters that need to be disclosed among others include commitments to related parties, the validity period of the commitment, the total value and the portion that has been realized, and sanctions; and

(2) An explanation regarding the nature, type, amount, and requirements of the commitment; and

b) Disclosure of contingencies, consisting of:

(1) Disclosure of legal cases or disputes that have the potential to cause fund outflows in the future. Matters that need to be disclosed among others include the related party, the value of the claim (case or dispute), the background of the case, the main issue and status of the case, court decisions, and the probability of risk of the disclosed contingent event based on risk management principles;

(2) A brief explanation of binding statutory regulations and their impact, such as labor issues; and

(3) An explanation of the possibility of additional tax liabilities, including the type of tax assessment or bill, type of tax, tax year, principal amount, fines, and the BPR's stance towards the tax assessment or bill, such as filing objections, appeals, and others;

4. The latest development of accounting standards applicable to BPRs and PA BPR and other regulations, including an explanation regarding the accounting standards applicable to BPRs and PA BPR and new regulations that will be implemented and affect BPR activities, as well as an estimate of the impact of implementing the applicable accounting standards for BPRs and PA BPR and new regulations;

5. Reclassification, consisting of the nature, amount, and reason for reclassification for each item in the Fiscal Year prior to the last Fiscal Year presented in the comparative financial report;

6. Other important information, among others the nature, type, amount, and impact of certain events or conditions that affect the BPR's performance; and

7. Subsequent events, including the sequence of events and monetary amounts that affect financial statement accounts.

e. Management Letter regarding the audit of the BPR's Annual Financial Statement.

2. Disclosure as referred to in item 1 letter a, letter b, and letter d is guided by the accounting standards applicable to BPRs and PA BPR.

III. PUBLISHED FINANCIAL STATEMENT

1. The Published Financial Statement announced for financial positions at the end of March, June, September, and December is prepared by referring to the Appendix which is an integral part of this Financial Services Authority Circular Letter.

2. The Published Financial Statement is a combination of the BPR's head office report and all relevant BPR branch offices.

3. Referring to Article 8 paragraph (4) of POJK TKK, the Published Financial Statement must be prepared and presented in a comparative format with the report from the same period of the previous year. The comparative position must be presented in the same format as the Published Financial Statement position announced.

4. Specifically for new accounting treatments implemented in the Position Report, the presentation of the comparative position refers to the accounting standards guidelines regarding accounting policies, changes in accounting estimates, and errors.

5. To meet transparency aspects, the Published Financial Statement contains disclosure in accordance with the accounting standards applicable to BPRs and PA BPR. This disclosure consists of at least:

a. Financial statements, including the balance sheet, income statement, and statement of commitments and contingencies;

b. Other information, which consists of at least:

1. Productive Asset Quality (KAP) for:

a) Interbank fund placements; and

b) Credit given, both to related parties and unrelated parties.

2. Financial ratios, consisting of:

a) KPMM;

b) NPL (net);

c) PPAP;

d) ROA;

e) BOPO;

f) Cash Ratio; and

g) LDR.

c. Composition of the Board of Directors and Board of Commissioners, as well as the composition of shareholders, including controlling shareholders; and

d. The public accounting firm that audits and the name of the public accountant responsible for the BPR audit (partner in charge), for BPRs audited by a public accountant.

6. The Published Financial Statement Application is integrated into the BPR Periodic Report Application.

7. The operating procedures for the Published Financial Statement Application are guided by the Technical Guidelines for the BPR Periodic Report Application, as referred to in regulations governing monthly BPR reports.

IV. PROCEDURE FOR IMPOSITION OF ADMINISTRATIVE SANCTIONS IN THE FORM OF FINES

1. Examples of the calculation of the imposition of administrative sanctions in the form of fines for late submission and failure to submit reports are as follows:

a. Annual Report

1. BPRs that are late in submitting the Annual Report to the Financial Services Authority are subject to an administrative sanction in the form of a fine of IDR 50,000.00 (fifty thousand rupiah) per day of delay.

Example:
A BPR is required to submit the Annual Report as of the end of December 2018 no later than April 30, 2019. If the BPR submits the Annual Report on May 10, 2019, the BPR is subject to an administrative sanction in the form of a late submission fine for 10 (ten) days amounting to IDR 500,000.00 (five hundred thousand rupiah).

2. BPRs that do not submit the Annual Report to the Financial Services Authority are subject to an administrative sanction in the form of a fine of IDR 3,000,000.00 (three million rupiah).

Example:
A BPR is required to submit the Annual Report as of the end of December 2018 no later than April 30, 2019. If the BPR submits the Annual Report after May 31, 2019, the BPR is subject to an administrative sanction in the form of a fine of IDR 3,000,000.00 (three million rupiah).

3. BPRs that have submitted the Annual Report, but the preparation and presentation do not comply with Financial Services Authority regulations regarding the transparency of the financial condition of BPRs, are subject to an administrative sanction in the form of a fine of IDR 5,000,000.00 (five million rupiah) if, after being given warning letters 2 (two) times by the Financial Services Authority with a grace period of 2 (two) weeks for each warning letter, the BPR does not correct and does not submit the said report.

Example:

a) A BPR submits the Annual Report on April 30, 2019, but the report does not present a comparison of the Annual Financial Statement with the previous year and is not signed by the competent official according to the articles of association. If, after the Financial Services Authority issues warning letters 2 (two) times with a grace period of 2 (two) weeks for each warning letter to correct, but this is not followed up with correction and submission of the said Report, the BPR concerned is subject to an administrative sanction in the form of a fine of IDR 5,000,000.00 (five million rupiah).

b) A BPR submits the Annual Report on April 30, 2019, but the report does not comply with the accounting standards applicable to BPRs and PA BPR. If, after the Financial Services Authority issues warning letters 2 (two) times with a grace period of 2 (two) weeks for each warning letter to correct, but this is not followed up with correction and submission of the said Report, the BPR concerned is subject to an administrative sanction in the form of a fine of IDR 5,000,000.00 (five million rupiah).

b. Published Financial Statement

1. BPRs that are late in announcing the Published Financial Statement in a local daily newspaper and/or posting it on a bulletin board or other media are each subject to an administrative sanction in the form of a fine of IDR 50,000.00 (fifty thousand rupiah) per day of delay.

a) For the June 2019 position, BPRs are required to announce the Published Financial Statement no later than July 31, 2019. If the BPR announces the Published Financial Statement on August 7, 2019, the BPR is subject to an administrative sanction in the form of a late announcement fine for 7 (seven) days amounting to IDR 350,000.00 (three hundred fifty thousand rupiah).

b) For the December 2018 position, for BPRs with total assets of at least IDR 10,000,000,000.00 (ten billion rupiah), the Published Financial Statement must be announced in a local daily newspaper and posted on a bulletin board or other media no later than April 30, 2019. If the BPR announces the Published Financial Statement on May 10, 2019, the BPR is subject to an administrative sanction in the form of a fine of IDR 1,000,000.00 (one million rupiah), detailed as follows:

(1) Administrative sanction in the form of a fine for late announcement on the bulletin board for 10 (ten) days amounting to IDR 500,000.00 (five hundred thousand rupiah); and

(2) Administrative sanction in the form of a fine for late announcement in the local daily newspaper for 10 (ten) days amounting to IDR 500,000.00 (five hundred thousand rupiah).

