HEAD OF THE COMMODITY FUTURES TRADING REGULATORY AGENCY REGULATION

NUMBER 6 OF 2016

CONCERNING

APPROVAL OF CLEARING AND GUARANTEE INSTITUTIONS FOR FORWARD AUCTION MARKETS

BY THE GRACE OF THE ALMIGHTY GOD,

THE HEAD OF THE COMMODITY FUTURES TRADING REGULATORY AGENCY,

Considering: a. that in order to accelerate economic growth in the agro-commodity trading sector, it is necessary to create a business climate that supports the efficiency of agro-commodity trading; b. that as an effort to create efficiency in agro-commodity trading as referred to in letter a, it is necessary to provide the widest possible business opportunities for Clearing and Guarantee Institutions for Forward Auction Markets; c. that based on the considerations as referred to in letter a and letter b, it is necessary to establish a Head of the Commodity Futures Trading Regulatory Agency Regulation concerning Approval of Clearing and Guarantee Institutions for Forward Auction Markets;

Recalling:

1. Law Number 32 of 1997 concerning Commodity Futures Trading (State Gazette of the Republic of Indonesia Year 1997 Number 93, Supplement to the State Gazette of the Republic of Indonesia Number 3720) as amended by Law Number 10 of 2011 concerning Amendments to Law Number 32 of 1997 concerning Commodity Futures Trading (State Gazette of the Republic of Indonesia Year 2011 Number 79, Supplement to the State Gazette of the Republic of Indonesia Number 5232);
2. Law Number 9 of 2006 concerning Warehouse Receipt Systems (State Gazette of the Republic of Indonesia Year 2006 Number 59, Supplement to the State Gazette of the Republic of Indonesia Number 4630) as amended by Law Number 9 of 2011 concerning Amendments to Law Number 9 of 2006 concerning Warehouse Receipt Systems (State Gazette of the Republic of Indonesia Year 2011 Number 78, Supplement to the State Gazette of the Republic of Indonesia Number 5231);
3. Law Number 7 of 2014 concerning Trade (State Gazette of the Republic of Indonesia Year 2014 Number 45, Supplement to the State Gazette of the Republic of Indonesia Number 5512);
4. Government Regulation Number 32 of 2004 concerning Regional Government (State Gazette of the Republic of Indonesia Year 2004 Number 125, Supplement to the State Gazette of the Republic of Indonesia Number 4437) as amended by Law Number 12 of 2008 (State Gazette of the Republic of Indonesia Year 2001 Number 78, Supplement to the State Gazette of the Republic of Indonesia Number 4437);
5. Presidential Regulation Number 7 of 2015 concerning the Organization of State Ministries (State Gazette of the Republic of Indonesia Year 2015 Number 8);
6. Presidential Regulation Number 48 of 2015 concerning the Ministry of Trade (State Gazette of the Republic of Indonesia Year 2015 Number 90);
7. Minister of Trade Regulation Number 08/M-DAG/PER/2/2016 concerning the Organization and Work Structure of the Ministry of Trade (State News of the Republic of Indonesia Year 2016 Number 202);

DECIDES:

To establish: A HEAD OF THE COMMODITY FUTURES TRADING REGULATORY AGENCY REGULATION CONCERNING APPROVAL OF CLEARING AND GUARANTEE INSTITUTIONS FOR FORWARD AUCTION MARKETS.

Article 1 Approval of Clearing and Guarantee Institutions for Forward Auction Markets is granted based on provisions of applicable legislation.

Article 2 Clearing and Guarantee Institutions for Forward Auction Markets may only be conducted by Limited Liability Companies.

Article 3 (1) Clearing and Guarantee Institutions for Forward Auction Markets must have at least the following requirements: a. have paid-up capital amounting to IDR 100,000,000,000.00 (one hundred billion rupiah); b. have Regulations and Bylaws of the Clearing and Guarantee Institution for Forward Auction Markets which have been approved by the Commodity Futures Trading Regulatory Agency; c. have facilities and infrastructure including systems that support the orderly, fair, efficient, effective, and transparent clearing and guaranteeing of the Auction Market; and d. cooperate with the Organizer of the Forward Auction Market to ensure transaction settlement.

