Financial Services Authority Regulation No. 40 of 2024 on Information Technology-Based Collective Financing Services

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FINANCIAL SERVICES AUTHORITY REGULATION
REPUBLIC OF INDONESIA
NUMBER 40 OF 2024
CONCERNING
INFORMATION TECHNOLOGY-BASED COLLECTIVE FINANCING SERVICES BY THE GRACE OF GOD THE ALMIGHTY, THE COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY,

Considering: That in order to implement the mandate of Article 106 paragraph (6), Article 111 paragraph (2), Article 112 paragraph (3), Article 113 paragraph (4), Article 114 paragraph (3), Article 115 paragraph (5), Article 116 paragraph (3), Article 121 paragraph (2), Article 122 paragraph (3), Article 123 paragraph (2), Article 124 paragraph (2), Article 125 paragraph (4), Article 128 paragraph (4), Article 252 paragraph (4), Article 269, Article 270 paragraph (3), and Article 282 paragraph (3) of Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector, and to support the development of the industry and legal needs for information technology-based collective financing services as regulated in Financial Services Authority Regulation Number 10/POJK.05/2022 concerning Information Technology-Based Collective Financing Services, it is necessary to establish a Financial Services Authority Regulation concerning Information Technology-Based Collective Financing Services;

Recalling: 1. 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);
2. 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);

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DECIDES:
To establish: A FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING INFORMATION TECHNOLOGY-BASED COLLECTIVE FINANCING SERVICES.

CHAPTER I
GENERAL PROVISIONS

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

Information Technology-Based Collective Financing Services, hereinafter abbreviated as LPBBTI, is the provision of financial services to match fund providers with fund recipients to conduct financing, either conventionally or based on Sharia principles, directly through an electronic system using the internet.
LPBBTI Organizer, hereinafter referred to as Organizer, is an Indonesian legal entity that provides, manages, and operates LPBBTI.
Sharia Principles are Islamic legal principles based on fatwas and/or Sharia compliance statements issued by institutions having authority in issuing fatwas in the Sharia field.
Sharia Business Unit, hereinafter abbreviated as UUS, is a work unit of the Organizer's conventional headquarters that carries out part of its business activities based on Sharia Principles and/or functions as the head office of offices conducting business based on Sharia Principles.
Agreement is a written contract between parties containing the rights and obligations of each party in LPBBTI that does not conflict with Sharia Principles.
Electronic System is a series of electronic devices and procedures that function to prepare, collect, process, analyze, store, display, announce, send, and/or disseminate electronic information in the field of financial services.
Information Technology is a technique to collect, prepare, store, process, announce, analyze, and/or disseminate information in the field of financial services.
Financing is the disbursement of funds from fund providers to fund recipients with a promise to be paid or returned according to a specific period in LPBBTI transactions.
Controlling Shareholder, hereinafter abbreviated as PSP, is a legal entity, individual, and/or business group that directly or indirectly owns shares or shares equivalent to shares in the Organizer and/or has the ability to exercise control over the Organizer.
General Meeting of Shareholders, hereinafter abbreviated as RUPS, is a corporate organ that has authority not delegated to the Board of Directors or Board of Commissioners within limits determined by laws regulating limited liability companies and/or the articles of association for Organizers that are limited liability companies or equivalent for legal entities in the form of cooperatives.
Board of Directors is the Organizer's organ authorized and fully responsible for managing the Organizer for the benefit of the Organizer, in accordance with the Organizer's purpose and objectives, and representing the Organizer, both inside and outside court, according to the provisions of the articles of association for Organizers in the form of limited liability companies or equivalent to the Board of Directors for Organizers in the form of cooperative legal entities.
Board of Commissioners is the Organizer's organ tasked with conducting general and/or specific supervision according to the articles of association and providing advice to the Board of Directors for Organizers in the form of limited liability companies or equivalent to the Board of Commissioners for Organizers in the form of cooperative legal entities.
Sharia Supervisory Board, hereinafter abbreviated as DPS, is a party having the task and function of supervising the Organizer's activities to ensure compliance with Sharia Principles.
Paid-up Capital is paid-up capital as referred to in laws regarding limited liability companies for Organizers in the form of limited liability companies or the sum of basic savings, mandatory savings, and donations as referred to in legislation regarding cooperatives for Organizers in the form of cooperative legal entities.
Equity is equity based on applicable financial accounting standards in Indonesia.
Key Party is a party that owns, manages, supervises, and/or has significant influence over the Organizer.
Merger is a legal act performed by 1 (one) or more Organizers to merge with an existing Organizer, resulting in the assets, liabilities, and Equity of the merging Organizer transferring by operation of law to the receiving Organizer, and subsequently the legal entity status of the merging Organizer ends by operation of law.
Consolidation is a legal act performed by 2 (two) or more Organizers to merge by establishing 1 (one) new Organizer that legally acquires the assets, liabilities, and Equity of the consolidating Organizers, and the legal entity status of the consolidating Organizers ends by operation of law.
Separation is a legal act performed by an Organizer to separate business, resulting in all assets, liabilities, and Equity of the Organizer transferring by operation of law to 2 (two) or more Organizers or part of the assets, liabilities, and Equity of the Organizer transferring by operation of law to 1 (one) or more Organizers.
Dissolution is the process of ending the Organizer's legal entity status after the revocation of the business license.
Liquidation is the action to settle all assets and obligations of the Organizer as a result of the revocation of the Organizer's business license and Dissolution.
Liquidation Team is a team tasked with conducting Liquidation, formed by the RUPS or the Financial Services Authority.
Closing Balance Sheet is the Organizer's balance sheet as of the date of the Organizer's business license revocation, prepared according to applicable financial accounting standards.
Interim Liquidation Balance Sheet is the Organizer's balance sheet as of the date of the Organizer's business license revocation, prepared by the Liquidation Team based on the audited Closing Balance Sheet, taking into account:
a. asset positions based on estimated realizable values; and b. liability positions after the expiration of the period for submitting claims or receivables by Users.
Final Liquidation Balance Sheet is the balance sheet submitted by the Liquidation Team after the Liquidation process is completed or the Liquidation execution period expires.
Association is an Organizer association that has obtained written approval from the Financial Services Authority.
Fund Recipient is an individual, legal entity, and/or business entity that receives Financing.
Fund Provider is an individual, legal entity, and/or business entity that provides Financing.
LPBBTI User, hereinafter referred to as User, is the Fund Provider and Fund Recipient.
Electronic Document is 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 a computer or Electronic System, including but not limited to text, voice, images, maps, designs, photos or similar, letters, signs, numbers, access codes, symbols, or perforations that have meaning or significance or can be understood by those capable of understanding them.
Personal Data is data about an identifiable individual or data that can be identified separately or combined with other information, either directly or indirectly through an Electronic System or non-electronic means.
Electronic Signature is a signature consisting of electronic information attached, associated, or related to other electronic information used as a verification and authentication tool as referred to in laws regarding electronic information and transactions.
Escrow Account is a current account at a bank in the name of the Organizer that serves as a deposit and is used for specific purposes, namely the receipt and disbursement of funds to and from Users.
Virtual Account is a User identification number that is part of or included in the Escrow Account, created by a bank to identify a specific account.
General Meeting of Fund Providers is a general meeting organized at the initiative of the Organizer, Fund Providers, and/or Fund Recipients for transparency, supervision, and decision-making.
Health Level is the result of assessing the Organizer's condition regarding capital adequacy, quality of Financing, management, profitability, and liquidity.
Direct Examination is a series of activities to search for, collect, process, and evaluate data and/or information regarding the Organizer conducted at the Organizer's office and/or other places directly or indirectly related to the Organizer's activities.

CHAPTER II
LEGAL ENTITY FORM, OWNERSHIP, AND CAPITAL

First Section
Legal Entity Form

Article 2
The legal entity form of the Organizer consists of:
a. limited liability company; and b. cooperative.

Second Section
Ownership

Article 3
(1) The Organizer may only be owned by:
a. the Unitary State of the Republic of Indonesia; b. regional governments;
c. Indonesian citizens;
d. Indonesian legal entities; and/or e. foreign legal entities; and/or f. foreign citizens.
(2) The ownership provisions for Organizers in the form of cooperatives as referred to in Article 2 letter b follow provisions in legislation regarding cooperatives.
(3) Ownership by foreign legal entities as referred to in paragraph (1) letter e may only be conducted in partnership with:
a. the government; b. regional governments;
c. Indonesian citizens; and/or
d. Indonesian legal entities.
(4) Ownership by foreign citizens as referred to in paragraph (1) letter f may only be conducted through transactions in the capital market.
(5) Provisions regarding the ownership of foreign legal entities as referred to in paragraph (1) letter e and ownership by foreign citizens as referred to in paragraph (1) letter f are implemented in accordance with government regulations regarding foreign ownership in the Organizer. (6) In the event that government regulations regarding foreign ownership in the Organizer as referred to in paragraph (5) are not yet in effect:
a. foreign ownership of the Organizer, both directly and indirectly, is prohibited from exceeding 85% (eighty-five percent) of the Organizer's Paid-up Capital; and b. Organizers that have obtained business licenses at the time this Financial Services Authority Regulation is promulgated and have foreign ownership, both directly and indirectly, exceeding 85% (eighty-five percent) are exempt from the foreign ownership limit as referred to in letter a, provided they do not change their ownership.

Article 4
(1) The Organizer is required to designate at least 1 (one) PSP.
(2) Organizers in the form of limited liability companies must designate a legal entity, individual, and/or business group that has:
a. the nominal amount of shares or capital of the Organizer amounting to 25% (twenty-five percent) or more of the nominal amount of issued shares with voting rights; or b. the nominal amount of shares or capital of the Organizer less than 25% (twenty-five percent) of the nominal amount of issued shares with voting rights, but can be proven to have exercised control over the Organizer, either directly or indirectly, as the PSP. (3) Organizers in the form of cooperatives must designate at least 1 (one) PSP through a member meeting mechanism or other mechanisms in accordance with provisions in legislation regarding cooperatives. (4) In the event that shareholders meeting the criteria as PSPs are more than 1 (one) party, the Organizer must designate all shareholders meeting the criteria as PSPs. (5) In the event there are other PSPs not designated by the Organizer, the Financial Services Authority has the authority to designate PSPs outside those referred to in paragraph (1). (6) The Organizer must submit a report on the designation of PSPs as referred to in paragraph (1) through paragraph (4) to the Financial Services Authority no later than 15 (fifteen) working days from the date of PSP designation.

Article 5
(1) Each party is prohibited from becoming a PSP for more than 1 (one) conventional Organizer or 1 (one) Organizer based on Sharia Principles.
(2) The provisions as referred to in paragraph (1) do not apply if the PSP is the Unitary State of the Republic of Indonesia.

Article 6
(1) PSPs are required to be responsible for losses suffered by the Organizer if the losses arise from:
a. the PSP, directly or indirectly, in bad faith utilizing the Organizer for the PSP's interests; b. the PSP being involved in illegal acts committed by the Organizer; or
c. the PSP, directly or indirectly, committing illegal acts.
(2) PSPs are declared responsible if they meet the provisions as referred to in paragraph (1) based on:
a. a RUPS decision for Organizers that are public companies; b. a final and binding court decision; or
c. a decision by the Financial Services Authority.

Third Section
Capital

Article 7
(1) The Organizer must have Paid-up Capital at the time of establishment of at least IDR 25,000,000,000.00 (twenty-five billion rupiah).
(2) The Paid-up Capital as referred to in paragraph (1) must be paid in cash in full and placed in the form of time deposits in the name of the Organizer at one of:
a. commercial banks, Sharia commercial banks, or Sharia business units of commercial banks in Indonesia for conventional Organizers; or b. Sharia commercial banks or Sharia business units of commercial banks in Indonesia for Organizers based on Sharia Principles.

Article 8
(1) Sources of funds for investment in the Organizer are prohibited from:
a. originating from loans; and b. originating from and for the purposes of money laundering, terrorism financing, proliferation financing of weapons of mass destruction, and other financial crimes. (2) PSPs in the form of legal entities must have operated for at least 2 (two) years before making investments in the Organizer. (3) The provisions as referred to in paragraph (2) are exempted for new PSPs resulting from Merger, Consolidation, or Separation. (4) For shareholders in the form of legal entities, the amount of investment in the Organizer is set at a maximum equal to the shareholder's Equity. (5) The provisions on the amount of investment as referred to in paragraph (3) do not apply to shareholders of the Organizer that are financial service institutions under the supervision of the Financial Services Authority. (6) For shareholders of the Organizer that are financial service institutions under the supervision of the Financial Services Authority, the amount of investment in the Organizer must be conducted in accordance with provisions in legislation regarding investment and/or participation. (7) Provisions regarding the source of investment funds as referred to in paragraph (1), provisions regarding the minimum operational period of PSPs as referred to in paragraph (2), and provisions regarding the Equity limit for shareholders as referred to in paragraph (3), must be met when the shareholder:
a. pays the establishment capital of the Organizer; b. purchases shares of the Organizer; and/or
c. increases the Paid-up Capital of the Organizer.

Article 9
(1) Organizers violating provisions as referred to in Article 3 paragraph (6) letter a, Article 4 paragraph (1), paragraph (2), paragraph (3), paragraph (4), paragraph (6), and/or Article 8 paragraph (1) are subject to administrative sanctions in the form of:
a. written warning; b. suspension of part or all business activities;
c. restriction of certain business activities;
d. reduction of risk assessment results; e. revocation of approval; f. prohibition from becoming a PSP, Board of Directors, Board of Commissioners, and/or DPS; and/or g. administrative fine. (2) Parties violating provisions as referred to in Article 5 paragraph (1) and Article 6 paragraph (1) are subject to administrative sanctions in the form of:
a. written warning; and/or b. prohibition from becoming a PSP, Board of Directors, Board of Commissioners, and/or DPS.
(3) Administrative sanctions as referred to in paragraph (1) letters b through g 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 (1) letter a. (4) In addition to administrative sanctions as referred to in paragraph (2), violating parties may be subject to administrative sanctions in the form of prohibition from becoming a shareholder or equivalent to a shareholder in legal entities in the form of cooperatives, Board of Directors, Board of Commissioners, and/or DPS in the Organizer. (5) Administrative sanctions in the form of administrative fines as referred to in paragraph (1) letter g are imposed at a maximum of IDR 50,000,000.00 (fifty million rupiah). (6) In the event that the Organizer and/or violating party has fulfilled the provisions as referred to in paragraph (1) and/or (2), the Financial Services Authority revokes the administrative sanction. (7) In the event of violations of provisions as referred to in paragraph (1) and/or (2) and the violation has been corrected, the Financial Services Authority provides an administrative sanction in the form of a written warning that ends automatically. (8) In addition to administrative sanctions as referred to in paragraph (1), the Financial Services Authority has the authority to:
a. reduce the Health Level assessment results; b. re-evaluate Key Parties that caused the Organizer to violate provisions as referred to in paragraph (1); and/or
c. record the track record of parties causing the Organizer to violate provisions as referred to in paragraph (1) in the Financial Services Authority's Electronic System.

CHAPTER III
BUSINESS LICENSING

Article 10
(1) Organizers conducting LPBBTI business activities must first obtain a business license from the Financial Services Authority.
(2) To obtain the business license as referred to in paragraph (1), the Board of Directors must submit a business license application to the Financial Services Authority by attaching the licensing requirement documents listed in Appendix Table 1, which is an integral part of this Financial Services Authority Regulation. (3) The business license application as referred to in paragraph (2) is submitted simultaneously with the application for assessment of competence and propriety for prospective Board of Directors members, prospective Board of Commissioners members, prospective PSPs, and prospective DPS members of Organizers based on Sharia Principles. (4) In the licensing process, the Organizer presents the business model and Electronic System to the Financial Services Authority. (5) In the event of missing documents or the need for improvements to the business model and/or Electronic System based on the presentation results as referred to in paragraph (4), the Financial Services Authority submits requests for document completeness or improvements to the business model and/or Electronic System. (6) The Organizer submits missing documents or improvements to the business model and/or Electronic System no later than 20 (twenty) working days from the date of the document completeness request letter or business model/Electronic System improvement letter submitted by the Financial Services Authority to the Organizer. (7) If within the period as referred to in paragraph (6) the Financial Services Authority has not received document completeness or business model/Electronic System improvement letters, the prospective Organizer is deemed to have canceled the business license application. (8) The Financial Services Authority may conduct inspections at the Organizer's office to ensure infrastructure readiness. (9) The Financial Services Authority provides approval or rejection of the business license application no later than 20 (twenty) working days from the date the complete business license application is received. (10) To provide approval or rejection as referred to in paragraph (1), the Financial Services Authority conducts:
a. analysis and research on document completeness; b. examination of the Organizer's working capital deposit;

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c. feasibility analysis of the business plan;
Penyelenggara; d. assessment of competence and propriety of prospective Principal Parties; and e. analysis of compliance with regulations in the field of LPBBTI implementation. (11) In the event that the business license application as referred to in paragraph (1) is rejected, the rejection must be done in writing and accompanied by the reasons for rejection. (12) Further provisions regarding the procedures and mechanisms for business licensing shall be determined by the Financial Services Authority.

Article 11
(1) A Provider that has obtained a business license from the Financial Services Authority must submit a registration application as an Electronic System provider to the competent authority no later than 30 (thirty) calendar days from the date of issuance of the business license by the Financial Services Authority. (2) The registration application as referred to in paragraph (2) must be copied to the Financial Services Authority simultaneously with the submission to the competent authority. (3) Providers are prohibited from conducting Funding before being registered as an Electronic System provider with the competent authority. (4) Providers must submit a copy of the registration certificate as an Electronic System provider to the Financial Services Authority no later than 7 (seven) calendar days from the date of the registration certificate as an Electronic System provider. (5) If a Provider does not obtain a registration certificate as an Electronic System provider as referred to in paragraph (2) within a maximum period of 60 (sixty) calendar days from the date of issuance of the business license by the Financial Services Authority, the Financial Services Authority shall cancel the business license that has been issued to the Provider.

Article 12
(1) Providers must conduct Funding no later than 30 (thirty) calendar days from being registered as an Electronic System provider with the competent authority.
(2) In the event that a Provider does not comply with the provisions in paragraph (1), the Financial Services Authority shall cancel the business license that has been issued to the Provider.

Article 13
(1) Providers who violate the provisions as referred to in Article 10 paragraph (1), Article 11 paragraph (1), paragraph (3), paragraph (4), and/or Article 12 paragraph (1) shall be subject to administrative sanctions in the form of:
a. written warning; b. suspension of part or all of business activities;
c. restriction of certain business activities;
d. reduction of risk assessment results; e. cancellation of approval; f. prohibition from becoming PSP, Board of Directors, Board of Commissioners, and/or DPS; and/or g. administrative fine. (2) Administrative sanctions as referred to in paragraph (1) letters b through g may be imposed with or without prior imposition of administrative sanctions in the form of a written warning as referred to in paragraph (1) letter a. (3) Administrative sanctions in the form of administrative fines as referred to in paragraph (1) letter g shall be imposed at most IDR 50,000,000.00 (fifty million rupiah). (4) In the event that a Provider has fulfilled the provisions as referred to in paragraph (1), the Financial Services Authority shall lift the administrative sanction. (5) In the event that a violation of the provisions as referred to in paragraph (1) occurs and the violation has been corrected, the Financial Services Authority shall provide an administrative sanction in the form of a written warning that ends automatically. (6) In addition to administrative sanctions as referred to in paragraph (1), the Financial Services Authority is authorized to:
a. lower the Health Level assessment results; b. re-assess Principal Parties that caused the Provider to violate the provisions as referred to in paragraph (1); and/or
c. record the track record of parties that caused the Provider to violate the provisions as referred to in paragraph (1) in the Financial Services Authority's Electronic System.

CHAPTER IV
CONVERSION FROM CONVENTIONAL PROVIDERS TO PROVIDERS BASED ON SHARIA PRINCIPLES

Article 14
(1) Conventional Providers may convert into Providers based on Sharia Principles.
(2) Conventional Providers that convert into Providers based on Sharia Principles must first obtain a conversion license from the Financial Services Authority.
(3) The implementation of conversion from Conventional Providers to Providers based on Sharia Principles must comply with the following provisions:
a. meet the required Minimum Equity; and b. the conversion carried out does not harm Users.
(4) Providers must include the conversion plan in the business plan as referred to in Financial Services Authority Regulations regarding the business plan of non-bank financial service institutions. (5) Providers must announce the conversion plan and the impact of the conversion on Users through the Electronic System in the form of a website and/or mobile application. (6) To obtain the conversion license as referred to in paragraph (2), the Board of Directors must submit a conversion license application to the Financial Services Authority by attaching the license requirements documents listed in the Appendix in Table 2 which is an integral part of this Financial Services Authority Regulation. (7) For the conversion process, Providers must present the business model and Electronic System to the Financial Services Authority. (8) The conversion license application as referred to in paragraph (6) must be submitted simultaneously with the application for competence and propriety assessment for prospective members of the Board of Directors, prospective members of the Board of Commissioners, prospective PSPs, and prospective members of the DPS. (9) Providers must submit missing documents or improvements to the business model and/or Electronic System no later than 20 (twenty) working days from the date of the document completeness request letter or business model and/or Electronic System improvement letter submitted by the Financial Services Authority to the Provider. (10) If within the period as referred to in paragraph (9) the Financial Services Authority has not received document completeness or business model and/or Electronic System improvement letters, the Provider is deemed to have cancelled the conversion license application.

Article 15
(1) The Financial Services Authority provides approval or rejection of the conversion license application as referred to in Article 14 paragraph (6) within a maximum period of 20 (twenty) working days from the date the application is received in complete form. (2) To provide approval or rejection as referred to in paragraph (1), the Financial Services Authority conducts:
a. analysis and research on document completeness; b. feasibility analysis of the conversion implementation plan;
c. competence and propriety assessment of prospective members of the Board of Directors, members of the Board of Commissioners, PSPs, and members of the DPS; and
d. analysis of compliance with regulatory provisions.
(3) The Financial Services Authority may conduct an inspection at the Provider's office to ensure the operational readiness of the Provider based on Sharia Principles.
(4) In the event that the conversion license application is approved, the Financial Services Authority issues a conversion license letter to the relevant Provider.
(5) In the event that the conversion license application is rejected, the rejection must be done in writing and accompanied by the reasons for rejection.

Article 16
(1) Providers that have obtained a conversion license from the Financial Services Authority must hold a General Meeting of Shareholders (RUPS) no later than 60 (sixty) working days calculated from the date of the Financial Services Authority's approval letter. (2) If the period as referred to in paragraph (1) has expired and the Provider has not held a RUPS approving the conversion, the Financial Services Authority is authorized to cancel the conversion license.

Article 17
(1) Providers must report the implementation of the RUPS approving the conversion into a Provider based on Sharia Principles in writing to the Financial Services Authority no later than 15 (fifteen) working days calculated from the date of the RUPS. (2) The reporting of the implementation of the RUPS approving the conversion into a Provider based on Sharia Principles as referred to in paragraph (1) must be submitted by the Board of Directors to the Financial Services Authority by attaching the RUPS implementation reporting documents listed in the Appendix in Table 3 which is an integral part of this Financial Services Authority Regulation. (3) Based on the reporting of the implementation of the RUPS approving the conversion as referred to in paragraph (2), the Financial Services Authority conducts analysis and research on document completeness as referred to in paragraph (2). (4) The Financial Services Authority provides:
a. approval or rejection of the business license as a Provider based on Sharia Principles which becomes effective calculated from the date the Articles of Association are approved, agreed upon by, or notified to the competent authority; and b. approval, recording, or rejection of the Akad (Agreement) used by the Provider based on Sharia Principles resulting from conversion, within a maximum period of 20 (twenty) working days after the reporting documents as referred to in paragraph (3) are received in complete form. (5) In the event that the Financial Services Authority approves the issuance of the business license as referred to in paragraph (4) letter a and approves or records the Akad used by the Provider based on Sharia Principles resulting from conversion as referred to in paragraph (4) letter b, the Financial Services Authority:
a. establishes the decision on the issuance of the business license; and/or b. issues a letter of approval or recording of the Akad used by the Provider based on Sharia Principles. (6) In the event that the Financial Services Authority rejects to:
a. establish the business license; and/or b. approve or record the Akad used by the Provider based on Sharia Principles, the Financial Services Authority provides written notification accompanied by the reasons for rejection.