2. BPRs that do not announce the Published Financial Statement in a local daily newspaper and/or post it on a bulletin board or other media are each subject to an administrative sanction in the form of a fine of IDR 3,000,000.00 (three million rupiah).

Example:

a) For the end of September 2018 position, BPRs are required to announce the Published Financial Statement no later than October 31, 2018. If the BPR announces the Published Financial Statement after November 30, 2018, the BPR is subject to an administrative sanction in the form of a fine of IDR 3,000,000.00 (three million rupiah).

b) For the end of December 2018 position, for BPRs with total assets of at least IDR 10,000,000,000.00 (ten billion rupiah), the Published Financial Statement must be announced in a local daily newspaper and on a bulletin board or other media no later than April 30, 2019. If the BPR announces the Published Financial Statement after May 31, 2019, the BPR is subject to an administrative sanction in the form of a fine of IDR 6,000,000.00 (six million rupiah), detailed as follows:

(1) Administrative sanction in the form of a fine for not announcing on the bulletin board amounting to IDR 3,000,000.00 (three million rupiah); and

(2) Administrative sanction in the form of a fine for not announcing in the local daily newspaper amounting to IDR 3,000,000.00 (three million rupiah).

3. BPRs that are late in submitting proof of announcement and/or data recording of the Published Financial Statement are each subject to an administrative sanction in the form of a fine of IDR 50,000.00 (fifty thousand rupiah) per day of delay.

Example:

a) For the end of September 2018 position, BPRs are required to submit clippings of the local daily newspaper and/or proof of announcement of the Published Financial Statement on the bulletin board or other media, as well as submit data recording no later than November 14, 2018. If the BPR submits proof of announcement of the Published Financial Statement or newspaper clippings and data recording on November 21, 2018, the BPR is subject to an administrative sanction in the form of a late submission fine for 7 (seven) days amounting to IDR 700,000.00 (seven hundred thousand rupiah), detailed as follows:

(1) Administrative sanction in the form of a fine for late submission of proof of announcement of the Published Financial Statement for 7 (seven) days amounting to IDR 350,000.00 (three hundred fifty thousand rupiah); and

(2) Administrative sanction in the form of a fine for late submission of data recording for 7 (seven) days amounting to IDR 350,000.00 (three hundred fifty thousand rupiah).

b) For the end of December 2018 position, for BPRs with total assets of at least IDR 10,000,000,000.00 (ten billion rupiah), BPRs are required to submit clippings of the local daily newspaper, proof of announcement of the Published Financial Statement on the bulletin board or other media, and submit data recording no later than May 14, 2019. If the BPR submits clippings of the local daily newspaper, proof of announcement of the Published Financial Statement on the bulletin board or other media, and submits the data recording on May 24, 2019, the BPR is subject to an administrative sanction in the form of a late submission fine for 10 (ten) days amounting to IDR 1,500,000.00 (one million five hundred thousand rupiah), detailed as follows:

(1) Administrative sanction in the form of a fine for late submission of newspaper clippings for 10 days valued at IDR 500,000.00 (five hundred thousand rupiah);

(2) Administrative sanction in the form of a fine for late submission of proof of announcement of the Published Financial Statement for 10 days valued at IDR 500,000.00 (five hundred thousand rupiah); and

(3) Administrative sanction in the form of a fine for late submission of data recording for 10 days valued at IDR 500,000.00 (five hundred thousand rupiah).

c) BPRs that do not submit proof of announcement and/or data recording of the Published Financial Statement are each subject to an administrative sanction in the form of a fine of IDR 3,000,000.00 (three million rupiah).

Example:

(1) For the September 2018 position, BPRs are required to submit clippings of the local daily newspaper or proof of announcement of the Published Financial Statement on the bulletin board or other media, and submit data recording no later than November 14, 2018. If the BPR submits clippings of the local daily newspaper or proof of announcement of the Published Financial Statement on the bulletin board or other media, and submits data recording after December 14, 2018, the BPR is subject to an administrative sanction in the form of a fine for not submitting clippings of the local daily newspaper or proof of announcement of the Published Financial Statement on the bulletin board or other media, and submitting data recording valued at IDR 6,000,000.00 (six million rupiah), detailed as follows:

(a) Administrative sanction in the form of a fine for not submitting proof of announcement of the Published Financial Statement valued at IDR 3,000,000.00 (three million rupiah); and

(b) Administrative sanction in the form of a fine for not submitting data recording valued at IDR 3,000,000.00 (three million rupiah).

(2) For the position at the end of December 2018, for Rural Banks (BPR) with total assets of at least IDR 10,000,000,000.00 (ten billion rupiah), it is mandatory to submit proof of publication of the Published Financial Report no later than May 14, 2019. If a BPR submits proof of publication of the Published Financial Report, newspaper page clippings, and data recordings after June 14, 2019, that BPR will be subject to an administrative sanction in the form of a fine amounting to IDR 9,000,000.00 (nine million rupiah), detailed as follows:

(a) administrative sanction in the form of a fine for failure to submit proof of publication of the Published Financial Report amounting to IDR 3,000,000.00 (three million rupiah); (b) administrative sanction in the form of a fine for failure to submit newspaper page clippings amounting to IDR 3,000,000.00 (three million rupiah); and (c) administrative sanction in the form of a fine for failure to submit data recordings amounting to IDR 3,000,000.00 (three million rupiah).

V. ADDRESS FOR SUBMISSION OF REPORTS

1. Annual Reports and proof of publication of Published Financial Reports are submitted to the Financial Services Authority (OJK) c/o Regional Office or Financial Services Authority Office that oversees the area of the BPR's head office.

