OJK Regulation No. 32 of 2024 on the Development and Strengthening of Securities Transactions and Institutions

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REGULATION OF THE FINANCIAL SERVICES AUTHORITY OF THE REPUBLIC OF INDONESIA NUMBER 32 OF 2024 CONCERNING THE DEVELOPMENT AND STRENGTHENING OF SECURITIES TRANSACTIONS AND INSTITUTIONS BY THE GRACE OF GOD THE ALMIGHTY, THE COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY, Considering: a. that in order to provide a positive contribution and support inclusive and sustainable economic growth, efforts are needed to develop and strengthen the capital market sector, particularly regarding regulations concerning securities transactions and institutions; b. that the development and strengthening efforts referred to in letter a are carried out in the form of adjusting regulations and having new regulations concerning securities transactions and institutions;
c. that in order to implement the provisions of Article 5D paragraph (4), Article 14 paragraph (3), Article 55 paragraph (1), paragraph (3) and paragraph (7), Article 55A, Article 70 paragraph (3), Article 89A paragraph (4), and Article 89B paragraph (4) of Law Number 8 of 1995 concerning the Capital Market as amended by Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector, further regulations are needed in a Financial Services Authority Regulation;
d. that based on the considerations referred to in letters a, b, and c, it is necessary to establish a Financial Services Authority Regulation concerning the Development and Strengthening of Securities Transactions and Institutions; Recalling: 1. Law Number 8 of 1995 concerning the Capital Market (State Gazette of the Republic of Indonesia Year 1995 Number 64, Supplement to the State Gazette of the Republic of Indonesia Number 3608) as amended by Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (State Gazette of the Republic of Indonesia Year 2023 https://jdih.ojk.go.id/

Number 4, Supplement to the State Gazette of the Republic of Indonesia Number 6845);
2. Law Number 21 of 2011 concerning the Financial Services Authority (State Gazette of the Republic of Indonesia Year 2011 Number 111, Supplement to the State Gazette of the Republic of Indonesia Number 5253) as amended by Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (State Gazette of the Republic of Indonesia Year 2023 Number 4, Supplement to the State Gazette of the Republic of Indonesia Number 6845);
DECIDING:
Establishing: A FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING THE DEVELOPMENT AND STRENGTHENING OF SECURITIES TRANSACTIONS AND INSTITUTIONS.

CHAPTER I
GENERAL PROVISIONS
Article 1
In this Financial Services Authority Regulation, the following terms are defined as:

1. Capital Market is a part of the financial system related to activities:
   a. public offerings and securities transactions; b. investment management;
   c. issuers and public companies related to the securities they issue; and
   d. institutions and professions related to securities.

2. Securities are negotiable instruments or investment contracts, whether in conventional and digital forms or other forms in accordance with technological developments, which give the owner the right to directly or indirectly obtain economic benefits from the issuer or from a certain party based on an agreement and any derivatives of Securities, which can be transferred and/or traded on the Capital Market.

3. Market Organizer is a party that organizes and provides systems and/or facilities to bring together parties conducting transactions on Securities or financial instruments on the Capital Market or an organized financial market.

4. Stock Exchange is a Market Organizer on the Capital Market for exchange transactions.

5. Clearing and Guarantee Institution is a party that organizes clearing and/or guarantee services for the settlement of Securities transactions conducted through a Market Organizer on the Capital Market as well as other services that can be applied to support inter-market activities.
   https://jdih.ojk.go.id/

6. Custody and Settlement Institution is a party that:
   a. organizes central custody activities for custodian banks, Securities companies, and other parties; and b. provides other services that can be applied to support inter-market activities.

7. Securities Company is a party that conducts activities as a securities underwriter and/or securities broker or investment manager.

8. Securities Transaction is any activity or contract in order to acquire, release, or use Securities that results in a change of ownership or does not result in a change of ownership on the Capital Market.

9. Exchange Transaction is a contract made by members of the Stock Exchange in accordance with the requirements determined by the Stock Exchange regarding the sale and purchase of Securities, borrowing and lending of Securities, or other contracts concerning Securities or the price of Securities.

10. Guarantee Fund is a collection of funds and/or Securities administered and managed by the Clearing and Guarantee Institution used to guarantee the settlement of Securities transactions by the Clearing and Guarantee Institution.

11. Deposit Insurance Institution is a deposit insurance institution as referred to in the law concerning the Deposit Insurance Institution.

12. Professional Investor is a party that has the ability to purchase Securities and conduct risk analysis on investments in such Securities.