Article 18
(1) Providers based on Sharia Principles resulting from conversion must report the implementation of the conversion to the Financial Services Authority no later than 15 (fifteen) working days calculated from the date the Articles of Association are approved, agreed upon by, or notified to the competent authority. (2) The reporting of the implementation of the conversion as referred to in paragraph (1) must be submitted by the Board of Directors to the Financial Services Authority by attaching documents in the form of Articles of Association that have been approved by, or notified to, the competent authority.

Article 19
(1) Providers who violate the provisions as referred to in Article 14 paragraph (2), paragraph (5), Article 17 paragraph (1), and/or Article 18 paragraph (1) shall be subject to administrative sanctions in the form of:
a. written warning; b. suspension of part or all of business activities;
c. restriction of certain business activities;
d. reduction of risk assessment results; e. cancellation of approval; f. prohibition from becoming PSP, Board of Directors, Board of Commissioners, and/or DPS; and/or g. administrative fine. (2) Administrative sanctions as referred to in paragraph (1) letters b through g may be imposed with or without prior imposition of administrative sanctions in the form of a written warning as referred to in paragraph (1) letter a. (3) Administrative sanctions in the form of administrative fines as referred to in paragraph (1) letter g shall be imposed at most IDR 50,000,000.00 (fifty million rupiah). (4) In the event that a Provider has fulfilled the provisions as referred to in paragraph (1), the Financial Services Authority shall lift the administrative sanction. (5) In the event that a violation of the provisions as referred to in paragraph (1) occurs and the violation has been corrected, the Financial Services Authority shall provide an administrative sanction in the form of a written warning that ends automatically. (6) In addition to administrative sanctions as referred to in paragraph (1), the Financial Services Authority is authorized to:
a. lower the Health Level assessment results; b. re-assess Principal Parties that caused the Provider to violate the provisions as referred to in paragraph (1); and/or
c. record the track record of parties that caused the Provider to violate the provisions as referred to in paragraph (1) in the Financial Services Authority's Electronic System.

CHAPTER V
SHARIA BUSINESS UNITS

First Section
Formation of Sharia Business Units

Article 20
(1) Providers may form Sharia Business Units (UUS).
(2) Conventional Providers that have a UUS must include the intent and purpose of the Provider to conduct part of its activities based on Sharia Principles in the Articles of Association. (3) UUS must have a DPS. (4) UUS must have separate bookkeeping from the parent Provider.

Article 21
(1) UUS must have working capital at the time of establishment of at least IDR 10,000,000,000.00 (ten billion rupiah).
(2) The working capital of UUS as referred to in paragraph (1) must be set aside in the form of time deposits in the name of the Provider and placed in one of the Sharia commercial banks or Sharia business units of commercial banks in Indonesia. (3) The working capital as referred to in paragraph (1) must be stated in a Board of Directors decision approved by the Board of Commissioners.

Article 22
(1) The formation of UUS as referred to in Article 20 paragraph (1) must obtain a UUS formation license from the Financial Services Authority.
(2) To obtain the UUS formation license as referred to in paragraph (1), the Board of Directors must submit a UUS formation license application to the Financial Services Authority by attaching the UUS formation licensing requirement documents listed in the Appendix in Table 4 which is an integral part of this Financial Services Authority Regulation. (3) The UUS formation license application as referred to in paragraph (2) must be submitted simultaneously with the application for competence and propriety assessment for prospective members of the Provider's DPS. (4) In the licensing process, UUS must present the business model and Electronic System to the Financial Services Authority. (5) In the event that there are missing documents or improvements to the business model and/or Electronic System are required based on the presentation results as referred to in paragraph (4), the Financial Services Authority submits a request for document completeness or improvements to the business model and/or Electronic System. (6) UUS must submit missing documents or improvements to the business model and/or Electronic System no later than 20 (twenty) working days from the date of the document completeness request letter or business model and/or Electronic System improvement letter submitted by the Financial Services Authority to the UUS. (7) If within the period as referred to in paragraph (6) the Financial Services Authority has not received document completeness or business model and/or Electronic System improvement letters, the prospective UUS is deemed to have cancelled the UUS formation license application.

Article 23
(1) The Financial Services Authority provides approval or rejection of the UUS formation license application as referred to in Article 22 paragraph (2) within a maximum period of 20 (twenty) working days from the date the UUS formation license application is received in complete form. (2) To provide approval or rejection as referred to in paragraph (1), the Financial Services Authority conducts:
a. analysis and research on document completeness as referred to in Article 22 paragraph (2); b. feasibility analysis of the UUS work plan;
c. examination of UUS working capital deposits;
d. competence and propriety assessment of prospective members of the DPS; and e. analysis of compliance with regulations in the field of Sharia Funding.
(3) In the event that there are missing documents as referred to in Article 22 paragraph (2), the Financial Services Authority submits a request for document completeness to the Provider. (4) Providers must submit document completeness no later than 20 (twenty) working days from the date of the document completeness request letter from the Financial Services Authority. (5) If within 20 (twenty) working days from the date of the document completeness request letter as referred to in paragraph (3), the Financial Services Authority has not received the requested document completeness, the Provider is deemed to have cancelled the application. (6) The Financial Services Authority may conduct an inspection at the UUS office to ensure infrastructure readiness. (7) In the event that the UUS formation license application is approved, the Financial Services Authority:
a. establishes the decision on the issuance of the UUS formation license; and b. provides approval or recording of the Akad used by the UUS.
(8) In the event that the UUS formation license application is rejected, the rejection must be done in writing and accompanied by the reasons for rejection.

Article 24
(1) UUS that have obtained a business license from the Financial Services Authority must conduct Sharia Funding business activities no later than 30 (thirty) working days calculated from the date the UUS formation license is established by the Financial Services Authority. (2) Providers must submit a report on the implementation of business activities based on Sharia Principles to the Financial Services Authority no later than 30 (thirty) calendar days from the date the business activities based on Sharia Principles begin. (3) The reporting of the implementation of business activities based on Sharia Principles as referred to in paragraph (2) must be done by the Board of Directors by attaching photocopies of the Funding agreements that have been used. (4) In the event that UUS does not conduct business activities based on Sharia Principles within the period as referred to in paragraph (1), the Financial Services Authority shall cancel the UUS license.

Article 25
(1) Providers that have a UUS must have a Board of Directors responsible for the management of the UUS.
(2) Providers must ensure that the Board of Directors responsible for the management of the UUS as referred to in paragraph (1) has:
a. knowledge in the field of Sharia finance or LPBBTI based on Sharia Principles; b. experience in the field of Sharia finance or LPBBTI based on Sharia Principles of at least 1 (one) year; and
c. commitment in the development of UUS.

Article 26
(1) UUS must be led by a UUS Leader.
(2) Providers must ensure that the UUS Leader as referred to in paragraph (1) meets the following minimum provisions:
a. does not have non-performing loans and/or financing; b. is not included in the list of parties prohibited from becoming Principal Parties; and
c. has expertise, training, and/or experience in the field of Sharia finance or LPBBTI based on Sharia Principles of at least 1 (one) year.

Article 27
(1) Providers must report changes in the UUS Leader to the Financial Services Authority no later than 15 (fifteen) working days from the date of the appointment of the UUS Leader. (2) The reporting of changes in the UUS Leader as referred to in paragraph (1) must be submitted by the Board of Directors by attaching UUS Leader documents as referred to in Article 22 paragraph (2) which are listed in the Appendix in Table 4 which is an integral part of this Financial Services Authority Regulation.

Second Section
Separation of UUS

Article 28
(1) Providers may carry out the Separation of UUS based on their own request.
(2) Providers that have a UUS must carry out the Separation of UUS if:
a. the UUS meets certain criteria established by the Financial Services Authority; or b. there is an order from the Financial Services Authority for consolidation purposes.

Article 29
(1) Separation of UUS can be carried out in the form of:
a. establishment of a new Provider based on Sharia Principles; or b. transfer to another Provider based on Sharia Principles.
(2) The establishment of a Provider based on Sharia Principles as referred to in paragraph (1) letter a is carried out by separating the business which results in all assets, liabilities, and Equity of the UUS transferring by law to the new Provider based on Sharia Principles. (3) The transfer to another Provider based on Sharia Principles as referred to in paragraph (1) letter b is carried out by transferring all of the Provider's UUS client portfolios to a Provider based on Sharia Principles that has obtained a business license.

Article 30
(1) Providers based on Sharia Principles resulting from Separation by establishing a new Provider based on Sharia Principles as referred to in Article 29 paragraph (1) letter a are exempt from the Minimum Paid-up Capital provisions as referred to in Article 7 paragraph (1) at the time of establishment. (2) The Paid-up Capital of Providers based on Sharia Principles resulting from UUS Separation can be fulfilled in the form of:
a. time deposits in the name of the Provider based on Sharia Principles at one of the Sharia commercial banks or Sharia business units of commercial banks in Indonesia; and/or b. other forms permitted based on regulatory provisions and in accordance with Sharia financial accounting standards.

Article 31
Separation of UUS as referred to in Article 28 must meet the following requirements:
a. The Provider carrying out the Separation of UUS and the Provider based on Sharia Principles resulting from the Separation of UUS must meet a Composite Health Level of at least rating 2; b. it does not cause the Provider receiving the transfer of asset portfolios from the UUS to violate regulations in the field of LPBBTI; and
c. it does not harm User interests.

Article 32
Providers intending to carry out the Separation of UUS must first:
a. notify Users of the plan for the Separation of UUS; and b. announce the plan for the Separation of UUS on the Provider's website and/or through announcement boards at the Head Office and Branch Offices that are easily accessible to the public.

Article 33
(1) Providers as referred to in Article 28 paragraph (2) letter a must carry out the Separation of UUS if they meet the following criteria:
a. total UUS Funding has reached at least 50% (fifty percent) of total Provider Funding; and b. UUS Equity has reached at least the amount of the Provider's Minimum Equity, based on the latest annual financial reports audited by public accountants. (2) Providers must carry out the Separation of UUS no later than 12 (twelve) months from the fulfillment of

criteria as referred to in paragraph (1).
(3) In the event that during the Separation of UUS process as referred to in paragraph (2), the assets and/or Equity of UUS decrease and no longer meet the criteria as referred to in paragraph (1), such condition does not eliminate the obligation of the Provider to carry out the Separation of UUS.

Article 34
The obligation to carry out the Separation of UUS by order of the Financial Services Authority in the context of consolidation as referred to in Article 28 paragraph (2) letter b is carried out for the development and strengthening of the LPBBTI industry.

Article 35
(1) Providers that will carry out the Separation of UUS based on their own request as referred to in Article 28 paragraph (1) must obtain approval from the Financial Services Authority. (2) To obtain approval for the Separation of UUS plan as referred to in paragraph (1), the Board of Directors must submit a request for Separation of UUS approval to the Financial Services Authority, accompanied by the approval document for the Separation of UUS plan as contained in the Appendix in Table 5, which is an integral part of this Financial Services Authority Regulation. (3) The request for approval of the Separation of UUS plan as referred to in paragraph (2) is submitted simultaneously with the request for fit and proper assessment for prospective members of the Board of Directors, prospective members of the Board of Commissioners, prospective PSPs, and/or prospective members of the DPS of the new Shariah-based Provider.

Article 36
(1) The Financial Services Authority provides approval or rejection of the request for approval of the Separation of UUS plan based on the provider's own request as referred to in Article 35 paragraph (2) within a maximum period of 20 (twenty) working days from the date the complete application documents are received. (2) Providers that will carry out the Separation of UUS based on their own request as referred to in Article 35 paragraph (1) may still carry out Financing business activities and Shariah Financing business activities. (3) To provide approval or rejection as referred to in paragraph (1), the Financial Services Authority conducts:
a. analysis and research on the completeness of documents as referred to in Article 35 paragraph (2); b. feasibility analysis of the Separation of UUS plan;
c. fit and proper assessment of prospective members of the Board of Directors, prospective members of the Board of Commissioners, prospective PSPs, and/or prospective members of the DPS of the new Shariah-based Provider resulting from the Separation of UUS; and
d. analysis of compliance with regulations in the field of Shariah LPBBTI.
(4) The Financial Services Authority may conduct inspections at the Provider's office and/or the new Shariah-based Provider resulting from the Separation to ensure readiness for the implementation of the Separation of UUS based on the provider's own request. (5) In the event that the request for the Separation of UUS plan based on the provider's own request is approved, the Financial Services Authority issues a letter of approval for the Separation of UUS plan to the relevant Provider. (6) In the event that the request for Separation of UUS based on the provider's own request is rejected, the rejection is done in writing and accompanied by the reasons for rejection.

Article 37
(1) Providers that will carry out the Separation of UUS plan because they meet certain criteria as referred to in Article 28 paragraph (2) letter a must submit a Separation of UUS report to the Financial Services Authority by attaching the Separation of UUS plan reporting documents that meet certain criteria contained in the Appendix in Table 6, which is an integral part of this Financial Services Authority Regulation. (2) The Separation of UUS plan report as referred to in paragraph (1) is submitted simultaneously with the request for fit and proper assessment for prospective members of the Board of Directors, prospective members of the Board of Commissioners, prospective PSPs, and/or prospective members of the DPS of the new Shariah-based Provider.

Article 38
(1) In processing the report as referred to in Article 37 paragraph (1), the Financial Services Authority conducts:
a. analysis and research on the completeness of documents as referred to in Article 37 paragraph (1); b. fit and proper assessment of prospective members of the Board of Directors, prospective members of the Board of Commissioners, prospective PSPs, and/or prospective members of the DPS of the new Shariah-based Provider resulting from the Separation of UUS; and
c. analysis of compliance with regulations in the field of Shariah LPBBTI.
(2) The Financial Services Authority may conduct inspections at the Provider's office and/or the new Shariah-based Provider resulting from the Separation to ensure readiness for the implementation of the Separation of UUS. (3) The Financial Services Authority issues a letter of recording of the Separation of UUS plan report to the relevant Provider.

Article 39
(1) Providers that will carry out the Separation of UUS plan because of an order from the Financial Services Authority as referred to in Article 28 paragraph (2) letter b must submit a Separation of UUS report to the Financial Services Authority within a maximum of 20 (twenty) working days calculated from the date of the order from the Financial Services Authority as referred to in Article 28 paragraph (2) letter b. (2) The Separation of UUS report as referred to in paragraph (1) must be submitted by the Board of Directors to the Financial Services Authority by attaching the reporting requirement documents for the Separation of UUS plan based on the Financial Services Authority's order as contained in the Appendix in Table 7, which is an integral part of this Financial Services Authority Regulation. (3) The Separation of UUS plan report as referred to in paragraph (1) is submitted simultaneously with the request for fit and proper assessment for prospective members of the Board of Directors, prospective members of the Board of Commissioners, prospective PSPs, and/or prospective members of the DPS of the new Shariah-based Provider resulting from the Separation of UUS.

Article 40
(1) In processing the report as referred to in Article 39 paragraph (1), the Financial Services Authority conducts:
a. analysis and research on the completeness of documents as referred to in Article 39 paragraph (1); b. fit and proper assessment of prospective members of the Board of Directors, prospective members of the Board of Commissioners, prospective PSPs, and/or prospective members of the DPS of the new Shariah-based Provider resulting from the Separation of UUS; and
c. analysis of compliance with regulations in the field of Shariah LPBBTI.
(2) The Financial Services Authority may conduct inspections at the Provider's office and/or the new Shariah-based Provider resulting from the Separation of UUS to ensure readiness for the implementation of the Separation of UUS. (3) The Financial Services Authority issues a letter of recording of the Separation of UUS plan report to the relevant Provider.

Article 41
(1) Providers that have obtained approval or recording of the Separation of UUS plan from the Financial Services Authority as referred to in Article 36 paragraph (5), Article 38 paragraph (3), and Article 40 paragraph (3) must hold a General Meeting of Shareholders (RUPS) that approves the Separation of UUS within a maximum of 60 (sixty) working days calculated from the date of the approval or recording letter from the Financial Services Authority. (2) In the event that the time period as referred to in paragraph (1) has expired and the Provider has not held a General Meeting of Shareholders (RUPS) that approves the Separation of UUS, the Financial Services Authority has the authority to cancel the approval or recording of the Separation of UUS plan that has been granted.

Article 42
(1) Providers that carry out the Separation of UUS must report the implementation of the General Meeting of Shareholders (RUPS) that approves the Separation of UUS to the Financial Services Authority within a maximum of 15 (fifteen) working days calculated from the date of the implementation of the General Meeting of Shareholders (RUPS) that approves the Separation of UUS. (2) The report on the implementation of the General Meeting of Shareholders (RUPS) that approves the Separation of UUS as referred to in paragraph (1) must be submitted by the Board of Directors to the Financial Services Authority by attaching the reporting documents for the implementation of the General Meeting of Shareholders (RUPS) that approves the Separation of UUS contained in the Appendix in Table 8, which is an integral part of this Financial Services Authority Regulation. (3) Based on the report on the implementation of the General Meeting of Shareholders (RUPS) that approves the Separation of UUS as referred to in paragraph (1), the Financial Services Authority:
a. conducts analysis and research on the completeness of documents as referred to in paragraph (2); b. revokes the license to establish the UUS in the event that the business license application to the new Shariah-based Provider resulting from the Separation of UUS is approved; and
c. provides approval or rejection of the business license application to the new Shariah-based Provider resulting from the Separation of UUS, which becomes effective as of the date the Articles of Association are approved by the competent authority.
(4) In the event of missing documents as referred to in paragraph (2), the Financial Services Authority submits a request for document completeness to the Provider.
(5) Providers must submit complete documents within a maximum of 20 (twenty) working days from the date of the document completeness request letter from the Financial Services Authority. (6) If within 20 (twenty) working days from the date of the document completeness request letter as referred to in paragraph (4), the Financial Services Authority has not received the complete documents, the Provider is deemed to have cancelled the request. (7) In the event that the request as referred to in paragraph (3) letter c is approved, the Financial Services Authority issues a letter of approval for the business license within a maximum period of 20 (twenty) days after the complete reporting documents as referred to in paragraph (2) are received. (8) In the event that the request as referred to in paragraph (3) letter c is rejected, the Financial Services Authority submits written notification accompanied by the reasons for rejection.

Article 43
(1) The new Shariah-based Provider resulting from the Separation of UUS must report the implementation of the Separation of UUS to the Financial Services Authority within a maximum of 15 (fifteen) working days calculated from the date the Articles of Association are approved by the competent authority, by attaching the Articles of Association that have been approved by the competent authority. (2) The report on the implementation of the Separation of UUS as referred to in paragraph (1) must be submitted by the Board of Directors to the Financial Services Authority by attaching the reporting requirement documents for the implementation of the Separation of UUS contained in the Appendix in Table 9, which is an integral part of this Financial Services Authority Regulation.

Third Section
Closure of UUS

Article 44
(1) Providers that will close the UUS must obtain approval from the Financial Services Authority.
(2) The closure of UUS is prohibited from harming the interests of Users.
(3) Providers that will carry out the closure of UUS as referred to in paragraph (1) must:
a. notify Users of the plan to close the UUS; b. submit procedures for the settlement of Users' rights and obligations;
c. resolve objections from Users, if there are objections from Users based on regulations;
and d. settle the rights and obligations of the UUS owned based on regulations.
(4) In carrying out the obligations as referred to in paragraph (3), Providers must pay attention to the interests of the parties and other relevant stakeholders.
(5) To obtain approval for the closure of UUS as referred to in paragraph (1), the Board of Directors must submit a request for approval for the closure of UUS to the Financial Services Authority by attaching the request for approval for the closure of UUS documents contained in the Appendix in Table 10, which is an integral part of this Financial Services Authority Regulation.

Article 45
(1) The Financial Services Authority provides approval or rejection of the request for approval for the closure of UUS as referred to in Article 44 paragraph (5) within a maximum period of 20 (twenty) working days from the date the request for approval for the closure of UUS is received completely. (2) In processing the request for approval for the closure of UUS as referred to in paragraph (1), the Financial Services Authority conducts:
a. analysis and research on the completeness of documents as referred to in Article 44 paragraph (5); and b. analysis of compliance with regulations in the field of LPBBTI.
(3) In the event of missing documents as referred to in Article 44 paragraph (5), the Financial Services Authority submits a request for document completeness to the Provider. (4) Providers must submit complete documents within a maximum of 20 (twenty) working days from the date of the document completeness request letter from the Financial Services Authority. (5) If within 20 (twenty) working days from the date of the document completeness request letter as referred to in paragraph (3), the Financial Services Authority has not received the complete documents, the Provider is deemed to have cancelled the request. (6) In the event that the request for closure of UUS as referred to in paragraph (1) is approved, the Financial Services Authority issues a letter of approval for the plan to close the UUS to the relevant Provider. (7) In the event that the request for closure of UUS as referred to in paragraph (1) is rejected, the rejection is done in writing and accompanied by the reasons for rejection.

Article 46
Providers that have obtained approval for the plan to close the UUS must:
a. hold a General Meeting of Shareholders (RUPS) that approves the cessation of UUS business activities; b. cease all UUS business activities;
c. announce the plan to cease UUS business activities and the plan to settle UUS obligations in a daily newspaper with national circulation, the Electronic System used by the Provider, and letters and/or announcements through other media to each User within a maximum of 15 (fifteen) working days from the date of the letter of approval for the plan to close the UUS; and
d. settle all rights and obligations of the UUS within a maximum of 1 (one) year from the date of the letter of approval for the plan to close the UUS.

Article 47
(1) Providers must report the cessation of UUS business activities to the Financial Services Authority within a maximum of 15 (fifteen) working days after all rights and obligations of the UUS as referred to in Article 44 paragraph (3) letter d are settled. (2) The report on the cessation of UUS business activities as referred to in paragraph (1) must be submitted by the Board of Directors to the Financial Services Authority by attaching the reporting documents for the cessation of UUS business activities as contained in the Appendix in Table 11, which is an integral part of this Financial Services Authority Regulation. (3) Based on the report as referred to in paragraph (1), the Financial Services Authority conducts:
a. research on the report on the implementation of the plan to close the UUS; and b. determines the decision to revoke the license to establish the UUS.