2. Published Financial Reports submitted online are submitted according to the format and regulations established by the Financial Services Authority through the OJK reporting system.

3. In the event that submission of reports through the Financial Services Authority's reporting system cannot yet be performed, the reporting BPR submits reports online through the BPR Periodic Report Application as referred to in regulations governing monthly BPR reports.

4. In the event that reports are submitted offline in the form of data recordings on compact discs or other electronic data recording media, reports are submitted to:

a. Financial Services Authority c/o Regional Office or Financial Services Authority Office that oversees the area of the BPR's head office; or b. Bank Indonesia as referred to in regulations governing monthly BPR reports, with a copy to the Financial Services Authority, in the event that submission of reports through the Financial Services Authority's reporting system cannot yet be performed.

VI. PROCEDURE FOR PAYMENT OF ADMINISTRATIVE SANCTIONS IN THE FORM OF FINES

Payment of administrative sanctions in the form of fines as referred to in Chapter VI of POJK TKK BPR refers to the Financial Services Authority Regulation regarding the procedure for collecting administrative sanctions in the form of fines in the financial services sector. In the event that submission of reports online through the Financial Services Authority's reporting system cannot yet be performed, payment of administrative sanctions in the form of fines for late and/or failure to submit data recordings of Published Financial Reports as referred to in Article 21 of POJK TKK BPR refers to regulations governing monthly BPR reports.

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

VII. CLOSING

At the time this Circular Letter of the Financial Services Authority takes effect, Bank Indonesia Circular Letter Number 15/29/DKBU regarding Annual Financial Reports and Published Financial Reports of Rural Banks and Bank Indonesia Circular Letter Number 15/43/DPNP regarding Amendments to Bank Indonesia Circular Letter Number 15/29/DKBU regarding Annual Financial Reports and Published Financial Reports of Rural Banks are revoked and declared invalid.

The provisions in this Circular Letter of the Financial Services Authority take effect on the date of determination.

Determined in Jakarta on July 19, 2017
EXECUTIVE HEAD OF BANKING SUPERVISOR
FINANCIAL SERVICES AUTHORITY, signed
NELSON TAMPUBOLON

APPENDIX
CIRCULAR LETTER OF THE FINANCIAL SERVICES AUTHORITY NUMBER 39 /SEOJK.03/2017 REGARDING ANNUAL REPORTS AND PUBLISHED FINANCIAL REPORTS OF RURAL BANKS

TABLE OF CONTENTS
CHAPTER I : GENERAL EXPLANATION 2
CHAPTER II : GUIDELINES FOR FILLING OUT PUBLISHED FINANCIAL REPORTS
A. BALANCE SHEET REPORT 3

1. Balance Sheet Report Format 3
2. Explanation of Balance Sheet Items 4
   a. Assets 4 b. Liabilities 10
   c. Equity 13
   B. INCOME STATEMENT REPORT 16
3. Income Statement Report Format 16
4. Explanation of Income Statement Report 16
   a. Operational Income 16 b. Operational Expenses 21
   c. Operational Profit or Loss 25
   d. Non-Operational Income 25 e. Non-Operational Expenses 26 f. Profit or Loss Before Income Tax 27 g. Estimated Income Tax 27 h. Net Profit or Loss 27
   C. PRODUCTIVE ASSET QUALITY REPORT 27
5. Productive Asset Quality Report Format 27
6. Explanation of Productive Asset Quality Report 28
   a. Placements in Other Banks 28 b. Credit Granted 28
   c. Collectibility 29
   d. Ratios 30
   D. COMMITMENTS AND CONTINGENCIES REPORT 31
7. Commitments and Contingencies Report Format 31
8. Explanation of Commitments and Contingencies Report
   a. Commitments 31 b. Contingencies 32
   E. OTHER INFORMATION REPORT 33
9. Other Information Report Format 33
10. Explanation of Other Information Report 33
    a. BPR Management 33 b. Shareholders 33

CHAPTER I
GENERAL EXPLANATION
A. PURPOSE OF PREPARING PUBLISHED FINANCIAL REPORTS The preparation of Published Financial Reports aims to increase the transparency of the financial condition and performance of Rural Banks (BPR) through the submission of information regarding financial reports, other information, the composition of the Board of Directors and Board of Commissioners members, and the composition of shareholders including controlling shareholders on a quarterly basis to various parties interested in the development of BPR business.

B. REPORTING BPR
Reporting BPR is the head office of the BPR that submits reports for the BPR on a consolidated basis.

CHAPTER II
GUIDELINES FOR FILLING OUT PUBLISHED FINANCIAL REPORTS A. BALANCE SHEET REPORT

1. Balance Sheet Report Format
   Bank Name :
   (In thousands of rupiah)
   Item-Items Position Date
   Report
   Position of
   Same Year
   Previous
   ASSETS
   Cash
   Cash in Foreign Currency
   Securities
   Interest Income to be Received
   Placements in Other Banks
   Provision for Losses -/-
   Total
   Credit Granted a. To BPR b. To Commercial Banks
   c. To non-bank – related parties
   d. To non-bank – unrelated parties
   Provision for Losses -/-
   Total
   Foreclosed Collateral
   Fixed Assets and Inventory a. Land and buildings b. Accumulated depreciation and impairment of buildings -/-
   c. Inventory
   d. Accumulated depreciation and impairment of inventory -/- Intangible Assets Other Assets Total Assets (In thousands of rupiah) Item-Items Position Date Report Position of Same Year Previous LIABILITIES Current Liabilities Interest Payable Tax Payable

Deposits a. Savings b. Time Deposits
Deposits from Other Banks
Loans Received
Capital Contribution Payments-Liabilities
Employee Benefits Liabilities
Subordinated Loans
Loan Capital
Other Liabilities
Total Liabilities
(In thousands of rupiah)
Item-Items Position Date
Report
Position of
Same Year
Previous
EQUITY
Capital
Basic Capital
Capital Not Yet Paid
Additional Paid-in Capital
(Share Premium)
Donation Capital
Total
Capital Contribution Payments-Equity
Unrealized Profit/Loss
Surplus from Revaluation of Fixed Assets
Retained Earnings
Specific Reserves
General Reserves
Undetermined Purpose
Total
Total Equity
Total Liabilities and Equity
2. Explanation of Balance Sheet Items
a. Assets

1. Cash
   The items included in this position are code 100 Asset Balance Sheet, namely currency in the form of banknotes and coins issued by Bank Indonesia which serve as legal tender in Indonesia. Included in this position are large cash, cash in Automated Teller Machines (ATMs), and cash in transit.