13. Party is an individual, legal entity, company, joint venture, association, or organized group.

CHAPTER II
STOCK EXCHANGES, CLEARING AND GUARANTEE INSTITUTIONS, AND CUSTODY AND SETTLEMENT INSTITUTIONS First Section Stock Exchange
Article 2
(1) Stock Exchanges are established as Market Organizers on the Capital Market for orderly, fair, and efficient Exchange Transactions.
(2) Stock Exchanges may provide other services based on regulations established or approval given by the Financial Services Authority for each other service.
(3) Other services as referred to in paragraph (2) may be organized for financial market infrastructure provision activities and other service provision activities in the Capital Market sector. https://jdih.ojk.go.id/

(4) Financial market infrastructure provision activities as referred to in paragraph (3) may include:
a. provision of infrastructure for financial instrument transactions; b. provision of infrastructure for digital asset transactions;
c. provision of infrastructure for financial instrument reporting;
d. provision of infrastructure for digital asset reporting; e. implementation of government program support mandates; and f. other activities mandated to the Stock Exchange in the context of supporting financial market infrastructure. (5) Other service provision activities in the Capital Market sector as referred to in paragraph (3) may include:
a. Alternative Market Organizers; b. organizers of carbon unit trading through carbon exchanges;
c. providers of electronic public offering systems;
d. providers of Capital Market data and/or compilation of indices on the Capital Market; and e. other activities mandated to the Stock Exchange in the context of supporting Capital Market infrastructure.
Article 3
In providing other services as referred to in Article 2 paragraph (2), Stock Exchanges must ensure that the provision of other services:
a. does not conflict with statutory regulations; and b. is based on adequate risk management to mitigate risks arising.
Second Section
Clearing and Guarantee Institutions and Custody and Settlement Institutions
Article 4
(1) Clearing and Guarantee Institutions are established with the purpose of providing clearing and/or guarantee facilities for the orderly, fair, and efficient settlement of Securities transactions. (2) Clearing and Guarantee Institutions may provide other services based on regulations established or approval given by the Financial Services Authority for each other service. (3) Other services as referred to in paragraph (2) may be organized for financial market infrastructure provision activities and other service provision activities in the Capital Market sector. (4) Financial market infrastructure provision activities as referred to in paragraph (3) may include:
a. organizers of clearing and/or guarantee facilities for inter-market financial instrument transactions; https://jdih.ojk.go.id/

b. organizers of triparty repurchase agreement infrastructure and borrowing and lending of financial instruments;
c. organizers of risk management facilities; and
d. organizers of collateral management facilities; and e. other activities mandated to the Clearing and Guarantee Institution in the context of supporting financial market infrastructure. (5) Other service provision activities in the Capital Market sector as referred to in paragraph (3) may include:
a. organizers of triparty repurchase agreement infrastructure and bilateral borrowing and lending of Securities; b. organizers of collateral management services;
c. organizers of risk management facilities;
d. providers of electronic public offering systems; e. providers of information, data, and reporting services; and f. other activities mandated to the Clearing and Guarantee Institution in the context of supporting Capital Market infrastructure.
Article 5
(1) Custody and Settlement Institutions are established with the purpose of providing central custody services and transaction settlement that are orderly, fair, and efficient. (2) Custody and Settlement Institutions may provide other services based on regulations established or approval given by the Financial Services Authority for each other service. (3) Other services as referred to in paragraph (2) may be organized for financial market infrastructure provision activities and other service provision activities in the Capital Market sector. (4) Financial market infrastructure provision activities as referred to in paragraph (3) may include:
a. provision of financial instrument custody services; b. storage and settlement of other asset transactions;
c. providers of identity numbers for entities wishing to conduct international transactions; and
d. other activities mandated to the Custody and Settlement Institution in the context of supporting financial market infrastructure.
(5) Other service provision activities in the Capital Market sector as referred to in paragraph (3) may include:
a. provision of central custody services that conduct electronic recording of Securities that are not part of collective custody; b. providers of fund storage services;
c. organizers of data and information administration services related to customers;
d. organizers of information, administration, and customer transaction settlement services; https://jdih.ojk.go.id/

e. providers of electronic general meetings of Securities holders; f. providers of internationally applicable Security codes; and g. other activities mandated to the Custody and Settlement Institution in the context of supporting Capital Market infrastructure.
Article 6
In providing other services as referred to in Article 4 paragraph (2) and Article 5 paragraph (2), Clearing and Guarantee Institutions and Custody and Settlement Institutions must ensure that the provision of other services:
a. does not conflict with statutory regulations; and b. is based on adequate risk management to mitigate risks arising.
Third Section
Administrative Sanctions
Article 7
(1) Any Party that violates the provisions as referred to in Article 3 and Article 6 shall be subject to administrative sanctions.
(2) Sanctions as referred to in paragraph (1) shall also be imposed on Parties that cause the occurrence of violations as referred to in paragraph (1).
(3) Sanctions as referred to in paragraph (1) and paragraph (2) shall be imposed by the Financial Services Authority.
(4) Sanctions as referred to in paragraph (1) include:
a. written warning; b. fine, namely the obligation to pay a certain amount of money;
c. restriction of business activities;
d. suspension of business activities; and/or e. revocation of business license.
(5) Administrative sanctions as referred to in paragraph (4) letter b, letter c, letter d, or letter e may be imposed with or without being preceded by the imposition of an administrative sanction in the form of a written warning as referred to in paragraph (4) letter a. (6) Administrative sanctions in the form of fines as referred to in paragraph (4) letter b may be imposed separately or together with the imposition of administrative sanctions as referred to in paragraph (4) letter c, letter d, or letter e. (7) The procedure for imposing sanctions as referred to in paragraph (3) shall be carried out in accordance with statutory regulations in the field of Capital Market. https://jdih.ojk.go.id/