Fourth Section
Administrative Sanctions

Article 48
(1) Providers who violate the provisions as referred to in Article 20 paragraph (2), paragraph (3), paragraph (4), Article 21 paragraph (2), paragraph (3), Article 22 paragraph (1), Article 24 paragraph (1), paragraph (2), Article 25, Article 26, Article 27 paragraph (1), Article 28 paragraph (2), Article 32, Article 33 paragraph (1), paragraph (2), Article 35 paragraph (1), Article 39 paragraph (1), Article 42 paragraph (1), Article 43 paragraph (1), Article 44 paragraph (1), paragraph (2), paragraph (3), paragraph (4), Article 46, and/or Article 47 paragraph (1) are subject to administrative sanctions in the form of:
a. written warning; b. suspension of part or all business activities;
c. restriction of certain business activities;
d. reduction of risk assessment results; e. cancellation of approval; f. prohibition from becoming a PSP, Board of Directors, Board of Commissioners, and/or DPS; g. revocation of UUS license; and/or h. administrative fine. (2) Administrative sanctions as referred to in paragraph (1) letters b to g may be imposed with or without prior imposition of administrative sanctions in the form of a written warning as referred to in paragraph (1) letter a. (3) Administrative sanctions in the form of administrative fines as referred to in paragraph (1) letter g are imposed at most IDR 50,000,000.00 (fifty million rupiah). (4) In the event that the Provider has fulfilled the provisions as referred to in paragraph (1), the Financial Services Authority revokes the administrative sanction. (5) In the event that a violation of the provisions as referred to in paragraph (1) occurs and the violation has been corrected, the Financial Services Authority provides an administrative sanction in the form of a written warning that ends automatically. (6) In addition to the administrative sanctions as referred to in paragraph (1), the Financial Services Authority has the authority to:
a. reduce the Health Level assessment results; b. conduct a re-assessment of the Principal Parties that caused the Provider to violate the provisions as referred to in paragraph (1); and/or
c. record the track record of the parties that caused the Provider to violate the provisions as referred to in paragraph (1) in the Financial Services Authority Electronic System.

CHAPTER VI
HUMAN RESOURCES

First Section
Fit and Proper Assessment and Re-assessment of Principal Parties

Article 49
(1) Providers must ensure that prospective Principal Parties obtain approval from the Financial Services Authority before carrying out actions, duties, and functions as Principal Parties. (2) Principal Parties as referred to in paragraph (1) include:
a. PSP; b. members of the Board of Directors;
c. members of the Board of Commissioners; and
d. members of the DPS.
(3) To provide approval as referred to in paragraph (1), the Financial Services Authority conducts a fit and proper assessment of prospective Principal Parties.
(4) The fit and proper assessment as referred to in paragraph (3) is carried out in accordance with the Financial Services Authority Regulation regarding fit and proper assessment for Principal Parties of financial service institutions.

Article 50
(1) In the event that Principal Parties are indicated to be involved and/or responsible for issues of integrity, financial feasibility, financial reputation, and/or competence, the Financial Services Authority conducts a re-assessment of the Principal Parties. (2) The re-assessment of Principal Parties as referred to in paragraph (1) is carried out in accordance with the Financial Services Authority Regulation regarding re-assessment for Principal Parties of financial service institutions.

Second Section
Certification

Article 51
(1) Providers must ensure that members of the Board of Directors, members of the Board of Commissioners, and officials one (1) level below the Board of Directors have work competency certificates from professional certification bodies in the field of financial technology registered with the Financial Services Authority. (2) Members of the Board of Directors who are foreign citizens must have Indonesian language proficiency proven by Indonesian language certification at the latest 1 (one) year from the date of approval as members of the Board of Directors by the Financial Services Authority. (3) In the event that professional certification bodies in the field of financial technology as referred to in paragraph (1) have not been formed, expertise certification in the field of financial technology may be carried out by the Association.

Third Section
Information Technology Workforce

Article 52
(1) Providers must have experts who have the ability to develop, modify, and delete the Electronic Systems used by the Provider.
(2) Experts as referred to in paragraph (1) have at least 3 (three) years of experience and expertise in the field of Information Technology including abilities in the fields of databases, networks, Electronic System security, and programming.

Fourth Section
Use of Foreign Workforce

Article 53
(1) Providers that will use foreign workforce must obtain approval from the Financial Services Authority.
(2) Providers must include plans for the use of foreign workforce in their business plans.
(3) To obtain approval for the use of foreign workforce as referred to in paragraph (1), the Board of Directors must submit a request to the Financial Services Authority.
(4) The request as referred to in paragraph (3) attaches the approval document for employing foreign workforce contained in the Appendix in Table 12, which is an integral part of this Financial Services Authority Regulation. (5) The request for approval to use foreign workforce as referred to in paragraph (3) is submitted to the Financial Services Authority before the Provider submits a request for a license to use foreign workforce to the agency handling the labor field.

Article 54
(1) The Financial Services Authority provides approval or rejection of the request for approval to use foreign workforce as referred to in Article 53 paragraph (3) within a maximum period of 20 (twenty) working days from the date the approval request is received completely. (2) To provide approval or rejection as referred to in paragraph (1), the Financial Services Authority conducts:
a. analysis and research on the completeness of documents as referred to in Article 53 paragraph (3); b. clarification of prospective foreign workforce if necessary; and
c. analysis of compliance with regulations in the field of LPBBTI.
(3) In the event of missing documents as referred to in Article 53 paragraph (3), the Financial Services Authority submits a request for document completeness to the Provider. (4) Providers must submit complete documents within a maximum of 20 (twenty) working days from the date of the document completeness request letter from the Financial Services Authority. (5) If within 20 (twenty) working days from the date of the document completeness request letter as referred to in paragraph (3), the Financial Services Authority has not received the complete documents, the Provider is deemed to have cancelled the request. (6) In the event that the request for approval to use foreign workforce as referred to in paragraph (1) is approved, the Financial Services Authority issues a letter of approval to use foreign workforce to the relevant Provider. (7) In the event that the request for approval to use foreign workforce as referred to in paragraph (1) is rejected, the rejection is done in writing and accompanied by the reasons for rejection.

Article 55
(1) Providers may use foreign workforce with the following criteria:
a. the use of foreign workforce is prohibited from exceeding a period of 2 (two) years for each foreign worker and may be extended for a maximum of 2 (two) years; and b. they are prohibited from being employed other than in the field of Information Technology as experts at a level one below the Board of Directors or as consultants. (2) Foreign workforce as referred to in paragraph (1) must meet the following requirements:

a. possessing expertise in accordance with the field of duty that will become their responsibility; and b. meeting the provisions of legislation in the field of labor.
(3) Organizers who employ foreign workers as referred to in paragraph (1) must:
a. conduct knowledge transfer activities from foreign workers to the Organizer's employees; and b. appoint at least 1 (one) Indonesian worker as a companion for 1 (one) foreign worker. (4) Knowledge transfer as referred to in paragraph (3) letter a must be made in the form of an annual education and training program for the Organizer's employees. (5) Organizers must report the implementation of the education and training program as referred to in paragraph (4) in writing to the Financial Services Authority at the latest 1 (one) month after the calendar year ends for each year. (6) If the deadline for submitting the report as referred to in paragraph (5) falls on a holiday, the deadline for submitting the report is on the next working day. (7) The Financial Services Authority has the authority to require the Organizer to dismiss foreign workers who do not meet the requirements as referred to in paragraph (2). (8) Organizers must fulfill the Financial Services Authority's request to dismiss foreign workers as referred to in paragraph (7). (9) Foreign workers as referred to in paragraph (1) and paragraph (2) do not include foreign workers employed as Directors and Board of Commissioners.

Fifth Section
Use of Outsourced Labor
Article 56
(1) Organizers may delegate part of the work execution to third parties through an outsourcing agreement.
(2) The form of outsourcing agreements conducted by Organizers is done through agreements:
a. work contracting; and/or b. provision of labor services.
(3) Organizers are prohibited from outsourcing work that performs the functions:
a. assessment of Funding Feasibility; and/or b. Information Technology operations.
(4) Information Technology operations as referred to in paragraph (3) letter b include:
a. user access management activities; and b. database management. https://jdih.ojk.go.id/

(5) Organizers may conduct outsourcing activities for Information Technology development.
(6) In the event that Organizers conduct outsourcing activities for Information Technology development as referred to in paragraph (5), Organizers must meet the following requirements:
a. application source code and production server access are owned by the Organizer; b. Information Technology development is carried out in the name of the Organizer; and
c. Information Technology development is not carried out in the deployment and maintenance production stages.
(7) Organizers are prohibited from delegating part of the work to third parties as referred to in paragraph (1) other than to third parties that meet the provisions:
a. the third party is a legal entity in Indonesia; b. the third party is registered in an association of similar third-party companies;
c. it does not affect the Organizer's reputation; and
d. it is carried out in accordance with the provisions of legislation in the field of labor.
(8) Organizers are responsible for the implementation of activities delegated to third parties.

Sixth Section
Administrative Sanctions
Article 57
(1) Organizers who violate the provisions as referred to in Article 49 paragraph (1), Article 51 paragraph (1), paragraph (2), Article 52 paragraph (1), Article 53 paragraph (1), paragraph (2), Article 55 paragraph (1), paragraph (3), paragraph (5), paragraph (8), and/or Article 56 paragraph (3), paragraph (6), paragraph (7), paragraph (8) are subject to administrative sanctions in the form of:
a. written warning; b. suspension of part or all of business activities;
c. restriction of certain business activities;
d. reduction of risk assessment results; e. revocation of approval; f. prohibition from becoming PSP, Directors, Board of Commissioners, and/or DPS; and/or g. administrative fine. (2) Administrative sanctions as in paragraph (1) letters b to g may be imposed with or without prior imposition of administrative sanctions in the form of written warnings as referred to in paragraph (1) letter a. (3) Administrative sanctions in the form of administrative fines as referred to in paragraph (1) letter g are imposed at most IDR 50,000,000.00 (fifty million rupiah). https://jdih.ojk.go.id/

(4) In the event that Organizers have fulfilled the provisions as referred to in paragraph (1), the Financial Services Authority revokes the administrative sanction.
(5) In the event that violations of the provisions as referred to in paragraph (1) occur and the violations have been corrected, the Financial Services Authority provides administrative sanctions in the form of written warnings that end automatically. (6) In addition to administrative sanctions as referred to in paragraph (1), the Financial Services Authority has the authority to:
a. reduce the Health Level assessment results; b. re-evaluate the Principal Parties that caused the Organizer to violate the provisions as referred to in paragraph (1); and/or
c. record the track record of parties that caused the Organizer to violate the provisions as referred to in paragraph (1) in the Financial Services Authority Electronic System.

CHAPTER VII
CHANGE OF OWNERSHIP AND TAKEOVER
Article 58
(1) Changes in ownership that result in a takeover including:
a. change of PSP; and b. change of controlling shareholders of the PSP, must obtain approval from the Financial Services Authority.
(2) Changes in ownership that result in changes:
a. shareholders other than PSP in Organizers that are not public companies; and b. shareholders other than controlling shareholders of the PSP in Organizers that are not public companies; must be reported to the Financial Services Authority. (3) Organizers are prohibited from making changes in ownership that result in changes to PSP, within a period of 3 (three) years from the date of the business license as an Organizer from the Financial Services Authority, except those intended for the rehabilitation of the Organizer by the Financial Services Authority. (4) In the event that changes in ownership as referred to in paragraph (1) and paragraph (2) are caused by the addition of Paid-up Capital, the addition of Paid-up Capital referred to is prohibited from being carried out other than in the form of:
a. cash deposits; b. conversion/transfer of profit balances;
c. conversion/transfer of loans; and/or
d. bonus shares.
(5) Organizers who have obtained a business license at the time this Financial Services Authority Regulation comes into force and will carry out changes in ownership through takeovers must adjust the provisions regarding Paid-up Capital to at least IDR 25,000,000,000.00 (twenty-five billion rupiah). (6) Organizers carrying out changes in ownership through inheritance are exempt from the obligation to adjust Paid-up Capital as referred to in paragraph (5). (7) Plans for changes in ownership must be included in the business plan as referred to in the Financial Services Authority Regulation regarding the business plan of non-bank financial service institutions. (8) In providing approval for changes in ownership that result in changes to PSP as referred to in paragraph (1) letter a, the Financial Services Authority conducts an assessment of competence and propriety for the new PSP candidates as referred to in paragraph (3).
Article 59
(1) To obtain approval as referred to in Article 58 paragraph (1), the Board of Directors must submit an application for approval to the Financial Services Authority by attaching the application documents for approval of changes in ownership resulting in a takeover contained in the Appendix in table 13 which is an integral part of this Financial Services Authority Regulation. (2) In the event of missing documents as referred to in paragraph (1), the Financial Services Authority submits a request for document completeness. (3) Organizers submit document completeness at the latest 20 (twenty) working days from the date of the document completeness request letter from the Financial Services Authority. (4) If within 20 (twenty) working days from the date of the document completeness request letter as referred to in paragraph (3) the Financial Services Authority has not received the document completeness referred to, the Organizer is deemed to have canceled the application.
Article 60
(1) The Financial Services Authority provides approval or rejection of the application for changes in ownership as referred to in Article 58 paragraph (1) within a period of at most 20 (twenty) working days from the date the application is received completely. (2) To provide approval or rejection as referred to in paragraph (1), the Financial Services Authority conducts:
a. analysis and research on the completeness of documents as referred to in Article 59 paragraph (1); b. feasibility analysis of the plan for changes in ownership; https://jdih.ojk.go.id/

c. assessment of competence and propriety for PSP candidates; and
d. analysis of compliance with provisions of legislation in the field of IT-Based Collective Financing.
(3) In the event that the application for changes in ownership is approved, the Financial Services Authority issues a letter of approval for changes in ownership to the relevant Organizer. (4) In the event that the application for changes in ownership is rejected, the Financial Services Authority submits written notification accompanied by reasons for rejection.
Article 61
(1) Organizers who have obtained approval for changes in ownership as referred to in Article 60 paragraph (1) from the Financial Services Authority must hold a General Meeting of Shareholders approving the changes in ownership at the latest 60 (sixty) working days calculated from the date of the Financial Services Authority's approval letter. (2) In the event that Organizers have not held a General Meeting of Shareholders approving changes in ownership within the period as referred to in paragraph (1), the Financial Services Authority has the authority to cancel the previously granted approval for changes in ownership.
Article 62
(1) Organizers who obtain approval for changes in ownership must report the implementation of changes in ownership to the Financial Services Authority at the latest 15 (fifteen) working days calculated from the date of receipt of the acceptance notification letter from the competent agency. (2) The Board of Directors must submit the report as referred to in paragraph (1) to the Financial Services Authority by attaching the report documents for the implementation of changes in ownership contained in the Appendix in table 14 which is an integral part of this Financial Services Authority Regulation.
Article 63
(1) Organizers carrying out changes in ownership as referred to in Article 58 paragraph (2) must report to the Financial Services Authority at the latest 20 (twenty) working days since the changes in ownership were carried out. (2) The Board of Directors must submit the report as referred to in paragraph (1) to the Financial Services Authority by attaching the report documents for changes in ownership that do not result in a takeover contained in the Appendix in table 15 which is an integral part of this Financial Services Authority Regulation. https://jdih.ojk.go.id/

Article 64
(1) Organizers who violate the provisions as referred to in Article 58 paragraph (1), paragraph (2), paragraph (3), paragraph (4), paragraph (5), Article 62 paragraph (1), and/or Article 63 paragraph (1) are subject to administrative sanctions in the form of:
a. written warning; b. suspension of part or all of business activities;
c. restriction of certain business activities;
d. reduction of risk assessment results; e. revocation of approval; f. prohibition from becoming PSP, Directors, Board of Commissioners, and/or DPS; and/or g. administrative fine. (2) Administrative sanctions as in paragraph (1) letters b to g may be imposed with or without prior imposition of administrative sanctions in the form of written warnings as referred to in paragraph (1) letter a. (3) Administrative sanctions in the form of administrative fines as referred to in paragraph (1) letter g are imposed at most IDR 50,000,000.00 (fifty million rupiah). (4) In the event that Organizers have fulfilled the provisions as referred to in paragraph (1), the Financial Services Authority revokes the administrative sanction. (5) In the event that violations of the provisions as referred to in paragraph (1) occur and the violations have been corrected, the Financial Services Authority provides administrative sanctions in the form of written warnings that end automatically. (6) In addition to administrative sanctions as referred to in paragraph (1), the Financial Services Authority has the authority to:
a. reduce the Health Level assessment results; b. re-evaluate the Principal Parties that caused the Organizer to violate the provisions as referred to in paragraph (1); and/or
c. record the track record of parties that caused the Organizer to violate the provisions as referred to in paragraph (1) in the Financial Services Authority Electronic System.

CHAPTER VIII
CHANGES TO CERTAIN ARTICLES OF ASSOCIATION AND CHANGES IN DIRECTORS, COMMISSIONERS, AND SHARIA SUPERVISORY BOARD MEMBERS
Article 65
(1) Organizers must report changes to certain articles of association including:
a. purpose and business activities of the Organizer; b. name of the Organizer; and/or
c. location of the Organizer's headquarters,
to the Financial Services Authority at the latest 15 (fifteen) working days since the approval or receipt of the notification letter from the competent agency.
(2) Reporting of changes to the purpose and business activities of the Organizer as referred to in paragraph (1) letter a by attaching the report documents for changes to the purpose and business activities of the Organizer contained in the Appendix in table 16 which is an integral part of this Financial Services Authority Regulation. (3) Reporting of changes to the name of the Organizer as referred to in paragraph (1) letter b by attaching the document requirements for reporting changes to the name of the Organizer contained in the Appendix in table 17 which is an integral part of this Financial Services Authority Regulation. (4) Reporting of changes to the location of the Organizer's headquarters as referred to in paragraph (1) letter c by attaching the document requirements for reporting changes to the location of the Organizer's headquarters contained in the Appendix in table 18 which is an integral part of this Financial Services Authority Regulation.
Article 66
(1) Organizers who will issue equity instruments in the form of shares through a public offering must meet the following requirements:
a. has been included in the Organizer's business plan; b. has a Health Level with a minimum composite rating of 2;
c. is not subject to sanctions of suspension of part or all of business activities and/or restriction of business activities; and
d. has Equity in accordance with the minimum Equity provisions for Organizers.
(2) The provisions for issuing equity instruments in the form of shares through a public offering as referred to in paragraph (1) refer to the provisions of legislation in the field of capital markets. (3) Organizers who will issue equity instruments in the form of shares through a public offering as referred to in paragraph (1) letter d must report the plan to issue equity instruments in the form of shares at the latest 2 (two) months before the general meeting of shareholders approving the public offering or limited public offering. (4) Reporting of the plan to issue equity instruments in the form of shares through a public offering as referred to in paragraph (1) must be submitted by the Board of Directors to the Financial Services Authority by attaching the document requirements for reporting the plan to issue equity instruments in the form of shares through a public offering contained in the Appendix in table 19 which is an integral part of this Financial Services Authority Regulation. https://jdih.ojk.go.id/

(5) In the event that the Financial Services Authority has received the report as referred to in paragraph (2) completely, the Financial Services Authority issues a letter of recording the plan to issue equity instruments in the form of shares in the Financial Services Authority administration at the latest 20 (twenty) working days since the report was received.
Article 67
(1) Organizers who make changes:
a. members of the Board of Directors; b. members of the Board of Commissioners; and/or
c. members of the DPS,
must submit reports to the Financial Services Authority at the latest 15 (fifteen) working days after the changes are recorded by the competent agency.
(2) The reporting as referred to in paragraph (1) must be submitted by the Board of Directors to the Financial Services Authority by attaching the report documents for changes in members of the Board of Directors, members of the Board of Commissioners, and members of the DPS contained in the Appendix in table 20 which is an integral part of this Financial Services Authority Regulation.
Article 68
(1) Organizers who violate the provisions as referred to in Article 65 paragraph (1), Article 66 paragraph (1), paragraph (3), and Article 67 paragraph (1) are subject to administrative sanctions in the form of:
a. written warning; b. suspension of part or all of business activities;
c. restriction of certain business activities;
d. reduction of risk assessment results; e. revocation of approval; f. prohibition from becoming PSP, Directors, Board of Commissioners, and/or DPS; and/or g. administrative fine. (2) Administrative sanctions as in paragraph (1) letters b to g may be imposed with or without prior imposition of administrative sanctions in the form of written warnings as referred to in paragraph (1) letter a. (3) Administrative sanctions in the form of administrative fines as referred to in paragraph (1) letter g are imposed at most IDR 50,000,000.00 (fifty million rupiah). (4) In the event that Organizers have fulfilled the provisions as referred to in paragraph (1), the Financial Services Authority revokes the administrative sanction. (5) In the event that violations of the provisions as referred to in paragraph (1) occur and the violations have been corrected, the Financial Services Authority provides administrative sanctions in the form of written warnings that end automatically. (6) In addition to administrative sanctions as referred to in paragraph (1), the Financial Services Authority has the authority to:
https://jdih.ojk.go.id/

a. reduce the Health Level assessment results; b. re-evaluate the Principal Parties that caused the Organizer to violate the provisions as referred to in paragraph (1); and/or
c. record the track record of parties that caused the Organizer to violate the provisions as referred to in paragraph (1) in the Financial Services Authority Electronic System.

CHAPTER IX
MERGER AND CONSOLIDATION
Article 69
(1) Organizers may carry out:
a. Merger; or b. Consolidation.
(2) Merger and Consolidation as referred to in paragraph (1) must first obtain approval from the Financial Services Authority.
(3) Plans for Merger and Consolidation must be included in the business plan as referred to in the Financial Services Authority Regulation regarding the business plan of non-bank financial institutions. (4) Merger and Consolidation as referred to in paragraph (1) can only be carried out by Organizers that are legal entities of the same form and have similar Funding principles. (5) To obtain approval as referred to in paragraph (2), the Board of Directors must submit an application for Merger or Consolidation to the Financial Services Authority by attaching the application documents for approval of the plan for the implementation of Merger or Consolidation contained in the Appendix in table 21 which is an integral part of this Financial Services Authority Regulation. (6) The application for approval of Merger or Consolidation as referred to in paragraph (5) is submitted together with the application for assessment of competence and propriety for candidate members of the Board of Directors, members of the Board of Commissioners, PSP, and/or members of the DPS of the Organizer resulting from the Merger or Consolidation. (7) To obtain approval for Merger or Consolidation as referred to in paragraph (2), the following requirements must be met:
a. does not harm or reduce the rights of Users; b. has been included in the business plan;
c. the financial condition of the Organizer resulting from the Merger and Consolidation must meet the minimum Equity provisions required; and
d. does not cause the Organizer to violate the provisions as regulated in this Financial Services Authority Regulation. https://jdih.ojk.go.id/

Article 70
(1) The Financial Services Authority provides approval or rejection of the plan for the implementation of Merger and Consolidation within a period of at most 20 (twenty) working days since the application documents are received completely. (2) To provide approval or rejection as referred to in paragraph (2), the Financial Services Authority conducts:
a. analysis and research on the completeness of documents as referred to in Article 69 paragraph (5); b. feasibility analysis of the plan for the implementation of Merger or Consolidation;
c. assessment of competence and propriety for candidate members of the Board of Directors, members of the Board of Commissioners, PSP, and/or members of the DPS; and
d. analysis of compliance with provisions of legislation in the field of IT-Based Collective Financing.
(3) In the event of missing documents as referred to in paragraph (2), the Financial Services Authority submits a request for document completeness.
(4) Organizers must submit document completeness at the latest 20 (twenty) working days from the date of the document completeness request letter from the Financial Services Authority. (5) If within a period of 20 (twenty) working days from the date of the document completeness request letter, the Financial Services Authority has not received the document completeness referred to as referred to in paragraph (3), the Board of Directors is deemed to have canceled the application for approval of the plan for the implementation of Merger and Consolidation. (6) In the event that the application as referred to in paragraph (1) is approved, the Financial Services Authority issues a letter of approval for the plan for the implementation of Merger and Consolidation to the Board of Directors. (7) In the event that approval for Merger or Consolidation as referred to in paragraph (1) is rejected, the Financial Services Authority submits written notification accompanied by reasons for rejection. (8) Rights and obligations arising after carrying out Merger or Consolidation become the responsibility of the Organizer that will receive the Merger or result of the Consolidation.
Article 71
(1) Organizers who have obtained approval for the plan for the implementation of Merger and Consolidation from the Financial Services Authority must hold a General Meeting of Shareholders approving the Merger and Consolidation at the latest 60 (sixty) working days calculated from the date of the Financial Services Authority's approval letter. (2) In the event that the period as referred to in paragraph (1) has expired and Organizers have not held a General Meeting of Shareholders approving the Merger or Consolidation, the Financial Services Authority has the authority to https://jdih.ojk.go.id/

revoking the approval of Merger or Consolidation that has been granted.