(2) The Regulations and Bylaws as referred to in paragraph (1) letter b must contain at least: a. requirements to become members of the Clearing and Guarantee Institution for Forward Auction Markets; b. clearing and guarantee mechanisms, as well as transaction settlement; c. dispute resolution mechanisms; and d. sanctions for violations of regulations and bylaws.

Article 4 The requirements as referred to in Article 3 paragraph (1) are submitted to the Head of Bappebti using Form Number PL-FRM.II.01 and completed with documents as required in Form Number PL-FRM.II.01.A, PL-FRM.II.01.B, PL-FRM.II.01.C, and Form Number PL-FRM.II.01.D as listed in the Appendix of this Head of the Commodity Futures Trading Regulatory Agency Regulation, which is an integral part of this Head of the Commodity Futures Trading Regulatory Agency Regulation.

Article 5 (1) Bappebti conducts verification of document authenticity against originals and assessment of documents as referred to in Article 4. (2) Bappebti conducts physical infrastructure and facility inspections at the office of the Clearing and Guarantee Institution for Forward Auction Markets and creates an Inspection Minutes using Form Number PL-FRM.II.02 as listed in the Appendix of this Head of the Commodity Futures Trading Regulatory Agency Regulation, which is an integral part of this Head of the Commodity Futures Trading Regulatory Agency Regulation. (3) Bappebti grants Approval or Rejection of the application for the Clearing and Guarantee Institution for Forward Auction Markets within at most 20 (twenty) working days since the completeness assessment referred to in paragraph (1) and (2) is fulfilled. (4) Bappebti grants Approval of the application for the Clearing and Guarantee Institution for Forward Auction Markets using Form Number PL-FRM.II.03 as listed in the Appendix of this Head of the Commodity Futures Trading Regulatory Agency Regulation, which is an integral part of this Head of the Commodity Futures Trading Regulatory Agency Regulation. (5) Bappebti conveys Rejection of the application for approval of the Clearing and Guarantee Institution for Forward Auction Markets using Form Number PL-RM.II.04 as listed in the Appendix of this Head of the Commodity Futures Trading Regulatory Agency Regulation, which is an integral part of this Head of the Commodity Futures Trading Regulatory Agency Regulation.

Article 6 In the event that the Clearing and Guarantee Institution for Forward Auction Markets has obtained approval from Bappebti, the Clearing and Guarantee Institution for Forward Auction Markets is obligated to: a. store funds received from members of the Clearing and Guarantee Institution for Forward Auction Markets in a separate account from the account of the Clearing and Guarantee Institution for Forward Auction Markets at commercial banks and/or foreign exchange banks; b. guarantee the confidentiality of financial position information and business activities of members of the Clearing and Guarantee Institution for Forward Auction Markets, except if such information is provided in the framework of implementing applicable legislation; c. document and properly store all data related to Forward Auction Market activities; and d. monitor the activities and financial conditions of members of the Clearing and Guarantee Institution for Forward Auction Markets and take actions to freeze or terminate members of the Clearing and Guarantee Institution for Forward Auction Markets that do not meet financial and reporting requirements, in accordance with the Regulations and Bylaws as referred to in Article 3 paragraph (1) letter b.

Article 7 (1) Changes to the Articles of Association of the Clearing and Guarantee Institution for Forward Auction Markets must be reported to Bappebti at most 1 (one) week after the changes are legally valid according to applicable legislation. (2) The report on changes to the Articles of Association of the Clearing and Guarantee Institution for Forward Auction Markets as referred to in paragraph (1) is submitted to Bappebti using Form Number PL-FRM.II.05 and completed with documents as required in Form Number PL-FRM.II.01.A and Form Number PL-FRM.II.01 as listed in the Appendix of this Head of the Commodity Futures Trading Regulatory Agency Regulation, which is an integral part of this Head of the Commodity Futures Trading Regulatory Agency Regulation.

Article 8 (1) Changes to the address of the Clearing and Guarantee Institution for Forward Auction Markets must be reported to Bappebti. (2) The report on changes to the address of the Clearing and Guarantee Institution for Forward Auction Markets as referred to in paragraph (1) is submitted to Bappebti using Form Number PL-FRM.II.06 and completed with documents as required in Form Number PL-FRM.II.01.C as listed in the Appendix of this Head of the Commodity Futures Trading Regulatory Agency Regulation, which is an integral part of this Head of the Commodity Futures Trading Regulatory Agency Regulation.

