Financial Reporting Director Responsibilities

COPY
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 75 /POJK.04/2017
CONCERNING
DIRECTOR RESPONSIBILITIES FOR FINANCIAL REPORTS WITH THE GRACE OF GOD THE ALMIGHTY THE COMMISSIONERS COUNCIL OF THE FINANCIAL SERVICES AUTHORITY,

Considering:
a. that with the enactment of Law Number 21 of 2011 concerning the Financial Services Authority, since December 31, 2012, the functions, duties, and authority for regulation and supervision of financial services activities in the capital market sector, including regulation regarding director responsibilities for financial reports, have transferred from the Capital Market Supervisory Agency and Financial Institutions to the Financial Services Authority; b. that to provide clarity and certainty regarding regulations on director responsibilities for financial reports, existing regulations in the capital market sector concerning director responsibilities for financial reports issued prior to the establishment of the Financial Services Authority need to be changed into a Financial Services Authority Regulation;
c. that based on considerations as referred to in letters a and b, it is necessary to establish a Financial Services Authority Regulation concerning Director Responsibilities for Financial Reports;

FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA

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);
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);

DECIDES:
Establish: FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING DIRECTOR RESPONSIBILITIES FOR FINANCIAL REPORTS.

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

1. Board of Directors is the organ of the issuer or public company that has the authority and full responsibility for the management of the issuer or public company for the benefit of the issuer or public company, in accordance with the purpose and objectives of the issuer or public company and represents the issuer or public company, both inside and outside of court, in accordance with the articles of association.
2. Issuer is a Party that conducts a Public Offering.
3. Public Company is a corporation whose shares are owned by at least 300 (three hundred) shareholders and has paid-up capital of at least Rp3,000,000,000.00 (three billion rupiah) or a number of shareholders and paid-up capital determined by Government Regulation.

CHAPTER II
DIRECTOR STATEMENT LETTER
Article 2
The Board of Directors of the Issuer or Public Company is required to create a statement letter drafted in accordance with the format of the Director Statement Letter regarding Responsibilities for Financial Reports as contained in the Appendix which is an inseparable part of this Financial Services Authority Regulation.

Article 3
The statement letter as referred to in Article 2 must be attached to the financial reports submitted to the Financial Services Authority as fulfillment of capital market legislation regulations.

CHAPTER III
SIGNING OF THE DIRECTOR STATEMENT LETTER
Article 4
(1) The statement letter as referred to in Article 2 must be stamped sufficiently and signed by the Chief Director and a director overseeing the accounting or finance field. (2) In the event that the Chief Director and the director overseeing the accounting or finance field as referred to in paragraph (1) are held by 1 (one) person, the statement letter is signed by the Chief Director.

CHAPTER IV
DIRECTOR RESPONSIBILITIES
Article 5
The Board of Directors of the Issuer or Public Company is jointly and severally responsible for the statements made as referred to in Article 2, including for any losses that may arise.

Article 6
(1) In the event that the submitted financial reports have been audited or subject to a limited review, the responsibility of the Board of Directors for the statement as referred to in Article 5 applies until the date of the accountant's opinion. (2) In the event that the submitted interim financial reports are not audited, the responsibility of the Board of Directors for the statement as referred to in Article 5 applies until the date the aforementioned statement letter is submitted to the Financial Services Authority.

CHAPTER V
SANCTION PROVISIONS
Article 7
(1) Without prejudice to criminal provisions in the capital market sector, the Financial Services Authority has the authority to impose administrative sanctions on any party that violates the provisions of this Financial Services Authority Regulation, including parties causing the violation, in the form of:
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; e. revocation of business license; f. cancellation of approval; and/or g. cancellation of registration.
(2) Administrative sanctions as referred to in paragraph (1) letters b, c, d, e, f, or g may be imposed with or without prior imposition of an administrative sanction in the form of a written warning as referred to in paragraph (1) letter a. (3) Administrative sanctions in the form of a fine as referred to in paragraph (1) letter b may be imposed separately or together with the imposition of administrative sanctions as referred to in paragraph (1) letters c, d, e, f, or g.

Article 8
In addition to administrative sanctions as referred to in Article 7 paragraph (1), the Financial Services Authority may take specific actions against any party that violates the provisions of this Financial Services Authority Regulation.

Article 9
The Financial Services Authority may announce the imposition of administrative sanctions as referred to in Article 7 paragraph (1) and specific actions as referred to in Article 8 to the public.