2. Cash in Foreign Currency
   The items included in this position are code 102 Asset Balance Sheet, namely foreign banknotes, foreign coins, and valid travelers' checks owned by the BPR in exchange activities as a Foreign Exchange Dealer.

3. Securities
   The items included in this position are code 110 Asset Balance Sheet, namely Rupiah-denominated Bank Indonesia Certificates (SBI) issued by Bank Indonesia through a discount system, representing short-term debt obligations owned by the BPR. The SBI category is divided into two:
   a) Held to Maturity is recorded at acquisition cost less unamortized discount plus unamortized transaction costs, and b) Available for Sale is recorded at fair value.

4. Interest Income to be Received
   The items included in this position are code 120 Asset Balance Sheet, namely interest income from placements in other banks and granted credits with performing quality that have been recognized as income but payment has not yet been received.

5. Placements in Other Banks
   The items included in this position are code 130 Asset Balance Sheet, namely the total funds of each BPR placement in commercial banks in the form of current accounts, savings, time deposits, and deposit certificates, as well as BPR fund placements in other BPRs in the form of savings and time deposits. The balance of fund placements in other banks cannot be netted against the balance of deposits or funds received from banks.

6. Provision for Losses
   The items included in this position are code 131 Asset Balance Sheet, namely the Productive Asset Write-off Provision (PPAP) formed by the BPR for placements in other banks in accordance with regulations governing productive asset quality and the formation of PPAP for BPRs.

7. Credit Granted
   The items included in this position are code 140 Asset Balance Sheet, namely credits granted by the BPR to banks or third-party non-banks at net debit balance, i.e., debit balance less unamortized provisions plus unamortized transaction costs. Specifically for restructured credits, in the event there is deferred income and restructuring losses, the value included is after considering deferred income in the restructuring and restructuring loss reserves.

Credit granted positions are distinguished for credits to BPRs, to Commercial Banks, to non-Bank-Related Parties, and to non-Bank-Unrelated Parties. Credits granted in the context of joint financing/consortium/syndication, whether the BPR acts as the lead bank (arranger) or as a participant bank, are included in this position at the BPR's portion of the claim against the respective debtor. Credits granted in the context of channeling where the BPR does not bear the risk of uncollectible credit are not included in this position but in the administrative account.

8. Provision for Losses
   The items included in this position are code 141 Asset Balance Sheet, namely PPAP formed by the BPR for granted credits in accordance with regulations governing Productive Asset Quality (KAP) and PPAP formation for BPRs.

9. Foreclosed Collateral
   The items included in this position are code 200 Asset Balance Sheet, namely debtor-owned collateral taken over by the BPR in the context of credit settlement and is temporary to be resolved quickly through auction, or without auction based on voluntary surrender by the collateral owner, or based on a power of attorney to sell without auction from the collateral owner in the event the debtor fails to meet obligations to the BPR. The amount included in the event of initial acquisition is the fair value less maximum selling costs up to the debit balance of the debtor's credit to the BPR. For subsequent periods, the value included is the fair value less selling costs for Foreclosed Collateral (AYDA) or book value, whichever is lower.

In the event that the fair value less selling costs is lower than the book value, AYDA is presented at the value after impairment. Impairment losses can be recovered up to the accumulated impairment losses previously recognized.

AYDA that cannot be resolved within a period of 1 (one) year will be calculated as a reduction in the capital component in the calculation of Minimum Capital Requirement (KPMM), as regulated in statutory regulations governing Productive Asset Quality (KAP) and PPAP formation for BPRs.

10. Fixed Assets and Inventory and Accumulated Depreciation
    a) Fixed Assets and Inventory
    The items included in this position are code 210 Asset Balance Sheet, namely physical tangible assets owned by the BPR and used for operational activities, including:

(1) Land and Buildings
Recorded at acquisition cost for fixed assets such as land, buildings, houses, or other buildings owned by the BPR up to the condition where the fixed asset is ready for use. Fixed assets can be recorded at revalued value, i.e., the result of revaluation of fixed assets based on Government Regulations that have received approval from the competent authority.

(2) Inventory
Recorded at acquisition cost for inventory such as furniture and vehicles owned by the BPR up to the condition where the inventory is ready for use. Inventory can be recorded at revalued value, i.e., the result of revaluation of fixed assets based on Government Regulations that have received approval from the competent authority.

Assets in the form of computers, servers, and similar equipment are recorded at hardware value, while software value is included in the intangible assets position.

Assets not used in BPR operations and assets under construction are not included.

(3) Accumulated Depreciation and Impairment
The items included in this position are code 211 Asset Balance Sheet, namely the accumulated amount of depreciation and impairment of fixed assets and inventory owned by the BPR, including:

(a) Buildings
i. The accumulated amount of depreciation expense on the acquisition cost or revalued value of fixed assets owned by the BPR that has been recorded up to the report date.
ii. The accumulated amount of impairment loss on the acquisition cost or revalued value of buildings, houses, or other buildings owned by the BPR based on objective evidence. Impairment losses can be recovered up to the acquisition cost or initial revalued value net of depreciation.

(b) Inventory
i. The accumulated amount of depreciation expense on the acquisition cost or revalued value of inventory owned by the BPR that has been recorded up to the report date.
ii. The accumulated amount of impairment loss on the acquisition cost or revalued value of inventory owned by the BPR based on objective evidence. Impairment losses can be recovered up to the acquisition cost or initial revalued value net of depreciation.

(4) Intangible Assets
(a) Intangible Assets (Code 220)
The items included in this position are code 220 Asset Balance Sheet, namely acquisition cost for intangible assets owned by the BPR up to the condition where the intangible asset is ready for use. Included in intangible assets are non-monetary assets without physical form but identifiable and usable for operations, including business application programs (software) obtained externally.

(b) Accumulated Amortization and Impairment (Code 221) The items included in this position are code 221 Asset Balance Sheet, namely the accumulated amount of amortization expense on acquisition cost that has been recorded up to the report date through systematic allocation over the asset's useful life. Included in this position is the accumulated amount of impairment loss on the acquisition cost of intangible assets owned by the BPR based on objective evidence. Impairment losses can be recovered up to the acquisition cost or initial revalued value net of amortization.

