Bappebti Regulation Number 7 of 2018 Concerning Approval of Commodity Auction Market Organizers

REGULATION OF THE COMMODITY FUTURIES TRADING REGULATORY AGENCY OF THE REPUBLIC OF INDONESIA NUMBER 7 OF 2018 CONCERNING APPROVAL OF COMMODITY AUCTION MARKET ORGANIZERS BY THE GRACE OF GOD THE ALMIGHTY

HEAD OF THE COMMODITY FUTURIES TRADING REGULATORY AGENCY OF THE REPUBLIC OF INDONESIA,

Considering: a. that in order to implement the provisions of Article 88 and Article 89 of Government Regulation Number 24 of 2018 concerning Integrated Electronic Business Licensing Services, the provisions concerning approval of Commodity Auction Market Organizers need to be changed and adjusted; b. that based on considerations as referred to in letter a, it is necessary to establish a Regulation of the Head of the Commodity Futures Trading Regulatory Agency concerning Approval as a Commodity Auction Market Organizer;

Recalling:

1. 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);
2. Law Number 23 of 2014 concerning Regional Government (State Gazette of the Republic of Indonesia Year 2014 Number 244);
3. Government Regulation Number 24 of 2018 concerning Integrated Electronic Business Licensing Services (State Gazette of the Republic of Indonesia Year 2018 Number 90, Supplement to the State Gazette of the Republic of Indonesia Number 6215);
4. Presidential Regulation Number 7 of 2015 concerning Organization of State Ministries (State Gazette of the Republic of Indonesia Year 2015 Number 8);
5. Presidential Regulation Number 48 of 2015 concerning the Ministry of Trade (State Gazette of the Republic of Indonesia Year 2015 Number 90);
6. Presidential Decree Number 86/TPA of 2018 concerning Dismissal and Appointment From and In Senior Management Positions in the Environment of the Ministry of Trade;
7. Minister of Industry and Trade Decree Number 650/MPP/Kep/10/2004 concerning Provisions for the Organization of Auction Markets with Forward Delivery of Agro Commodities;
8. Minister of Trade Regulation Number 08/M-DAG/PER/2/2016 concerning Organization and Work Structure of the Ministry of Trade (State Newspaper of the Republic of Indonesia Year 2016 Number 202);
9. Minister of Trade Regulation Number 77 of 2018 concerning Integrated Electronic Business Licensing Services in the Field of Trade (State Newspaper of the Republic of Indonesia Year 2018 Number 938);

DECIDES: Establish: REGULATION OF THE HEAD OF THE COMMODITY FUTURIES TRADING REGULATORY AGENCY CONCERNING APPROVAL OF COMMODITY AUCTION MARKET ORGANIZERS.

Article 1 In this Head Regulation, the following terms are defined:

1. The Commodity Futures Trading Regulatory Agency, hereinafter referred to as Bappebti, is a government agency whose main duties are to conduct guidance, regulation, development, and supervision of Commodity Futures Trading, Warehouse Receipt Systems, and Commodity Auction Markets.
2. Commodity Auction Market is an organized physical market for buyers and sellers to conduct Commodity transactions through an auction system with commodity delivery.
3. Commodity Auction Market Organizer is a legal entity business entity that conducts Commodity Auction Market activities with commodity delivery.
4. Commodity Auction Market Clearing and Guarantee Institution is a legal entity business entity that conducts registration and guarantee of transaction settlements occurring in the Commodity Auction Market.
5. Integrated Electronic Business Licensing or Online Single Submission, hereinafter abbreviated as OSS, is Business Licensing issued by the OSS Institution for and on behalf of the Minister, Head of Agency, Governor, or Regent/Mayor to Business Actors through an integrated electronic system.
6. Commitment is a statement by the Business Actor to fulfill the requirements for Business License and/or Commercial or Operational License.
7. OSS Management and Organization Institution, hereinafter referred to as the OSS Institution, is a non-ministerial government agency that conducts government affairs in the field of investment coordination.
8. Business Identification Number, hereinafter abbreviated as NIB, is the identity of the Business Actor issued by the OSS Institution after the Business Actor conducts Registration.
9. Service Level Arrangement, hereinafter abbreviated as SLA, is the service level that must be observed and implemented to conduct Business Licensing services in the field of trade integrated with OSS.

