Circular Letter of the Financial Services Authority Number 4/SEOJK.05/2020 Concerning the Business Plan of Guarantee Institutions

To:

The Board of Directors of Guarantee Companies;
The Board of Directors of Sharia Guarantee Companies;
The Board of Directors of Reinsurance Companies; and
The Board of Directors of Sharia Reinsurance Companies,

at their respective locations.

COPY

CIRCULAR LETTER OF THE FINANCIAL SERVICES AUTHORITY NUMBER 4 /SEOJK.05/2020

CONCERNING

BUSINESS PLAN OF GUARANTEE INSTITUTIONS

In relation to Article 7 paragraph (3), Article 14 paragraph (5), Article 15 paragraph (5), and Article 19 of the Financial Services Authority Regulation Number 24/POJK.05/2019 concerning the Business Plan of Non-Bank Financial Service Institutions (State Gazette of the Republic of Indonesia Year 2019 Number 175, Additional State Gazette of the Republic of Indonesia Number 6392), it is necessary to regulate the scope of the business plan, the form and structure of the business plan realization report, the form and structure of the business plan supervision report, and the procedure for submitting the business plan, adjustment of the business plan, change of the business plan, business plan realization report, and business plan supervision report of guarantee institutions in the Financial Services Authority Circular Letter as follows:

I. GENERAL PROVISIONS

Guarantee Institution means a guarantee company, Sharia guarantee company, reinsurance company, and Sharia reinsurance company that carries out guarantee activities as referred to in Law Number 1 of 2016 concerning Guarantees.
Sharia Business Unit, hereinafter referred to as UUS, is a working unit of a guarantee company that functions as the head office of an office or unit that carries out guarantee business activities based on Sharia principles as referred to in Law Number 1 of 2016 concerning Guarantees.
Guarantee is the activity of providing a guarantee by the Guarantor for the fulfillment of the financial obligations of the Guaranteed to the Guarantee Recipient as referred to in Law Number 1 of 2016 concerning Guarantees.
Sharia Guarantee is the activity of providing a guarantee by the Guarantor for the fulfillment of the financial obligations of the Guaranteed to the Guarantee Recipient based on Sharia Principles.
Business Plan is a written document that describes the development plan and business activities of the Guarantee Institution over a certain period, as well as strategies to realize such plan according to the set targets and time.
Board of Directors means the Board of Directors as referred to in Law Number 40 of 2007 concerning Limited Liability Companies for Guarantee Institutions in the form of a limited liability company legal entity or equivalent to the Board of Directors for Guarantee Institutions in the form of a public company or cooperative legal entity.
Board of Commissioners means the Board of Commissioners as referred to in Law Number 40 of 2007 concerning Limited Liability Companies for Guarantee Institutions in the form of a limited liability company legal entity or equivalent to the Board of Commissioners for Guarantee Institutions in the form of a public company or cooperative legal entity.
Business Plan Realization Report is a report prepared by the Board of Directors regarding the realization of the Business Plan up to a certain period.
Business Plan Supervision Report is a report from the Board of Commissioners regarding the results of supervision concerning the implementation of the Business Plan up to a certain period.

II. SCOPE OF BUSINESS PLAN

The scope of the Business Plan of a Guarantee Institution must at least contain:
a. executive summary; b. evaluation of the implementation of the previous period's Business Plan;
c. vision, mission, and business strategy;
d. management policies and plans, including:

business activity plans;
plans for development or expansion of business activities;
investment plans;
capital plans;
plans for development and/or changes in office networks or distribution channels;
plans for organizational, human resource, and/or information technology development; and
plans for activities to increase financial literacy and inclusion for guarantee companies and Sharia guarantee companies;
e. projected financial statements along with the assumptions used; f. projected ratios and specific items; and g. other information.

The executive summary as referred to in item 1 letter a contains a brief explanation of the main points of the Business Plan presented concisely to allow for a comprehensive understanding of the Business Plan, which includes among others:
a. strategic plans and steps to be taken by the Guarantee Institution in the short term for a 1 (one) year period, medium term for a 3 (three) year period, and long term for a 5 (five) year period; b. key financial indicators; and
c. description of short-term targets for a 1 (one) year period.
The executive summary as referred to in item 2 is prepared according to Format 1 as contained in the Appendix which is an integral part of this Financial Services Authority Circular Letter.
The evaluation of the implementation of the previous period's Business Plan as referred to in item 1 letter b contains an explanation regarding:
a. main points of the realization of the previous period's Business Plan; b. obstacles and problems faced; and
c. measures taken to overcome such obstacles and problems.
The evaluation of the implementation of the previous period's Business Plan as referred to in item 4 is prepared according to Format 2 as contained in the Appendix which is an integral part of this Financial Services Authority Circular Letter.
The vision, mission, and business strategy as referred to in item 1 letter c contains an explanation regarding:
a. vision which is the goal the Guarantee Institution wants to achieve in the long term; b. mission which is the method used in the short or medium term to achieve the goal;
c. business strategy which is the strategy and policy direction of the Guarantee Institution in facing business competition and social dynamics in the future, which must at least contain:

analysis of the position of the Guarantee Institution in facing business competition, including information regarding the position of the Guarantee Institution both within the same business group and the industry, including information regarding problems and obstacles experienced by the Guarantee Institution;
policy direction of the Guarantee Institution, including general information on the policies of the Guarantee Institution established by management in the future development of the Guarantee Institution's business; and
business development strategy, which among others contains information regarding strategic steps to achieve the business goals set by the Guarantee Institution, including an explanation regarding organizational development and information system technology strategies, and strategies to anticipate changes in external conditions;