(5) Other Assets
The items included in this position are code 270 Asset Balance Sheet, namely the acquisition value of other assets that cannot be reasonably classified into any of the above asset positions and are not material enough to be presented separately. Included in this position, among others, are prepaid taxes/fees, receivables from insurance companies, commemorative coins/notes issued by Bank Indonesia, balances of rupiah and foreign currencies withdrawn from circulation but still within the exchange grace period, and others.

b. Liabilities

1. Current Liabilities
   The items included in this position are code 300 Liabilities, namely BPR liabilities that have matured and/or can be demanded immediately by their owners and must be paid immediately whether by order of the entrusting party or not.

2. Interest Payable
   The items included in this position are code 310 Liabilities, namely interest accruals for deposit products (savings/time deposits), loans received, and subordinated loans, both from other banks or third-party non-banks.

3. Tax Payable
   The items included in this position are code 320 Liabilities, namely corporate tax payable not yet paid by the BPR, including:
   a) Tax payable for PPh 29 (Corporate Income Tax) calculated after the end of the annual tax period, i.e., the shortfall in the BPR's income tax obligation after considering PPh 25 (tax installments/prepaid taxes). b) Taxes determined by the tax office, among others through examination results.

4. Deposits
   Deposits are funds entrusted by the public outside of commercial banks or other BPRs to the BPR based on a deposit agreement, as follows:
   a) Savings
   The items included in this position are code 330 Liabilities, namely third-party non-bank savings owned by the BPR which can only be withdrawn according to specific agreed terms, but cannot be withdrawn with checks, giro orders, and/or instruments equivalent to them. The value included is the customer savings balance less unamortized transaction costs. b) Time Deposits The items included in this position are code 340 Liabilities, namely third-party non-bank savings owned by the BPR which can only be withdrawn according to a specific time period in accordance with the agreement. The value included is the customer savings balance less unamortized transaction costs.

5. Deposits from Other Banks
   The items included in this position are code 360 Liabilities, namely all BPR liabilities in the form of savings and deposits to other banks in Indonesia. The value included is the balance or value of deposits to other banks less unamortized transaction costs. The balance or value of deposits in other banks cannot be netted against the balance of the placement in other banks position.

6. Loans Received
   The items included in this position are code 370 Liabilities, namely all forms of loans received by the BPR from other banks or third-party non-banks. The value included is the debit balance to other banks and third-party non-banks less unamortized transaction costs.

7. Capital Contribution Payments - Liabilities
   The items included in this position are code 400 Liabilities, namely funds that have been fully paid by shareholders or prospective shareholders and are blocked for the purpose of capital increase, but have not yet or do not meet the applicable capital regulations of the Financial Services Authority to be classified as paid-in capital.

8. Employee Benefits Liabilities
   The items included in this position are code 410 Liabilities, namely the BPR's obligation to provide compensation for services provided to its employees in the form of short-term employee benefits, post-employment benefits, other long-term employee benefits, and termination benefits. The value included is the discounted amount.

9. Subordinated Loans
   The items included in this position are code 420 Liabilities, namely loans received that meet the subordination criteria determined by the Financial Services Authority as regulated in statutory regulations governing Minimum Capital Requirement (KPMM). Subordinated Loans are junior or have a lower position compared to other creditors. The value included is the loan principal amount less unamortized transaction costs.

10. Loan Capital
    The items included in this position are code 430 Liabilities, namely loans supported by instruments or documents that meet the requirements as referred to in statutory regulations and Financial Services Authority Regulations regarding Minimum Capital Requirement (KPMM). For BPRs with cooperative legal status, the definition of loan capital is in accordance with regulations governed by the Cooperative Law.

11. Other Liabilities
    The items included in this position are code 470 Liabilities, namely all liabilities that cannot be classified into any of the above liability positions and are not material enough to be presented in a separate position.

c. Equity

1. Capital
   a) Basic Capital
   The items included in this sub-position are code 501 Equity, namely the total capital or main deposits and mandatory deposits for BPRs with cooperative legal status stated in the articles of association of the BPR head office.

b) Capital Not Yet Paid
The items included in this sub-position are code 502 Equity, namely the total capital or main deposits and mandatory deposits that have not been paid.

c) Additional Paid-in Capital (Share Premium)
The items included in this sub-position are code 503 Equity, namely the excess of capital contributions received by the BPR as a result of share prices being higher than their nominal value.

d) Donation Capital
The items included in this sub-position are code 505 Equity, namely capital obtained back from donated shares or other assets from owners. Capital originating from cooperative member donations received by the BPR is included in the definition of donation capital.

2. Capital Contribution Payments - Equity
   The items included in this position are code 510 Equity, namely funds that have been fully paid by shareholders or prospective shareholders and are blocked for the purpose of capital increase and have been declared to meet the applicable capital regulations of the Financial Services Authority, but have not yet been supported by complete requirements to be classified as paid-in capital, such as the general meeting of shareholders or members' meeting or approval of the articles of association from the competent authority.

3. Unrealized Profit/Loss
   The items included in this position are code 520 Equity, namely all potential profits or losses arising from changes in the fair value of securities classified as available for sale and other transactions that, based on accounting standards, must be recognized as equity components presented separately.

4. Asset Revaluation Surplus
   Items included in this position are Equity code 530, which is the value formed as a result of the difference between the revaluation or reassessment value and the book value of fixed assets and inventory owned by the Rural Bank (BPR) after obtaining approval from the competent authority.

5. Retained Earnings.
   Items included in this position are the accumulated periodic business results after considering dividend distribution, correction of prior period profits and losses, and reclassification of asset revaluation surplus. This position is detailed as follows:
   a) General Reserve
   Items included in this sub-position are Equity code 542, which is a reserve formed from the allocation of retained earnings or from net profit after tax, intended to strengthen capital. b) Purpose-Specific Reserve Items included in this sub-position are Equity code 541, which is the portion of net profit after tax, allocated for specific purposes. c) Undetermined Purpose Items included in this sub-position are the sum of Equity code 543, which is the BPR's profit in previous years after tax, the usage of which has not been decided by the General Meeting of Shareholders or the Members' Meeting; Equity code 544, which is the BPR's loss in previous years; Equity code 545, which is the current year's profit; and Equity code 546, which is the current year's loss.