CHAPTER III
SETTLEMENT OF SECURITIES TRANSACTIONS AND GUARANTEE FUNDS First Section Settlement of Securities Transactions
Article 8
(1) Settlement of Securities Transactions may be implemented with book-entry settlement, physical settlement, or settlement by other means.
(2) Book-entry settlement as referred to in paragraph (1) is the fulfillment of rights and obligations arising as a result of Securities Transactions conducted by reducing Securities and/or funds from one Securities account and/or adding Securities and/or funds to another Securities account at the custodian. (3) Book-entry settlement as referred to in paragraph (1) may be conducted electronically. (4) Physical settlement as referred to in paragraph (1) is the settlement of Securities Transactions for negotiable instrument Securities. (5) Settlement of Securities Transactions by other means as referred to in paragraph (1) is conducted with:
a. direct settlement of Securities Transactions on the register of Securities holders without going through a Securities account at the custodian; b. international settlement of Securities Transactions or through other countries;
c. digital settlement of Securities Transactions or other mechanisms that may be found and applied in the future in accordance with technological developments; or
d. other Securities Transactions settlement that must be conducted in accordance with statutory regulations.
(6) Settlement of Securities Transactions by other means must first obtain approval from the Financial Services Authority.
(7) Settlement of Securities Transactions is conducted for Securities Transactions on the Stock Exchange and outside the Stock Exchange.
Article 9
(1) Clearing and Guarantee Institutions must guarantee the settlement of Securities Transactions regulated in Financial Services Authority regulations.
(2) The guarantee of settlement of Securities Transactions by Clearing and Guarantee Institutions includes the settlement of Securities Transactions on the Stock Exchange and the settlement of Securities Transactions outside the Stock Exchange. (3) The guarantee of settlement of Securities Transactions on the Stock Exchange is implemented in accordance with statutory regulations concerning the guarantee of settlement of Exchange Transactions. (4) Regulations concerning the guarantee of settlement of Securities Transactions outside the Stock Exchange refer to the type/nature of Securities traded or the mechanism of Securities Transactions regulated in regulations established by the Financial Services Authority. https://jdih.ojk.go.id/

(5) Clearing and Guarantee Institutions may not perform Guarantee of Settlement of Certain Securities Transactions based on regulations established by the Stock Exchange, Market Organizers outside the Stock Exchange, and/or Clearing and Guarantee Institutions or upon order of the Financial Services Authority. (6) Clearing and Guarantee Institutions, either alone or together with the Stock Exchange or Market Organizers outside the Stock Exchange, may determine certain Securities whose settlement of Securities Transactions is not guaranteed.
Article 10
(1) Settlement of Securities Transactions by Clearing and Guarantee Institutions may include the handover of Securities, funds, or other substitute assets.
(2) Clearing and Guarantee Institutions must regulate the mechanism of handover of Securities, funds, or other substitute assets as referred to in paragraph (1).
Second Section
Guarantee Funds
Article 11
(1) Clearing and Guarantee Institutions manage Guarantee Funds used to guarantee the settlement of Securities Transactions.
(2) Clearing and Guarantee Institutions separate Guarantee Funds for Exchange Transactions and Securities Transactions at Market Organizers outside the Stock Exchange.
(3) Guarantee Funds are the property of the Capital Market industry and are not the property of Parties making Guarantee Fund contributions nor the Clearing and Guarantee Institution. (4) Further regulations concerning the formation, use, and management of Guarantee Funds as referred to in paragraph (1) are regulated in a Financial Services Authority Regulation concerning the guarantee of settlement of Securities Transactions. (5) In the event that Clearing and Guarantee Institutions perform the guarantee of settlement of inter-market financial instrument transactions, Clearing and Guarantee Institutions must separate guarantee funds or standby funds from the Guarantee Funds owned by the Capital Market industry. Third Section Administrative Sanctions
Article 12
(1) Any Party that violates the provisions as referred to in Article 8 paragraph (6), Article 9 paragraph (1), Article 10 paragraph (2), and Article 11 paragraph (5) shall be subject to administrative sanctions. https://jdih.ojk.go.id/

(2) Sanctions as referred to in paragraph (1) shall also be imposed on Parties that cause the occurrence of violations as referred to in paragraph (1).
(3) Sanctions as referred to in paragraph (1) and paragraph (2) shall be imposed by the Financial Services Authority.
(4) Sanctions as referred to in paragraph (1) include:
a. written warning; b. fine, namely the obligation to pay a certain amount of money;
c. restriction of business activities;
d. suspension of business activities; and/or e. revocation of business license.
(5) Administrative sanctions as referred to in paragraph (4) letter b, letter c, letter d, or letter e may be imposed with or without being preceded by the imposition of an administrative sanction in the form of a written warning as referred to in paragraph (4) letter a. (6) Administrative sanctions in the form of fines as referred to in paragraph (4) letter b may be imposed separately or together with the imposition of administrative sanctions as referred to in paragraph (4) letter c, letter d, or letter e. (7) The procedure for imposing sanctions as referred to in paragraph (3) shall be carried out in accordance with statutory regulations in the field of Capital Market.