In preparing the analysis of the position of the Guarantee Institution in facing business competition as referred to in item 6 letter c item 1), the Guarantee Institution may use strength, weakness, opportunity, and threat (SWOT) analysis.
The vision, mission, and business strategy as referred to in item 6 is prepared according to Format 3 as contained in the Appendix which is an integral part of this Financial Services Authority Circular Letter.
The business activity plan as referred to in item 1 letter d item 1) contains an explanation regarding the business activity plan which must at least contain:
a. plans for productive Guarantee or Sharia Guarantee business; and b. plans for non-productive Guarantee or Sharia Guarantee business.
c. other business activity plans after obtaining approval from the Financial Services Authority.
Productive Guarantee or Sharia Guarantee business as referred to in item 9 letter a consists of:
a. credit guarantee; and b. other productive guarantees.
The business activity plan as referred to in item 9 is prepared according to Format 4 as contained in the Appendix which is an integral part of this Financial Services Authority Circular Letter.
The plan for development or expansion of business activities as referred to in item 1 letter d item 2) must at least include:
a. plans for implementing new business activities to be marketed and which must be reported to the Financial Services Authority; and b. plans for implementing other business activities based on approval from the Financial Services Authority.
The plan for development or expansion of business activities as referred to in item 12 is prepared according to Format 5 as contained in the Appendix which is an integral part of this Financial Services Authority Circular Letter.
The investment plan as referred to in item 1 letter d item 3) must at least contain information regarding the composition of investments.
The investment plan as referred to in item 14 is prepared according to Format 6 as contained in the Appendix which is an integral part of this Financial Services Authority Circular Letter.
The capital plan as referred to in item 1 letter d item 4) must at least contain:
a. capital projections; and b. plans for capital changes.
The capital plan as referred to in item 16 is prepared according to Format 7 as contained in the Appendix which is an integral part of this Financial Services Authority Circular Letter.
The plan for development and/or changes in office networks as referred to in item 1 letter d item 5) must at least contain:
a. plans for opening branch offices and/or UUS branch offices; b. plans for changing the address of the head office, branch offices, and/or UUS branch offices; and
c. plans for closing branch offices and/or UUS branch offices.
The plan for development and/or changes in office networks as referred to in item 18 is prepared according to Format 8 as contained in the Appendix which is an integral part of this Financial Services Authority Circular Letter.
The plan for organizational, human resource, and/or information technology development as referred to in item 1 letter d item 6) must at least include:
a. organizational development plans, including:

plans for forming work units/divisions;
plans for changing work units/divisions; and
plans for forming committees;
b. human resource development plans, including:
plans for fulfilling human resources;
a) recruitment plans; b) plans for appointment and dismissal of employees; c) plans for using consultants and/or advisors; and d) plans for using contract workers;
human resource education and training plans, including:
a) plans for human resource education and training needs; and b) plans for human resource education and training costs/budgets; and
plans for utilizing outsourced labor; and
c. information technology development and procurement plans, which are fundamental plans for information technology development and procurement, including information regarding information technology development and maintenance costs, including:
significant changes to the configuration of the Guarantee Institution's information technology or core applications;
procurement of new core applications;
cooperation with information technology service providers; and
other fundamental information technology development and procurement that can add and/or increase the risk of the Guarantee Institution.

The plan for organizational, human resource, and/or information technology development as referred to in item 20 is prepared according to Format 9 as contained in the Appendix which is an integral part of this Financial Services Authority Circular Letter.
The plan for activities to increase financial literacy and inclusion as referred to in item 1 letter d item 7) is prepared according to the format regulated in the Financial Services Authority Circular Letter concerning the implementation of activities to increase financial literacy in the financial service sector and the Financial Services Authority Circular Letter concerning the implementation of activities to increase financial inclusion in the financial service sector.
The projected financial statements along with the assumptions used as referred to in item 1 letter e must at least contain:
a. assumptions used in preparing the projected financial statements, including:

macro assumptions including gross domestic product growth assumptions, inflation rates, interest rates, and export growth; and
micro assumptions including growth of Guarantee or Sharia Guarantee, guarantee claim ratios, growth of productive Guarantee or Sharia Guarantee, and/or gearing ratio of Guarantee or Sharia Guarantee; and
b. information regarding the financial condition of the Guarantee Institution, including:
projected balance sheets;
projected comprehensive income statements; and
projected cash flow statements.