B. INCOME STATEMENT

1. Income Statement Format
   (In thousands of rupiah)
   Position Reporting Date Position of the Same Position in the Previous Year OPERATIONAL INCOME AND EXPENSES Interest Income Contractual Interest Provision Amortization Transaction Cost Amortization Total Interest Income Interest Expense Contractual Interest Transaction Cost Amortization Total Interest Expense Total Net Interest Income Other Operational Income TOTAL OPERATIONAL INCOME Provision for Write-off of Productive Assets Expense Marketing Expense Research and Development Expense Administrative and General Expense Other Operational Expense TOTAL OPERATIONAL EXPENSES OPERATING PROFIT (LOSS) NON-OPERATIONAL INCOME AND EXPENSES Non-Operational Income Non-Operational Expense Loss on Sale of Other Assets NON-OPERATIONAL INCOME (EXPENSE) PROFIT (LOSS) BEFORE INCOME TAX INCOME TAX ESTIMATE NET PROFIT (LOSS)

2. Income Statement Explanation
   a. Operational Income
   Items included in operational income are all income resulting from activities that are customary as the main business of the BPR, detailed as follows:

1. Interest Income
   Items included in this position are interest income from investments made by the BPR in the form of productive assets, including Government Securities (SBI), placements in other banks, and loans granted to banks and third parties that are not banks. Included in this position is the amortization of discounts, provisions, and transaction costs that can be directly attributed to productive assets. Inter-office interest income is not included in this position, but is included in the non-operational income position. Interest income is detailed as follows:
   a) Contractual Interest
   Interest income received by the BPR in accordance with contracts with other parties regarding securities, fund placements in other banks, and loans granted to banks and/or third parties that are not banks, excluding the amortization of provisions/transaction costs, detailed as follows:
   (1) Securities
   Is the amortization of discounts on SBIs owned by the BPR, excluding income obtained from the sale of SBIs.
   (2) Placements in Other Banks
   Is all interest income/amortization of discounts received by the BPR from placements in other banks, detailed as follows:
   (a) Demand Deposits (Giro)
   (b) Savings
   (c) Time Deposits (Deposito)
   (d) Certificates of Deposit (Sertifikat Deposito) (3) Loans Granted to Banks and/or Third Parties That Are Not Banks Is all interest income received by the BPR from loans granted to other banks and third parties that are not banks, detailed as follows:
   (a) to other banks;
   (b) to third parties that are not banks. b) Provision Amortization Income received by the BPR from credit provisions granted to banks and third parties that are not banks. The recognition of credit provisions is done through amortization as regulated in the applicable financial accounting standards for BPRs. Credit provisions are included by category as follows:
   (1) To Other Banks
   Is the amortization of credit provision income from loans granted to other banks.
   (2) To Third Parties That Are Not Banks
   Is the amortization of credit provision income from loans granted to third parties that are not banks. c) Transaction Cost Amortization Costs incurred by the BPR directly related to fund placements in SBIs, fund placements in other banks, and loans granted to other banks and third parties that are not banks. The recognition of transaction costs is done through amortization as regulated in the Financial Accounting Standards for Entities Without Public Accountability, consisting of:
   (1) Securities
   Is the amortization of transaction costs for the acquisition of SBIs.
   (2) Loans Granted
   (a) To Other Banks
   Is the amortization of transaction costs for loans granted to other banks.
   (b) To Third Parties That Are Not Banks
   Is the amortization of transaction costs for loans granted to third parties that are not banks.

2. Interest Expense
   Items included in this position are all expenses incurred for activities that are customary as the business of the BPR, consisting of:
   a) Contractual Interest
   Items included in this position are contractual interest expenses agreed upon by the BPR with other banks or third parties that are not banks. Contractual interest expenses do not include the amortization of transaction costs (transaction cost), consisting of:
   (1) Savings
   Is interest expense on savings funds from third parties that are not banks.
   (2) Time Deposits (Deposito)
   Is interest expense on time deposit funds from third parties that are not banks.
   (3) Funds from Other Banks
   Is interest expense on savings/time deposit funds from other banks.
   (4) Loans Received
   Is the expense on loans received from Bank Indonesia, other banks, and third parties that are not banks.
   (5) Subordinated Loans
   Is interest expense on subordinated loans from other banks or third parties that are not banks.
   (6) Others
   Included in this position is the premium for deposit insurance. b) Transaction Cost Amortization Costs incurred by the BPR in obtaining funds from other banks or third parties that are not banks, including promotional costs such as cash back or gifts that can be directly attributed per customer, consisting of:
   (1) To Other Banks
   Is the amortization of transaction costs for funds from other banks, including savings, deposits, loans received, and subordinated loans.
   (2) To Third Parties That Are Not Banks
   Is the amortization of transaction costs for funds from third parties that are not banks, including savings, deposits, loans received, and subordinated loans. c) Other Operational Income Items included in this position are all operational income obtained by the BPR other than interest income, consisting of:
   (1) Transaction Service Income
   Is service income in the context of improving services by the BPR, such as payment points and ATMs.
   (2) Foreign Currency Sales Profit
   Is the profit obtained by the BPR in connection with activities as a foreign currency trader.
   (3) Securities Sales Profit
   Is the profit recognized from the sale of securities. This position is the recognition of unrealized profits from available-for-sale securities that were previously included in equity.
   (4) Receipt of Written-off Productive Assets
   Is income obtained from the receipt of productive assets that have been written off.
   (5) Recovery of Provision for Write-off of Productive Assets Is income obtained from the recovery of the provision for write-off of productive assets or the correction of PPAP, which is the excess difference between the PPAP that has been formed and that which must be formed. (6) Others Is operational income other than interest that is not included in items 1) to 5) above, such as income from penalties obtained by the BPR, etc.

b. Operational Expenses
Items included in this position are all expenses incurred for activities that are customary as the business of the BPR, and detailed as follows:

1. Provision for Write-off of Productive Assets Expense
   Items included in this position are the write-off costs of productive assets, whether in the form of loans granted or placements in other productive assets, as regulated in laws and regulations governing Productive Asset Quality (KAP) and the formation of BPR PPAP. This position is divided into:
   a) Securities; b) Placements in other banks; c) Loans granted:
   (1) To other banks; and
   (2) To third parties that are not banks.
2. Marketing Expense
   Items included in this position are costs related to the promotion of banking products from the BPR, including costs for educating the public about the BPR's banking products, costs for giving gifts that cannot be directly attributed to customer accounts, and advertising for promotional purposes.
3. Research and Development Expense
   Items included in this position are costs related to research and development conducted by the BPR, including travel and accommodation costs related to the implementation of such research and development, as well as research and development costs for the establishment and opening of BPR branch offices.
4. Administrative and General Expenses
   This expense consists of:
   a) Labor Costs
   (1) Salaries and Wages
   Items included in this position are basic salaries, wages, and allowances paid to the Board of Directors or daily management for BPRs in the form of legal entities (Cooperatives) and BPR employees, both those with permanent and non-permanent status, before deduction of income tax and other deductions. In cases where income tax is borne by the BPR, the amount must be added to this sub-position. (2) Honorarium Included in this sub-position are costs for honoraria for members of the BPR Board of Commissioners. (3) Others Items included in this position are all labor costs other than salaries, wages, and honoraria, such as overtime and healthcare. b) Education and Training Expenses Items included in this position are costs related to education and training attended by management or employees, whether organized by third parties or internally by the BPR, including courses and seminars. This position also includes travel and accommodation costs related to the implementation of such education and training. c) Rental Expenses (1) Office Buildings Items included in this sub-position are rents paid by the BPR related to the operational office buildings of the BPR. (2) Others Items included in this sub-position are rental expenses paid by the BPR related to the rental of equipment and furniture, and other rental expenses related to BPR operations. d) Depreciation/Write-off Expenses for Fixed Assets and Inventory Items included in this sub-position are depreciation expenses for fixed assets and inventory. e) Amortization Expenses for Intangible Assets Items included in this sub-position are amortization expenses for intangible assets, including amortization of application programs (software). f) Insurance Premium Expenses Items included in this sub-position are insurance expenses for BPR liabilities, including insurance for fixed assets and inventory, labor insurance, cash insurance, and others. In cases where insurance premiums are paid in advance, the amount that has not yet been amortized or expensed is included in the other assets position. g) Maintenance and Repair Expenses Items included in this sub-position are maintenance and/or repair costs incurred by the BPR for the maintenance and/or repair of fixed assets and inventory owned or leased by the BPR. h) Goods and Services Expenses Items included in this sub-position are costs incurred by the BPR in connection with the receipt and/or use of goods or services, including lighting, water, telephone, telegram, stationery, printing costs, travel costs, accommodation, newspapers, and magazines. i) Taxes Items included in this sub-position are taxes paid by the BPR, including land and building taxes and vehicle taxes owned by the BPR (excluding income tax).
5. Other Operational Expenses
   Items included in this position are operational expenses that do not fall into any of positions 1) through 4). This expense consists of:
   a) Foreign Currency Sales Loss
   Is the loss obtained by the BPR in connection with activities as a foreign currency trader. b) Securities Sales Loss Is the loss recognized from the sale of securities. This sub-position is the recognition of unrealized losses from available-for-sale securities that were previously included in the equity position on the balance sheet. c) Restructuring Loss Expenses Items included in this sub-position are the amortization of loss reserves arising from the decline in value of loans due to restructuring, after being offset by excess PPAP due to credit quality improvement in the context of restructuring. d) Others Is expenses other than items 1) through 3).

c. Operational Profit or Loss

1. Operational Profit
   Is the positive difference between operational income minus operational expenses.
2. Operational Loss
   Is the negative difference between operational income minus operational expenses.

d. Non-Operational Income
Items included in non-operational income are all income derived from activities that are not the main business of the BPR, consisting of:

1. Sales Profit
   Items included in this sub-position are profits from the sale of fixed assets and inventory owned by the BPR. This position also includes the results of sales of collateral goods handed over by debtors to the BPR (AYDA).
2. Value Recovery
   Items included in this sub-position are the recovery of fair value for fixed assets and inventory owned by the BPR that have previously experienced a decline in value. This sub-position also includes the recovery of fair value for collateral goods handed over by debtors to the BPR (AYDA).
3. Insurance Claim Income
   Items included in this sub-position are income derived from the receipt of insurance claims.
4. Inter-Office Interest
   Items included in this sub-position are interest income derived from inter-office transactions.
5. Exchange Rate Differences
   Items included in this sub-position are exchange rate profits, which are the excess difference between the book value of foreign currency based on the Bank Indonesia middle exchange rate on the reporting date and the book value previously.
6. Others
   Items included in this sub-position are non-operational income that is not included in items 1) through 5). Included in this sub-position is income obtained from the receipt of productive assets that have been written off.

e. Non-Operational Expenses
Items included in non-operational expenses are costs incurred for activities that are not the main business of the BPR, consisting of:

1. Asset Sales Loss
   Items included in this sub-position are losses from the sale and/or loss of fixed assets and inventory owned by the BPR. Included in this sub-position is the sale and/or loss of collateral goods handed over by debtors to the BPR (AYDA).
2. Others
   Items included in this position are non-operational costs that are not included in item 1), including BPR penalties for violations, contributions given by the BPR, and others, including:
   a) Value Decline Loss
   Items included in this sub-position are losses from the decline in fair value of fixed assets and inventory owned by the BPR, including the decline in fair value of collateral goods handed over by debtors to the BPR (AYDA). b) Inter-Office Interest Expense Items included in this sub-position are interest expenses on funds derived from inter-office transactions. c) Exchange Rate Differences Items included in this sub-position are exchange rate losses, which are the deficit difference between the book value of foreign currency based on the Bank Indonesia middle exchange rate on the reporting date and the book value previously.

f. Profit or Loss Before Income Tax

1. Non-Operational Profit
   Is the positive difference between all operational and non-operational income minus operational and non-operational expenses.
2. Non-Operational Loss
   Is the negative difference between all operational and non-operational income minus operational and non-operational expenses.

g. Income Tax Estimate
Items included in this position are the estimate of current year income tax in accordance with tax regulations that are an expense of the current year's profit.

h. Net Profit or Loss

1. Total Profit
   Is the current year's net profit after deducting the estimate of income tax.
2. Total Loss
   Is the current year's loss.

C. PRODUCTIVE ASSET QUALITY REPORT

1. Productive Asset Quality Report Format
   (In thousands of rupiah)
   Description Reporting Date Position K L D M Total Placements in other banks Loans granted a. To BPRs b. To Commercial Banks
   c. To non-banks – related parties
   d. To non-banks – unrelated parties
   Total Productive Assets
   Ratios (%) a. NPL b. KPMM
   c. LDR
   d. ROA e. KAP f. PPAP g. BOPO h. Cash Ratio
   Note: The classification of productive asset quality in the table above is adjusted in accordance with regulations governing Productive Asset Quality (KAP) and the formation of BPR PPAP.