CHAPTER IV
TRADING OF DEBT-TYPE SECURITIES AND/OR SUKUK OF THE DEPOSIT INSURANCE INSTITUTION
Article 13
(1) The Deposit Insurance Institution, in implementing its functions, may issue debt-type securities and/or sukuk without first submitting a registration statement to the Financial Services Authority. (2) Debt-type securities and/or sukuk of the Deposit Insurance Institution as referred to in paragraph (1) must be issued in non-negotiable form and accounted for by the Custody and Settlement Institution. (3) Debt-type securities and/or sukuk of the Deposit Insurance Institution as referred to in paragraph (1) may only be traded in the secondary market. (4) Debt-type securities and/or sukuk of the Deposit Insurance Institution as referred to in paragraph (1) may only be traded by professional investors. (5) Professional investors are investors who meet the criteria of Professional Investors as regulated in a Financial Services Authority Regulation concerning the public offering of debt-type securities and/or sukuk to professional investors. https://jdih.ojk.go.id/

Article 14
(1) Transactions on debt-type securities and/or sukuk of the Deposit Insurance Institution must be reported to the Financial Services Authority through the Securities Transaction Reporting Recipient. (2) Reports on Transactions on debt-type securities and/or sukuk of the Deposit Insurance Institution must be submitted electronically using systems and/or facilities provided by the Securities Transaction Reporting Recipient. (3) The reporting procedure for Transactions on debt-type securities and/or sukuk of the Deposit Insurance Institution as referred to in paragraph (2) shall be implemented in accordance with statutory regulations concerning the reporting of Securities Transactions.
Article 15
(1) Any Party that violates the provisions as referred to in Article 13 paragraph (2), Article 14 paragraph (1) and paragraph (2), shall be subject to administrative sanctions. (2) Sanctions as referred to in paragraph (1) shall also be imposed on Parties that cause the occurrence of violations as referred to in paragraph (1). (3) Sanctions as referred to in paragraph (1) and paragraph (2) shall be imposed by the Financial Services Authority. (4) Sanctions as referred to in paragraph (1) include:
a. written warning; and/or b. fine, namely the obligation to pay a certain amount of money.
(5) Administrative sanctions in the form of fines as referred to in paragraph (4) letter b may be imposed with or without being preceded by the imposition of an administrative sanction in the form of a written warning as referred to in paragraph (4) letter a. (6) Administrative sanctions in the form of fines as referred to in paragraph (4) letter b may be imposed separately. (7) The procedure for imposing sanctions as referred to in paragraph (3) shall be carried out in accordance with statutory regulations in the field of Capital Market.

CHAPTER V
DIFFICULTY CONDITIONS THAT ENDANGER THE BUSINESS CONTINUITY OF MARKET ORGANIZERS ON THE CAPITAL MARKET, STOCK EXCHANGES, CLEARING AND GUARANTEE INSTITUTIONS, CUSTODY AND SETTLEMENT INSTITUTIONS, AND/OR SECURITIES COMPANIES First Section Determination of Difficulty Conditions that Endanger Business Continuity
Article 16
(1) Difficulty conditions that endanger the business continuity of Market Organizers on the Capital Market, Stock Exchanges, Clearing and Guarantee Institutions, and/or Custody and Settlement Institutions include conditions:
a. disruption of systems causing operational activities to be unable to be conducted normally for a period of more than 3 (three) working days; b. inability to cover business losses;
c. potential inability to settle financial obligations;
d. management of Market Organizers, Stock Exchanges, Clearing and Guarantee Institutions, and/or Custody and Settlement Institutions being unable to implement appropriate operational implementation; e. absence of all management; f. legal disputes causing Market Organizers, Stock Exchanges, Clearing and Guarantee Institutions, and/or Custody and Settlement Institutions to be unable to conduct activities normally; and/or g. other conditions that endanger the business continuity of Market Organizers on the Capital Market, Stock Exchanges, Clearing and Guarantee Institutions, and/or Custody and Settlement Institutions. (2) In addition to conditions as referred to in paragraph (1), difficulty conditions that specifically endanger the business continuity of Clearing and Guarantee Institutions include:
a. existence of difficulty conditions that cannot be resolved with action plans and have the potential to disrupt the business continuity of Clearing and Guarantee Institutions; b. clearing members unwilling to participate in the recovery process; and/or
c. unpredictable losses due to member failures.
(3) Difficulty conditions that endanger the business continuity of Securities Companies include conditions:
a. failure to fulfill settlement obligations of Securities Transactions conducted by Securities Companies; b. disruption of systems causing Securities Companies to be unable to conduct activities normally for a period of more than 7 (seven) working days;
c. significant decline in the adjusted net working capital value of Securities Companies causing failure to meet the minimum adjusted net working capital value for a period of more than 30 (thirty) working days;
d. inability to cover business losses; e. inability to settle financial obligations that have legal or operational business impacts; https://jdih.ojk.go.id/

f. violations that cause the Securities Company to be subject to suspension of business activities for a certain period; g. the absence of all management; h. legal disputes that cause the Securities Company to be unable to carry out activities normally; and/or
i. other difficult conditions that endanger the continuity of the Securities Company's business activities.

