Electronic Licensing in the Financial Services Sector

FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA
COPY
FINANCIAL SERVICES AUTHORITY REGULATION OF THE REPUBLIC OF INDONESIA NUMBER 26/POJK.01/2019 CONCERNING ELECTRONIC LICENSING IN THE FINANCIAL SERVICES SECTOR BY THE GRACE OF THE ALMIGHTY GOD, THE COMMISSIONERS' COUNCIL OF THE FINANCIAL SERVICES AUTHORITY, Considering:
a. that the Financial Services Authority functions to administer an integrated regulation and supervision system for all activities in the financial services sector, including integrated licensing in the financial services sector; b. that to increase the effectiveness of implementing integrated licensing in the financial services sector, it is necessary to build a reliable and transparent electronic licensing system to integrate the entire licensing process in the financial services sector;
c. that based on the considerations referred to in letters a and b, it is necessary to establish a Financial Services Authority Regulation concerning Electronic Licensing in the Financial Services Sector;
Recalling:
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);

DECIDES:
Establishing: FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING ELECTRONIC LICENSING IN THE FINANCIAL SERVICES SECTOR.

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

1. Financial Services Institution, hereinafter abbreviated as FSI, is an institution that conducts activities in the Banking, Capital Market, Insurance, Pension Fund, Financing Institution, and Other Financial Services Institutions sectors as referred to in the Law concerning the Financial Services Authority.
2. Electronic Licensing in the Financial Services Sector is licensing within a unified process starting from the application stage to the completion stage through 1 (one) system utilizing information technology.
3. Electronic Licensing System is a one-stop licensing service system utilizing information technology.
4. Applicant is an FSI, an individual, or a business entity, whether a legal entity or a non-legal entity, company, joint venture, association, or organized group that has or will conduct activities in the financial services sector and submits a licensing process application through the Electronic Licensing System.
5. Access Right is the right granted to the Applicant to submit licensing applications through the Electronic Licensing System.

Article 2
The Electronic Licensing System is used for all Electronic Licensing activities in the Financial Services Sector within the Financial Services Authority.

CHAPTER II
PROCEDURES FOR ELECTRONIC LICENSING IN THE FINANCIAL SERVICES SECTOR First Section Procedures for Submitting Electronic Licensing in the Financial Services Sector
Article 3
The Applicant submits Electronic Licensing in the Financial Services Sector as referred to in Article 2 through the Electronic Licensing System.

Second Section
Use of Access Rights
Article 4
(1) The Applicant submits an application for Electronic Licensing in the Financial Services Sector as referred to in Article 3 through the Electronic Licensing System after obtaining Access Rights from the Financial Services Authority. (2) The Access Right to use the Electronic Licensing System as referred to in paragraph (1) is obtained through the Electronic Licensing System after registration and meeting administrative requirements. (3) The Applicant, as the owner of the Access Right, has the right to:
a. access information for the Electronic Licensing process in the Financial Services Sector; b. change the password; and
c. request the helpdesk/call center of the Electronic Licensing System to block the Access Right, in the event that the user ID and password are misused.
(4) The Applicant, as the owner of the Access Right:
a. is responsible for the use of the Access Right; b. maintains the security and confidentiality of the use of the Access Right;
c. provides documents, data, and/or information that can be accounted for for the purposes of Electronic Licensing in the Financial Services Sector;
d. complies with the procedures and methods for using the Electronic Licensing System based on operational guidelines; and e. updates data related to the Applicant's profile in the event of changes to the Applicant's profile.

Article 5
In the event that:
a. the Access Right holder submits an application to the Financial Services Authority to terminate the Access Right; b. it is deemed necessary based on the Financial Services Authority's assessment; or
c. the Access Right holder's business license is revoked,
the Access Right to the Electronic Licensing System is declared terminated.

Third Section
Electronic Licensing Process in the Financial Services Sector
Article 6
(1) The Applicant must upload complete documents, data, and/or additional information for Electronic Licensing in the Financial Services Sector as referred to in Article 4 paragraph (4) letter c in the Electronic Licensing System. (2) The Financial Services Authority provides an electronic receipt of acceptance through the Electronic Licensing System after the Applicant uploads documents and/or additional information as referred to in paragraph (1) completely. (3) In the event that the submission of the application for Electronic Licensing in the Financial Services Sector as referred to in paragraph (1) is made outside working hours, the Financial Services Authority will process the application for Electronic Licensing in the Financial Services Sector on the next working day. (4) The Applicant who has submitted an application for Electronic Licensing in the Financial Services Sector as referred to in paragraph (1) is not required to submit documents in writing.

Article 7
In the event that:
a. the Financial Services Authority declares that the application for Electronic Licensing in the Financial Services Sector does not meet the requirements; or b. the Financial Services Authority grants approval or rejection of the application for Electronic Licensing in the Financial Services Sector, the notification is delivered electronically.