Article 72
(1) The Organizer:
a. that receives the Merger; or b. the result of the Consolidation, must report the implementation of the General Meeting of Shareholders that approved the Merger or Consolidation to the Financial Services Authority no later than 15 (fifteen) working days calculated from the date of the General Meeting of Shareholders. (2) The report on the implementation of the General Meeting of Shareholders that approved the Merger or Consolidation as referred to in paragraph (1), must be submitted by the Board of Directors to the Financial Services Authority by attaching the report document on the implementation of the General Meeting of Shareholders that approved the Merger or Consolidation contained in the Appendix in table 22 which is an inseparable part of this Financial Services Authority Regulation. (3) The Organizer must announce the Merger or Consolidation to the public no later than 5 (five) working days after the General Meeting of Shareholders decision.

Article 73
(1) For the report on the implementation of the General Meeting of Shareholders that approved the Merger as referred to in Article 72 paragraph (2), the Organizer receiving the Merger may submit a request for a license to form a Business Unit that was previously owned by the Organizer merging into its name to the Financial Services Authority. (2) The request for a license to form a Business Unit as referred to in paragraph (1), must be submitted by the Board of Directors by attaching documents in the form of a license to form a Business Unit previously owned by the Organizer merging into its name. (3) The Organizer receiving the Merger is prohibited from operating the Business Unit previously owned by the Organizer merging into its name before obtaining a license from the Financial Services Authority.

Article 74
(1) The Financial Services Authority provides approval or rejection of the request for a license to form a Business Unit as referred to in Article 73 paragraph (2) within a maximum period of 20 (twenty) working days from the date the request for a license to form a Business Unit is received completely. (2) Based on the report on the implementation of the General Meeting of Shareholders that approved the Merger as referred to in Article 72 paragraph (2) and in the event of a request for a license to form a Business Unit as referred to in Article 73 paragraph (1), the Financial Services Authority conducts:
https://jdih.ojk.go.id/

a. analysis and research on the completeness of documents as referred to in Article 72 paragraph (2) and Article 73 paragraph (2); b. revocation of business licenses and/or licenses to form Business Units from the Organizer merging into its name if any, which becomes effective calculated from the date the Articles of Association are approved by, or notified to, the competent agency; and
c. provision of approval or rejection of the request for a license to form a Business Unit to the Organizer that is the result of the Merger if any, which becomes effective calculated from the date the Articles of Association are approved by, or notified to, the competent agency.
(3) In the event of missing documents as referred to in Article 72 paragraph (2) and Article 73 paragraph (2), the Financial Services Authority submits a request for document completeness to the Organizer. (4) The Organizer must submit document completeness no later than 20 (twenty) working days from the date of the letter requesting document completeness from the Financial Services Authority. (5) If within a period of 20 (twenty) working days from the date of the letter requesting document completeness as referred to in paragraph (4), the Financial Services Authority has not received the document completeness referred to, the Organizer is deemed to have cancelled the request. (6) In the event that the request for a license to form a Business Unit as referred to in paragraph (1) is approved, the Financial Services Authority establishes a decision on the granting of a license to form a Business Unit. (7) In the event that the request for a license to form a Business Unit as referred to in paragraph (1) is rejected, the Financial Services Authority submits written notification accompanied by reasons for rejection.

Article 75
(1) The Organizer resulting from the Merger must report the implementation of the Merger to the Financial Services Authority no later than 15 (fifteen) working days calculated from the date the Articles of Association are approved by or notified to the competent agency. (2) The report on the implementation of the Merger as referred to in paragraph (1) must be submitted by the Board of Directors to the Financial Services Authority by attaching documents in the form of Articles of Association that have been approved by or notified to the competent agency.

Article 76
(1) For the report on the implementation of the General Meeting of Shareholders that approved the Consolidation as referred to in Article 75 paragraph (1), the Organizer resulting from the Consolidation may submit a request for a license to form a Business Unit that was previously owned by the Organizer merging into its name to the Financial Services Authority. https://jdih.ojk.go.id/

(2) The request for a license to form a Business Unit as referred to in paragraph (1), must be submitted by the Board of Directors by attaching documents in the form of a previous license to form a Business Unit owned by the Organizer merging into its name. (3) The Organizer resulting from the Consolidation is prohibited from operating the Business Unit previously owned by the Organizer merging into its name before obtaining a license from the Financial Services Authority.

Article 77
(1) The Financial Services Authority provides approval or rejection of the request for a license to form a Business Unit as referred to in Article 76 paragraph (1) within a maximum period of 20 (twenty) working days from the date the request for a license to form a Business Unit is received completely. (2) Based on the report on the implementation of the General Meeting of Shareholders that approved the Consolidation as referred to in Article 75 paragraph (2) and in the event of a request for a license to form a Business Unit as referred to in Article 76 paragraph (2), the Financial Services Authority conducts:
a. analysis and research on the completeness of documents as referred to in Article 75 paragraph (2) and/or Article 76 paragraph (2); b. revocation of business licenses and/or licenses to form Business Units from the Organizer merging into its name (if any), which becomes effective calculated from the date the Articles of Association are ratified, approved by, or notified to the competent agency; and
c. provision of approval or rejection of the request for a business license of the Organizer resulting from the Consolidation and/or license to form a Business Unit to the Organizer that is the result of the Consolidation (if any), which becomes effective calculated from the date the Articles of Association are ratified, approved by, or notified to the competent agency.
(3) In the event of missing documents as referred to in Article 76 paragraph (2), the Financial Services Authority submits a request for document completeness to the Organizer. (4) The Organizer must submit document completeness no later than 20 (twenty) working days from the date of the letter requesting document completeness from the Financial Services Authority. (5) If within a period of 20 (twenty) working days from the date of the letter requesting document completeness as referred to in paragraph (4), the Financial Services Authority has not received the document completeness referred to, the Organizer is deemed to have cancelled the request. https://jdih.ojk.go.id/

(6) In the event that the request for a license to form a Business Unit as referred to in paragraph (1) is approved, the Financial Services Authority establishes a decision on the granting of a business license for the Organizer resulting from the Consolidation and/or license to form a Business Unit. (7) In the event that the request for a license to form a Business Unit as referred to in paragraph (1) is rejected, the Financial Services Authority submits written notification accompanied by reasons for rejection.

Article 78
(1) The Organizer resulting from the Consolidation must report the implementation of the Consolidation to the Financial Services Authority no later than 15 (fifteen) working days calculated from the date the Articles of Association are ratified to the competent agency. (2) The report on the implementation of the Consolidation as referred to in paragraph (1) must be submitted by the Board of Directors to the Financial Services Authority by attaching documents in the form of Articles of Association that have been ratified by the competent agency to the Financial Services Authority.

Article 79
(1) Organizers who violate the provisions as referred to in Article 69 paragraph (2), Article 72 paragraph (1), paragraph (3), Article 73 paragraph (3), Article 75 paragraph (1), Article 76 paragraph (3), and/or Article 78 paragraph (1) are subject to administrative sanctions in the form of:
a. written warning; b. suspension of part or all of business activities;
c. restriction of certain business activities;
d. reduction of risk level assessment results; e. revocation of approval; f. prohibition of becoming a Payment Service Provider, Board of Directors, Board of Commissioners, and/or Supervisory Board; and/g. revocation of Business Unit license; and/or h. administrative fine. (2) Administrative sanctions as referred to in paragraph (1) letters b to g may be imposed with or without being preceded by the imposition of administrative sanctions in the form of a written warning as referred to in paragraph (1) letter a. (3) Administrative sanctions in the form of administrative fines as referred to in paragraph (1) letter g are imposed at most IDR 50,000,000.00 (fifty million rupiah). (4) In the event that the Organizer has fulfilled the provisions as referred to in paragraph (1), the Financial Services Authority revokes the administrative sanction. (5) In the event that a violation of the provisions as referred to in paragraph (1) occurs and the violation has been corrected, the Financial Services Authority gives an administrative sanction in the form of a written warning that ends automatically. https://jdih.ojk.go.id/

(6) In addition to administrative sanctions as referred to in paragraph (1), the Financial Services Authority is authorized to:
a. reduce the Health Level assessment results; b. conduct a re-evaluation of the Principal Party that caused the Organizer to violate the provisions as referred to in paragraph (1); and/or
c. record the track record of the party that caused the Organizer to violate the provisions as referred to in paragraph (1) in the Financial Services Authority Electronic System.

CHAPTER X
ASSOCIATION

Article 80
(1) Organizers must be registered as members of the Association.
(2) Organizers must fulfill the provisions as referred to in paragraph (1) no later than 6 (six) months from the date of the business license determination.

Article 81
(1) The Association must obtain written approval from the Financial Services Authority.
(2) To obtain written approval from the Financial Services Authority, the Association must submit a written request to the Financial Services Authority, by attaching the Association approval request documents contained in the Appendix in table 23 which is an inseparable part of this Financial Services Authority Regulation.

Article 82
(1) The Financial Services Authority provides approval or rejection of the Association approval request as referred to in Article 81 paragraph (2) within a maximum period of 20 (twenty) working days from the date the request is received completely. (2) In providing approval or rejection as referred to in paragraph (1), the Financial Services Authority conducts:
a. analysis and research on the completeness of documents as referred to in Article 81 paragraph (2); and b. assessment of feasibility, financial reputation, and integrity of the candidate executive director who does not serve as a member of the Board of Directors or member of the Board of Commissioners, if any. (3) The Financial Services Authority may conduct an inspection of the Association's office to ensure the Association's operational readiness. (4) In the event of missing documents, the Financial Services Authority submits a request for document completeness to the Association. (5) The Association submits missing documents no later than 20 (twenty) working days from the date of the letter requesting document completeness submitted by the Financial Services Authority to the Association. (6) If within the period as referred to in paragraph (5) the Financial Services Authority has not received the document completeness, the Association is deemed to have cancelled the approval request. (7) In the event that the Association approval request as referred to in paragraph (1) is approved, the Financial Services Authority issues an Association approval letter. (8) In the event that the Association approval request as referred to in paragraph (1) is rejected, the rejection is done in writing and accompanied by reasons for rejection.

Article 83
(1) The Association must report every change:
a. Articles of Association and/or House Rules no later than 10 (ten) working days since the proof of approval, proof of ratification and/or letter of acceptance of notification from the competent agency; b. management structure no later than 10 (ten) working days since the change occurred;
c. code of ethics no later than 10 (ten) working days since the change occurred; and
d. work program no later than 10 (ten) working days since the change occurred.
(2) The report of changes in management, Articles of Association and/or House Rules, code of ethics, and/or work program as referred to in paragraph (1) must be submitted by the Association to the Financial Services Authority by attaching document requirements for reporting changes in management, Articles of Association and/or House Rules, code of ethics, and/or work program contained in the Appendix in table 32 which is an inseparable part of this Financial Services Authority Regulation. (3) Based on the report as referred to in paragraph (2) or complaints from Association members, the Financial Services Authority is authorized to conduct an evaluation and order the Association to take corrective action.

Article 84
(1) The Association plays a role in building market-based discipline supervision for the strengthening and/or rehabilitation of Organizers and helps manage consumer/public complaints. (2) The Association has at least the following duties:
a. coordinate and establish codes of conduct; b. coordinate inputs from the industry in the formulation of policies and industry development; https://jdih.ojk.go.id/

c. conduct continuous education and training; and
d. other duties in accordance with assignments from the Financial Services Authority.
(3) In carrying out the role as referred to in paragraph (1) and duties as referred to in paragraph (2), the Association must have and enforce a code of ethics and code of conduct. (4) Organizers must comply with the code of ethics and code of conduct as referred to in paragraph (3). (5) The Association must have an ethics committee function in its organizational structure. (6) Organizers must comply with the code of ethics and code of conduct established by the Association as referred to in paragraph (2). (7) The Financial Services Authority is authorized to request the Association to take specific actions to ensure the implementation of the Association's role as referred to in paragraph (1) and duties as referred to in paragraph (2).

Article 85
(1) The Association must submit an annual report to the Financial Services Authority no later than 4 (four) months after the fiscal year ends.
(2) The annual report as referred to in paragraph (1) is first submitted for the 2027 reporting period.

Article 86
(1) The Association must ensure that Association management consists of members of the Board of Directors and/or members of the Board of Commissioners of the Organizer.
(2) The provisions as referred to in paragraph (1) are exempted for Association management who are executive directors.
(3) The Association must ensure that the Executive Director of the Association as referred to in paragraph (2) who has not previously obtained approval from the Financial Services Authority as a member of the Board of Directors and/or member of the Board of Commissioners of the Organizer, obtains approval from the Financial Services Authority through competency, financial reputation, and integrity assessment. (4) The Association must ensure that the Executive Director of the Association who has obtained approval from the Financial Services Authority but has not yet conducted ability and propriety assessment as a member of the Board of Directors and/or member of the Board of Commissioners of the Organizer before this Financial Services Authority Regulation takes effect, conducts competency, financial reputation, and integrity assessment. (5) Executive Directors of the Association who have obtained approval from the Financial Services Authority through ability and propriety assessment as a member of the Board of Directors and/or member of the Board of Commissioners of the Organizer before this Financial Services Authority Regulation takes effect, are exempted from the obligation of competency, financial reputation, and integrity assessment.

Article 87
(1) Organizers who violate the provisions as referred to in Article 80 and/or Article 84 paragraph (4), paragraph (6) are subject to administrative sanctions in the form of:
a. written warning; b. suspension of part or all of business activities;
c. restriction of certain business activities;
d. reduction of risk level assessment results; e. revocation of approval; f. prohibition of becoming a Payment Service Provider, Board of Directors, Board of Commissioners, and/or Supervisory Board; and/or g. administrative fine. (2) Administrative sanctions as referred to in letters b to g may be imposed with or without being preceded by the imposition of administrative sanctions in the form of a written warning as referred to in paragraph (1) letter a. (3) Administrative sanctions in the form of administrative fines as referred to in paragraph (1) letter g are imposed at most IDR 50,000,000.00 (fifty million rupiah). (4) In the event that the Organizer has fulfilled the provisions as referred to in paragraph (1), the Financial Services Authority revokes the administrative sanction in the form of a written warning. (5) In the event that a violation of the provisions as referred to in paragraph (1) occurs and the violation has been corrected, the Financial Services Authority gives an administrative sanction in the form of a written warning that ends automatically. (6) In addition to administrative sanctions as referred to in paragraph (1), the Financial Services Authority is authorized to:
a. reduce the Health Level assessment results; b. conduct a re-evaluation of the Principal Party that caused the Organizer to violate the provisions as referred to in paragraph (1); and/or
c. record the track record of the party that caused the Organizer to violate the provisions as referred to in paragraph (1) in the Financial Services Authority Electronic System.

Article 88
(1) Associations that violate the provisions as referred to in Article 83 paragraph (1), Article 84 paragraph (3), paragraph (5), Article 85 paragraph (1), and/or Article 86 paragraph (1), paragraph (3), paragraph (4) are subject to administrative sanctions in the form of:
a. written warning; and/or b. revocation of approval. https://jdih.ojk.go.id/

(2) Administrative sanctions as referred to in paragraph (1) letter b may be imposed with or without being preceded by the imposition of administrative sanctions in the form of a written warning as referred to in paragraph (1) letter a. (3) In the event that the Association has fulfilled the provisions as referred to in paragraph (1), the Financial Services Authority revokes the administrative sanction. (4) In the event that a violation of the provisions as referred to in paragraph (1) occurs and the violation has been corrected, the Financial Services Authority gives an administrative sanction in the form of a written warning that ends automatically. (5) In addition to administrative sanctions as referred to in paragraph (1), the Financial Services Authority is authorized to record the track record of the party that caused the Association to violate the provisions as referred to in paragraph (1) in the Financial Services Authority Electronic System.

CHAPTER XI
REVOCATION OF BUSINESS LICENSES
First Section
Revocation of Business Licenses

Article 89
(1) Revocation of the Organizer's business license is conducted by the Financial Services Authority.
(2) Revocation of the business license as referred to in paragraph (1) is conducted in the event that the Organizer:
a. dissolves as a follow-up to:

General Meeting of Shareholders decision;
court decision;
government decision; or
follow-up to the bankruptcy process as regulated in laws regarding bankruptcy and suspension of debt payment obligations;
b. is subject to administrative sanctions in the form of revocation of business license;
c. dissolves due to Merger or Consolidation;
d. has not conducted business activities for a period determined by the Financial Services Authority since the date the business license was established; or e. submits a request for revocation of business license based on its own request. https://jdih.ojk.go.id/

Second Section
Bankruptcy and Request for Suspension of Debt Payment Obligations

Article 90
The Financial Services Authority is the sole party authorized to submit a request for a declaration of bankruptcy of funds and/or request for suspension of debt payment obligations against the Organizer.

Article 91
Provisions regarding the bankruptcy mechanism and suspension of debt payment obligations follow the provisions of legislation regarding bankruptcy and suspension of debt payment obligations.

Article 92
In the event that the settlement of the Organizer's assets declared bankrupt has been carried out and the Organizer's bankruptcy has ended, the Financial Services Authority revokes the Organizer's business license.

Third Section
Request for Revocation of Business License Based on Own Request

Article 93
(1) Organizers who will cease business activities must submit a request for approval of revocation of business license based on their own request to the Financial Services Authority. (2) Organizers who will cease their business activities as referred to in paragraph (1) must meet the requirements:
a. are not currently subject to sanctions:

restriction of certain business activities; or
suspension of part or all of business activities;
b. are not currently in a rehabilitation process; and
c. the Organizer has fulfilled obligations.
(3) To obtain approval for revocation of business license based on own request as referred to in paragraph (1), the Board of Directors must submit a request to the Financial Services Authority by attaching the request document for revocation of business license contained in the Appendix in table 25 which is an inseparable part of this Financial Services Authority Regulation. (4) The Financial Services Authority may conduct clarification with members of the Board of Directors, members of the Board of Commissioners, and/or other parties related to the Organizer to ensure the plan for returning the business license and the settlement of Users' rights and obligations. (5) The Financial Services Authority is authorized to order the Organizer to appoint a public accounting firm https://jdih.ojk.go.id/

that are registered with the Financial Services Authority to prepare the final financial position report, including conducting verification to ensure the settlement of all obligations of the Provider. (6) In the event that the Financial Services Authority grants approval for the application for a business license revocation plan, it shall be done within a maximum of 20 (twenty) working days from the date the complete application is received. (7) In the event of missing documents as referred to in paragraph (3), the Financial Services Authority shall submit a request for document completeness to the Provider. (8) The Provider must submit the complete documents within a maximum of 20 (twenty) working days from the date of the document completeness request letter from the Financial Services Authority. (9) If within the period of 20 (twenty) working days from the date of the document completeness request letter as referred to in paragraph (6), the Financial Services Authority has not received the complete documents, the Provider is deemed to have cancelled the application. (10) In the event that the application for business license revocation as referred to in paragraph (1) is approved, the Financial Services Authority determines the revocation of the Provider's business license. (11) In the event that the application for business license revocation as referred to in paragraph (1) is rejected, the Financial Services Authority submits written notification accompanied by the reasons for rejection.

Article 94
In the event that the Financial Services Authority grants approval for the revocation of the business license based on a voluntary request as referred to in Article 93 paragraph (10), the Provider is obligated to:
a. cease all business activities of the Provider; b. announce the plan to cease business activities and the plan to settle the Provider's obligations in a daily newspaper for 3 (three) consecutive days, at the latest 15 (fifteen) working days from the date of the approval letter for the business license revocation plan based on a voluntary request;
c. settle all rights and obligations of the Provider within a maximum period of 6 (six) months from the date of the approval letter for the business license revocation plan based on a voluntary request; and
d. appoint a public accountant to conduct an audit on the final financial position report, including conducting verification to ensure the settlement of all rights and obligations of the Provider. https://jdih.ojk.go.id/

Article 95
(1) The Provider is obligated to report the implementation of obligations as referred to in Article 94 within a maximum of 20 (twenty) working days after:
(1) all rights and obligations of the Provider are settled; or (2) the time limit as referred to in Article 94 letter c, whichever is earlier.
(2) The reporting of the implementation of obligations as referred to in paragraph (1) must be accompanied by the reporting requirement documents listed in Appendix Table 26, which is an integral part of this Financial Services Authority Regulation. (3) The Financial Services Authority analyzes the report on the cessation of the Provider's business activities submitted by the Board of Directors as referred to in paragraph (2). (4) To conduct the analysis as referred to in paragraph (3), the Financial Services Authority may conduct direct inspections of the Provider that has applied for the revocation of the business license based on a voluntary request. (5) The Financial Services Authority issues a decision on the revocation of the Provider's business license within a maximum period of 20 (twenty) working days from the receipt of the complete report.

Fourth Section
Obligations and Prohibitions for Providers Post-Revocation of Business License

Article 96
(1) The Provider must cease business activities from the revocation of the Provider's business license.
(2) Shareholders/members, the Board of Directors, Board of Commissioners, and/or employees of the Provider are prohibited from transferring, mortgaging, pledging, using assets, and/or performing other actions that can reduce assets or decrease the value of the Provider's assets from the revocation of the Provider's business license.

Article 97
(1) The Board of Directors is obligated to prepare and submit the Closing Balance Sheet to the Financial Services Authority within a maximum of 15 (fifteen) working days from the date of the revocation of the Provider's business license. (2) If within the period as referred to in paragraph (1) the Closing Balance Sheet is not submitted to the Financial Services Authority, the Financial Services Authority appoints a public accountant to prepare the Closing Balance Sheet within a specific time limit. (3) The specific time limit as referred to in paragraph (2) is a maximum of 50 (fifty) working days from the date of the appointment of the public accountant. https://jdih.ojk.go.id/

(4) In the event that the Closing Balance Sheet is prepared by a public accountant as referred to in paragraph (2), the responsibility for the Closing Balance Sheet remains with the Board of Directors. (5) The costs for the preparation of the Closing Balance Sheet by the public accountant as referred to in paragraph (2) become the burden of the Provider. (6) The Financial Services Authority submits the Closing Balance Sheet to the Liquidation Team after receiving the Closing Balance Sheet prepared and submitted by:
a. the Board of Directors as referred to in paragraph (1); or b. the public accountant as referred to in paragraph (2) and paragraph (3).
(7) The Provider is obligated to appoint a person in charge and employees assigned as a task force and service center to serve the interests of customers and the public until the formation of the Liquidation Team. (8) The appointment of the person in charge and employees assigned as a task force and service center as referred to in paragraph (7) must be reported to the Financial Services Authority within a maximum of 5 (five) working days from the notification of the revocation of the business license from the Financial Services Authority.