(4) Market Infrastructure Providers in the Capital Market, Stock Exchanges, Clearing and Guarantee Institutions, Custody and Settlement Institutions, and/or Securities Companies are required to submit detailed reports regarding conditions threatening the continuity of business activities as referred to in paragraph (1), paragraph (2), and paragraph (3) to the Financial Services Authority no later than on the same day since the occurrence of such conditions.

(5) Market Infrastructure Providers in the Capital Market, Stock Exchanges, Clearing and Guarantee Institutions, Custody and Settlement Institutions, and/or Securities Companies are declared to be experiencing conditions threatening the continuity of business activities based on the determination of the Financial Services Authority.

Article 17
Based on the determination of the Financial Services Authority as referred to in Article 16 paragraph (5), the Financial Services Authority may order the Clearing and Guarantee Institution to carry out a recovery plan through mechanisms as determined by the Financial Services Authority.

Second Section
Resolution Actions for Conditions Threatening the Continuity of Business Activities

Article 18
(1) In the event that the Financial Services Authority has determined conditions threatening the continuity of business activities as referred to in Article 16 paragraph (5), Market Infrastructure Providers in the Capital Market, Stock Exchanges, Clearing and Guarantee Institutions, Custody and Settlement Institutions, and/or Securities Companies are required to submit a resolution action plan to the Financial Services Authority.

(2) Resolution actions as referred to in paragraph (1) include:
a. requesting shareholders of Market Infrastructure Providers in the Capital Market, Stock Exchanges, Clearing and Guarantee Institutions, Custody and Settlement Institutions, and/or Securities Companies to increase capital; b. dismissing some or all members of the board of commissioners and/or board of directors of Market Infrastructure Providers in the Capital Market, Stock Exchanges, Clearing and Guarantee Institutions, Custody and Settlement Institutions, and/or Securities Companies temporarily and appointing a statutory manager;
c. requesting shareholders of Market Infrastructure Providers in the Capital Market, Stock Exchanges, Clearing and Guarantee Institutions, Custody and Settlement Institutions, and/or Securities Companies to hold a general meeting of shareholders;
d. strengthening risk management; e. preparing the implementation of a business continuity plan; f. ordering certain Parties to carry out or not carry out actions deemed capable of overcoming the difficulties faced by Market Infrastructure Providers in the Capital Market, Stock Exchanges, Clearing and Guarantee Institutions, Custody and Settlement Institutions, and/or Securities Companies; and/or g. other actions to resolve difficulties that may endanger the continuity of business activities of Market Infrastructure Providers in the Capital Market, Stock Exchanges, Clearing and Guarantee Institutions, Custody and Settlement Institutions, and/or Securities Companies.

(3) The resolution action plan must be submitted within the time limit determined by the Financial Services Authority.

(4) The Financial Services Authority has the authority to request Market Infrastructure Providers in the Capital Market, Stock Exchanges, Clearing and Guarantee Institutions, Custody and Settlement Institutions, and/or Securities Companies to make adjustments to the resolution action plan as referred to in paragraph (1).

Article 19
(1) Market Infrastructure Providers in the Capital Market, Stock Exchanges, Clearing and Guarantee Institutions, Custody and Settlement Institutions, and/or Securities Companies are required to submit reports on the implementation of the resolution action plan as referred to in Article 18.

(2) Reports on the implementation of the resolution action plan as referred to in paragraph (1) must be submitted to the Financial Services Authority no later than 2 (two) working days since the implementation of the resolution action plan.

Article 20
The Financial Services Authority has the authority to conduct examinations regarding the implementation of the resolution action plan.

https://jdih.ojk.go.id/

Third Section
Other Actions for Conditions Threatening the Continuity of Business Activities

Article 21
(1) The Financial Services Authority may carry out certain actions in the event that:
a. resolution actions cannot overcome the difficulties faced by Market Infrastructure Providers in the Capital Market, Stock Exchanges, Clearing and Guarantee Institutions, Custody and Settlement Institutions, and/or Securities Companies; and/or b. in the opinion of the Financial Services Authority, the condition of Market Infrastructure Providers in the Capital Market, Stock Exchanges, Clearing and Guarantee Institutions, Custody and Settlement Institutions, and/or Securities Companies may endanger the Capital Market industry.