Article 9 Clearing and Guarantee Institutions for Forward Auction Markets are obligated to submit monthly and annual reports of their activities to Bappebti.

Article 10 Clearing and Guarantee Institutions for Forward Auction Markets that violate provisions as regulated in this Regulation are subject to administrative sanctions in accordance with applicable legislation in the field of Auction Markets.

Article 11 With the enactment of this Head of the Commodity Futures Trading Regulatory Agency Regulation: a. Clearing and Guarantee Institutions for Forward Auction Markets that have obtained approval from Bappebti are obligated to adjust their paid-up capital gradually within a period of 2 (two) years since this Regulation is promulgated. b. The adjustment of paid-up capital as referred to in letter a is carried out through the following stages: a. first stage, Clearing and Guarantee Institutions for Forward Auction Markets are obligated to increase paid-up capital to IDR 50,000,000,000.00 (fifty billion rupiah) at most 1 (one) year since this Regulation is promulgated; and b. second stage, Clearing and Guarantee Institutions for Forward Auction Markets are obligated to increase paid-up capital to IDR 100,000,000,000.00 (one hundred billion rupiah) at most 2 (two) years since this Regulation is promulgated.

Article 12 Upon the enactment of this Head of the Commodity Futures Trading Regulatory Agency Regulation, the Head of the Commodity Futures Trading Regulatory Agency Regulation Number 02/BAPPEBTI/PER-PL/08/2010 concerning Approval of Clearing and Guarantee Institutions for Forward Auction Markets is revoked and declared invalid.

Article 13 This Head of the Commodity Futures Trading Regulatory Agency Regulation takes effect from the date of its promulgation.

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APPENDIX I

HEAD OF THE COMMODITY FUTURES TRADING REGULATORY AGENCY REGULATION

NUMBER 6 OF 2016

CONCERNING

APPROVAL OF CLEARING AND GUARANTEE INSTITUTIONS FOR FORWARD AUCTION MARKETS

DOCUMENTS FOR APPLICATION FOR APPROVAL OF CLEARING AND GUARANTEE INSTITUTIONS FOR FORWARD AUCTION MARKETS

Form Number PL-FRM.II.01

Application for Approval of Clearing and Guarantee Institution for Forward Auction Market

Number: .............. , ............................... Attachments: Subject: Application for Approval Clearing and Guarantee Institution Forward Auction Market

To: Head of the Commodity Futures Trading Regulatory Agency in J A K A R T A

Hereby we submit an application for approval of the Clearing and Guarantee Institution for Forward Auction Market. As consideration material, we submit the following data:

1. Applicant Name: ……………………………………………………………………
2. Identity Number/KTP: ……………………………………………………………………
3. Applicant Address: …………………………………………………………………… ……………………………………………………………………
4. Name of Clearing and Guarantee Institution: ..………………………………………………………………….
5. Applicant Position: ……………………………………………………………………
6. Taxpayer Identification Number (NPWP): …………………………………………………………………...
7. Capital a. Authorized Capital: ……………………………………………………………........ b. Paid-up Capital: ……………………………………………………………………
8. Address of Clearing and Guarantee Institution: …………………………………………………………………… ……………………………………………………………………
9. Telephone/Fax Number: ……………………………………………………………………
10. Email: ……………………………………………………………………
11. Contact Person: ……………………………………………………………………

Furthermore, we complete this application by attaching the following documents:

1. Deed of Establishment of the company and its amendments approved by the Minister of Law and Human Rights;
2. Copy of Taxpayer Identification Number (NPWP) of the company;
3. 3 (three) year business plan including organizational structure, work system, job descriptions, Rules and Regulation/Bylaws (PTT), Standard Operational Procedure (SOP for Member Acceptance, SOP for Transactions, SOP for Dispute Resolution for Default Payment and Default Delivery), financial projections, IT facilities (communication/contingency plan/IT configuration/DRC), internal supervision system;
4. List of names and data of Board of Directors members and Board of Commissioners members including: a. curriculum vitae; b. copy of final formal education diploma; c. copy of KTP/other Identity; and d. 4 (four) recent 4x6 color passport photos,
5. Legal entity data: a. Articles of Association; and b. Organizational structure,
6. Statement letter from Board of Commissioners and Board of Directors members of the Clearing and Guarantee Institution for Forward Auction Market stating that: a. they are legally competent to perform legal acts; b. they have never been declared bankrupt or served as Directors or Commissioners who were found guilty causing a Limited Liability Company to be declared bankrupt; and c. they have never committed disgraceful acts or been punished for proven criminal acts in the financial sector, The aforementioned statement letters are made using Form Number PL-FRM.II.01.A;
7. List of integrity questions regarding the applicant (Directors, Board of Commissioners, and shareholders) made using Form Number PL-FRM.II.01.D;
8. Statement letter from the Board of Directors that the Clearing and Guarantee Institution for Forward Auction Market is not controlled, directly or indirectly, by individuals who: a. have committed disgraceful acts in the economic field; b. have been punished for proven criminal acts; and c. do not have good morals and ethics,
9. Completeness information of the Clearing and Guarantee Institution for Forward Auction Market made using Form Number PL-FRM.II.01.C.

Thus, this application is submitted, and we thank you for your attention.

Applicant Stamp Duty Clear Name (…………………………) Chief Executive Officer

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Form Number PL-FRM.II.01.A

Statement Letter on Business Reputation of Chief Executive Officer and Chief Commissioner

STATEMENT LETTER ON BUSINESS REPUTATION

The undersigned: Name: …………………………………………………………….. Identity Number/KTP: …………………………………………………………….. Taxpayer Identification Number: ……………………………………………………………... Position: …………………………………………………………….. Complete Address: ……………………………………………………………… ………………………………………………………………. (Street Name and Number) …………………………………… - ……………………….. Telephone and Fax Number: ………………………………………………………………

As Chief Executive Officer/Chief Commissioner)* of PT…………………………… hereby state that I: a. am legally competent to perform legal acts; b. have never been declared bankrupt or served as a Director or Commissioner who was found guilty causing a Limited Liability Company to be declared bankrupt; and c. have never committed disgraceful acts or have never been punished for proven criminal acts in the financial sector.

Thus, this statement is made truthfully to be used as appropriate.

…………..,………………. (Place and Date) Chief Executive Officer/Chief Commissioner)* Stamp Duty Clear Name (..........................................) )*choose one

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Form Number PL-FRM.II.01.B

Board of Directors Statement Regarding Controllers

BOARD OF DIRECTORS STATEMENT REGARDING CONTROLLERS

We the undersigned: Name: …………………………………………………………. Identity Number/KTP: …………………………………………………………. Taxpayer Identification Number: ………………………………………………………..... Position: Chief Executive Officer Complete Address: …………………………………………………………..

……………………………………………………………. (Street Name and Number) …………………………………… - …………………… (City and Postal Code) Telephone and Fax Number: ………………………………………………………………

Based on the Company's Articles of Association, acting on behalf of PT……………. located at ………………………. Hereby state truthfully that PT………………….. is not controlled, directly or indirectly, by individuals who: a. have committed disgraceful acts in the economic field; b. have been punished for proven criminal acts; and c. do not have good morals and ethics.

Thus, this statement is made truthfully to be used as appropriate.

………………, ………………. Chief Executive Officer PT.……………….. Stamp Duty Clear Name (…………………………)

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Form Number PL-FRM.II.01.C

Completeness Information of Clearing and Guarantee Institution for Forward Auction Market

COMPLETENESS INFORMATION OF CLEARING AND GUARANTEE INSTITUTION FOR FORWARD AUCTION MARKET

I. Company Name: Address: Telephone/Fax Number:

II. List of Individual Shareholders No. Full Name Address NPWP Amount Rp %

III. List of Corporate Shareholders No. Full Name Address NPWP Amount Rp %

IV. List of Infrastructure and Facilities No. Type Yes/No Description

1. Organizational Structure
2. Internal Supervision System
3. Training System
4. Complaint Service
5. Office Space and Equipment
6. Promotional Media (leaflets, brochures, etc.)
7. Telecommunications and Information Technology Equipment
8. Operational Room
9. Online Computer with Forward Auction Market Organizer

…………..,………………. (Place and Date) Chief Executive Officer) Stamp Duty Clear Name (..........................................)