Fifth Section
Dissolution and Liquidation
Paragraph 1
Dissolution

Article 98
(1) A Provider whose business license is revoked is obligated to convene a General Meeting of Shareholders (GMS) to decide on the Dissolution and form a Liquidation Team within a maximum of 30 (thirty) working days from the date the business license is revoked. (2) The Financial Services Authority, based on supervisory considerations, is authorized to extend the time limit for the formation of the Liquidation Team as referred to in paragraph (1). (3) The time extension as referred to in paragraph (2) may be granted for a maximum of 6 (six) months. (4) Members of the Liquidation Team as referred to in paragraph (1) must first obtain approval from the Financial Services Authority. (5) To obtain approval from the Financial Services Authority as referred to in paragraph (4), the Board of Directors must submit documents:
a. photocopies of identity proof of the proposed Liquidation Team members; b. curriculum vitae of the proposed Liquidation Team members; and
c. a statement letter from the proposed Liquidation Team members containing at least the commitment to settle liquidation in accordance with the time limit in the work plan.
https://jdih.ojk.go.id/

(6) The documents as referred to in paragraph (5) must be submitted to the Financial Services Authority within a maximum of 20 (twenty) working days before the date of the GMS implementation. (7) The Financial Services Authority grants approval or rejection for the proposal of proposed Liquidation Team members as referred to in paragraph (4) within a maximum of 20 (twenty) working days after the receipt of complete documents. (8) In the event of missing documents as referred to in paragraph (5), the Financial Services Authority shall submit a request for document completeness to the Provider. (9) The Provider must submit the complete documents within a maximum of 20 (twenty) working days from the date of the document completeness request letter from the Financial Services Authority. (10) If within the period of 20 (twenty) working days from the date of the document completeness request letter as referred to in paragraph (5), the Financial Services Authority has not received the complete documents, the Provider is deemed to have cancelled the application. (11) In the event that the Financial Services Authority approves the proposal of proposed Liquidation Team members, the Financial Services Authority issues an approval letter for the proposal of proposed Liquidation Team members. (12) In the event that the Financial Services Authority rejects the proposal of proposed Liquidation Team members, the Board of Directors must submit a new proposal for Liquidation Team members and submit documents as referred to in paragraph (5) within a maximum of 20 (twenty) working days after receiving the notification from the Financial Services Authority.

Article 99
(1) In Dissolution, the Liquidation Team formed by the GMS as referred to in Article 98 paragraph (1) is obligated to register and notify the Dissolution to the competent authority, and announce it in the State Gazette of the Republic of Indonesia, 2 (two) daily newspapers with wide circulation, and the Electronic System used by the Provider. (2) The registration, notification, and announcement actions as referred to in paragraph (1) are carried out by the Liquidation Team within a maximum of 30 (thirty) working days from the date of the Dissolution decision by the GMS. (3) The notification and announcement as referred to in paragraph (1) contain:
a. Dissolution and its legal basis; b. name and address of the Liquidation Team;
c. procedure for submitting claims; and
d. time limit for submitting claims.
(4) The time limit for submitting claims as referred to in paragraph (3) letter d is a maximum of 60 (sixty) calendar days calculated from the date of announcement as referred to in paragraph (1).

Article 100
(1) If within the period as referred to in Article 98 paragraph (1) the GMS cannot be convened or the GMS can be convened but fails to decide on Dissolution and/or fails to form a Liquidation Team, the Financial Services Authority:
a. decides on Dissolution and forms a Liquidation Team; b. orders the Liquidation Team to register and notify the Dissolution to the competent authority, and announce it in the State Gazette of the Republic of Indonesia, 2 (two) daily newspapers with wide circulation, and the Electronic System used by the Provider;
c. orders the Liquidation Team to carry out Liquidation in accordance with the provisions of legislation; and
d. orders the Liquidation Team to report the results of Liquidation implementation to the Financial Services Authority.
(2) The actions as referred to in paragraph (1) letter b are carried out within a maximum of 20 (twenty) working days from the date of the Dissolution decision by the Financial Services Authority as referred to in paragraph (1) letter a. (3) The notification and announcement as referred to in paragraph (1) letter b contain:
a. Dissolution and its legal basis; b. name and address of the Liquidation Team;
c. procedure for submitting claims; and
d. time limit for submitting claims.
(4) The time limit for submitting claims as referred to in paragraph (3) letter d is a maximum of 60 (sixty) calendar days calculated from the date of announcement as referred to in paragraph (1). (5) All costs arising as referred to in paragraph (1) become the burden of the Provider's assets in Liquidation and are paid out first from every realization result.

Article 101
Since the GMS decision as referred to in Article 98 paragraph (1) or the Financial Services Authority decision as referred to in Article 100 paragraph (1) letter a:
a. a Provider in the form of a limited liability company is called a Provider in Liquidation and is obligated to append the word "(in liquidation)" abbreviated as "(DL)" behind the Provider's name; or https://jdih.ojk.go.id/

b. a Provider in the form of a cooperative legal entity is called a Provider in Settlement and is obligated to append the word "(in settlement)" abbreviated as "(DP)" behind the Provider's name.

Paragraph 2
Liquidation

Article 102
(1) Since the formation of the Liquidation Team as referred to in Article 98 and Article 100:
a. the responsibility and management of the Provider in Liquidation are carried out by the Liquidation Team; b. the Board of Directors, Board of Commissioners, and DPS:

no longer have authority as Board of Directors, Board of Commissioners, and DPS and become inactive;
are not permitted to resign before Liquidation is completed, except with the approval of the Financial Services Authority; and
are not entitled to receive salaries and other income as Board of Directors, Board of Commissioners, and DPS of the Provider in Liquidation.
(2) Shareholders or those equivalent to shareholders in a cooperative legal entity, the Board of Directors, Board of Commissioners, DPS, and employees of the Provider in Liquidation are obligated to provide data, information, and documents required by the Liquidation Team. (3) Shareholders or those equivalent to shareholders in a cooperative legal entity, the Board of Directors, Board of Commissioners, DPS, and employees of the Provider in Liquidation are prohibited from hindering the Liquidation process.

Article 103
The Liquidation Team has the following duties:
a. settling matters related to Dissolution; b. settling matters related to the Provider's employees;
c. conducting the settlement of the Provider's assets and obligations;
d. submitting periodic reports and incidental reports if necessary to the Financial Services Authority; e. providing accountability for the implementation of Liquidation to:

the GMS, for Liquidation Teams formed by the GMS; or
the Financial Services Authority, for Liquidation Teams formed by the Financial Services Authority;
f. submitting a written request to the Financial Services Authority to update user data reports in the financial information service system in the event that the Provider whose business license is revoked is a reporter of the financial information service system in accordance with the provisions of the Financial Services Authority Regulation regarding reporting and debtor information requests through the financial information service system; g. facilitating the settlement of rights and obligations between Fund Providers and Fund Recipients; and h. performing other tasks deemed necessary to carry out the Liquidation process.

Article 104
In carrying out duties as referred to in Article 103, the Liquidation Team is authorized to:
a. represent the Provider in Liquidation regarding the settlement of the Provider's rights and obligations, both inside and outside the court; b. conduct negotiations and other actions in the sale of assets and debt collection from debtors;
c. conduct summonses, negotiations, and payment of obligations to creditors;
d. employ supporting personnel for the Liquidation Team, both from within and outside the Provider in Liquidation; e. appoint other parties to assist in the implementation of Liquidation; f. request the court to cancel all legal acts of the Provider that are suspected of harming the Provider and were not done in good faith; g. facilitate the settlement of rights and obligations between Fund Providers and Fund Recipients; h. convene the General Meeting of Fund Providers; and
i. perform other actions necessary in the implementation of Liquidation.

Article 105
(1) The implementation of Liquidation by the Liquidation Team must be completed within a maximum period of 2 (two) years calculated from the date of formation of the Liquidation Team. (2) In the event that the implementation of Liquidation cannot be completed within the period as referred to in paragraph (1) then:
a. the GMS; or b. the Financial Services Authority, is authorized to extend the time limit for Liquidation implementation at most 2 (two) times, each for a maximum of 1 (one) year. (3) The extension of the time limit for Liquidation implementation as referred to in paragraph (2) is submitted by the Liquidation Team to obtain prior approval from the Financial Services Authority. (4) To obtain approval for the extension of the time limit for Liquidation implementation as referred to in paragraph (3), the Liquidation Team must submit an application for approval to the Financial Services Authority by attaching the document requirements for approval of the extension of the time limit for Liquidation implementation listed in Appendix Table 27, which is an integral part of this Financial Services Authority Regulation. (5) The application for extension of the time limit for Liquidation implementation as referred to in paragraph (2) is submitted within a maximum of 4 (four) months before the end of the time limit for Liquidation implementation as referred to in paragraph (1) or the end of the first extension period. (6) The Financial Services Authority grants approval or rejection for the extension of the time limit for Liquidation implementation as referred to in paragraph (2) within a maximum of 20 (twenty) working days from the receipt of the complete approval application. (7) In the event of missing documents as referred to in paragraph (4), the Financial Services Authority shall submit a request for document completeness to the Provider. (8) The Provider must submit the complete documents within a maximum of 20 (twenty) working days from the date of the document completeness request letter from the Financial Services Authority. (9) If within the period of 20 (twenty) working days from the date of the document completeness request letter as referred to in paragraph (7), the Financial Services Authority has not received the complete documents, the Provider is deemed to have cancelled the application. (10) If the application for extension of the time limit for Liquidation implementation is approved, the Financial Services Authority issues an approval letter to the relevant Provider. (11) If the application for extension of the time limit for Liquidation implementation is rejected, the Financial Services Authority submits written notification accompanied by the reasons for rejection. (12) If the implementation of Liquidation cannot be completed within the period as referred to in paragraph (2) and/or the application for extension of the time limit for Liquidation implementation is rejected as referred to in paragraph (11), the Financial Services Authority may:
a. wait until there is a final court decision, in the event that the implementation of Liquidation is not completed until the time limit as referred to in paragraph (2) and/or the application for extension of the time limit for Liquidation implementation is rejected as referred to in paragraph (11), due to lawsuits or disputes over the Provider's problematic assets in Liquidation; or b. determine other settlement steps in accordance with the provisions of legislation and the authority of the Financial Services Authority in settling Liquidation. https://jdih.ojk.go.id/

Article 106
(1) Members of the Liquidation Team for each Provider in Liquidation are at least 2 (two) people and at most 5 (five) people.
(2) One of the Liquidation Team members is designated as the Chairman of the Liquidation Team.
(3) The determination of the number of Liquidation Team members is done by considering the effectiveness and efficiency of Liquidation implementation.
(4) If necessary, one of the shareholders or those equivalent to shareholders in a cooperative legal entity, the Board of Directors, or Board of Commissioners may be appointed as a member of the Liquidation Team by considering understanding of the problems occurring in the Provider, being cooperative, and not having Conflicts of Interest that can harm the Provider.

Article 107
(1) The appointment of the Liquidation Team is done by considering the integrity, competence, and financial reputation of the proposed Liquidation Team members.
(2) The Liquidation Team membership consists of at least:
a. 1 (one) person who has knowledge and experience of at least 5 (five) years in the field of IT-Based Collective Financing Services (LPBBTI); and b. 1 (one) person who has knowledge and experience of at least 5 (five) years in the field of law, audit, finance, and/or accounting. (3) Members of the Liquidation Team as referred to in paragraph (2) must have competency certification in the field of liquidator from a professional certification body registered with the Financial Services Authority. (4) Members of the Liquidation Team, supporting personnel of the Liquidation Team, and other appointed parties must not have marriage relationships, in-law family relationships, or blood family relationships upwards, downwards, and sideways up to the first degree with members of the Liquidation Team.

Article 108
(1) In the event that the Liquidation Team is formed by the GMS, the Financial Services Authority may order the GMS to dismiss and/or appoint replacements for Liquidation Team members who resign before the end of the Liquidation Team's assignment period with the consideration if the Liquidation Team member:
a. does not perform duties well; b. violates the provisions of legislation;
c. resigns;
d. is permanently unable to perform duties; or e. dies. https://jdih.ojk.go.id/

(2) In the event that the Financial Services Authority orders the GMS as referred to in paragraph (1), and the GMS does not dismiss and/or appoint replacements for Liquidation Team members, the Financial Services Authority may dismiss and/or appoint replacements for Liquidation Team members who resign. (3) In the event that the Liquidation Team is formed by the Financial Services Authority, the Financial Services Authority may dismiss Liquidation Team members before the end of the Liquidation Team's assignment period based on considerations as referred to in paragraph (1). (4) The Financial Services Authority may appoint replacements for dismissed Liquidation Team members as referred to in paragraph (3) for the remainder of their term.

Article 109
(1) Liquidation Team members are given remuneration determined by:
a. the GMS for Liquidation Teams formed by the GMS; or b. the Financial Services Authority for Liquidation Teams formed by the Financial Services Authority.
(2) Remuneration as referred to in paragraph (1) consists of:
a. honorarium; and b. other income/facilities.
(3) The amount of Liquidation Team remuneration as referred to in paragraph (1) is determined by considering factors:
a. the amount of assets and obligations; b. the condition and level of difficulty in realizing assets and/or debt collection and settling the Provider's obligations;
c. the Provider's office network in Liquidation; and/or
d. the qualifications of the Liquidation Team members.
(4) Other income/facilities as referred to in paragraph (2) letter b only include holiday allowances, reasonable incentives, and participation in national social security programs in accordance with the provisions of legislation. (5) Liquidation Team remuneration is a component of Liquidation costs that becomes the burden of the Provider in Liquidation. (6) Provisions regarding the granting of reasonable incentives as referred to in paragraph (4) are determined by the Financial Services Authority.

Article 110
(1) The Liquidation Team prepares a work plan and budget for the implementation of Liquidation referring to the work plan and budget guidelines.
(2) The Liquidation Team prepares a work plan and budget for the implementation of Liquidation that contains at least:
a. the types of activities to be carried out; https://jdih.ojk.go.id/

b. schedule for the completion of each activity;
c. plan and method for asset liquidation;
d. plan and method for debt collection; e. plan and method for paying obligations to Creditors; f. the number of support staff required for the Liquidation Team; and g. Liquidation costs. (3) The work plan and budget as referred to in paragraph (1) is prepared for the duration of the Liquidation Team's assignment period, detailed monthly. (4) In the event of improvements to the current year's work plan and budget, the Liquidation Team must submit the improved work plan and budget to the Financial Services Authority to obtain approval. (5) Improvements to the work plan and budget as referred to in paragraph (4) are approved by the Financial Services Authority within a maximum of 20 (twenty) working days after the Financial Services Authority receives the said work plan and budget improvements. (6) In the event that the Financial Services Authority has not or does not provide approval for the work plan and budget improvements as referred to in paragraph (4), the Liquidation Team continues to use the last work plan and budget approved by the Financial Services Authority. (7) In the event that the Financial Services Authority extends the implementation period of Liquidation and/or the term of office of the Liquidation Team, the Liquidation Team submits the work plan and budget for the extension period to the Financial Services Authority. (8) Further provisions regarding guidelines for work plans and budgets as referred to in paragraph (1) are established by the Financial Services Authority.

Article 111
(1) The work plan and budget as referred to in Article 110 is submitted to the Financial Services Authority within a maximum of 30 (thirty) working days since the Liquidation Team was formed or since the extension of the Liquidation Team's term began. (2) The Financial Services Authority may request improvements to the work plan and budget within a maximum of 10 (ten) working days since the receipt of the work plan and budget. (3) In the event that the Financial Services Authority requests improvements to the work plan and budget, the Liquidation Team submits improvements to the work plan and budget in accordance with the Financial Services Authority's request within a maximum of 10 (ten) working days since the receipt of the improvement request letter from the Financial Services Authority. (4) The Financial Services Authority provides approval for the work plan and budget within a maximum of 20 (twenty) working days after the Financial Services Authority receives the work plan and budget as referred to in paragraph (1) or improvements to the work plan and budget as referred to in paragraph (3).

Article 112
(1) In carrying out the task of resolving matters related to the Organizer's employees as referred to in Article 103 letter b, the Liquidation Team calculates the owed salary and severance pay owed by the Organizer to employees who have had their employment relationship terminated. (2) The payment of owed salary as referred to in paragraph (1) is carried out by taking into account the employee's obligations that have become due. (3) The payment of severance pay as referred to in paragraph (1) is carried out by taking into account all employee obligations. (4) The Liquidation Team may postpone the payment of severance pay to members of the Board of Directors and employees of the Organizer who are indicated to have committed criminal acts in the field of LPBBTI and/or other criminal acts that can harm the Organizer. (5) The Liquidation Team is obligated to terminate employee employment within a maximum of 3 (three) months since the formation of the Liquidation Team. (6) The Liquidation Team is obligated to calculate other employee rights arising as a result of the termination of employment as regulated in labor laws and regulations to be recorded as the Organizer's obligations in Liquidation in the group of obligations to other Creditors. (7) In the event that the Liquidation Team has not been formed and employee salary payments have become due, with the approval of the Financial Services Authority, the Board of Directors may make such salary payments provided that funds for such salary payments are available.

Article 113
In settling the Organizer's assets and obligations as referred to in Article 104 paragraph (2) letter c, the Liquidation Team carries out the following actions:
a. appointing a public accountant registered with the Financial Services Authority to audit the Closing Balance Sheet; b. conducting an inventory of assets and obligations;
c. preparing the Interim Liquidation Balance Sheet;
d. carrying out asset liquidation; e. carrying out debt collection; f. carrying out payments of obligations to creditors; and g. depositing the portion not yet claimed by creditors with the court.

Article 114
(1) After receiving the Closing Balance Sheet from the Financial Services Authority, the Liquidation Team appoints a public accountant registered with the Financial Services Authority to audit the Closing Balance Sheet. (2) The implementation of the Closing Balance Sheet audit as referred to in paragraph (1) is carried out by referring to the framework of work prepared by the Liquidation Team. (3) The framework of work as referred to in paragraph (2) contains at least the objectives and scope of the audit. (4) The appointment of the public accountant as referred to in paragraph (1) is carried out within a maximum of 30 (thirty) working days since the Liquidation Team received the Closing Balance Sheet. (5) The Liquidation Team submits the Closing Balance Sheet audited by the public accountant as referred to in paragraph (1) to the Financial Services Authority within a maximum of 90 (ninety) working days since the date of appointment of the public accountant.

Article 115
(1) The Liquidation Team conducts an inventory of assets and obligations as of the date of the revocation of the Organizer's business license.
(2) Assets are grouped into non-problematic assets and problematic assets.
(3) Assets are designated as problematic if they have legal obstacles to liquidation caused by at least:
a. incomplete documents; b. complete documents but the physical existence of the asset is unknown;
c. incomplete encumbrance;
d. assets and/or collateral are not marketable; and/or e. becoming the object of a dispute outside or inside the court.
(4) The results of the asset and obligation inventory as referred to in paragraph (1) are used as the basis for preparing and as an attachment to the Interim Liquidation Balance Sheet.

Article 116
(1) The Liquidation Team prepares the Interim Liquidation Balance Sheet by referring to the guidelines for preparing the Interim Liquidation Balance Sheet.
(2) The Liquidation Team submits the Interim Liquidation Balance Sheet to the Financial Services Authority within a maximum of 60 (sixty) working days after the Liquidation Team receives the audited Closing Balance Sheet. (3) The Financial Services Authority may approve or request improvements to the Interim Liquidation Balance Sheet if it is prepared not in accordance with the guidelines as referred to in paragraph (1) within a maximum of 20 (twenty) working days since the Interim Liquidation Balance Sheet is received by the Financial Services Authority. (4) The Liquidation Team is obligated to fulfill the Financial Services Authority's request as referred to in paragraph (3) within a maximum of 20 (twenty) working days since the date of the request for improvement of the Interim Liquidation Balance Sheet by the Financial Services Authority. (5) The Liquidation Team is obligated to announce the Interim Liquidation Balance Sheet approved by the Financial Services Authority in 2 (two) newspapers within a maximum of 7 (seven) working days since the said Interim Liquidation Balance Sheet is approved by the Financial Services Authority. (6) Further provisions regarding the guidelines for preparing the Interim Liquidation Balance Sheet as referred to in paragraph (1) are established by the Financial Services Authority.

Article 117
(1) The liquidation of non-problematic assets as referred to in Article 115 paragraph (2) is carried out after the Interim Liquidation Balance Sheet is approved by the Financial Services Authority. (2) In the event that the Interim Liquidation Balance Sheet has not been approved by the Financial Services Authority, the liquidation of non-problematic assets as referred to in paragraph (1) may be carried out after obtaining approval from the Financial Services Authority. (3) The liquidation of non-problematic assets as referred to in paragraph (1) and paragraph (2) must use fair market prices. (4) The liquidation of assets and/or debt collection is carried out by the Liquidation Team in accordance with the plan and method for paying obligations to creditors contained in the work plan and budget as referred to in Article 111 paragraph (2) letter c.

Article 118
All costs of implementing Liquidation contained in the Liquidation cost list become the burden of the Organizer's assets in Liquidation and are deducted first from every liquidation result.

Article 119
(1) The Financial Services Authority conducts supervision over the implementation of Liquidation.
(2) Supervision of the implementation of Liquidation as referred to in paragraph (1) is carried out indirectly by analyzing reports submitted by the Liquidation Team to the Financial Services Authority. (3) In the event necessary, the Financial Services Authority may conduct direct supervision on the Organizer in Liquidation. (4) The Financial Services Authority may appoint a public accountant registered with the Financial Services Authority or another party on behalf of and in the name of the Financial Services Authority to conduct direct supervision as referred to in paragraph (3).

Article 120
(1) The Liquidation Team is obligated to submit reports on the realization of the work plan and budget to the Financial Services Authority every month by the 10th (ten) of the following month. (2) If the deadline for submitting the report on the realization of the work plan and budget as referred to in paragraph (1) falls on a holiday, the submission deadline is the next working day. (3) The report on the realization of the work plan and budget as referred to in paragraph (1) contains at least:
a. the development of Liquidation activities; b. obstacles to the failure to achieve targets;
c. cash flow reports;
d. the position of assets that have been liquidated and obligations that have been settled; e. details of budget realization; and f. obstacles faced and follow-up plans.

Article 121
The implementation of Liquidation is completed in the event:
a. all obligations of the Organizer in Liquidation have been paid; b. there are no longer any assets that can be used to pay obligations before the end of the implementation period of Liquidation; or
c. the end of the implementation period of Liquidation as referred to in Article 103.

Article 122
(1) In the event that the implementation period of Liquidation as referred to in Article 111 paragraph (1) and paragraph (2) is about to end, within a maximum of 3 (three) months before the estimated end of the liquidation implementation, the Liquidation Team is obligated to announce:
a. the date of the final payment to creditors; and b. follow-up for creditors who do not claim their rights within a period up to the final payment date.
(2) The final payment date as referred to in paragraph (1) is within a maximum of 30 (thirty) working days since the date of the announcement.
(3) The announcement as referred to in paragraph (1) is carried out through a daily newspaper with national circulation and the Electronic System used by the Organizer.
(4) In the event that creditors have not claimed their rights up to the time limit as referred to in paragraph (2), the funds belonging to such creditors are deposited with the court or estate office in accordance with the provisions of laws and regulations. (5) The deposit of funds as referred to in paragraph (4) is carried out within a maximum of 30 (thirty) working days since the payment period as referred to in paragraph (2). (6) The Liquidation Team is deemed to have fulfilled the payment of obligations to the relevant creditors after the deposit of funds belonging to unclaimed creditors as referred to in paragraph (4). (7) If within a period of 30 (thirty) years, the funds belonging to creditors as referred to in paragraph (4) are not claimed by the relevant creditors, such funds are handed over to the state treasury.