Article 2 (1) Business activities of Commodity Auction Market Organization can only be conducted by a legal entity business entity that has obtained approval as a Commodity Auction Market Organizer from the Head of Bappebti. (2) The legal entity business entity as referred to in paragraph (1) takes the form of a Limited Liability Company, Cooperative, and Regional-Owned Enterprise. (3) The organization of Commodity Auction Markets as referred to in paragraph (1) can be conducted with forward delivery and/or spot delivery. (4) The implementation of the authority to issue approval as referred to in paragraph (1) is conducted through the OSS Institution. (5) The OSS Institution as referred to in paragraph (4) issues approval for Commodity Auction Market Organizers for and on behalf of the Head of Bappebti based on the provisions of Government Regulations concerning Integrated Electronic Business Licensing Services and Minister of Trade Regulations regulating Integrated Electronic Business Licensing Services in the Field of Trade.

Article 3 (1) Commodity Auction Market Organizers are required to meet capital requirements. (2) Commodity Auction Market Organizers in the form of Cooperatives must have own capital of at least Rp250,000,000.00 (two hundred fifty million rupiah). (3) Commodity Auction Market Organizers in the form of Limited Liability Companies and Regional-Owned Enterprises must have paid-up capital of at least Rp1,000,000,000.00 (one billion rupiah).

Article 4 Commodity Auction Market Organizers are prohibited from being controlled, directly or indirectly, by an individual who: a. has been declared bankrupt or has served as a director, manager, or supervisory commissioner who was found guilty causing a company to be declared bankrupt within the last 5 (five) years; b. has been sentenced based on a final court decision for committing criminal acts in the economic or financial field with a penalty threat of more than 5 (five) years; c. is proven to have violated provisions of legislation in the field of Commodity Auction Markets; d. does not have good ethics and morals; and/or e. does not have knowledge in the field of Commodity Auction Markets.

Article 5 (1) Commodity Auction Market Organizers are required to have sufficient facilities to organize Commodity Auction Markets. (2) Sufficient facilities as referred to in paragraph (1) must at least include: a. office buildings, either owned or rented; and b. information and communication technology infrastructure. (3) Commodity Auction Market Organizers are required to have cooperation with the Commodity Auction Market Clearing and Guarantee Institution.

Article 6 (1) Commodity Auction Market Organizers are required to have personnel with the necessary competencies in organizing Commodity Auction Markets. (2) Competencies as referred to in paragraph (1) must at least include: a. understanding legislation in the field of Commodity Auction Markets; b. knowledge regarding the organization of Commodity Auction Markets; and c. knowledge regarding the characteristics of commodities that will be the object of the auction.

Article 7 (1) Prospective Commodity Auction Market Organizers are required to have an NIB to submit an application for approval as a Commodity Auction Market Organizer. (2) Prospective Commodity Auction Market Organizers are issued an NIB in accordance with the provisions of Government Regulations regulating Integrated Electronic Business Licensing Services and Minister of Trade Regulations regulating Integrated Electronic Business Licensing Services in the Field of Trade.

Article 8 (1) Prospective Commodity Auction Market Organizers in obtaining approval for Commodity Auction Market Organizers are required to fulfill Commitment and SLA requirements for business licensing in the field of trade in accordance with the provisions of Minister of Trade Regulations regulating Integrated Electronic Business Licensing Services in the Field of Trade. (2) Prospective Commodity Auction Market Organizers in fulfilling Commitment and SLA for business licensing in the field of trade as referred to in paragraph (1) must complete them within the time period determined in accordance with the provisions of Minister of Trade Regulations regulating Integrated Electronic Business Licensing Services in the Field of Trade. (3) In the event that fulfilling Commitment and SLA for business licensing in the field of trade requires costs, prospective Commodity Auction Market Organizers make cost payments in the manner determined in accordance with legislative provisions. (4) In the event that prospective Commodity Auction Market Organizers cannot complete commitments within the established time period as referred to in paragraph (2), the prospective Commodity Auction Market Organizers cannot conduct business activities and must submit a new application for business licensing in the field of trade to the OSS Institution. (5) Approval of Commodity Auction Market Organizers becomes effective if all Commitment requirements are fulfilled and payment has been made.