The projected financial statements along with the assumptions used as referred to in item 23 are prepared according to Format 10 as contained in the Appendix which is an integral part of this Financial Services Authority Circular Letter.
The projected ratios and specific items as referred to in item 1 letter f are prepared according to Format 11 as contained in the Appendix which is an integral part of this Financial Services Authority Circular Letter.
The Business Plan containing:
a. key financial indicators in the executive summary as referred to in item 2 letter b; b. business activity plans as referred to in item 9;
c. investment plans as referred to in item 14;
d. capital plans as referred to in item 16; e. projected financial statements along with the assumptions used as referred to in item 23; and f. projected ratios and specific items as referred to in item 25; is presented:
a. for actual positions at the end of September of the year the Business Plan is prepared; b. for projections at the end of December of the year the Business Plan is prepared;
c. for projections for the next 1 (one) year presented semi-annually; and
d. in Indonesian Rupiah.
Other information as referred to in item 1 letter g contains information that needs to be submitted because it affects the business activities of the Guarantee Institution, but is not included in the scope of the Business Plan as referred to in item 1 letters a through f, at least including:
a. plans for merger, consolidation, and/or separation; b. plans to cease business activities so as no longer to be a Guarantee Institution;
c. plans to issue mandatory convertible bonds;
d. plans to convert a guarantee company into a Sharia guarantee company or a reinsurance company into a Sharia reinsurance company; and/or e. plans for the formation, closure, or separation of UUS.
The plan for merger, consolidation, and/or separation as referred to in item 27 letter a is prepared according to Format 12 as contained in the Appendix which is an integral part of this Financial Services Authority Circular Letter.
The plan to cease business activities so as no longer to be a Guarantee Institution as referred to in item 27 letter b is prepared according to Format 13 as contained in the Appendix which is an integral part of this Financial Services Authority Circular Letter.
The plan to issue mandatory convertible bonds as referred to in item 27 letter c is prepared according to Format 14 as contained in the Appendix which is an integral part of this Financial Services Authority Circular Letter.
The plan to convert a guarantee company into a Sharia guarantee company or a reinsurance company into a Sharia reinsurance company as referred to in item 27 letter d is prepared according to Format 15 as contained in the Appendix which is an integral part of this Financial Services Authority Circular Letter.
The plan for the formation, closure, or separation of UUS as referred to in item 27 letter e is prepared according to Format 16 as contained in the Appendix which is an integral part of this Financial Services Authority Circular Letter.
The description of the scope of the Business Plan including:
a. business activity plans as referred to in item 1 letter d item 1); b. plans for development or expansion of business activities as referred to in item 1 letter d item 2);
c. investment plans as referred to in item 1 letter d item 3);
d. capital plans as referred to in item 1 letter d item 4); e. plans for development and/or changes in office networks or distribution channels as referred to in item 1 letter d item 5); f. plans for organizational, human resource, and/or information technology development as referred to in item 1 letter d item 6); g. plans for merger, consolidation, and/or separation as referred to in item 27 letter a; h. plans to cease business activities so as no longer to be a Guarantee Institution as referred to in item 27 letter b;
i. plans to issue mandatory convertible bonds as referred to in item 27 letter c;
j. plans to convert a guarantee company into a Sharia guarantee company or a reinsurance company into a Sharia reinsurance company as referred to in item 27 letter d; and k. plans for the formation, closure, or separation of UUS as referred to in item 27 letter e, also contains a description regarding:
a. reasons or considerations used in preparing the aforementioned plans; and b. strategies of the Guarantee Institution to realize the aforementioned plans.
In the event there is other information that needs to be submitted by the Guarantee Institution in the Business Plan, but its format is not regulated in this Financial Services Authority Circular Letter, the format for submitting such information is prepared based on the needs of the Guarantee Institution.

III. FORM AND STRUCTURE OF BUSINESS PLAN REALIZATION REPORT AND BUSINESS PLAN SUPERVISION REPORT

The Business Plan Realization Report includes:
a. explanation regarding the achievement of the Business Plan, namely the comparison between the plan and the realization of the Business Plan; b. explanation regarding deviations in the realization of the Business Plan, namely an explanation regarding the causes and obstacles of deviations between the plan and the realization of the Business Plan;
c. follow-up actions on the achievement of the Business Plan, namely follow-up efforts that have been and will be taken to improve the realization achievement of the Business Plan;
d. financial ratios and specific items; and e. other information, which among others contains information that needs to be submitted because it affects the realization of the Business Plan, but has not yet been included in the scope of the Business Plan Realization Report as referred to in letters a through d.
For guarantee companies that have a UUS, the Business Plan Realization Report must also contain a special realization report for the UUS which is an integral part of the Business Plan Realization Report.
The Business Plan Realization Report must be signed by members of the Board of Directors.
The Business Plan Realization Report is prepared according to Format 17 as contained in the Appendix which is an integral part of this Financial Services Authority Circular Letter.
The Business Plan Supervision Report must at least contain the Board of Commissioners' assessment regarding:
a. the realization of the Business Plan both quantitatively and qualitatively; b. factors affecting the performance of the Guarantee Institution; and
c. efforts to improve the performance of the Guarantee Institution.
For guarantee companies that have a UUS, the Business Plan Supervision Report must also contain a special supervision report for the UUS which is an integral part of the Business Plan Supervision Report.
The Business Plan Supervision Report must be signed by members of the Board of Commissioners.
The Business Plan Supervision Report is prepared according to Format 18 as contained in the Appendix which is an integral part of this Financial Services Authority Circular Letter.

IV. PROCEDURE FOR SUBMITTING BUSINESS PLAN, ADJUSTMENT OF BUSINESS PLAN, CHANGE OF BUSINESS PLAN, BUSINESS PLAN REALIZATION REPORT, AND BUSINESS PLAN SUPERVISION REPORT