2. Productive Asset Quality Report Explanation
   a. Placements in Other Banks
   Is the placement of BPR funds in other banks in the form of demand deposits (giro), savings, time deposits, and certificates of deposit. b. Loans Granted Is the provision of money or claims that can be equated with it, based on loan approval or agreement between the BPR and other parties, which obligates the borrower to repay their debt after a certain period with the provision of interest, compensation, or profit sharing. Loans granted according to their distribution are divided into:

1. To BPRs
   Items included in this sub-position are the distribution of loans to other BPRs that have or do not have a relationship with the BPR.
2. To Commercial Banks
   Items included in this sub-position are the distribution of loans to commercial banks.
3. To Non-Banks – Related Parties
   Items included in this sub-position are the distribution of loans to non-bank parties that are individuals or companies/entities that have ownership, management, and/or financial relationships with the BPR.
4. To Non-Banks – Unrelated Parties
   Items included in this sub-position are the distribution of loans to non-bank parties that are individuals or companies/entities that do not have ownership, management, and/or financial relationships with the BPR.
   c. Collectibility
   Is as regulated in laws and regulations governing Productive Asset Quality (KAP) and the formation of BPR Provision for Write-off of Productive Assets (PPAP). d. Ratios
5. Net Non-Performing Loan (NPL)
   Is a ratio that measures the comparison of the amount of problematic loans to the total loans existing in the BPR, with the following explanation:
   a) loans are loans granted to third parties (excluding loans to other banks); b) problematic loans are loans with poor, doubtful, and loss quality; c) problematic loans are calculated net (minus PPAP); the loan figures as mentioned in letters a) through c) are calculated per position (not annualized).
6. Minimum Capital Requirement (KPMM)
   Is a ratio used to measure the adequacy of the Minimum Capital Requirement (KPMM) for BPRs, calculated based on the calculation of Capital and Risk-Weighted Assets (ATMR) guided by the Financial Services Authority Regulation regarding KPMM.
7. Loan to Deposit Ratio (LDR)
   Is a ratio used to measure the comparison of loans to third-party funds existing in the BPR, where loans are the total loans granted to third parties (excluding loans to other banks) and third-party funds include demand deposits (giro), savings, and time deposits (excluding inter-bank).
8. Return On Asset (ROA)
   Is a ratio used to measure the BPR management's ability to obtain overall profit by dividing profit before tax by the average total assets.
9. Productive Asset Quality (KAP)
   Is a ratio used to measure the comparison of productive assets classified against productive assets as regulated in laws and regulations governing the method for assessing the health level of BPRs.
10. Provision for Write-off of Productive Assets (PPAP)
    Is a ratio used to measure the reserve that must be formed by the BPR at a certain percentage of the debit balance based on the classification of productive asset quality.
11. Operational Expense to Operational Income (BOPO)
    Is a ratio used to measure the comparison of operational expenses to operational income to determine the level of efficiency and the BPR's ability to conduct operational activities by dividing total operational expenses by total operational income, calculated per position (not annualized).
12. Cash Ratio
    Is a ratio used to measure the comparison of liquid assets to current liabilities as regulated in laws and regulations governing the method for assessing the health level of BPRs.

D. COMMITMENTS AND CONTINGENCIES REPORT

1. Commitments and Contingencies Report Format
   (In thousands of rupiah)
   Position Reporting Date Position of the Same Position in the Previous Year COMMITMENTS

2. Loan facilities received that have not been drawn

3. Credit facilities to customers that have not been drawn

4. Channeling loans

5. Others
   Total commitments
   CONTINGENCIES

6. Productive assets written off

7. Collateral taken over in the process of loan settlement

8. Interest income in settlement

9. Others
   Total contingencies

10. Commitments and Contingencies Report Explanation
    a. Commitments

1. Loan facilities received and not yet drawn
   Items included in this position are Administrative Account code 600, which are loan facilities received by the BPR from other banks and/or third parties that have not been drawn.

2. Credit facilities to customers that have not been drawn
   Items included in this position are Administrative Account code 620, which are credit facilities still provided by the BPR to its customers and not yet drawn.

3. Channeling Loans
   Items included in this position are Administrative Account code 630, which are the distribution of loans to customers where the funds come from other parties, and for which the BPR does not bear the risk of the loan distribution.

4. Others
   Items included in this position are code 661
   Administrative Account, namely binding or contractual promises that cannot be unilaterally revoked and must be executed when mutually agreed-upon requirements are met. b. Contingencies

5. Productive assets written off
   Items included in this position are code 640
   Administrative Account, namely all productive assets, whether loans granted or other productive assets, that have been written off. For productive assets that have undergone write-off, they are no longer reported in the administrative account.

6. Collateral taken over in the context of loan settlement
   Items included in this position are code 650
   Administrative Account, namely collateral owned by debtors that is still in the process of being taken over by the Rural Bank (BPR) as part of the loan settlement process.

7. Interest income in settlement
   Items included in this position are code 611 and code 619 Administrative Account, namely interest on loans granted and interest on placements in other banks that are classified as less active, doubtful, and non-performing, but up to the reporting date, payment has not yet been received.

8. Others
   Items included in this position are code 662
   Administrative Account, namely conditions or situations with final results in the form of profit or loss that can only be confirmed after the occurrence of one or more events in the future.

E. OTHER INFORMATION REPORT

1. Format of Other Information Report
   BPR Management Shareholders
   Board of Commissioners

(……%)
(……%)
(……%)
(……%)
(……%)
(……%)
(……%)
(……%)
(……%)
(……%)
Shareholders
Controlling
1.
2.
3. etc.
1.
2.
3. etc.
Directors Ultimate
Shareholder
1.
2.
3. etc.
1.
2.
3. etc.
Name of Public Accounting Firm *):
Accountant who signed the report *):
Note:
*) BPR with total assets of at least IDR 10,000,000,000.00 (ten billion rupiah) is required to include the name of the Public Accounting Firm and the name of the Accountant responsible for the audit (partner in-charge). ………………, ………………. Directors PT/PD/Cooperative BPR ……….. ……………… ..……………
2. Explanation of Other Information Report
a. BPR Management
These are parties present in the BPR who have the authority to represent the BPR legal entity, such as the Board of Directors and Board of Commissioners of the BPR. b. Shareholders These are the names of shareholders that must be included, whether individuals or companies, including Controlling Shareholders, as follows:

1. In the event that the number of shareholders is less than or equal to 10 (ten), all shareholders must be listed.

This copy is consistent with the original
Legal Director 1
Legal Department signed
Yuliana
2) In the event that the number of shareholders is more than 10 (ten), the names of the 9 (nine) shareholders with the largest ownership must be listed, and the rest filled with "others" so that the total is 100% (one hundred percent).
Established in Jakarta on July 19, 2017
EXECUTIVE HEAD OF BANKING SUPERVISOR
FINANCIAL SERVICES AUTHORITY, signed
NELSON TAMPUBOLON