Article 9 (1) In granting approval for Commodity Auction Market Organizers, Bappebti: a. examines the completeness and truthfulness of required documents; b. evaluates the 3 (three) year business plan; c. grants approval for the Rules and Regulations (PTT); d. conducts suitability and feasibility interviews with managers/directors, supervisors/commissioners regarding ethics, morals, knowledge in the field of Commodity Auction Markets, and ensures freedom from criminal acts stated in the form of an integrity pact; and e. examines physical infrastructure and facilities. (2) Bappebti provides notification to the OSS Institution no later than 3 (three) working days from the fulfillment of Commitment completeness. (3) Notification as referred to in paragraph (2) may consist of fulfillment or non-fulfillment of Commitment.

Article 10 (1) Commodity Auction Market Organizers are required to report to the OSS Institution every occurrence of name and/or address changes no later than 5 (five) working days after the change occurs. (2) Commodity Auction Market Organizers are required to report every change in managers, supervisors, board of directors members, board of commissioners members, and shareholders to: a. the OSS Institution no later than 5 (five) working days after the change is implemented; and b. Bappebti no later than 5 (five) working days after the change is implemented using Form Number I.PPLK accompanied by documents required in Form Number I.PPLK.1.A as contained in the Appendix which is an integral part of this Head Regulation. (3) Bappebti may conduct suitability and feasibility tests on managers, supervisors, board of directors members and/or board of commissioners members of Commodity Auction Market Organizers, regarding ethics, morals, knowledge in the field of Commodity Auction Markets for changes reported to Bappebti as referred to in paragraph (2) letter b if necessary.

Article 11 In the event that the OSS Institution is unable to process the issuance of business licensing in the field of trade regulated in this Head Regulation, the Head of Bappebti issues approval as a Commodity Auction Market Organizer with the following provisions: a. Prospective Commodity Auction Market Organizers must submit an application electronically through http://plk.bappebti.go.id to the Head of Bappebti by attaching requirements as referred to in Article 8 paragraph (1), with the provision that the document requirements for Rules and Regulations (PTT) have obtained approval from the Head of Bappebti. b. Bappebti conducts examination of the validity and truthfulness of documents as referred to in Article 8 paragraph (1), interviews, suitability tests, and examines physical infrastructure and facilities within a period of 20 (twenty) working days from the date complete documents are received. c. The Head of Bappebti within the period as referred to in letter b issues approval as a Commodity Auction Market Organizer using Electronic Signature (e-Signature) which does not require a stamp and wet signature and includes a QR Code (Quick Response Code) after the requirements as referred to in letter b are complete and correct. d. In the event that the requirements as referred to in Article 8 paragraph (1) are incomplete, the application for approval as a Commodity Auction Market Organizer cannot be processed further. e. In the event that the requirements as referred to in letter b are incomplete and incorrect, the application for approval as a Commodity Auction Market Organizer is rejected electronically. f. Bappebti provides notification to the OSS Institution no later than 3 (three) working days from the issuance of approval as referred to in letter c.

Article 12 At the time this Head Regulation takes effect, approvals as Commodity Auction Market Organizers that have been obtained and are still valid are declared to remain valid and must be registered by the approval holders into the OSS system.