(2) Certain actions as referred to in paragraph (1) consist of:
a. revoking the business license of Market Infrastructure Providers in the Capital Market, Stock Exchanges, Clearing and Guarantee Institutions, Custody and Settlement Institutions, and/or Securities Companies; b. ordering the board of directors or statutory manager to immediately hold a general meeting of shareholders to dissolve the legal entity of Market Infrastructure Providers in the Capital Market, Stock Exchanges, Clearing and Guarantee Institutions, Custody and Settlement Institutions, and/or Securities Companies and form a liquidation team; and/or
c. appointing a certain Party as a temporary organizer of the functions of Market Infrastructure Providers in the Capital Market, Stock Exchanges, Clearing and Guarantee Institutions, or Custody and Settlement Institutions.

Article 22
(1) Any Party that violates the provisions as referred to in Article 16 paragraph (4), Article 18 paragraph (1) and paragraph (3), and Article 19 shall be subject to administrative sanctions.

(2) Sanctions as referred to in paragraph (1) shall also be imposed on Parties that cause the occurrence of violations as referred to in paragraph (1).

(3) Sanctions as referred to in paragraph (1) and paragraph (2) are imposed by the Financial Services Authority.

(4) Sanctions as referred to in paragraph (1) consist of:
a. written warning; b. fines, namely the obligation to pay a certain amount of money;
c. restriction of business activities;
d. suspension of business activities; and/or e. revocation of business license.

https://jdih.ojk.go.id/

(5) Administrative sanctions as referred to in paragraph (4) letter b, letter c, letter d, or letter e may be imposed with or without prior imposition of administrative sanctions in the form of a written warning as referred to in paragraph (4) letter a.

(6) Administrative sanctions in the form of fines as referred to in paragraph (4) letter b may be imposed separately or together with the imposition of administrative sanctions as referred to in paragraph (4) letter c, letter d, or letter e.

(7) The procedure for imposing sanctions as referred to in paragraph (3) is carried out in accordance with the provisions of legislation in the field of Capital Market.

CHAPTER VI
OTHER PROVISIONS

Article 23
In addition to administrative sanctions as referred to in this Financial Services Authority Regulation, the Financial Services Authority may carry out certain actions against any Party that violates the provisions of this Financial Services Authority Regulation.

Article 24
The Financial Services Authority may announce the imposition of administrative sanctions as referred to in this Financial Services Authority Regulation and certain actions as referred to in Article 23 to the public.

CHAPTER VII
CLOSING PROVISIONS

Article 25
This Financial Services Authority Regulation shall come into force on the date of its promulgation.

https://jdih.ojk.go.id/

This copy is in accordance with the original
Director of Legal Development
Legal Department signed
Aat Windradi

In order that everyone may know it, order the promulgation of this Financial Services Authority Regulation by placing it in the State Journal of the Republic of Indonesia.

Determined in Jakarta on 19 December 2024
CHAIRMAN OF THE BOARD OF COMMISSIONERS
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA, signed
MAHENDRA SIREGAR

Promulgated in Jakarta on 23 December 2024
MINISTER OF LAW OF THE REPUBLIC OF INDONESIA, signed SUPRATMAN ANDI AGTAS

STATE JOURNAL OF THE REPUBLIC OF INDONESIA YEAR 2024 NUMBER 44/OJK https://jdih.ojk.go.id/

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
OF THE REPUBLIC OF INDONESIA
NUMBER 32 OF 2024
CONCERNING
THE DEVELOPMENT AND STRENGTHENING OF SECURITIES TRANSACTIONS AND INSTITUTIONS

I. GENERAL

Through Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector, it is expected to provide a positive contribution and support inclusive and sustainable economic growth towards a prosperous, advanced, dignified, trustworthy, and reliable Indonesia, as well as being able to answer and become a regulatory solution at the Law level for implementation obstacles where Law Number 8 of 1995 concerning the Capital Market is considered no longer fully able to meet the needs of legal development and the needs of the Capital Market industry community, thus less supporting the realization of an efficient Indonesian Capital Market with global competitiveness.

This Financial Services Authority Regulation, which is an implementing regulation of Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector, specifically regarding Securities Transactions and Institutions, is necessary to answer and resolve the following issues:

1. the existence of currently applicable regulations that are impacted by the provisions regulated in Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector, so that the provisions need to be harmonized in order to provide legal certainty; and
2. the need to issue further provisions regarding the authority article in Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector, which gives a general mandate to the Financial Services Authority to regulate further in a Financial Services Authority Regulation.

That in order to implement the mandate of the provisions of Article 5D paragraph (4), Article 14 paragraph (3), Article 55 paragraph (1), paragraph (3) and paragraph (7), Article 55A, Article 70 paragraph (3), Article 89A paragraph (4), and Article 89B paragraph (4) of Law Number 8 of 1995 concerning the Capital Market as amended by Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector, further regulation is needed in a Financial Services Authority Regulation.

II. ARTICLE BY ARTICLE

Article 1
Clearly sufficient.

Article 2
Paragraph (1)
What is meant by "Regular, Fair, and Efficient Stock Exchange Transactions" is a transaction that is organized based on clear rules and implemented consistently.

Paragraph (2)
What is meant by "provisions determined by the Financial Services Authority" is through regulations issued by the Financial Services Authority.
What is meant by "approval given by the Financial Services Authority" is through an approval letter from the Financial Services Authority.