Article 123
(1) In the event that the Liquidation Team is formed by the General Meeting of Shareholders (GMS) as referred to in Article 98 paragraph (1), the Liquidation Team is obligated to submit:
a. the Final Liquidation Balance Sheet audited by a public accountant to the Financial Services Authority; and b. a report on the Liquidation Team's duties to the GMS, within a maximum of 10 (ten) working days after the Liquidation is completed. (2) In the event that the Liquidation Team is formed by the Financial Services Authority as referred to in Article 100 paragraph (1), the Liquidation Team is obligated to submit the Final Liquidation Balance Sheet and a report on the Liquidation Team's duties to the Financial Services Authority with a copy to the shareholders or equivalent to shareholders in a legal entity in the form of a cooperative within a maximum of 10 (ten) working days after the Liquidation is completed. (3) The accountability report as referred to in paragraph (1) and paragraph (2) contains at least:
a. Liquidation results received; b. Liquidation costs;
c. payments of obligations to Creditors;
d. remaining cash or cash equivalent assets; e. remaining problematic assets; and f. remaining unpaid obligations.
(4) The Financial Services Authority reviews the Final Liquidation Balance Sheet submitted by the Liquidation Team within a maximum of 10 (ten) working days since the submission by the Liquidation Team as referred to in paragraph (1) and paragraph (2). (5) The Financial Services Authority submits its opinion on the results of the review of the Final Liquidation Balance Sheet as referred to in paragraph (4) to the Liquidation Team.

Article 124
(1) The GMS considers the Financial Services Authority's opinion on the Final Liquidation Balance Sheet as referred to in Article 123 paragraph (5) before accepting or rejecting the Liquidation Team's accountability report formed by the GMS as referred to in Article 98. (2) In the event that the GMS has accepted the Liquidation Team's accountability report formed by the GMS, then the GMS:
a. requests the Liquidation Team to:

announce the end of Liquidation by placing it in the State Gazette of the Republic of Indonesia and in 2 (two) Newspapers;
notify the competent agency regarding the loss of the Organizer's legal entity status; and
notify the competent agency to have the Organizer's name removed from the company list; and
b. disband the Liquidation Team.
(3) Actions as referred to in paragraph (2) letter a are carried out by the Liquidation Team within a maximum of 30 (thirty) working days since the accountability is received by the GMS.

Article 125
(1) In the event that the Liquidation Team formed by the Financial Services Authority as referred to in Article 98 paragraph (1) has submitted the Final Liquidation Balance Sheet and accountability report to the Financial Services Authority, the Financial Services Authority decides to accept or not accept the Liquidation Team's accountability within a maximum of 20 (twenty) working days since the Financial Services Authority receives the audit result report as referred to in Article 123 paragraph (4). (2) In the event that the Liquidation Team's accountability report has been accepted by the Financial Services Authority, then the Financial Services Authority:
a. requests the Liquidation Team to:

announce the end of Liquidation by placing it in the State Gazette of the Republic of Indonesia and in 2 (two) Newspapers;
notify the competent agency regarding the loss of the Organizer's legal entity status;
notify the competent agency to have the Organizer's name removed from the company list; and
hand over all documents of the Organizer in Liquidation to the Financial Services Authority;
b. disband the Liquidation Team; and
c. dismiss the inactive Board of Directors, Board of Commissioners, and DPS.
(3) Actions as referred to in paragraph (2) letter a are carried out by the Liquidation Team within a maximum of 30 (thirty) working days since the accountability is received by the Financial Services Authority. (4) In the event that the Financial Services Authority decides not to accept the Liquidation Team's accountability, the Financial Services Authority may take other steps in accordance with the applicable laws and regulations.

Article 126
(1) The legal entity status of the liquidated Organizer ends since the date of the announcement of the end of Liquidation in the State Gazette of the Republic of Indonesia as referred to in Article 124 letter a number 1 and Article 125 paragraph (2) letter a number 1. (2) Since the date of Revocation of the Organizer's Business License as referred to in Article 95 paragraph (1), shareholders or equivalent to shareholders in a legal entity in the form of a cooperative are obligated to be responsible for every process and implementation of the dissolution and liquidation of the Organizer. (3) The Financial Services Authority has the authority to establish mechanisms and requirements for Liquidation different from this Financial Services Authority Regulation due to the revocation of the business license because:
a. carrying out Mergers, Consolidations, and Separations; b. submitting a request to cease business activities by the Organizer; or
c. not carrying out business activities for a period as referred to in Article 12 paragraph (1).

Part Six
Administrative Sanctions

Article 127
(1) Organizers who violate the provisions as referred to in Article 93 paragraph (1), Article 94, Article 95 paragraph (1), and/or Article 97 paragraph (7) are subject to administrative sanctions in the form of:
a. written warning; b. suspension of part or all of business activities;
c. restriction of certain business activities;
d. reduction of risk assessment results; e. cancellation of approval; f. prohibition from becoming a PSP, Board of Directors, Board of Commissioners, and/or DPS; and/or g. administrative fine. (2) Organizers who violate the provisions as referred to in Article 98 paragraph (1) and/or Article 101 are subject to administrative sanctions in the form of:
a. written warning; b. prohibition from becoming a PSP, Board of Directors, Board of Commissioners, and/or DPS; and/or
c. administrative fine.
(3) Administrative sanctions as in paragraph (1) letter b to letter g 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 (1) letter a. (4) Administrative sanctions as in paragraph (2) letter b to letter c 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 (2) letter a. (5) Administrative sanctions in the form of administrative fines as referred to in paragraph (1) letter g and paragraph (2) letter c are imposed at most IDR 50,000,000.00 (fifty million rupiah) for each violation. (6) In the event that the Organizer has fulfilled the provisions as referred to in paragraph (1) and/or paragraph (2), the Financial Services Authority revokes the administrative sanction. (7) In the event that a violation of the provisions as referred to in paragraph (1) and/or paragraph (2) occurs and the violation has been corrected, the Financial Services Authority imposes an administrative sanction in the form of a written warning that ends automatically. (8) In addition to the administrative sanctions as referred to in paragraph (1) and/or paragraph (2), the Financial Services Authority has the authority to:
a. reduce the Health Level assessment results; b. re-evaluate the Principal Parties that caused the Organizer to violate the provisions as referred to in paragraph (1); and/or
c. record the track record of parties that caused the Organizer to violate the provisions as referred to in paragraph (1) in the Financial Services Authority's Electronic System.

Article 128
(1) Parties who violate the provisions as referred to in Article 96 paragraph (2), Article 97 paragraph (1), Article 99 paragraph (1), Article 102 paragraph (2), paragraph (3), Article 105 paragraph (1), Article 112 paragraph (5), paragraph (6), Article 116 paragraph (4), paragraph (5), Article 120 paragraph (1), Article 122 paragraph (1), Article 123 paragraph (1), paragraph (2), and/or Article 126 paragraph (2) are subject to administrative sanctions in the form of:
a. written warning; b. prohibition from becoming a PSP, Board of Directors, Board of Commissioners, DPS; and/or
c. administrative fine.
(2) In addition to the administrative sanctions as referred to in paragraph (1), violating parties may be subject to administrative sanctions in the form of prohibition from becoming shareholders or equivalent to shareholders in a legal entity in the form of a cooperative, Board of Directors, Board of Commissioners, or DPS at the Organizer. (3) In the event that the violating party has fulfilled the provisions as referred to in paragraph (1), the Financial Services Authority revokes the administrative sanction. (4) In the event that a violation of the provisions as referred to in paragraph (1) occurs and the violation has been corrected, the Financial Services Authority imposes an administrative sanction in the form of a written warning that ends automatically.

Article 129
In the event that a violation of the provisions as referred to in Article 127 paragraph (1) occurs, the Financial Services Authority has the authority to:
a. re-evaluate the Principal Parties; b. record the track record of parties related to the Organizer in the Financial Services Authority's Electronic System;
c. issue written instructions and/or written orders to related parties to form a Liquidation Team of at least one person; and/or
d. other actions, including for consumer and public protection.

CHAPTER XII
BUSINESS ACTIVITIES
Part One
Organizer's Business Activities

Article 130
(1) The Organizer's business activities consist of:
a. provision; b. management; and
c. operation,
of LPBBTI.
(2) In addition to carrying out business activities as referred to in paragraph (1), Organizers may carry out other activities, including:
a. distribution partners for government bonds to support government programs; b. informative service cooperation; and/or
c. other activities after obtaining approval from the Financial Services Authority.
(3) To carry out the activity of distribution partner for government bonds as referred to in paragraph (2) letter a, Organizers are prohibited from making offers other than for sales in the primary market.

Article 131
(1) A Provider intending to conduct other activities as referred to in Article 130 paragraph (2) must meet the following requirements:
a. a plan to conduct other activities has been included in the Provider's business plan; b. it has a Health Level of at least composite rating 2;
c. it has Equity of at least IDR 12,500,000,000.00 (twelve billion five hundred million rupiah); and
d. it is not currently subject to administrative sanctions in the form of business activity restrictions or suspension of business activities, either partially or entirely.
(2) To obtain approval to conduct other activities as referred to in Article 130 paragraph (2) letter c, the Board of Directors must submit a request to the Financial Services Authority (OJK) by attaching the approval requirements for conducting other activities listed in the Appendix in Table 28, which is an integral part of this Financial Services Authority Regulation. (3) The Financial Services Authority (OJK) grants approval, requests document completeness, or rejects the request as referred to in paragraph (2) within a period of 20 (twenty) working days from the date the request is received. (4) In granting approval, requesting document completeness, or rejecting as referred to in paragraph (3), the Financial Services Authority (OJK) conducts:
a. an analysis of the completeness of documents as referred to in paragraph (2); b. an analysis of compliance with the provisions of this Financial Services Authority Regulation; and
c. an analysis of the feasibility of the other activities proposed.
(5) The Board of Directors must submit the complete documents as referred to in paragraph (2) within a maximum of 20 (twenty) working days from the date of the document completeness request letter from the Financial Services Authority (OJK). (6) In the event that the Board of Directors has submitted the complete documents as referred to in paragraph (5), the Financial Services Authority (OJK) grants approval or rejection in accordance with the provisions as referred to in paragraph (3). (7) If within 20 (twenty) working days from the date of the document completeness request letter as referred to in paragraph (5), the Financial Services Authority (OJK) has not received a response to the document completeness request, the Board of Directors is deemed to have cancelled the request for approval to conduct other activities. (8) In the event that the request for approval to conduct other fee-based activities as referred to in paragraph (3) is approved, the Financial Services Authority (OJK) grants approval for the Provider to conduct other fee-based activities. (9) In the event that the request for approval to conduct other fee-based activities as referred to in paragraph (3) is rejected, the Financial Services Authority (OJK) provides written rejection accompanied by the reasons for rejection.

Article 132
(1) In conducting business activities as referred to in Article 130 paragraph (1) and paragraph (2), the Provider conducts business activities conventionally or based on Sharia Principles. (2) A Provider conducting business activities conventionally may establish a Sharia business unit.

Article 133
(1) Business activities based on Sharia Principles as referred to in Article 132 paragraph (1) must use Contracts:
a. al-bai'; b. ijarah;
c. mudharabah;
d. musyarakah; e. wakalah; f. wakalah bi al ujrah; and g. qardh.
(2) Compliance with Sharia Principles as referred to in paragraph (1) in the use of Contracts must be supported by a fatwa and/or a Sharia compliance statement issued by an institution having authority in determining fatwas in the field of Sharia. (3) In the event that the fatwa and/or Sharia compliance statement as referred to in paragraph (2) has not been issued, compliance with Sharia Principles must be supported by an opinion from the Sharia Supervisory Board (DPS) regarding the use of specific Contracts for the implementation of business activities.

Article 134
Providers must fulfill the principles of justice (adl), balance (tawazun), benefit (maslahah), and universalism (alamiyah), and must not contain gharar, maysir, riba, zhulm, risywah, tadlis, dharar, and haram objects.

Article 135
Providers must include business activities as referred to in Article 130 paragraph (1) and paragraph (2) in their articles of association.

Article 136
(1) The business activities of Providers as referred to in Article 130 paragraph (1) are conducted through:
a. Productive Financing; and/or b. Consumptive Financing.
(2) Providers are prohibited from facilitating factoring except:
a. factoring with collateral provided by the creditor; and b. in the form of Productive Financing.
(3) Further provisions regarding the business activities of Providers are determined by the Financial Services Authority (OJK).

Second Section
Maximum Funding Limits

Article 137
(1) Providers must provide equal access to every Fund Provider in LPBBTI business activities.
(2) Providers must meet the maximum funding limits:
a. to every Fund Recipient; and b. by every Fund Provider and its affiliates.
(3) The maximum limits for Consumptive and Productive Funding to every Fund Recipient as referred to in paragraph (2) letter a are IDR 2,000,000,000.00 (two billion rupiah). (4) Providers may provide Productive Funding exceeding the maximum limit as referred to in paragraph (3) up to IDR 5,000,000,000.00 (five billion rupiah) provided that the following conditions are met:
a. having non-performing loan quality of a maximum of 5% (five percent) over the last 6 (six) months; and b. not currently subject to administrative sanctions in the form of business activity restrictions or suspension of business activities, either partially or entirely, from the Financial Services Authority (OJK). (5) The maximum limit for Funding by every Fund Provider and its affiliates as referred to in paragraph (2) letter b is at most 25% (twenty-five percent) of the final position (outstanding) of Funding at the end of the month. (6) The maximum funding limits as referred to in paragraph (5) do not apply to Fund Providers who are financial services business actors supervised by the Financial Services Authority (OJK) in accordance with applicable laws and regulations. (7) Fund Providers as referred to in paragraph (6) may provide Funding of at most 75% (seventy-five percent) of the final position (outstanding) of Funding at the end of the month. (8) The maximum funding limits as referred to in paragraph (3) and paragraph (4) may be adjusted by considering industry developments and changes, as determined by the Financial Services Authority (OJK).

Third Section
Fund Providers and Fund Recipients

Article 138
(1) Fund Providers may come from within and/or outside the country.
(2) Fund Providers as referred to in paragraph (1) consist of:
a. Indonesian citizens; b. foreign citizens;
c. Indonesian legal entities;
d. foreign legal entities; e. Indonesian business entities; f. foreign business entities; and/or g. international institutions.

Article 139
(1) Providers are prohibited from providing Funding other than to Fund Recipients domiciled within the legal territory of the Unitary State of the Republic of Indonesia.
(2) Fund Recipients as referred to in paragraph (1) consist of:
a. Indonesian citizens; b. Indonesian legal entities; and/or
c. Indonesian business entities.
(3) Further provisions regarding Fund Providers and Fund Recipients are determined by the Financial Services Authority (OJK).

Article 140
(1) Providers must meet the maximum limit of economic benefits of Funding in facilitating Funding.
(2) The economic benefits charged by Providers are interest rates/margins/profit-sharing rates, including:
a. interest/margin/profit-sharing; b. administrative fees/commission fees/platform fees/ujrah equivalent to the aforementioned costs; and
c. other costs, excluding late payment penalties, stamp duties, Electronic Signature costs secured with Electronic Certificates, and taxes.
(3) The maximum limit of economic benefits of Funding as referred to in paragraph (1) is determined by the Financial Services Authority (OJK).

Fourth Section
Transparency of Business Operations

Article 141
(1) Providers must display the name of the Provider at the headquarters, branch offices, and Electronic Systems.
(2) Providers must display global positioning system coordinates on the Provider's website regarding the location of:
a. headquarters; and b. branch offices.

Article 142
(1) The Electronic System used by Providers must contain at least:
a. the name of the Provider; b. the logo;
c. the name of the Electronic System;
d. the profiles of all Directors, Board of Commissioners, Sharia Supervisory Board (DPS), and shareholders of the Provider; e. Funding performance; and f. information that the Provider is licensed and supervised by the Financial Services Authority (OJK). (2) Warnings regarding the risks of LPBBTI business activities as referred to in paragraph (1) letter e must be displayed on the website interface page or application owned by the Provider, clearly visible to Users. (3) Funding performance as referred to in paragraph (1) letter f contains information at least:
a. the value of Funding distributed; b. the number of Fund Providers;
c. the number of Fund Recipients; and
d. the quality level of Funding.
(4) Information as referred to in paragraph (3) letters a through d is provided:
a. since business activities commenced; b. in the current year; and
c. in the form of final positions.
(5) Providers must display warnings regarding the risks of LPBBTI business activities in the Provider's Electronic System.
(6) Warnings regarding the risks of LPBBTI business activities as referred to in paragraph (5) must be displayed on the website interface page or application owned by the Provider, clearly visible to Users. (7) Providers must ensure that Fund Providers understand all risks before providing Funding. (8) To ensure that Fund Providers understand all risks before providing Funding as referred to in paragraph (7), Providers request Fund Providers to fill out a Fund Provider understanding statement. (9) Providers must provide information regarding the amount of Funding, funding duration, payment terms, and total costs including economic benefits of Funding before prospective Users decide to apply for or distribute Funding. (10) Information regarding the amount of Funding, funding duration, payment terms, and total costs including economic benefits of Funding as referred to in paragraph (9) is an inseparable part of the product and/or service information summary. (11) Provisions regarding the product and/or service information summary as referred to in paragraph (10) are implemented in accordance with Financial Services Authority (OJK) Regulations regarding consumer and public protection. (12) Further provisions regarding:
a. the inclusion of information in the Electronic System used by Providers as referred to in paragraph (1); b. LPBBTI business activity risks in the Provider's Electronic System as referred to in paragraph (5);
c. warnings regarding LPBBTI business activity risks displayed on the website interface page or application owned by the Provider as referred to in paragraph (6); and
d. Fund Providers' understanding of all risks before providing Funding as referred to in paragraph (7), are determined by the Financial Services Authority (OJK).

Fifth Section
LPBBTI Agreements

Article 143
LPBBTI implementation agreements must consist of at least:
a. an agreement between the Provider and the Fund Provider; and b. an agreement between the Fund Provider and the Fund Recipient.

Article 144
(1) Agreements between Providers and Fund Providers are stipulated in Electronic Documents.
(2) Electronic Documents as referred to in paragraph (1) must contain at least:
a. agreement number; b. agreement date;
c. party identities consisting of the Fund Provider's name and the Fund Provider's National Identity Number (NIK);
d. rights and obligations of the parties; e. the amount of Funding; f. economic benefits of Funding; g. the amount of commissions; h. duration;
i. cost details;
j. provisions regarding penalties, if any; k. the use of Personal Data;
l. Funding collection mechanisms;
m. risk mitigation in the event of non-performing Funding; n. dispute resolution mechanisms; and o. mechanisms for resolving rights and obligations in the event that the Provider cannot continue operational activities. (3) Providers must provide access for Fund Providers to download LPBBTI implementation agreements. (4) Providers must provide information access to Fund Providers regarding the use of their funds. (5) Information on fund usage as referred to in paragraph (3) must contain at least:
a. final position of Funding; b. purpose of fund usage;
c. economic benefits of Funding; and
d. duration of Funding.
(6) Providers must deliver agreements as referred to in paragraph (1) to Fund Providers.

Article 145
(1) Funding agreements between Fund Providers and Fund Recipients are stipulated in Electronic Documents.
(2) Electronic Documents as referred to in paragraph (1) must contain at least:
a. agreement number; b. agreement date;
c. party identities;
d. rights and obligations of the parties; e. the amount of Funding; f. economic benefits of Funding; g. installment values; h. duration;
i. collateral objects, if any;
j. related costs; k. provisions regarding penalties, if any;
l. the use of Personal Data;
m. dispute resolution mechanisms; and n. mechanisms for resolving rights and obligations in accordance with applicable laws and regulations if the Provider cannot continue operational activities. (3) Providers must provide information access and download access to LPBBTI implementation agreements to Users regarding the received Funding position. (4) Providers must provide information access to Fund Recipients regarding the use of their funds. (5) Information on the received Funding position as referred to in paragraph (3) must contain at least:
a. final position of the Funding amount; b. purpose of fund usage;
c. economic benefits of Funding; and
d. duration of Funding.
(6) Providers must deliver agreements as referred to in paragraph (1) to Users.

Article 146
Providers must ensure that Users have read and understood the contents of the agreements as referred to in Article 144 and Article 145.

Article 147
Any changes to Funding agreements between Fund Providers and Fund Recipients must be approved by both parties.

Sixth Section
Risk Mitigation by Providers

Article 148
(1) Providers must conduct risk mitigation at least in the form of:
a. analysis of Funding proposed by Fund Recipients; b. verification of User identities and document authenticity; and
c. optimal collection of distributed Funding.
(2) In addition to conducting risk mitigation as referred to in paragraph (1), Providers may facilitate:
a. risk transfer of Funding in the event of requests from Fund Providers; b. risk transfer regarding collateral objects, if collateral objects exist; and/or
c. other risk mitigation for the protection of Fund Providers with the approval of the Financial Services Authority (OJK).
(3) Providers must consider the alignment between the needs and capabilities of Fund Recipients.
(4) In the event that Providers facilitate Funding risk mitigation in the form of credit insurance and/or credit guarantees, Providers must use insurance companies or guarantee institutions that meet the following provisions:
a. have obtained business licenses from the Financial Services Authority (OJK); and b. are not subject to administrative sanctions in the form of business activity restrictions or suspension of business activities from the Financial Services Authority (OJK). (5) Credit insurance and/or credit guarantee products used by Providers must meet the following provisions:
a. can cover most of the risks occurring, considering generally applicable and fair insurance and guarantee principles; b. are based on good faith; and
c. claims can be made since the quality of Funding is classified as doubtful/non-performing.
(6) The duration of credit insurance or credit guarantee coverage as referred to in paragraph (5) must be at least equal to the duration of Funding.
(7) In the event that Providers facilitate Funding risk mitigation in the form of credit insurance as referred to in paragraph (6), the use of insurance mechanisms that limit insurance claim values to a percentage of the premium value is prohibited. (8) Further provisions regarding risk mitigation by Providers are determined by the Financial Services Authority (OJK).

Article 149
(1) Providers must apply funding distribution risk mitigation by considering:
a. the minimum age limit of prospective Fund Recipients; and b. the minimum income limit of prospective Fund Recipients.
(2) The Financial Services Authority (OJK) may establish the minimum age limit of prospective Fund Recipients and the minimum income limit of prospective Fund Recipients as referred to in paragraph (1). (3) Provisions regarding the minimum age limit and minimum income limit of prospective Fund Recipients as referred to in paragraph (2) are determined by the Financial Services Authority (OJK).

Seventh Section
Credit Scoring

Article 150
(1) Providers must conduct credit scoring assessments in distributing Funding.
(2) Credit scoring assessments as referred to in paragraph (1) are conducted by at least:
a. verifying the accuracy of submitted documents in accordance with credit scoring assessment guidelines; b. conducting clarification and confirmation either through direct face-to-face meetings, electronic face-to-face meetings, and/or non-face-to-face electronic meetings with prospective Fund Recipients as regulated in Financial Services Authority (OJK) Regulations regarding the implementation of anti-money laundering, counter-terrorism financing, and counter-proliferation financing programs in the financial services sector;
c. processing data from other parties relevant to assessment needs; and
d. analysis of prospective Fund Recipients.
(3) Credit scoring assessments as referred to in paragraph (1) must consider the feasibility and ability of prospective Fund Recipients to fulfill Funding payment obligations as follows:
a. character; and b. ability to repay.
(4) In addition to assessing the feasibility and ability of prospective Fund Recipients as referred to in paragraph (3), Providers may consider other aspects as follows:
a. capital; b. economic prospects; and/or
c. collateral objects.

Article 151
(1) Providers must formulate credit scoring assessment guidelines.
(2) Provider credit scoring assessment guidelines as referred to in paragraph (1) are determined by the Board of Directors.