Article 13 At the time this Head Regulation takes effect, provisions concerning requirements and procedures for business entities to obtain approval as Commodity Auction Market Organizers in the Regulation of the Head of the Commodity Futures Trading Regulatory Agency Number 03/BAPPEBTI/PER-PL/01/2014 Concerning Approval of Auction Market Organizers with Forward Delivery (forward) as amended by the Regulation of the Head of the Commodity Futures Trading Regulatory Agency Number 04/BAPPEBTI/PER-PL/01/2015 concerning Amendment to the Regulation of the Head of the Commodity Futures Trading Regulatory Agency Number 03/BAPPEBTI/PER-PL/01/2014 Concerning Approval of Auction Market Organizers with Forward Delivery (forward), are revoked and declared invalid.

APPENDIX TO THE REGULATION OF THE HEAD OF THE COMMODITY FUTURIES TRADING REGULATORY AGENCY NUMBER 7 OF 2018 CONCERNING APPROVAL OF COMMODITY AUCTION MARKET ORGANIZERS

Form Number I. PPLK

To: Head of the Commodity Futures Trading Regulatory Agency At: Place

In connection with changes in board of directors/commissioners/managers/supervisors* at …………………., we hereby submit a report of said changes accompanied by supporting documents as required in accordance with legislative provisions.

This is submitted, for your attention and permission, we express our gratitude.

……….,…………..20

Respectfully,

Stamp Duty (Name of Chief Director)

Note:

• Choose one

A. Board of Directors / Management Structure:

1. Chief Director/Cooperative Chairman (old) : ………………………………. Chief Director/Cooperative Chairman (new) : ……………………………….
2. Board of Directors/Management (old) : ………………………………………. Board of Directors/Management (new) : ……………………………………….
3. …………………………………………………………………………………………

B. Board of Commissioners / Supervisors Structure:

1. Chief Commissioner/Supervisor (old): ……………………………………… Chief Commissioner/Supervisor (new) : ………………………………………
2. Commissioner/Supervisor (old) : ……………………………………………… Commissioner/Supervisor (new) : ………………………………………………
3. ………………………..………………………………………………………………

C. Shareholder Structure: Name of Shareholder (old) Number of Shares Name of Shareholder (new) Number of Shares

Form Number I. PPLK.1.A

1. Deed of Company Change (old);
2. Deed of Company Change (new);
3. Minutes of the General Meeting of Shareholders (RUPS) signed by the Board of Directors/Management, Board of Commissioners/Supervisors, and Shareholders.

APPLICANT INTEGRITY QUESTIONNAIRE

Instructions for Answering Questions:

1. All questions must be answered by the applicant;
2. Signed by the board of directors, board of commissioners, management, or supervisors on stamped paper;
3. Place an X in the box in front of the word "yes" if the applicant's answer is "yes", or place an X in the box in front of the word "no" if the applicant's answer is "no".

For every "yes" answer, the applicant is required to provide a detailed and clear answer on a separate sheet which among others contains: a. the institutions involved; b. the cases and dates of actions taken; c. the court or institution taking action; and d. actions and sanctions taken.

Answer the following questions!

Are you, as director / commissioner / manager / supervisor*) of a business entity, ever:

1. Warned, suspended, license revoked, or license rejected by Bappebti?  yes  no

2. Sentenced for being proven to commit criminal acts in the economic field including trade, industry, agriculture, banking, insurance, capital market, or taxation within the last 10 (ten) years?  yes  no

3. Proven to have violated legislation in the field of Trade within the last 10 (ten) years?  yes  no

4. Declared bankrupt or served as director or commissioner or manager or supervisor who was found guilty causing a company to be declared bankrupt within the last 10 (ten) years?  yes  no

5. Currently under investigation or trial for suspected violation of legislation in the field of Trade or suspected of committing criminal acts in the economic field including, but not limited to, industry, agriculture, banking, insurance, capital market, or taxation?  yes  no

6. Lacking good moral ethics?  yes  no

7. Included in the banking blacklist?  yes  no

8. Not compliant in paying financial obligations, especially tax payments?  yes  no

.................,..................... (Place and Date)

(Director / Commissioner / Manager / Supervisor*)

Stamp Duty Clear Name (.............................)

Note:

• Choose one