Article 8
(1) The Applicant must store the original licensing documents that have been submitted through the Electronic Licensing System.
(2) The storage period for documents as referred to in paragraph (1) is implemented in accordance with the provisions of laws and regulations in the financial services sector.
(3) The Financial Services Authority may request the original documents for Electronic Licensing in the Financial Services Sector that have been submitted by the Applicant through the Electronic Licensing System.

Fourth Section
Electronic Signature
Article 9
(1) The Financial Services Authority grants approval or rejection of the application for Electronic Licensing in the Financial Services Sector in the form of an electronic document containing an electronic signature. (2) In the event that the Financial Services Authority has not yet implemented the use of electronic signatures as referred to in paragraph (1), the approval or rejection is provided via a letter in the form of a printed document and an electronic letter to the Applicant.

CHAPTER III
FORCE MAJEURE
Article 10
In the event that the Financial Services Authority declares that the Electronic Licensing System is inaccessible due to force majeure, the Applicant submits an application for Electronic Licensing in the Financial Services Sector offline accompanied by supporting documents in the form of electronic documents.

CHAPTER IV
OTHER PROVISIONS
Article 11
(1) Service level information for each type of Electronic Licensing in the Financial Services Sector is published through the Electronic Licensing System.
(2) The Financial Services Authority provides helpdesk/call center services for the Electronic Licensing System.
(3) All documents uploaded through the Electronic Licensing System and/or submitted to the Financial Services Authority become the exclusive property of the Financial Services Authority, are confidential, and cannot be withdrawn.

Article 12
The use of the Electronic Licensing System is not subject to additional fees.

CHAPTER V
TRANSITIONAL PROVISIONS
Article 13
(1) In the event that the licensing module is not yet available on the Electronic Licensing System, the submission of Electronic Licensing in the Financial Services Sector is implemented in accordance with the provisions for each sector. (2) For Applicants who have submitted licensing applications and have submitted documents to the Financial Services Authority before this Financial Services Authority Regulation takes effect, the licensing applications will continue to be processed in accordance with the provisions of laws and regulations in the financial services sector.

CHAPTER VI
CLOSING PROVISIONS
Article 14
Upon the time this Financial Services Authority Regulation takes effect, Financial Services Authority Regulations regarding licensing in each financial services sector remain in effect as long as they do not conflict with this Financial Services Authority Regulation.

Article 15
This Financial Services Authority Regulation takes effect on the date of its promulgation.

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

For the information of everyone, ordering the promulgation of this Financial Services Authority Regulation by placing it in the State Gazette of the Republic of Indonesia.
Established in Jakarta on October 24, 2019
CHAIRMAN OF THE COMMISSIONERS' COUNCIL
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA, signed,
WIMBOH SANTOSO

Promulgated in Jakarta on October 28, 2019
MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA, signed,
YASONNA H. LAOLY
STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2019 NUMBER 213

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION OF THE REPUBLIC OF INDONESIA NUMBER 26/POJK.01/2019 CONCERNING ELECTRONIC LICENSING IN THE FINANCIAL SERVICES SECTOR

I. GENERAL
Based on Article 5 of Law Number 21 of 2011 concerning the Financial Services Authority, the function of establishing the Financial Services Authority is to administer an integrated regulation and supervision system for all activities within the financial services sector, including integrated licensing in the financial services sector. Integrated licensing is considered important given that globalization in the financial system and advances in information technology have created a financial system that is complex, dynamic, and interconnected across financial services sectors. Licensing procedures currently existing are regulated in the provisions for each sector. Licensing procedures are conducted through applications submitted manually and/or electronically by FSIs, Parties, individuals, or business entities, whether legal entities or non-legal entities, that have or will conduct activities in the financial services sector and are processed by work units under the coordination of the Executive Head in each respective supervision sector, namely including the banking supervision sector, capital market supervision sector, insurance supervision sector, pension fund supervision sector, financing institution supervision sector, and other financial services institutions supervision sector. Considering these matters, the Financial Services Authority deems it necessary to regulate the licensing process in an integrated manner. As understood, Electronic Licensing in the Financial Services Sector has several advantages. From the Applicant's side, Electronic Licensing in the Financial Services Sector is expected to provide added value to the services provided by the Financial Services Authority, particularly regarding efficiency, transparency in the form of licensing status information (tracking system), and a simpler process, while from the Financial Services Authority's side, Electronic Licensing in the Financial Services Sector can ensure data accuracy, speed of decision-making, and effectiveness of monitoring the licensing process, especially those involving coordination between 2 (two) or more supervision sectors within the Financial Services Authority. In relation to these matters, to improve licensing services in the financial services sector, the Financial Services Authority has built and implemented the Electronic Licensing System in the Financial Services Sector for Parties, individuals, or business entities, whether legal entities or non-legal entities, that have or will conduct activities in the financial services sector. Considering the improvement of services through the implementation of the Electronic Licensing System in the Financial Services Sector as mentioned, it is necessary to establish a Financial Services Authority Regulation concerning Electronic Licensing in the Financial Services Sector as the legal basis for all electronic licensing provisions.