CHAPTER VI
CLOSING PROVISIONS
Article 10
Upon the commencement of this Financial Services Authority Regulation, the Decision of the Chairman of the Capital Market Supervisory Agency Number Kep-40/PM/2003 concerning Director Responsibilities for Financial Reports, along with Regulation Number VIII.G.11 which is its appendix, is repealed and declared invalid.

Article 11
This Financial Services Authority Regulation comes into force on the date of its enactment.

This copy is in accordance with the original
Legal Director 1
Legal Department signed
Yuliana

For everyone to know, it is ordered to promulgate this Financial Services Authority Regulation by placing it in the State Gazette of the Republic of Indonesia.

Established in Jakarta on December 21, 2017
CHAIRMAN OF THE COMMISSIONERS COUNCIL
FINANCIAL SERVICES AUTHORITY, signed
WIMBOH SANTOSO

Promulgated in Jakarta on December 22, 2017
MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA, signed
YASONNA H. LAOLY

STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2017 NUMBER 296

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 75 /POJK.04/2017
CONCERNING
DIRECTOR RESPONSIBILITIES FOR FINANCIAL REPORTS

I. GENERAL
That since December 31, 2012, the functions, duties, and authority for regulation and supervision of financial services activities in the capital market, insurance, pension funds, financing institutions, and other financial service institutions have transferred from the Minister of Finance and the Capital Market Supervisory Agency and Financial Institutions to the Financial Services Authority.

In relation to the above, it is necessary to reorganize the existing regulatory structure, particularly those related to the capital market sector, by converting Capital Market Supervisory Agency and Financial Institutions regulations related to the capital market sector into Financial Services Authority Regulations. This reorganization is conducted to ensure that there are Financial Services Authority Regulations related to the capital market sector that are consistent with Financial Services Authority Regulations in other sectors.

Based on the background thinking and aspects mentioned, it is necessary to replace the existing capital market sector legislation regulating Director responsibilities for financial reports, namely the Decision of the Chairman of the Capital Market Supervisory Agency Number Kep-40/PM/2003 concerning Director Responsibilities for Financial Reports, along with Regulation Number VIII.G.11 which is its appendix, into a Financial Services Authority Regulation concerning Director Responsibilities for Financial Reports.

II. ARTICLE BY ARTICLE
Article 1
Sufficiently clear.

Article 2
Sufficiently clear.

Article 3
Sufficiently clear.

Article 4
Sufficiently clear.

Article 5
Sufficiently clear.

Article 6
Sufficiently clear.

Article 7
Sufficiently clear.

Article 8
The term "specific actions" includes, among others, postponement of the issuance of effectiveness statements, for example, effectiveness statements for business mergers, business consolidations.

Article 9
Sufficiently clear.

Article 10
Sufficiently clear.

Article 11
Sufficiently clear.

SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 6164

FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA
APPENDIX
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 75 /POJK.04/2017
CONCERNING
DIRECTOR RESPONSIBILITIES FOR FINANCIAL
REPORTS

DIRECTOR STATEMENT LETTER
CONCERNING
RESPONSIBILITIES FOR FINANCIAL REPORTS (period...)
PT……………………………………………………..

We, the undersigned:

1. Name :
   Office Address :
   Domicile Address/according to ID card or other identity card :
   Telephone Number :
   Position :
2. Name :
   Office Address :
   Domicile Address/according to ID card or other identity card :
   Telephone Number :
   Position :

state that:

1. We are responsible for the preparation and presentation of the company's financial reports.
2. The company's financial reports have been prepared and presented in accordance with generally accepted accounting principles/financial accounting standards applicable in Indonesia *)
   .

This copy is in accordance with the original
Legal Director 1
Legal Department signed
Yuliana

3. a. All information in the company's financial reports has been included completely and correctly; and
   b. the company's financial reports do not contain incorrect material information or facts, and do not omit material information or facts.
4. We are responsible for the internal control system within the company.

This statement is made truthfully.
………………………., Date/Month/Year
Director ….
.......................................
Director ….
.......................................
(name and signature) (name and signature)

*) strike out what is not necessary.

Established in Jakarta on December 21, 2017
CHAIRMAN OF THE COMMISSIONERS COUNCIL
FINANCIAL SERVICES AUTHORITY, signed
WIMBOH SANTOSO