Guarantee Institutions must submit the Business Plan, adjustment of the Business Plan, change of the Business Plan, Business Plan Realization Report, and Business Plan Supervision Report to the Financial Services Authority online through the Financial Services Authority's data communication network system.
Guarantee Institutions are required to ensure that the Business Plan submitted online as referred to in item 1 is correct and identical to the hardcopy of the Business Plan.
In the event the Financial Services Authority's data communication network system as referred to in item 1 is not yet available or experiences technical difficulties, the submission of the Business Plan, adjustment of the Business Plan, change of the Business Plan, Business Plan Realization Report, and Business Plan Supervision Report is submitted to the Financial Services Authority offline by:
a. being handed over directly; or b. being sent through a courier service company.
In the event of technical difficulties as referred to in item 3, the Financial Services Authority announces this through the Financial Services Authority website.
The submission of reports offline as referred to in item 3 must be submitted in electronic data (softcopy) form using storage media in the form of a compact disc (CD) or other electronic data storage media.
The submission of reports as referred to in item 5 must be accompanied by a cover letter in hardcopy form signed by members of the Board of Directors.
The submission of the cover letter and the Business Plan, adjustment of the Business Plan, change of the Business Plan, Business Plan Realization Report, and Business Plan Supervision Report offline as referred to in item 3 is addressed to:
a. for guarantee companies and reinsurance companies:
Executive Head of Insurance, Pension Fund, Financing Institutions, and Other Financial Service Institutions Supervision Financial Services Authority attn. Director of Special Financial Institution Supervision Wisma Mulia 2 Building, 15th Floor Jalan Jenderal Gatot Subroto Kav. 40 Jakarta 12710; or b. for Sharia guarantee companies and guarantee companies that have a UUS:
Executive Head of Insurance, Pension Fund, Financing Institutions, and Other Financial Service Institutions Supervision Financial Services Authority attn. Sharia IKNB Director Wisma Mulia 2 Building, 15th Floor Jalan Jenderal Gatot Subroto Kav. 40 Jakarta 12710.
In the event there is a change of address of the Financial Services Authority Office for the submission of reports as referred to in item 7, the Financial Services Authority will convey notification regarding the address change via letter or announcement.
Guarantee Institutions are deemed to have submitted the Business Plan, adjustment of the Business Plan, change of the Business Plan, Business Plan Realization Report, and Business Plan Supervision Report with the following provisions:
a. for online submission through the Financial Services Authority's data communication network system, proven by a receipt from the Financial Services Authority's data communication network system; or b. for offline submission, proven by a receipt from the Financial Services Authority.

This copy is consistent with the original
Deputy Director of Legal Consultation and Banking Regulation Harmonization 1 Legal Directorate 1 Legal Department signed Wiwit Puspasari

V. CLOSING
The provisions in this Circular Letter of the Financial Services Authority shall take effect as of the date of establishment. Established in Jakarta on April 21, 2020 EXECUTIVE HEAD OF INSURANCE, PENSION FUND, LENDING INSTITUTION, AND OTHER FINANCIAL SERVICE INSTITUTIONS SUPERVISOR FINANCIAL SERVICES AUTHORITY, signed RISWINANDI

APPENDIX
CIRCULAR LETTER OF THE FINANCIAL SERVICES AUTHORITY NUMBER 4 /SEOJK.05/2020 CONCERNING BUSINESS PLAN OF GUARANTEE INSTITUTIONS

TABLE OF CONTENTS
FORMAT OF THE BUSINESS PLAN OF GUARANTEE INSTITUTIONS Format 1 : Executive Summary 2 Format 2 : Evaluation of the Implementation of the Previous Business Plan Period Format 3 : Vision, Mission, and Business Strategy 6 Format 4 : Business Activity Plan 7 Format 5 : Plan for Development or Expansion of Business Activities 13 Format 6 : Investment Plan 15 Format 7 : Capital Plan 16 Format 8 : Plan for Development and/or Change of Office Network or Distribution Channels Format 9 : Plan for Organizational Development, Human Resources, and/or Information Technology Format 10 : Financial Statement Projections Along with Assumptions Used Format 11 : Projection of Ratios and Specific Items 30 Format 12 : Plan for Merger, Consolidation, and/or Separation 31 Format 13 : Plan for Cessation of Business Activities So as No Longer to Be a Guarantee Institution Format 14 : Plan for Issuance of Mandatory Convertible Bonds Format 15 : Plan for Conversion of Guarantee Companies into Sharia Guarantee Companies or Reinsurance Companies into Sharia Reinsurance Companies Format 16 : Plan for Establishment, Closure, or Separation of UUS Format 17 : Business Plan Realization Report 38 Format 18 : Business Plan Supervision Report 40

Format 1 : Executive Summary

Strategic plans and steps to be taken by the Guarantee Institution
a. Short-term strategic plans and steps for a 1 (one) year period.

...
...
etc.
b. Medium-term strategic plans and steps for a 3 (three) year period.
...
...
etc.
c. Long-term strategic plans and steps for a 5 (five) year period.
...
...
etc.

Key Financial Indicators
a. Format of key financial indicators for Guarantee Institutions No. Financial Indicator 1) Performance Sept X-1 Projection Dec X-1 June X Dec X
Productive Business Gearing Ratio
Non-productive Business Gearing Ratio
Total Gearing Ratio (1+2)
Rentability
a) Return on Asset Ratio b) Operating Expenses to Operating Income Ratio c) Claim to Service Fee Ratio
Liquidity Ratio (Current Ratio)
Notes:
X-1 is the year of report preparation.
X is the year of the business plan position.

The method of calculating financial indicators refers to the Circular Letter of the Financial Services Authority regulating the health level of Guarantee Institutions.
b. Description of the financial condition of the Guarantee Institution (description of the financial condition of the Guarantee Institution along with projections reflected in the key financial indicators)

Description of short-term targets for a 1 (one) year period 1)
a. ...........................................................................................................
.........................
b. ...........................................................................................................
.........................
c. etc.
Notes:

including but not limited to the Guarantee or Sharia Guarantee ceiling, Productive Guarantee or Sharia Guarantee, Non-productive Guarantee or Sharia Guarantee, Guarantee Service Fee (IJP) and Kafalah Service Fee (IJK) income, capital strengthening efforts, and profit of the Guarantee Institution.