Paragraph (3)
Clearly sufficient.

Paragraph (4)
Clearly sufficient.

Paragraph (5)
Letter a
Clearly sufficient.

Letter b
Clearly sufficient.

Letter c
Clearly sufficient.

Letter d
Business activities of Capital Market data providers and/or index compilation include the provision of paid Capital Market data including granting joint work licenses to other Parties regarding the use of data and/or indices.

Letter e
Clearly sufficient.

Article 3
Letter a
Clearly sufficient.

Letter b
What is meant by adequate risk management includes among others:

1. risk identification with risk inventory in all parts of the company regarding the implementation of other activities;
2. risk measurement by explaining the measurement/assessment steps for risks;
3. risk monitoring by explaining the monitoring steps and the Parties responsible for carrying out monitoring on risks related to other activities; and
4. control over risks inherent in other activities by explaining the control steps and the Parties responsible for carrying out control on risks related to other activities.

Article 4
Paragraph (1)
Clearly sufficient.

Paragraph (2)
See the explanation of Article 2 paragraph (2).

Paragraph (3)
Clearly sufficient.

Paragraph (4)
Letter a
Providers of clearing and/or settlement facilities for inter-market financial instrument transactions include among others providers of central counterparty for money and foreign exchange markets.

Letter b
Providers of triparty repurchase agreement infrastructure include among others providers of triparty repurchase agreement for financial instruments in the money and foreign exchange markets. Financial instrument lending and borrowing includes among others lending and borrowing of securities conducted by banks or by Securities Companies but are money market financial instruments.

Letter c
Providers of risk management facilities include among others providers of collateral management.

Letter d
Collateral management facilities include among others collateral optimization, general collateral, offshore collateral, and reinvestment of collateral.

Letter e
Provision of other activities mandated to the Clearing and Guarantee Institution includes among others the provision of uncleared transaction facilities, provision of marketplace facilities for lending and borrowing Securities not yet provided by the Stock Exchange, provision of trade compression facilities, and trade repository.

Paragraph (5)
Letter a
Clearly sufficient.

Letter b
Providers of collateral management services (collateral management service) are collateral optimization, general collateral, offshore collateral, and reinvestment of collateral.

Letter c
Clearly sufficient.

Letter d
Clearly sufficient.

Letter e
Examples of providing information, data, and reports include the provision of paid information, data, and reports.

Letter f
Clearly sufficient.

Article 5
Paragraph (1)
Clearly sufficient.

Paragraph (2)
See the explanation of Article 2 paragraph (2).

Paragraph (3)
Clearly sufficient.

Paragraph (4)
Clearly sufficient.

Paragraph (5)
Letter a
Clearly sufficient.

Letter b
Clearly sufficient.

Letter c
Providers of data and information administration services related to customers include among others providers of know-your-customer administration services.

Letter d
Providers of information, administration, and settlement services for customer transactions include among others providers of integrated multi-investment systems and providers of crowdfunding service platforms.

Letter e
Clearly sufficient.

Letter f
Clearly sufficient.

Letter g
Clearly sufficient.

Article 6
Letter a
Clearly sufficient.

Letter b
See the explanation of Article 3 letter b.

Article 7
Clearly sufficient.

Article 8
Paragraph (1)
Clearly sufficient.

Paragraph (2)
Book settlement carried out by reducing Securities and/or funds from one Securities account and adding the said Securities and/or funds to another Securities account at the custodian, includes collective deposit Securities accounts or other Securities accounts.

Paragraph (3)
Clearly sufficient.

Paragraph (4)
Settlement of Securities Transactions over certificate-based Securities includes among others by handing over certificate-based Securities accompanied by the issuance of new certificate-based Securities by the Securities Administration Bureau or the Issuer and/or public companies that administer their own Securities or by signing on the certificate-based Securities sheet (endorsement).

Paragraph (5)
Letter a
Direct Settlement of Securities Transactions on the list of Securities holders without going through a Securities account at the custodian includes among others Settlement of Securities Transactions in carbon trading through the carbon exchange.

Letter b
International Settlement of Securities Transactions or through other countries includes among others offshore collateral settlement through global custodians.

Letter c
Digital Settlement of Securities Transactions includes among others using blockchain technology.

Letter d
Clearly sufficient.

Paragraph (6)
Clearly sufficient.

Paragraph (7)
Settlement of Securities Transactions includes settlement related to investment products.

Article 9
Clearly sufficient.

Article 10
Paragraph (1)
Examples of Settlement of Securities Transactions with fund handover can be carried out as a substitute for the obligation to hand over Securities (alternate cash settlement). Examples of other substitute assets used in the process of Settlement of Securities Transactions by the Clearing and Guarantee Institution are deposits, bank guarantees, other financial instruments, or other assets.

Paragraph (2)
Clearly sufficient.

Article 11
Paragraph (1)
Clearly sufficient.

Paragraph (2)
Clearly sufficient.

Paragraph (3)
Clearly sufficient.