II. ARTICLE BY ARTICLE
Article 1
Sufficiently clear.

Article 2
The Electronic Licensing System used by OJK currently is the Integrated Licensing System (SPRINT) application, which will integrate all other similar licensing applications.
Licensing activities in the financial services sector include the entire process of license applications, approvals, registrations, registration statements, and recordings.

Article 3
Sufficiently clear.

Article 4
Paragraph (1)
Sufficiently clear.
Paragraph (2)
Administrative requirements and registration procedures to obtain Access Rights are informed in the module on the Electronic Licensing System.
Paragraph (3)
Sufficiently clear.
Paragraph (4)
Letter a
Sufficiently clear.
Letter b
Sufficiently clear.
Letter c
The term "accountable" means that if it is later discovered that the documents submitted by the Applicant are not true documents, thereby causing a mismatch in the Financial Services Authority's decision to approve/reject the licensing application, the Financial Services Authority may review the said decision and/or impose sanctions in accordance with the applicable laws and regulations in the financial services sector for each respective Applicant. Letter d Operational guidelines can be downloaded through the Electronic Licensing System. Letter e Sufficiently clear.

Article 5
Letter a
Sufficiently clear.
Letter b
Access Rights to the Electronic Licensing System end based on the Financial Services Authority's assessment, including cases where the Access Right holder is proven to have misused the Electronic Licensing System, such as deviations, deliberate concealment to deceive, cheat, or manipulate causing loss and/or the fraudster obtaining benefits, whether directly or indirectly. Letter c Sufficiently clear.

Article 6
Paragraph (1)
Sufficiently clear.
Paragraph (2)
Sufficiently clear.
Paragraph (3)
The term "working hours" refers to the working hours of the Financial Services Authority.
Paragraph (4)
Sufficiently clear.

Article 7
Electronic notifications are delivered via electronic mail (e-mail) and/or through the Electronic Licensing System to the Applicant.
Letter a
Sufficiently clear.
Letter b
The term "approval" refers to the granting of licenses, principle approvals, effectiveness statements, and/or not limited to other forms of approval.
The term "rejection" refers to the cancellation of the licensing process, license denial, and/or not limited to other forms of rejection.

Article 8
Sufficiently clear.

Article 9
Paragraph (1)
The term "electronic signature" refers to a signature consisting of electronic information attached to, associated with, or related to other electronic information used as a verification and authentication tool. Electronic documents are delivered via the Applicant's e-mail and/or through the Electronic Licensing System. Electronic documents are valid documents. Paragraph (2) Approvals or rejections in the form of electronic letters are accompanied by scanned copies of documents that have been stamped with a wet signature by the competent official.

Article 10
The term "force majeure" refers to unavoidable conditions, including natural disasters, non-natural disasters, social disasters, strikes, fires, other industrial disruptions, and/or other conditions beyond the control of the Financial Services Authority that result in network and/or application system problems, thereby making the Electronic Licensing System unusable for a certain period requiring special action by the Financial Services Authority. The Financial Services Authority will convey information regarding the occurrence of disruptions and force majeure through announcements on the official website or national media. The term "electronic document" refers to any electronic information created, forwarded, sent, received, or stored in analog, digital, electromagnetic, optical, or similar forms, which can be seen, displayed, and/or heard through computers or electronic systems, including but not limited to text, voice, images, maps, designs, photos, or similar forms, letters, signs, numbers, access codes, symbols, or perforations that have meaning or can be understood by those capable of understanding them.

Article 11
Paragraph (1)
Service level information includes, among other things, the process flow of each stage of the Electronic Licensing process in the Financial Services Sector and the status of Electronic Licensing in the Financial Services Sector (tracking system). Paragraph (2) Sufficiently clear. Paragraph (3) Sufficiently clear.

Article 12
The use of the Electronic Licensing System not subject to additional fees includes Access Right registration and the use of Electronic Licensing System features. However, Applicants are still subject to licensing fees in accordance with the licensing provisions for each respective financial services sector.

Article 13
Paragraph (1)
The term "provisions for each sector" refers to regulations in the form of Financial Services Authority Regulations, Financial Services Authority Circular Letters, or other forms issued by each financial services sector, including licensing requirements and submission procedures. Licensing submission procedures include document requirements, service level agreements, licensing stages, and other matters established in the form of Financial Services Authority Regulations, Financial Services Authority Circular Letters, or other laws and regulations in the financial services sector applicable to each Applicant. Paragraph (2) Sufficiently clear. Paragraph (3) Sufficiently clear.

Article 14
Sufficiently clear.

Article 15
Sufficiently clear.

SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 6415