Article 152
(1) The Board of Directors is responsible for the credit scoring assessments conducted by the Provider.
(2) Providers must evaluate the effectiveness of credit scoring assessments in mitigating Funding risks.
(3) Effectiveness evaluations of credit scoring assessments as referred to in paragraph (2) must be conducted at least every 3 (three) months.
(4) Providers must provide credit scoring assessment guideline documents as referred to in Article 151 paragraph (1) during the implementation of verification and/or validation by the Financial Services Authority (OJK). (5) Further provisions regarding credit scoring as referred to in Article 150 paragraph (1) are determined by the Financial Services Authority (OJK).

Eighth Section
Escrow Accounts, Virtual Accounts, Fund Accounts, and Other Fund Transfer Media

Article 153
(1) Providers must use:
a. Escrow Accounts; and b. Virtual Accounts or payment gateways, for LPBBTI.
(2) In the event that Fund Providers use special fund accounts, all funds must still be sent using Virtual Accounts or payment gateways to be subsequently transferred to the Provider's Escrow Accounts. (3) Providers must provide Virtual Accounts or payment gateways for every User. (4) For Funding and Funding repayment, Users make payments through Virtual Accounts or payment gateways to the Provider's Escrow Accounts to be subsequently distributed to respective Users. (5) The maximum duration for placing funds from Fund Providers that have not yet been used for Funding transactions in Escrow Accounts as referred to in paragraph (1) must not exceed 2 (two) working days. (6) The maximum duration for placing funds in Escrow Accounts as referred to in paragraph (1) from Fund Recipients who have made payments for received Funding must not exceed 1 (one) working day. (7) In the event that fund placement in Escrow Accounts exceeds the time limits as referred to in paragraph (5) and paragraph (6), Providers must ensure the return of such funds to Users' accounts on the next working day. (8) User funds located in the Provider's Escrow Accounts and currently being distributed are not the Provider's assets. (9) Further provisions regarding Escrow Accounts, Virtual Accounts, fund accounts, and other fund transfer media are determined by the Financial Services Authority (OJK).

Ninth Section
Electronic Signatures

Article 154
(1) Agreements:
a. as referred to in Article 143; and b. based on applicable laws and regulations requiring the use of Electronic Signatures secured with Electronic Certificates, must be executed using Electronic Signatures secured with Electronic Certificates. (2) Agreements other than those referred to in paragraph (1) drafted for the implementation of LPBBTI may use Electronic Signatures secured with Electronic Certificates. (3) The use of Electronic Signatures secured with Electronic Certificates as referred to in paragraph (1) must be stipulated in Electronic Signature usage guidelines and implemented in accordance with applicable laws and regulations governing Electronic Signatures.

Part Ten
Participation
Article 155
(1) Service Providers are prohibited from making direct participation except in:
a. companies in the financial services sector in Indonesia; and/or b. companies related to LPBBTI activities.
(2) The total amount of direct participation by Service Providers is prohibited from exceeding 20% (twenty percent) of the Service Provider's Equity.
(3) The total amount of direct participation by Service Providers in entities within 1 (one) group is prohibited from exceeding 10% (ten percent) of the Service Provider's Equity. (4) Service Providers must fulfill the direct participation amount provisions as referred to in paragraph (2) and paragraph (3) at the time of making the participation. (5) The provisions as referred to in paragraph (2) and paragraph (3) are exempted for Service Providers that make direct participation in Service Providers based on Sharia Principles resulting from the separation of the respective Service Provider.

Part Eleven
Cooperation
Article 156
(1) Service Providers may conduct cooperation with financial service institutions and non-financial institutions.
(2) Cooperation as referred to in paragraph (1) must fulfill the criteria:
a. conducted with parties that have been registered, licensed, or equivalent with the Financial Services Authority or other competent authorities; b. stipulated in an agreement;
c. included in the business plan; and
d. having Indonesian legal entity status.
(3) In the event that Service Providers conduct cooperation:
a. informative services; b. to facilitate risk mitigation; and/or
c. outsourcing,
Service Providers must report the cooperation in question to the Financial Services Authority no later than 5 (five) working days from the date of the cooperation agreement. (4) In the event that Service Providers conduct cooperation for informative services within the Service Provider's Electronic System, such cooperation is prohibited from being conducted other than with financial service institutions supervised by the Financial Services Authority. (5) In carrying out cooperation as referred to in paragraph (1), Service Providers must fulfill the provisions of applicable legislation. https://jdih.ojk.go.id/

(6) Service Providers are fully responsible for all impacts arising from cooperation as referred to in paragraph (1).
(7) Service Providers must conduct periodic evaluations of cooperation as referred to in paragraph (1).
Article 157
(1) Service Providers may conduct data exchange cooperation to improve the quality of LPBBTI.
(2) Service Providers must stipulate data exchange as referred to in paragraph (1) in a data confidentiality agreement.
(3) Service Providers must ensure that the data recipient fulfills the data confidentiality agreement as referred to in paragraph (2).
(4) The data confidentiality agreement as referred to in paragraph (2) must contain at least:
a. the parties; b. type of data;
c. use and disclosure of data;
d. rights and obligations of the parties; e. accountability of the parties; and f. duration of use and storage of data.
(5) Data exchange cooperation as referred to in paragraph (1) must be reported by the Board of Directors to the Financial Services Authority by attaching the data exchange cooperation reporting document contained in Appendix in table 29 which is an integral part of this Financial Services Authority Regulation. (6) Data exchange cooperation as referred to in paragraph (1) must be implemented in accordance with the provisions of applicable legislation regarding Personal Data Protection.

Part Twelve
Prohibitions
Article 158
In conducting business activities, Service Providers are prohibited from:
a. conducting business activities other than those regulated in this Financial Services Authority Regulation; b. acting as a Lender or Borrower;
c. representing Lenders to conduct Financing and/or provide Financing features automatically;
d. providing access to members of the Board of Directors, members of the Board of Commissioners, DPS, and employees and their affiliates to act as Lenders; e. providing access to members of the Board of Directors, members of the Board of Commissioners, DPS, and shareholders and their affiliates to act as Borrowers; f. providing guarantees in any form for the fulfillment of obligations of other parties; https://jdih.ojk.go.id/

g. issuing debt instruments; h. having loans;
i. providing recommendations to Users;
j. publishing fictitious and/or misleading information; k. offering services directly or indirectly to Users and/or the public through personal communication media without consent;
l. charging fees to Users and/or the public for complaint services;
m. taking actions that cause or force other financial service institutions under the supervision of the Financial Services Authority to violate and/or evade the provisions of applicable legislation; n. directly raising funds from the public in the form of checking accounts, savings, deposits, and/or other forms equivalent to public fund raising; o. using third parties to manage funds from Lenders; and/or p. conducting Financing practices that are classified as unhealthy Financing.

Part Thirteen
Administrative Sanctions
Article 159
(1) Service Providers who violate the provisions as referred to in Article 130 paragraph (3), Article 133, Article 134, Article 135, Article 136 paragraph (2), Article 137 paragraph (1) paragraph (2), Article 139 paragraph (1), Article 140 paragraph (1), Article 141, Article 142 paragraph (1), paragraph (2), paragraph (5), paragraph (6), paragraph (7), paragraph (9), Article 143, Article 144 paragraph (2), paragraph (3), paragraph (4), paragraph (6), Article 145 paragraph (2), paragraph (3), paragraph (4), paragraph (6), Article 146, Article 147, Article 148 paragraph (1), paragraph (3), paragraph (4), paragraph (5), paragraph (7), Article 149 paragraph (1), Article 150 paragraph (1), Article 151 paragraph (1), Article 152 paragraph (1), paragraph (2), paragraph (3), paragraph (4), Article 153 paragraph (1), paragraph (3), paragraph (7), Article 154 paragraph (1) paragraph (3), Article 155 paragraph (1), paragraph (2), paragraph (3), paragraph (4), Article 156 paragraph (2), paragraph (3), paragraph (4), paragraph (5), paragraph (6), paragraph (7), Article 157 paragraph (2), paragraph (3), paragraph (5), paragraph (6), and/or Article 158 shall be subject to administrative sanctions in the form of:
a. written warning; b. suspension of part or all of business activities;
c. restriction of certain business activities;
d. reduction of risk assessment results; e. cancellation of approval; f. prohibition of becoming a PSP, Board of Directors, Board of Commissioners, and/or DPS; and/or g. administrative fine. https://jdih.ojk.go.id/

(2) Administrative sanctions as referred to in paragraph (1) letters b to g may be imposed with or without prior imposition of administrative sanctions in the form of written warnings as referred to in paragraph (1) letter a. (3) Administrative sanctions in the form of administrative fines as referred to in paragraph (1) letter g are imposed at most IDR 50,000,000.00 (fifty million rupiah). (4) In the event that Service Providers have fulfilled the provisions as referred to in paragraph (1), the Financial Services Authority revokes the administrative sanction. (5) In the event that violations of the provisions as referred to in paragraph (1) occur and the violations have been corrected, the Financial Services Authority provides administrative sanctions in the form of written warnings that end automatically. (6) In addition to administrative sanctions as referred to in paragraph (1), the Financial Services Authority has the authority to:
a. reduce the Health Level assessment results; b. cause Service Providers to violate the provisions as referred to in paragraph (1); and/or
c. cause Service Providers to violate the provisions as referred to in paragraph (1) in the Financial Services Authority's Electronic System.

CHAPTER XIII
ELECTRONIC SYSTEM OF LPBBTI SERVICE PROVIDER
Part One
Electronic System
Article 160
(1) Service Providers must use Electronic Systems in conducting their business activities.
(2) The Electronic System as referred to in paragraph (1) must be owned, controlled, and managed by the Service Provider.
(3) The Electronic System as referred to in paragraph (2) must be registered in accordance with the provisions of applicable legislation.
(4) Service Providers are prohibited from having more than 1 (one) Electronic System for each type of device operation and 1 (one) website address in conducting their business activities.
Article 161
(1) Service Providers must:
a. maintain the confidentiality, integrity, and availability of Personal Data, transaction data, and financial data that they manage from the time the data is obtained until the data is destroyed; b. ensure the availability of authentication, verification, and validation processes that support non-repudiation in accessing, processing, https://jdih.ojk.go.id/

and executing Personal Data, transaction data, and financial data that they manage;
c. guarantee that the acquisition, use, utilization, and disclosure of Personal Data, transaction data, and financial data obtained by Service Providers are based on the consent of the owner of the Personal Data, transaction data, and financial data, unless otherwise determined by the provisions of applicable legislation; and
d. notify in writing to the owner of Personal Data, transaction data, and financial data if there is a failure in the protection of the confidentiality of Personal Data, transaction data, and financial data that they manage. (2) Further provisions regarding data and information management are determined by the Financial Services Authority.

Part Two
Audit Trail
Article 162
(1) Service Providers must provide audit trails for all their activities within the Electronic System.
(2) Service Providers must ensure that the Information Technology system devices used can support the provision of audit trails.
(3) Audit trails as referred to in paragraph (1) are used for supervision, law enforcement, dispute resolution, verification, testing, and other purposes.
(4) Service Providers must maintain transaction logs based on data retention policies in accordance with the provisions of applicable legislation.

Part Three
Security System
Article 163
(1) Service Providers must secure the Electronic System by implementing procedures and means for security to avoid disturbances, failures, and losses.
(2) Service Providers must provide security systems that cover procedures, prevention systems, and handling of threats and attacks that cause disturbances, failures, and losses. (3) Service Providers must participate in the management of Information Technology security gaps to support information security within the industry conducting Information Technology-based financial service activities. (4) Service Providers in managing Electronic Systems must have an information security management system certificate with comprehensive coverage. https://jdih.ojk.go.id/

(5) The information security management system certificate as referred to in paragraph (4) must be owned no later than 6 (six) months after obtaining a business license from the Financial Services Authority.

Part Four
Access and Use of Personal Data
Article 164
(1) Service Providers must obtain consent from the owner of Personal Data to acquire and use Personal Data.
(2) Consent as referred to in paragraph (1) may be exempted in accordance with the provisions of applicable legislation.
(3) The owner of Personal Data may submit requests for access and copies of their Personal Data to the Service Provider.
(4) The owner of Personal Data has the right to supplement, correct errors and inaccuracies, and destroy Personal Data sent to the Service Provider.
(5) Fulfillment of rights as referred to in paragraph (4) is done through written requests.

Part Five
Data Retention Period and Data Deletion
Article 165
(1) Service Providers must store Personal Data in the Electronic System for at least 5 (five) years from the end of the business relationship.
(2) Unless otherwise determined by the provisions of applicable legislation, the data owner may request the Service Provider to delete their Personal Data.
(3) In the event that data deletion occurs upon the request of the data owner as referred to in paragraph (2), Service Providers must provide a mechanism for deleting Users' Personal Data. (4) The Personal Data deletion mechanism must include at least:
a. provision of communication channels between the Service Provider and the owner of Personal Data; b. features that allow the owner of Personal Data to request the Service Provider to delete their Personal Data; and
c. recording of requests for deletion of electronic information.
(5) Deletion of Personal Data as referred to in paragraph (4) may be done with the requirements:
a. obtained and processed without the consent of the owner of Personal Data; b. obtained and processed in an unlawful manner; https://jdih.ojk.go.id/

c. no longer suitable for the purpose of acquisition based on agreements and/or provisions of applicable legislation;
d. its use has exceeded the time according to agreements and/or provisions of applicable legislation; e. displayed by the Service Provider's Electronic System causing harm to the owner of Personal Data; and/or f. the business relationship has ended and is not regulated in the agreement. (6) Provisions on the deletion of Personal Data are implemented in accordance with the provisions of applicable legislation regarding Personal Data Protection.

Part Six
Administrative Sanctions
Article 166
(1) Service Providers who violate the provisions as referred to in Article 160, Article 161 paragraph (1), Article 162 paragraph (1), paragraph (2), Article 163, Article 164 paragraph (1), and/or Article 165 paragraph (1), paragraph (3) shall be subject to administrative sanctions in the form of:
a. written warning; b. suspension of part or all of business activities;
c. restriction of certain business activities;
d. reduction of risk assessment results; e. cancellation of approval; f. prohibition of becoming a PSP, Board of Directors, Board of Commissioners, and/or DPS; and/or g. administrative fine. (2) Administrative sanctions as referred to in paragraph (1) letters b to g may be imposed with or without prior imposition of administrative sanctions in the form of written warnings as referred to in paragraph (1) letter a. (3) Administrative sanctions in the form of administrative fines as referred to in paragraph (1) letter g are imposed at most IDR 50,000,000.00 (fifty million rupiah). (4) In the event that Service Providers have fulfilled the provisions as referred to in paragraph (1), the Financial Services Authority revokes the administrative sanction. (5) In the event that violations of the provisions as referred to in paragraph (1) occur and the violations have been corrected, the Financial Services Authority provides administrative sanctions in the form of written warnings that end automatically. (6) In addition to administrative sanctions as referred to in paragraph (1), the Financial Services Authority has the authority to:
a. reduce the Health Level assessment results; b. conduct re-evaluation of Principal Parties that cause Service Providers to violate the provisions as referred to in paragraph (1); and/or
c. record audit trails of parties that cause Service Providers to violate the provisions as referred to in paragraph (1) in the Financial Services Authority's Electronic System.

CHAPTER XIV
HEALTH LEVEL
Part One
General
Article 167
(1) Service Providers must fulfill Health Level requirements of at least composite rating 3.
(2) The Health Level as referred to in paragraph (1) is conducted with an assessment scope covering factors:
a. capital; b. Financing;
c. profitability
d. liquidity; and e. management.
(3) Further provisions regarding the Health Level of LPBBTI as referred to in paragraph (1) are determined by the Financial Services Authority.

Part Two
Capital
Article 168
(1) Assessment of the capital factor as referred to in Article 167 paragraph (2) letter a includes assessment of capital adequacy, projections, and capital ability to anticipate risks. (2) Assessment of the capital factor as referred to in paragraph (1) must be conducted at least against the fulfillment of provisions:
a. minimum Equity; and b. ratio of Equity compared to Paid-in Capital.
Article 169
(1) Service Providers must at all times have minimum Equity as referred to in Article 168 paragraph (2) letter a of at least IDR 12,500,000,000.00 (twelve billion five hundred million rupiah). (2) For Service Providers that have obtained business licenses before this Financial Services Authority Regulation takes effect, they must have minimum Equity as referred to in paragraph (1) gradually, as follows:
a. at least IDR 7,500,000,000.00 (seven billion five hundred million rupiah) since this Financial Services Authority Regulation takes effect; and https://jdih.ojk.go.id/

b. at least IDR 12,500,000,000.00 (twelve billion five hundred million rupiah) since July 4, 2025.
Article 170
Service Providers must maintain the ratio of Equity compared to Paid-in Capital of at least 50% (fifty percent).

Part Three
Financing Quality
Article 171
(1) The Financing Quality of Service Providers consists of:
a. performing; b. special attention;
c. less performing
d. doubtful; and e. non-performing.
(2) Financing Quality as referred to in paragraph (1) is categorized:
a. performing if there is no delay in principal payments and/or economic benefits of Financing; b. special attention if there is a delay in principal payments and/or economic benefits of Financing that has exceeded the due date up to 30 (thirty) calendar days;
c. less performing if there is a delay in principal payments and/or economic benefits of Financing that has exceeded the due date 30 (thirty) calendar days up to 60 (sixty) calendar days;
d. doubtful if there is a delay in principal payments and/or economic benefits of Financing that has exceeded the due date 60 (sixty) calendar days up to 90 (ninety) calendar days; and e. non-performing if there is a delay in principal payments and/or economic benefits of Financing that has exceeded the due date 90 (ninety) calendar days. (3) Further provisions regarding the level of Financing quality are determined by the Financial Services Authority.
Article 172
(1) Assessment of the Financing quality factor as referred to in Article 167 paragraph (2) letter b includes assessment of components as follows:
a. quality of productive assets and concentration of risk exposure; and b. adequacy of policies and procedures, documentation systems, and performance in handling problematic productive assets. https://jdih.ojk.go.id/

(2) Service Providers must maintain the non-performing Financing ratio of at most 5% (five percent).
(3) The non-performing Financing ratio as referred to in paragraph (2) is calculated by comparing the final position (outstanding) of Financing in default above 90 (ninety) days with the total final position (outstanding) of Financing.

Part Four
Profitability
Article 173
Assessment of the profitability factor as referred to in Article 167 paragraph (2) letter c includes assessment of components as follows:
a. ability of productive assets to generate profits; and b. level of operational efficiency.

Part Five
Liquidity
Article 174
(1) Assessment of the liquidity factor as referred to in Article 167 paragraph (2) letter d includes assessment of components as follows:
a. ability to meet short-term, long-term obligations, and potential occurrence of mismatch between short-term and long-term obligations; and b. adequacy of liquidity management policies. (2) Service Providers must maintain a liquidity ratio determined of at least 120% (one hundred twenty percent). (3) The liquidity ratio as referred to in paragraph (2) is calculated by comparing current assets and current liabilities.

Part Six
Management
Article 175
Assessment of the management factor as referred to in Article 168 paragraph (2) letter e includes assessment of components as follows:
a. quality of general management, including implementation of fulfillment of commitments to the Financial Services Authority or other parties; b. implementation of risk management, especially management's understanding of Service Provider risks;
c. implementation of good governance; and
d. Service Provider's compliance with Sharia Principles and implementation of social functions, for Service Providers conducting business activities based on Sharia Principles. https://jdih.ojk.go.id/

Part Seven
Calculation of Composite Rating
Article 176
(1) Each factor of Health Level assessment as referred to in Article 167 paragraph (2) is set with its rating based on comprehensive and structured analysis.
(2) The rating of each factor as referred to in paragraph (1) is categorized:
a. rating 1; b. rating 2;
c. rating 3;
d. rating 4; and e. rating 5.
Article 177
(1) Composite rating is determined based on comprehensive and structured analysis of the rating of each factor as referred to in Article 167 paragraph (2) by considering the materiality and significance of each factor. (2) The composite rating as referred to in paragraph (1) is categorized:
a. composite rating 1; b. composite rating 2;
c. composite rating 3;
d. composite rating 4; and e. composite rating 5.
(3) Composite rating 1 as referred to in paragraph (2) letter a reflects the condition of the Service Provider that is generally very healthy so it is assessed as very capable of facing significant negative influences from changes in business conditions and other external factors. (4) Composite rating 2 as referred to in paragraph (2) letter b reflects the condition of the Service Provider that is generally healthy so it is assessed as capable of facing significant negative influences from changes in business conditions and other external factors. (5) Composite rating 3 as referred to in paragraph (2) letter c reflects the condition of the Service Provider that is generally quite healthy so it is assessed as quite capable of facing significant negative influences from changes in business conditions and other external factors. (6) Composite rating 4 as referred to in paragraph (2) letter d reflects the condition of the Service Provider that is generally less healthy so it is assessed as less capable of facing significant negative influences from changes in business conditions and other external factors. (7) Composite rating 5 as referred to in paragraph (2) letter e reflects the condition of the Service Provider that is generally unhealthy so it is assessed as unable to https://jdih.ojk.go.id/

facing significant negative influence from changes in business conditions and other external factors.
(8) Further provisions regarding the composite rating of the Health Level are established by the Financial Services Authority.

Eighth Section
Administrative Sanctions

Article 178
(1) Organizers who violate the provisions as referred to in Article 167 paragraph (1), Article 169, Article 170, Article 172 paragraph (2), and/or Article 174 paragraph (2) shall be subject to administrative sanctions in the form of:
a. written warning; b. suspension of part or all of business activities;
c. restriction of certain business activities;
d. reduction of the risk level assessment result; e. revocation of approval; f. prohibition from becoming a Payment Service Provider (PSP), Board of Directors, Board of Commissioners, and/or Supervisory Board (DPS); and/or g. administrative fine. (2) Administrative sanctions as referred to in paragraph (1) letters b through 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 administrative fines as referred to in paragraph (1) letter g are imposed at most IDR 50,000,000.00 (fifty million rupiah). (4) In the event that the Organizer has fulfilled the provisions as referred to in paragraph (1), the Financial Services Authority revokes the administrative sanction. (5) In the event of a violation of the provisions as referred to in paragraph (1) and the violation has been corrected, the Financial Services Authority provides an administrative sanction in the form of a written warning that expires automatically. (6) In addition to the administrative sanctions as referred to in paragraph (1), the Financial Services Authority is authorized to:
a. reduce the Health Level assessment result; b. conduct a re-evaluation of the Principal Party that caused the Organizer to violate the provisions as referred to in paragraph (1); and/or
c. record the track record of the party that caused the Organizer to violate the provisions as referred to in paragraph (1) in the Financial Services Authority Electronic System.

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CHAPTER XV
CONSUMER AND SOCIETY PROTECTION

Article 179
(1) Organizers apply the principles of consumer and society protection in the conduct of business in accordance with the provisions of legislation regarding consumer and society protection in the financial services sector. (2) The mechanism and procedures for applying the principles of consumer and society protection as referred to in paragraph (1) are implemented in accordance with the Financial Services Authority Regulation regarding consumer and society protection in the financial services sector.

CHAPTER XVI
ANTI-MONEY LAUNDERING, PREVENTION OF TERRORISM FINANCING, AND PREVENTION OF PROLIFERATION OF WEAPONS OF MASS DESTRUCTION FINANCING

Article 180
(1) Organizers implement an effective anti-money laundering, prevention of terrorism financing, and prevention of proliferation of weapons of mass destruction financing program. (2) The implementation of the anti-money laundering, prevention of terrorism financing, and prevention of proliferation of weapons of mass destruction financing program as referred to in paragraph (1) is implemented in accordance with the provisions of the Financial Services Authority Regulation regarding the implementation of the anti-money laundering, prevention of terrorism financing, and prevention of proliferation of weapons of mass destruction financing program in the financial services sector.