Paragraph (4)
Regulation of guarantee for settlement of Stock Exchange Transactions is currently regulated in Financial Services Authority Regulation Number 26/POJK.04/2014 concerning Guarantee for Settlement of Stock Exchange Transactions. Regulations regarding guarantee for settlement of Securities Transactions outside the Stock Exchange are determined by the Financial Services Authority.

Paragraph (5)
Clearly sufficient.

Article 12
Clearly sufficient.

Article 13
Paragraph (1)
Clearly sufficient.

Paragraph (2)
Clearly sufficient.

Paragraph (3)
Clearly sufficient.

Paragraph (4)
What is meant by "professional investor" is Professional Investor.

Paragraph (5)
Clearly sufficient.

Article 14
Paragraph (1)
What is meant by "recipient of Securities Transaction reports" is a Party designated by the Financial Services Authority to provide systems and/or facilities and receive reports of Securities Transactions as regulated in Financial Services Authority Regulations regarding the reporting of Securities Transactions.

Paragraph (2)
Clearly sufficient.

Paragraph (3)
Clearly sufficient.

Article 15
Clearly sufficient.

Article 16
Paragraph (1)
What is meant by "business continuity (going concern)" is a condition that reflects a business that is operating or under construction, or a premise in valuation, where the business valuer considers that a company will continue its operations continuously. Conditions threatening business continuity are not only measured from the financial condition of Market Infrastructure Providers in the Capital Market, Stock Exchanges, Clearing and Guarantee Institutions, Custody and Settlement Institutions, or Securities Companies but also consider non-financial factors.

Letter a
Clearly sufficient.

Letter b
Examples of conditions that cannot cover business losses:

1. experiencing losses for 5 (five) consecutive years;
2. not experiencing losses for 5 (five) consecutive years but has caused retained losses to be above 50% (fifty percent) of paid-up capital; or
3. during the period of experiencing losses, the company does not attempt to increase paid-up capital or subordinate debt.

Letter c
Clearly sufficient.

Letter d
Clearly sufficient.

Letter e
Examples of the absence of all management:

1. a condition where the term of office of management has expired, but no reappointment is made by the general meeting of shareholders; or
2. none of the management can be contacted by the Financial Services Authority.

Letter f
Clearly sufficient.

Letter g
Clearly sufficient.

Paragraph (2)
Letter a
Clearly sufficient.

Letter b
Clearly sufficient.

Letter c
Examples of unpredictable losses due to member failure:
Return of financial sources that have been used to settle Stock Exchange Transaction failures is only sufficient to fill/fulfill the Guarantee Fund, and is not sufficient to replenish the Guarantee Reserve of the Clearing and Guarantee Institution that has been used. The Guarantee Reserve of the Clearing and Guarantee Institution is taken from the profit reserve of the Clearing and Guarantee Institution.

Paragraph (3)
Letter a
Clearly sufficient.

Letter b
Clearly sufficient.

Letter c
Clearly sufficient.

Letter d
Clearly sufficient.

Letter e
Clearly sufficient.

Letter f
Clearly sufficient.

Letter g
See the explanation of Article 16 paragraph (1) letter e.

Letter h
Clearly sufficient.

Letter i
Clearly sufficient.

Paragraph (4)
Clearly sufficient.

Paragraph (5)
Clearly sufficient.

Article 17
What is meant by recovery plan is market infrastructure actions, consistent with rules, procedures, and contract agreements, to overcome losses, liquidity shortages, or insufficient capital, whether arising from member failure or other causes (such as inability of business operations or other structures), including actions to return financial reserve sources and loan contracts.

Article 18
Paragraph (1)
What is meant by resolution plan is any action taken by authorities, with or without the involvement of other Parties, intended to maintain financial stability and/or address serious problems at financial service institutions that threaten business continuity, where without resolution actions, the institution would no longer be viable and have no prospects.

Paragraph (2)
Letter a
Clearly sufficient.

Letter b
Clearly sufficient.

Letter c
Clearly sufficient.

Letter d
Clearly sufficient.

Letter e
Examples of implementing a business continuity plan for the Clearing and Guarantee Institution include the implementation of the failure mechanism for guarantee of settlement of transactions.

Letter f
Clearly sufficient.

Letter g
Clearly sufficient.

Paragraph (3)
Clearly sufficient.

Paragraph (4)
Clearly sufficient.

Article 19
Paragraph (1)
See the explanation of Article 18 paragraph (1).

Paragraph (2)
Clearly sufficient.

Article 20
See the explanation of Article 18 paragraph (1).

Article 21
Paragraph (1)
See the explanation of Article 18 paragraph (1).

Paragraph (2)
Clearly sufficient.

Article 22
Clearly sufficient.

Article 23
What is meant by "certain actions" includes among others orders to correct errors, conditions, and/or states arising from violations.

Article 24
Clearly sufficient.

Article 25
Clearly sufficient.

SUPPLEMENT TO THE STATE JOURNAL OF THE REPUBLIC OF INDONESIA NUMBER 112/OJK