Format 2 : Evaluation of the Implementation of the Previous Business Plan Period (to be filled with an explanation regarding the main points of the realization of the previous business plan period, obstacles and problems faced, and measures taken to overcome such obstacles and problems)

Format 3 : Vision, Mission, and Business Strategy

Vision of the Guarantee Institution
...................................................................................................................
...................................................................
Mission of the Guarantee Institution
...................................................................................................................
...................................................................
Business Strategy
a. Analysis of the position of the Guarantee Institution in facing business competition
...........................................................................................................
............................................................
b. Policy direction of the Guarantee Institution
...........................................................................................................
...........................................................
c. Business development strategy
...........................................................................................................
..............................................................

Format 4 : Business Activity Plan

Productive Guarantee or Sharia Guarantee Business Plan
a. Credit guarantee plan table (in Rupiah)
Type of Guarantee
Performance
Sept X-1 2)
Projection
Dec X-1
June X
Dec X a. SME Credit 1) b. Non-SME Credit
Total
% Total credit guarantee against total guarantee
Credit guarantee plan table (number of guaranteed persons)
Type of Guarantee
Performance
Sept X-1
Projection
Dec X-1
June X
Dec X a. SME Credit 1) b. Non-SME Credit
Total
Notes:
X-1 is the year of report preparation.
X is the year of the business plan position.

SME credit guarantee is credit guarantee of up to Rp500,000,000.00.
Guarantee value is presented cumulatively (outstanding).
b. Other productive guarantees
Table of other productive guarantee plans (in Rupiah)
Type of Guarantee
Performance
Sept X-1 1)
Projection
Dec X-1
June X
Dec X a. Guarantee on bonds
Type of Guarantee
Performance
Sept X-1 1)
Projection
Dec X-1
June X
Dec X b. Guarantee for installment purchase of goods
c. Guarantee
for trade transactions d. Guarantee for procurement of goods and/or services (surety bond) e. Guarantee for bank guarantees (contra bank guarantee) f. Guarantee for domestic documentary credits g. Guarantee for letters of credit h. Guarantee for customs (customs bond)
i. Guarantee
for excise j. Provision of management consulting services related to guarantee business activities k. Other business activities after obtaining approval from the Financial Services Authority Total % Total other productive guarantees against total guarantee Notes:
X-1 is the year of report preparation.
X is the year of the business plan position.
Guarantee value is presented cumulatively (outstanding).
Table of other productive guarantee plans (number of guaranteed persons/certificates/contracts)
Type of Guarantee
Performance
Sept X-1 1)
Projection
Dec X-1
June X
Dec X a. Guarantee on bonds b. Guarantee for installment purchase of goods
c. Guarantee
for trade transactions d. Guarantee for procurement of goods and/or services (surety bond) e. Guarantee for bank guarantees (contra bank guarantee) f. Guarantee for domestic documentary credits g. Guarantee for letters of credit h. Guarantee for customs (customs bond)
i. Guarantee
for excise
Type of Guarantee
Performance
Sept X-1 1)
Projection
Dec X-1
June X
Dec X j. Provision of management consulting services related to guarantee business activities k. Other business activities after obtaining approval from the Financial Services Authority Total Notes:
X-1 is the year of report preparation.
X is the year of the business plan position.
Number of guaranteed items is presented cumulatively (outstanding)
with units adjusted to the type of guarantee (persons/certificates/contracts)

Reasons/Considerations and Strategy
a. Reasons/Considerations
(to be filled with reasons/considerations in compiling the Guarantee or Sharia Guarantee plan based on business size, government assignment, and non-government assignment) b. Strategy (to be filled with strategies to realize the Guarantee or Sharia Guarantee plan)
Non-productive Guarantee or Sharia Guarantee Business Plan
a. Table of non-productive credit guarantee plan (in Rupiah) Lender Institution Performance Sept X-1 1) Projection Dec X-1 June X Dec X
Bank
Non-bank
Others
Total b. Table of non-productive credit guarantee plan (number of guaranteed persons) Lender Institution Performance Sept X-1 Projection Dec X-1 June X Dec X
Bank
Non-bank
Others
Total
Notes:
X-1 is the year of report preparation.
X is the year of the business plan position.

Guarantee or Sharia Guarantee value is presented cumulatively (outstanding).

Plan for Implementation of Other Business Activities After Obtaining Approval from the Financial Services Authority
Lender Institution
Type of Product
Performance
Sept X-1 1)
Projection
Dec X-1
June X
Dec X
PT A
PT B
Others
Total
Notes
X-1 is the year of report preparation.
X is the year of the business plan position.

Business income (fee) value is presented cumulatively.

Reasons/Considerations and Strategy
a. Reasons/considerations
(to be filled with reasons/considerations in compiling the Non-productive Guarantee or Sharia Guarantee credit plan) b. Strategy (to be filled with strategies to realize the Non-productive Guarantee or Sharia Guarantee credit plan)

Format 5 : Plan for Development or Expansion of Business Activities

Plan for Implementation of New Guarantee or Sharia Guarantee Business Activities to be Marketed and Required to be Reported to the Financial Services Authority
a. Table of plan for implementation of new Guarantee or Sharia Guarantee business activities to be marketed and required to be reported to the Financial Services Authority No Type of Business Activity 1) General Description of Business Activity 2) Time of Implementation of Business Activity Objective of Business Activity 2) Guarantee Ceiling Number of Guaranteed Business Activity Connection with Company Business Strategy 2) For Company For Guaranteed Notes:

Guarantee or Sharia Guarantee business activities required to be reported to the Financial Services Authority refer to the Financial Services Authority Regulation regarding the conduct of business by Guarantee Institutions.
More detailed explanations/descriptions can be attached in a separate sheet.
b. Reasons/Considerations
(to be filled with reasons/considerations in compiling the plan for implementation of new Guarantee or Sharia Guarantee business activities required to be reported to the Financial Services Authority)
c. Strategy
(to be filled with strategies to realize the plan for implementation of new Guarantee or Sharia Guarantee business activities required to be reported to the Financial Services Authority)

Plan for Implementation of Other Business Activities Based on Financial Services Authority Approval
a. Table of plan for implementation of other business activities based on Financial Services Authority approval No Type of Business Activity 1) General Description of Business Activity 2) Time of Implementation of Business Activity Objective of Business Activity 2) Connection of Business Activity with Company Business Strategy 2) For Company For Partner Notes:

Other business activities that have obtained approval from the Financial Services Authority (example: as a mutual fund sales agent for fee-based purposes) refer to the Financial Services Authority Regulation regarding the conduct of business by Guarantee Institutions.
More detailed explanations/descriptions can be attached in a separate sheet.
b. Reasons/considerations
(to be filled with reasons/considerations in compiling the plan for expansion of business activities)
c. Strategy
(to be filled with strategies to realize the plan for expansion of business activities)

Format 6 : Investment Plan

Investment plan table
No. Type of Investment 1) Performance
Sept X-1
Projection
Dec X-1
June X
Dec X etc.
Notes:
X-1 is the year of report preparation.
X is the year of the business plan position.

Type of investment refers to the Financial Services Authority Regulation regarding the Conduct of Business by Guarantee Institutions.

Reasons/considerations
(to be filled with reasons/considerations in compiling the investment plan)
Strategy
(to be filled with strategies to realize the investment plan)

Format 7 : Capital Plan

Capital projection
Description
Performance
Sept X-1
Projection
Dec X-1
June X
Dec X
Initial paid-up capital
Old shareholders
...
etc
New shareholders
...
etc
Total paid-up capital
Retained earnings 1)
Total Equity
Notes:
X-1 is the year of report preparation.
X is the first year of the business plan position.

The nominal value stated is the accumulated nominal value.

Capital Change Plan
a. Description regarding the capital change plan (to be filled with the capital change plan, including: capital structure, amount of capital, plan for capital addition, plan for ownership change, plan for public offering of shares, conversion of profit balance, and plan for other capital additions, accompanied by the plan for nominal amount and the plan for the time of implementation of the aforementioned capital change)

b. Reasons/considerations
(to be filled with reasons/considerations in compiling the capital change plan)
c. Strategy
(to be filled with strategies to realize the capital change plan)

Format 8 : Plan for Development and/or Change of Office Network or Distribution Channels

Table of Plan for Development and/or Change of Office Network or Distribution Channels
Type of Office Time of
Implementation 1)
Estimated
Investment/
Cost Location 2) Notes 3)
Opening
Branch office
Branch office
UUS
Address change
Head office
Branch office
Branch office
UUS
Closure
Branch office
Branch office
UUS
Notes

filled with the month of the planned time of implementation.
for locations in the DKI Jakarta region, at least the name of the DKI Jakarta province must be mentioned, and for locations outside the DKI Jakarta region, at least the name of the Regency/City must be stated.
detailed notes can be attached in a separate sheet.

Reasons/considerations
(to be filled with reasons/considerations in compiling the plan for development and/or change of office network or distribution channels)
Strategy
(to be filled with strategies to realize the plan for development and/or change of office network or distribution channels)

Format 9 : Plan for Organizational Development, Human Resources, and/or Information Technology

Organizational Development Plan
a. Description regarding the organizational development plan (to be filled with an explanation regarding the organizational development plan, including plans for the formation of work units/divisions, plans for changing work units/divisions, and plans for the formation of committees, adjusted to the size and complexity of the Guarantee Institution's business) b. Reasons/considerations (to be filled with reasons/considerations in compiling the organizational development plan)
c. Strategy
(to be filled with strategies to realize the organizational development plan)
Human Resources Development Plan

Plan for Human Resources Fulfillment
a. Description regarding the human resources fulfillment plan (to be filled with an explanation regarding the plan for recruitment, appointment, and dismissal of employees, use of consultants or advisors, and use of contract labor of the Guarantee Institution) b. Reasons/considerations (to be filled with reasons/considerations in compiling the human resources fulfillment plan)
c. Strategy
(to be filled with strategies to realize the human resources fulfillment plan)
Plan for Human Resources Education and Training
a. Table of plan for education and training needs and education/training costs/budget for human resources No. Training Material 1) Estimated Time of Training 2) Place Cost of Training Notes:
e.g.: risk management, marketing, etc.
filled with the month of training implementation, e.g., March 2019
b. Reasons/considerations
(to be filled with reasons/considerations in compiling the human resources education and training plan)
c. Strategy
(to be filled with strategies to realize the human resources education and training plan)
Plan for Utilization of Outsourced Labor
a. Table of plan for utilization of outsourced labor No. Field Task Reason for Utilization of Outsourced Labor Number of Outsourced Labor Name of Outsourced Labor Service Provider Contract Period with Outsourced Labor Service Provider 1. 2. etc. b. Reasons/considerations (to be filled with reasons/considerations in compiling the plan for utilization of outsourced labor)
c. Strategy
(to be filled with strategies to realize the plan for utilization of outsourced labor)