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Form Number PL-FRM.II.01.D

Chief Executive Officer Integrity Questionnaire

CHIEF EXECUTIVE OFFICER INTEGRITY QUESTIONNAIRE

Instructions for answering questions:

1. All questions must be answered by the Chief Executive Officer;
2. Signed by the Chief Executive Officer on stamped paper;
3. Place an X in the box in front of the word "yes" if the Chief Executive Officer's answer is "yes", or place an X in the box in front of the word "no" if the Chief Executive Officer's answer is "no".

For every "yes" answer, the Chief Executive Officer is obligated to provide a detailed and clear answer on a separate sheet which includes among others: a. the institutions involved; b. the cases and dates of the actions taken; c. the court or institution that took the action; and d. the actions and sanctions taken.

Answer the following questions!

Is the Limited Liability Company controlled, directly or indirectly, by individuals who:

1. Have been warned, frozen, have their license revoked, or have their license rejected by Bappebti? ☐ yes ☐ no

2. Have ever been punished for proven criminal acts in the economic field including trade, banking, insurance, capital market, futures trading, or taxation? ☐ yes ☐ no

3. Have been proven to violate regulations and legislation in the trade field within the last 5 (five) years?

4. Have been declared bankrupt or served as Directors or Commissioners who were found guilty causing a Limited Liability Company to be declared bankrupt within the last 5 (five) years? ☐ yes ☐ no

5. Are currently under investigation or trial for suspected violations of regulations and legislation in the trade field or suspected criminal acts in the economic field including banking, insurance, capital market, or taxation? ☐ yes ☐ no

6. Do not have good morals? ☐ yes ☐ no

7. Are on the banking blacklist? ☐ yes ☐ no

8. Are not compliant in paying financial obligations, especially tax payments? ☐ yes ☐ no

…………..,………………. (Place and Date) Chief Executive Officer Stamp Duty Clear Name (..........................................)

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Form Number PL-FRM.II.02

Inspection Minutes of Infrastructure and Facilities of Clearing and Guarantee Institution for Forward Auction Market

INSPECTION MINUTES OF INFRASTRUCTURE AND FACILITIES OF CLEARING AND GUARANTEE INSTITUTION FOR FORWARD AUCTION MARKET

On this day .............., date ..........., month ........., year ........ signed below:

1. Name: ....................................................................................................... NIP: ....................................................................................................... Position: .......................................................................................................
2. Name: ....................................................................................................... NIP: ....................................................................................................... Position: .......................................................................................................
3. Name: ....................................................................................................... NIP: ....................................................................................................... Position: .......................................................................................................

In accordance with the task order from the Head of the Commodity Futures Trading Regulatory Agency Number..... dated ..............., conducted an inspection of infrastructure and facilities owned by PT…………………….. to conduct activities as a Clearing and Guarantee Institution for Forward Auction Market.

Thus, this Inspection Minutes is made truthfully to be used as appropriate.

The Inspected, Inspection Team, Signature & Stamp 1. ………………..

Clear Name 2. ………………. (………………………………) 3. ………………. Chief Executive Officer

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Form Number PL-FRM.III.03

Decision of the Head of the Commodity Futures Trading Regulatory Agency Regarding Approval of Clearing and Guarantee Institution for Forward Auction Market

DECISION

HEAD OF THE COMMODITY FUTURES TRADING REGULATORY AGENCY

NUMBER: .........

CONCERNING

APPROVAL OF CLEARING AND GUARANTEE INSTITUTION FOR FORWARD AUCTION MARKET

TO PT................

THE HEAD OF THE COMMODITY FUTURES TRADING REGULATORY AGENCY,

Reading: Application Letter for Approval of Clearing and Guarantee Institution for Forward Auction Market from Limited Liability Company.............Number........ dated ...........;

Considering: that the application has met the requirements and therefore can be considered for approval as a Clearing and Guarantee Institution for Forward Auction Market.