Plan for Fundamental Development and Procurement of Information Technology
a. Description of Fundamental Development and Procurement Plan of Information Technology (To be filled with plans for fundamental development and procurement of information technology, including: significant changes to the configuration of the Guarantee Institution's core information technology or applications, procurement of new core applications, cooperation with information technology service providers, and other fundamental information technology development and procurement that can add and/or increase the risk of the Guarantee Institution. In addition, information regarding the estimated cost of information technology development must be filled in) b. Reasons/considerations (to be filled with reasons/considerations in compiling the plan for fundamental development and procurement of information technology)
c. Strategy
(to be filled with strategies to realize the plan for fundamental development and procurement of information technology)

Format 10 : Financial Statement Projections Along with Assumptions Used

Macro and Micro Assumptions Used
Assumption
Performance Sept
X-1
Projection
Dec X-1
June X
Dec X
Macro Assumptions 1):
Gross Domestic Product Growth (%)
Inflation Rate (%)
Others, detailed per type
of assumption 2)
Micro Assumptions:
Guarantee or Sharia Guarantee Growth (%)
Guarantee or Sharia Guarantee Claim Ratio (%)
Others, detailed per type
of assumption 3)
Notes:
X-1 is the year of report preparation.
X is the first year of the Business Plan position.

In case assumptions per semester are not available, annual assumptions can be used.
Other macro assumptions, such as interest rates, export growth, etc.
Other micro assumptions, such as growth of Productive Guarantee or Sharia Guarantee and/or gearing ratio.

Information Regarding the Financial Condition of Guarantee Companies
a. Projection of balance sheet statements
Items
Performance
Sept X-1
Projection
Dec X-1
June X
Dec X
Assets
Cash and cash equivalents
Investments
Receivables of
Guarantee Service Fees
(IJP)
Items
Performance
Sept X-1
Projection
Dec X-1
June X
Dec X
Other current assets
Fixed assets
Other assets
Total Assets
Liabilities
Claim payables
Tax payables
Claim reserves
Reinsurance payables
Deferred revenue
Issued securities
Other liabilities
Total Liabilities
Equity
Capital
General Reserves
Claim Reserves
Profit Balance
Total Equity
Total Liabilities and
Equity b. Projection of comprehensive income statements Items Performance Sept X-1 Projection Dec X-1 June X Dec X Guarantee Volume IJP Cash Basis Guarantee Income
Net IJP Income
Items
Performance
Sept X-1
Projection
Dec X-1
June X
Dec X
Net investment income
Other net income
Claim expenses
Business expenses
Other expenses
Profit (Loss) Before
Tax Expenses
Income tax
Profit (Loss) After Tax
c. Projection of cash flow statements
Items
Performance
Sept X-1
Projection
Dec X-1
June X
Dec X
Cash flows from operating
activities
Cash flows from investing
activities
Cash flows from financing
activities
Increase/decrease
in cash
Beginning Cash Balance
Ending Cash Balance
Information Regarding the Financial Condition of Sharia Guarantee Companies and UUS of Guarantee Companies
a. Projection of balance sheet statements
Items
Performance
Sept X-1
Projection
Dec X-1
June X
Dec X
Assets
Cash and cash equivalents
Investments
Receivables of
Kafalah Service Fees
(IJK)
Items
Performance
Sept X-1
Projection
Dec X-1
June X
Dec X
Fixed assets
Deferred tax assets
Other assets
Total Assets
Liabilities
Claim payables
Tax payables
Claim reserves
Sharia Reinsurance payables
Deferred revenue
Issued Securities
Other liabilities
Total Liabilities
Equity
Capital
General Reserves
Claim Reserves
Profit Balance
Total Equity
Total Liabilities and
Equity b. Projection of Comprehensive Income Statements Items Performance Sept X-1 Projection Dec X-1 June X Dec X Sharia Guarantee Volume IJK Cash Basis Sharia Guarantee Income
Kafalah service fees
Ujrah income
Items
Performance
Sept X-1
Projection
Dec X-1
June X
Dec X
Other income
Claim expenses
Ujrah expenses
Business expenses
Other expenses
Profit (Loss) Before
Tax Expenses
Profit (Loss) After Tax
c. Projection of Cash Flow Statements
Items
Performance
Sept X-1
Projection
Dec X-1
June X
Dec X
Cash flows from
operating activities
Cash flows from
investing activities
Cash flows from
financing activities
Increase/decrease
in cash
Beginning Cash Balance
Ending Cash Balance

Format 11 : Projection of Ratios and Specific Items

Ratios and Specific Items 1)
Performance
Sept X-1
Projection
Dec X-1
June X
Dec X

Productive guarantee Gearing Ratio
Non-productive guarantee Gearing Ratio
Total Gearing Ratio
Liquidity Ratio (%) is the ratio of current assets
to current liabilities
Rentability Ratio
a. ROE (%) b. ROA (%)
c. Claim Ratio (%) against
service fees
BOPO (%)
Notes:
X-1 is the year of report preparation.
X is the first year of the business plan position.

The method of calculating ratios and specific items refers to the Circular Letter of the Financial Services Authority regulating the health level of Guarantee Institutions.

Format 12 : Plan for Merger, Consolidation, and/or Separation

Merger Plan
a. Description regarding the merger plan:
Guarantee Institution merging into:

....
....
....
Guarantee Institution receiving the merger: ....
b. Reasons/considerations
(to be filled with reasons and considerations for the merger)
c. Strategy
(to be filled with merger strategy)

Consolidation Plan
a. Description regarding the consolidation plan Guarantee Institution consolidating into:

....
....
....
Guarantee Institution after consolidation: ....

b. Reasons/considerations
(to be filled with reasons and considerations for the consolidation)
c. Strategy
(to be filled with consolidation strategy)
3. Separation Plan
a. Description regarding the separation plan
Guarantee Institution separating from:

....
....
etc.
b. Reasons/considerations
(to be filled with reasons and considerations for the separation)
c. Strategy
(to be filled with separation strategy)

Format 13 : Plan for Cessation of Business Activities So as No Longer to Be a Guarantee Institution

Description of the plan for cessation of business activities so as no longer to be a Guarantee Institution
(to be filled with an explanation regarding the plan for cessation of business activities so as no longer to be a Guarantee Institution)
Reasons/considerations
(to be filled with reasons and considerations for the plan for cessation of business activities so as no longer to be a Guarantee Institution)
Strategy
(to be filled with the strategy for the plan for cessation of business activities so as no longer to be a Guarantee Institution)

Format 14 : Plan for Issuance of Mandatory Convertible Bonds

Table of Mandatory Convertible Bond issuance plan:
No
Type/
Series
Bond
Time of
Issuance
Number of
Lots
Nominal Value
Per Lot
Total Amount
Time of
Conversion
etc.
Reasons/considerations
(to be filled with reasons/considerations for the issuance of mandatory convertible bonds)
Strategy
(to be filled with the strategy for the issuance of mandatory convertible bonds and the conversion plan)

Format 15: Plan for Converting a Guarantee Company into a Sharia Guarantee Company or a Reinsurance Company into a Sharia Reinsurance Company

Information regarding the conversion plan:
Guarantee Institution to undergo conversion: ...
Guarantee Institution resulting from conversion: ...
Reasons/Considerations
(to be filled with reasons/considerations for conversion)
Strategy
(to be filled with conversion strategy)

Format 16: Plan for Formation, Closure, or Separation of Sharia Business Units (UUS)

Plan for UUS Formation
a. Information regarding the formation plan:
UUS resulting from formation: ......
b. Reasons/Considerations
(to be filled with reasons and considerations for UUS formation)
c. Strategy
(to be filled with formation strategy for UUS)
Plan for UUS Closure
a. Information regarding the closure plan:
UUS to be closed: ......
b. Reasons/Considerations
(to be filled with reasons and considerations for UUS closure)
c. Strategy
(to be filled with closure strategy for UUS)
Plan for UUS Separation
a. Information regarding the separation plan:
UUS separating itself: ......
Sharia Guarantee Institution resulting from separation:

...
...
etc.
b. Reasons/Considerations
(to be filled with reasons and considerations for UUS separation)
c. Strategy
(to be filled with separation strategy for UUS)

Format 17: Business Plan Realization Report

a. Filled with explanations regarding the achievement of the Business Plan, including the achievement of the Business Plan and the comparison of plans and realizations, which must at least include:

realization of business activity plans as referred to in Format 4;
realization of plans for business development or expansion as referred to in Format 5;
realization of investment plans as referred to in Format 6;
realization of capital plans as referred to in Format 7;
realization of plans for network/office or distribution channel development and/or changes as referred to in Format 8;
realization of plans for organizational development, human resources, and/or information technology as referred to in Format 9; and
realization of financial report projections along with the assumptions used as referred to in Format 10.
b. Filled with explanations regarding deviations in the Business Plan realization related to the scope of realization in letter a, such as causes and obstacles faced.
c. Filled with follow-up actions or efforts to be taken to improve Business Plan realization achievement.
d. Filled with ratios and specific items, including explanations regarding the realization of specific ratios and items as referred to in Format 11. e. Filled with explanations regarding the achievement of other information in the Business Plan and the comparison of plans and realizations, which must at least include:
realization of merger, merger, and/or separation plans as referred to in Format 12;
realization of plans to cease business activities so that the entity is no longer a Guarantee Institution as referred to in Format 13;
realization of plans for the issuance of Mandatory Convertible Bonds as referred to in Format 14;
realization of plans to convert a guarantee company into a Sharia guarantee company or a reinsurance company into a Sharia reinsurance company as referred to in Format 15; and
realization of plans for the formation, closure, or separation of UUS as referred to in Format 16.

Approved by:
Board of Directors: (signature and full name)
Board of Directors: (signature and full name) etc... etc...

This copy is consistent with the original
Deputy Director of Legal Consultation and Harmonization of Banking Regulations 1 Legal Directorate 1 Legal Department signature Wiwit Puspasari

Format 18: Business Plan Supervision Report
(to be filled with the Board of Commissioners' assessment of the implementation of the Business Plan in the form of quantitative and qualitative assessments of Business Plan realization, including assessments of good corporate governance factors, risk profiles, profitability, and capitalization, as well as efforts to improve the performance of the Guarantee Institution, if according to their assessment there is a decline in the performance of the Guarantee Institution)

Approved by:
Board of Commissioners: (signature and full name) Board of Commissioners: (signature and full name) etc... etc...

Established in Jakarta on April 21, 2020
EXECUTIVE HEAD OF INSURANCE, PENSION FUND,
FINANCING INSTITUTION, AND
OTHER FINANCIAL SERVICE INSTITUTIONS SUPERVISOR FINANCIAL SERVICES AUTHORITY, signature RISWINANDI

Circular Letter of the Financial Services Authority Number 4/SEOJK.05/2020 Concerning the Business Plan of Guarantee Institutions

Lineage: In force