CHAPTER XVII
ANTI-FRAUD STRATEGY

Article 181
(1) Organizers formulate and implement an effective anti-fraud strategy.
(2) The formulation and implementation of the anti-fraud strategy as referred to in paragraph (1) are implemented in accordance with the Financial Services Authority Regulation regarding the implementation of anti-fraud strategies for financial service institutions.

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CHAPTER XVIII
REPORTING

First Section
Branch Offices

Article 182
(1) Organizers may open branch offices.
(2) Branch offices are prohibited from operating an Electronic System different from the Electronic System that has been submitted to the Financial Services Authority.
(3) Organizers are required to report the opening of branch offices as referred to in paragraph (1) to the Financial Services Authority no later than 10 (ten) working days after the date of opening the branch office. (4) The opening of branch offices as referred to in paragraph (1) must be reported by the Board of Directors to the Financial Services Authority accompanied by the branch office opening reporting documents as contained in Table 30 in the Appendix which is an integral part of this Financial Services Authority Regulation.

Article 183
(1) Organizers who will close a branch office must report in advance to the Financial Services Authority no later than 15 (fifteen) working days before the date of closure of the branch office other than the head office referred to. (2) The plan to close the branch office must be included in the business plan as regulated in the Financial Services Authority Regulation regarding the business plan of non-bank financial service institutions. (3) Organizers are required to convey to Users through the Electronic System used by the Organizer, information regarding the plan to close the branch office by informing the transfer of services to the head office or other branch offices. (4) The reporting of the closure of branch offices as referred to in paragraph (1) is submitted by the Board of Directors to the Financial Services Authority by attaching the reporting documents for the closure of branch offices other than the head office contained in the Appendix in Table 31 which is an integral part of this Financial Services Authority Regulation.

Second Section
Name and Electronic System Changes

Article 184
(1) Organizers may make changes to the name of the Organizer and/or the Electronic System.

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(2) Organizers must include changes to the name and/or Electronic System in the annual business plan as regulated in the Financial Services Authority Regulation regarding the business plan of non-bank financial service institutions. (3) Organizers who have made changes to the name of the Organizer and/or the Electronic System are required to submit a report on the implementation of the name change of the Organizer and/or the Electronic System by the Board of Directors to the Financial Services Authority by attaching the reporting documents for the name change of the Organizer and/or the Electronic System contained in the Appendix in Table 32 which is an integral part of this Financial Services Authority Regulation. (4) The submission of the report as referred to in paragraph (3) is no later than 15 (fifteen) working days from the date of the notification letter or approval from the competent authority, by attaching the document of the notification receipt or approval from the competent authority.

Third Section
Address Changes

Article 185
(1) Organizers are required to report changes to the address of the head office and branch offices to the Financial Services Authority no later than 15 (fifteen) working days calculated from the date of the change. (2) The plan to change the address must be included in the business plan as regulated in the Financial Services Authority Regulation regarding the business plan of non-bank financial service institutions. (3) The reporting of changes to the address of the head office and branch offices as referred to in paragraph (1) must be submitted by the Board of Directors to the Financial Services Authority with the reporting documents for changes to the address of the head office and branch offices contained in the Appendix in Table 33 which is an integral part of this Financial Services Authority Regulation.

Fourth Section
Changes to Business Model and Operating Systems of Devices Used in the Electronic System

Article 186
(1) Organizers are required to report changes to:
a. business model; and/or b. operating systems of devices used in the Electronic System, to the Financial Services Authority no later than 15 (fifteen) working days calculated from the date the business model and/or type of device operating system used in the Electronic System is realized.

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(2) The plan to change the business model and/or type of device operating system used in the Electronic System must first be included in the business plan as regulated in the Financial Services Authority Regulation regarding the business plan of non-bank financial service institutions. (3) Reporting on changes to the business model and/or operating systems of devices used in the Electronic System as referred to in paragraph (1) must be submitted by the Board of Directors to the Financial Services Authority by attaching the reporting documents for changes to the business model contained in the Appendix in Table 34 and Table 35 which are an integral part of this Financial Services Authority Regulation. (4) Organizers are required to pay attention to the provisions of legislation in implementing changes to the business model and/or operating systems of devices used in the Electronic System as referred to in paragraph (1).

Fifth Section
Financing Transaction Data Reports

Article 187
(1) Organizers are required to submit financing transaction data correctly and completely through the Financial Services Authority data communication network system.
(2) The submission of financing transaction data as referred to in paragraph (1) is done daily.
(3) The submission of financing transaction data as referred to in paragraph (1) is submitted by integrating the Organizer's Electronic System into the Financial Services Authority data communication network system. (4) In the event that the Financial Services Authority data communication network system experiences technical disturbances or force majeure, the Financial Services Authority conveys a notification of the time period for submitting transaction data as referred to in paragraph (2) to the Organizer through letters and/or announcements through the Financial Services Authority data communication network system. (5) Financing transaction data as referred to in paragraph (1) must contain at least:
a. information about Users; b. financing transaction information; and
c. financing quality information.
(6) The procedures and mechanisms for submitting financing transaction data as referred to in paragraph (1) are established by the Financial Services Authority.

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Sixth Section
Periodic Reports and Incidental Reports

Article 188
(1) Organizers are required to submit periodic reports and incidental reports to the Financial Services Authority.
(2) Periodic reports as referred to in paragraph (1) consist of:
a. monthly reports; and b. annual financial reports that have been audited by a public accountant registered with the Financial Services Authority.
(3) Organizers are required to measure, recognize, present, and disclose transactions with affiliated parties that meet certain significance criteria at fair value.
(4) The Financial Services Authority is authorized to request reports other than incidental reports as referred to in paragraph (1).

Article 189
(1) Organizers are required to formulate reports as referred to in Article 188 paragraph (1) correctly and completely.
(2) The Board of Directors is responsible for the formulation and presentation of the Organizer's reports.
(3) Organizers are required to submit monthly reports as referred to in Article 188 paragraph (2) letter a to the Financial Services Authority no later than 10 (ten) calendar days after the reporting period ends. (4) Organizers are required to submit annual financial reports as referred to in Article 188 paragraph (2) letter b to the Financial Services Authority no later than April 30 of the following year. (5) Organizers are required to submit incidental reports as referred to in Article 188 paragraph (1) to the Financial Services Authority no later than 6 (six) working days since the occurrence of the incidental event referred to. (6) Organizers are required to submit other reports requested by the Financial Services Authority as referred to in Article 188 paragraph (4) to the Financial Services Authority in accordance with the time period established in the request letter. (7) If the deadline for submitting periodic and incidental reports as referred to in Article 188 paragraph (1) falls on a holiday, the deadline for submitting reports is on the first working day following. (8) If the Organizer obtains a business license for less than 6 (six) months until the end of the calendar year, the obligation to submit annual financial reports as referred to in Article 188 paragraph (2) letter b begins to apply in the following calendar year. (9) Organizers are required to include annual financial reports that have been audited by a public accountant

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as referred to in Article 188 paragraph (2) letter b on the Organizer's website.
(10) Loading onto the Organizer's website as referred to in paragraph (9) must be done no later than 1 (one) month after the end of the time period for submitting annual financial reports as referred to in paragraph (4). (11) Further provisions regarding the procedures and mechanisms for reporting are established by the Financial Services Authority.

Article 190
(1) Annual financial reports that have been audited by a public accountant registered with the Financial Services Authority as referred to in Article 186 paragraph (2) letter b must disclose key audit matters to the Financial Services Authority. (2) The disclosure of key audit matters in annual reports that have been audited by accountants as referred to in paragraph (1) is excluded if:
a. the provisions of legislation prohibit the disclosure chosen as key audit matters to the public; and/or b. in conditions having adverse consequences for public interest that exceed its benefits.

Seventh Section
Administrative Sanctions

Article 191
(1) Organizers who violate the provisions as referred to in Article 182 paragraph (2), paragraph (3), paragraph (4), Article 183 paragraph (1), paragraph (3), Article 184 paragraph (3), Article 185 paragraph (1), Article 186 paragraph (1), paragraph (4), Article 187 paragraph (1), Article 188 paragraph (1), paragraph (3), Article 189 paragraph (1), paragraph (3), paragraph (4), paragraph (5), paragraph (6), paragraph (9), paragraph (10), and/or Article 190 paragraph (1) shall be subject to administrative sanctions in the form of:
a. written warning; b. suspension of part or all of business activities;
c. restriction of certain business activities;
d. reduction of the risk level assessment result; e. revocation of approval; f. prohibition from becoming a Payment Service Provider (PSP), Board of Directors, Board of Commissioners, and/or Supervisory Board (DPS); and/or g. administrative fine. (2) Administrative sanctions as referred to in paragraph (1) letters b through 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 administrative fines as referred to in paragraph (1) letter g are imposed at most IDR 50,000,000.00 (fifty million rupiah).

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(4) In the event that the Organizer has fulfilled the provisions as referred to in paragraph (1), the Financial Services Authority revokes the administrative sanction.
(5) In the event of a violation of the provisions as referred to in paragraph (1) and the violation has been corrected, the Financial Services Authority provides an administrative sanction in the form of a written warning that expires automatically. (6) In addition to the administrative sanctions as referred to in paragraph (1), the Financial Services Authority is authorized to:
a. reduce the Health Level assessment result; b. conduct a re-evaluation of the Principal Party that caused the Organizer to violate the provisions as referred to in paragraph (1); and/or
c. record the track record of the party that caused the Organizer to violate the provisions as referred to in paragraph (1) in the Financial Services Authority Electronic System.
(7) In the event that, based on the supervision of the Financial Services Authority, errors are found in the transaction data submitted by the Organizer as referred to in Article 187 paragraph (1), the Organizer shall be subject to an administrative sanction in the form of an administrative fine of IDR 100,000.00 (one hundred thousand rupiah) per error in transaction data entry and at most IDR 30,000,000.00 (thirty million rupiah). (8) Organizers who do not fulfill the provisions as referred to in Article 189 paragraph (3), paragraph (4), paragraph (5), and paragraph (6) shall be subject to administrative sanctions in the form of a fine of IDR 500,000.00 (five hundred thousand rupiah) per day of delay per report and may be subject to other administrative sanctions. (9) In the event that the Organizer submits a report 20 (twenty) working days after the time period as referred to in Article 189 paragraph (3), paragraph (4), paragraph (5), and paragraph (6), the Organizer is deemed not to have submitted the report and shall be subject to a written warning sanction and the obligation to pay a fine of IDR 30,000,000.00 (thirty million rupiah). (10) In the event that, based on the supervision of the Financial Services Authority, errors are found in the reports submitted by the Organizer as referred to in Article 188 paragraph (1), the Organizer shall be subject to an administrative sanction in the form of an administrative fine of IDR 100,000.00 (one hundred thousand rupiah) per error in entry and at most IDR 30,000,000.00 (thirty million rupiah).

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CHAPTER XIX
GOOD CORPORATE GOVERNANCE FOR ORGANIZERS

First Section
Governance Principles

Article 192
(1) Organizers are required to apply good corporate governance principles in all their business activities at all levels or tiers of the organization.
(2) The good corporate governance principles as referred to in paragraph (1) include:
a. openness; b. accountability;
c. responsibility;
d. independence; and e. fairness.
(3) The application of good corporate governance aims to:
a. optimize the value of the Organizer for stakeholders; b. improve the management of the Organizer professionally, effectively, and efficiently;
c. increase the compliance of the Organizer's organs and DPS and the ranks below them so that in making decisions and taking actions they are based on high ethics, compliance with the provisions of legislation, and awareness of the Organizer's social responsibility towards stakeholders and environmental sustainability;
d. realize a healthier, reliable, trustworthy, competitive Organizer that meets consumer protection principles; and e. increase the Organizer's contribution to the national economy. (4) The application of good corporate governance principles as referred to in paragraph (2) is at least manifested in:
a. the implementation of duties and responsibilities of the Board of Directors, Board of Commissioners, and DPS; b. the completeness and implementation of duties of committees and work units that perform internal control functions;
c. handling conflicts of interest;
d. the application of compliance, internal audit, and external audit functions; e. the application of risk management and internal control systems; f. the application of remuneration policies; g. transparency of financial and non-financial conditions; and h. business plans.

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(5) In conducting business activities, Organizers must conduct their business activities healthily and comply with the provisions of legislation.
(6) Organizers are required to have adequate standard operating procedures for all business activities of the Organizer established by the Board of Directors.

Article 193
(1) The Financial Services Authority conducts an assessment of the implementation of good corporate governance.
(2) The Financial Services Authority is authorized to request Organizers to perform or not perform certain actions to improve good corporate governance.
(3) Organizers are required to fulfill the Financial Services Authority's request to perform or not perform certain actions as referred to in paragraph (2).

Article 194
(1) Organizers are required to formulate a report on the implementation of good corporate governance at the end of each fiscal year.
(2) The report on the implementation of good corporate governance as referred to in paragraph (1) must contain at least:
a. transparency of the implementation of good corporate governance disclosing all aspects of the implementation of good corporate governance principles as referred to in Article 188 paragraph (2); and b. an action plan including corrective actions required and completion timeframes and obstacles/difficulties in resolution, if there are still deficiencies in the implementation of good corporate governance. (3) The report on the implementation of good corporate governance as referred to in paragraph (1) must be submitted no later than April 30 of the following year. (4) In the event that April 30 as referred to in paragraph (3) is a holiday, the deadline for submitting the report is the first working day after the said April 30. (5) If the deadline for submitting financial reports as referred to in paragraph (3) falls on a national holiday or joint holiday, the Financial Services Authority is authorized to establish the deadline for submitting the report. (6) Further provisions regarding good corporate governance are established by the Financial Services Authority.

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Article 195
The implementation of good corporate governance principles as referred to in Article 192 paragraph (1) must be formulated in guidelines containing at least:
a. procedures for the implementation of duties and responsibilities of the Board of Directors, Board of Commissioners, and DPS; b. the completeness and procedures for the implementation of duties of work units that perform the Organizer's internal control functions;
c. policies and procedures for the implementation of compliance functions, internal auditors, and external auditors; and
d. policies and procedures for the implementation of risk management, including internal control systems and the implementation of Information Technology governance.

Second Section
Board of Directors

Article 196
(1) Organizers are required to have at least 2 (two) members of the Board of Directors.
(2) At least half of the number of Board of Directors members must have managerial experience in financial service institutions for at least 2 (two) years in the fields of credit or financing, risk management, and/or finance. (3) For Organizers conducting business activities based on Sharia Principles, at least half of the number of Board of Directors members must have operational experience for at least 1 (one) year in financial service institutions conducting business activities based on Sharia Principles. (4) Board of Directors members are prohibited from holding concurrent positions in other companies except as members of the board of commissioners or equivalent for at most 3 (three) companies other than the Organizer. (5) Organizers are required to appoint all members of the Board of Directors from Indonesian citizens in the event that there is ownership of the Organizer by foreign legal entities and/or foreign citizens both directly and indirectly of less than 25% (twenty-five percent). (6) Organizers are required to appoint at least 50% (fifty percent) of Board of Directors members from Indonesian citizens, in the event that there is ownership of the Organizer by foreign legal entities and/or foreign citizens both directly and indirectly of at least 25% (twenty-five percent). (7) All members of the Board of Directors must reside in Indonesia. (8) Board of Directors members with foreign nationality must possess:
a. permanent residence permit; and b. work permit letter from the competent authority.

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Part Three

Board of Commissioners

Article 197
(1) Organizers must have at least 1 (one) member of the Board of Commissioners and at most the same number as the members of the Board of Directors.
(2) At least 50% (fifty percent) of the members of the Board of Commissioners must have at least 2 (two) years of experience at the managerial level in financial service institutions. (3) Members of the Board of Commissioners are prohibited from holding concurrent positions, except at most on 3 (three) companies other than the Organizer. (4) Concurrent positions as referred to in paragraph (3) do not include:
a. members of the Board of Commissioners of conventional Organizers holding concurrent positions as members of the Board of Commissioners of Sharia-based Organizers; or b. members of the Board of Commissioners of Sharia-based Organizers holding concurrent positions as members of the Board of Commissioners of conventional Organizers. (5) Organizers must appoint at least 50% (fifty percent) of the members of the Board of Commissioners from Indonesian citizens, in the event that the Organizer has ownership by foreign legal entities and/or foreign citizens, directly or indirectly, of at least 25% (twenty-five percent). (6) At least 50% (fifty percent) of the members of the Board of Commissioners must reside in Indonesia. (7) Foreign citizen members of the Board of Commissioners residing in Indonesia must possess:
a. permanent permits; and b. work permits from the competent authority.

Part Four

Sharia Supervisory Board

Article 198
(1) Organizers based on Sharia Principles must have at least 1 (one) member of the Sharia Supervisory Board (DPS) who has received a recommendation from the National Sharia Council. (2) Members of the DPS are prohibited from holding concurrent positions, except at most on 3 (three) other Sharia financial institutions.

Part Five

General Meeting of Funders

Article 199
(1) Organizers must prepare guidelines for the implementation of the General Meeting of Funders. https://jdih.ojk.go.id/

(2) The guidelines for the implementation of the General Meeting of Funders as referred to in paragraph (1) must at least contain:
a. implementation procedures; b. mechanisms; and
c. guidelines for the General Meeting of Funders,
conducted by the Organizer.
(3) The guidelines for the implementation of the General Meeting of Funders as referred to in paragraph (1) are prepared by considering the complexity and capabilities of the Organizer. (4) Organizers must hold the General Meeting of Funders based on the established guidelines for the implementation of the General Meeting of Funders.

Part Six

Internal Audit

Article 200
(1) Organizers must have an internal audit unit operated by at least 1 (one) human resource who has expertise and/or a background in the field of auditing.
(2) The internal audit unit as referred to in paragraph (1) is directly responsible to members of the Board of Directors and/or members of the Board of Commissioners.
(3) Organizers must conduct internal audits at least 1 (one) time per year.
(4) In conducting internal audits as referred to in paragraph (3), Organizers may appoint other parties.
(5) In the event that Organizers use other parties to conduct internal audits, Organizers must:
a. explain the reasons for using the other parties to the Financial Services Authority (OJK); b. ensure the independence of the other parties; and
c. be responsible for the role of the external parties.

Part Seven

Administrative Sanctions

Article 201
(1) Organizers who violate the provisions as referred to in Article 192 paragraph (1), paragraph (6), Article 193 paragraph (3), Article 194 paragraph (1), paragraph (3), Article 195, Article 196, Article 197 paragraph (1), paragraph (2), paragraph (3), paragraph (5), paragraph (6), paragraph (7), Article 198, Article 199 paragraph (1) paragraph (4), and/or Article 200 paragraph (1), paragraph (3), paragraph (5) are subject to administrative sanctions in the form of:
a. written warnings; b. suspension of part or all of business activities;
c. restriction of certain business activities;
d. reduction of risk assessment results; https://jdih.ojk.go.id/

e. cancellation of approval; f. prohibition from becoming a Payment Service Provider (PSP), Board of Directors, Board of Commissioners, and/or DPS; and/or g. administrative fines. (2) Administrative sanctions as referred to in paragraph (1) letters b through g may be imposed with or without prior imposition of administrative sanctions in the form of written warnings as referred to in paragraph (1) letter a. (3) Administrative sanctions in the form of administrative fines as referred to in paragraph (1) letter g are imposed at most IDR 50,000,000.00 (fifty million rupiah). (4) In the event that Organizers have fulfilled the provisions as referred to in paragraph (1), the Financial Services Authority (OJK) revokes the administrative sanctions. (5) In the event that violations of the provisions as referred to in paragraph (1) occur and the violations have been corrected, the Financial Services Authority (OJK) provides administrative sanctions in the form of written warnings that end automatically. (6) In addition to the administrative sanctions as referred to in paragraph (1), the Financial Services Authority (OJK) has the authority to:
a. reduce the results of the Health Level assessment; b. conduct a re-evaluation of Principal Parties that cause Organizers to violate the provisions as referred to in paragraph (1); and/or
c. record the track record of parties that cause Organizers to violate the provisions as referred to in paragraph (1) in the Financial Services Authority (OJK) Electronic System.

CHAPTER XX

ORGANIZER RISK MANAGEMENT

Part One

Application of Risk Management

Article 202
(1) Organizers must apply Risk Management effectively.
(2) The application of Risk Management as referred to in paragraph (1) must at least cover:
a. active supervision by the Board of Directors, Board of Commissioners, and DPS; b. adequacy of Risk Management policies and procedures and the establishment of risk limits;
c. adequacy of risk identification, measurement, control, and monitoring processes, as well as Risk Management information systems; and
d. comprehensive internal control systems.
(3) The application of risk management as referred to in paragraph (2) must be adjusted to the objectives, business policies, size, and complexity of the Organizer's business. (4) In applying Risk Management as referred to in paragraph (1), Organizers must have guidelines for the application of Risk Management.

Article 203
(1) Organizers must:
a. establish clear authority and responsibility at every level of position related to the application of Risk Management; b. establish written and comprehensive Risk Management policies and strategies;
c. conduct processes of identification, measurement, control, and monitoring of risks against material risk factors;
d. be supported by human resources with competence in the field of Risk Management information systems; and e. effectively implement control systems against risks inherent in the implementation of business activities at all levels of the Organizer's organization. (2) Further provisions regarding risk management are established by the Financial Services Authority (OJK).

Part Two

Administrative Sanctions

Article 204
(1) Organizers who violate the provisions as referred to in Article 202 paragraph (1), paragraph (3), paragraph (4), and/or Article 203 paragraph (1) are subject to administrative sanctions in the form of:
a. written warnings; b. suspension of part or all of business activities;
c. restriction of certain business activities;
d. reduction of risk assessment results; e. cancellation of approval; f. prohibition from becoming a PSP, Board of Directors, Board of Commissioners, and/or DPS; and/or g. administrative fines. (2) Administrative sanctions as referred to in paragraph (1) letters b through g may be imposed with or without prior imposition of administrative sanctions in the form of written warnings as referred to in paragraph (1) letter a. (3) Administrative sanctions in the form of administrative fines as referred to in paragraph (1) letter g are imposed at most IDR 50,000,000.00 (fifty million rupiah). (4) In the event that Organizers have fulfilled the provisions as referred to in paragraph (1), the Financial Services Authority (OJK) revokes the administrative sanctions. https://jdih.ojk.go.id/

(5) In the event that violations of the provisions as referred to in paragraph (1) occur and the violations have been corrected, the Financial Services Authority (OJK) provides administrative sanctions in the form of written warnings that end automatically. (6) In addition to the administrative sanctions as referred to in paragraph (1), the Financial Services Authority (OJK) has the authority to:
a. reduce the results of the Health Level assessment; b. conduct a re-evaluation of Principal Parties that cause Organizers to violate the provisions as referred to in paragraph (1); and/or
c. record the track record of parties that cause Organizers to violate the provisions as referred to in paragraph (1) in the Financial Services Authority (OJK) Electronic System.

CHAPTER XXI

SUPERVISION AND DETERMINATION OF SUPERVISION STATUS

Part One

Supervision

Article 205
(1) The Financial Services Authority (OJK) has the authority to conduct supervision over Organizers.
(2) Supervision as referred to in paragraph (1) is conducted by:
a. Direct Inspections; and b. indirect inspections.
(3) The implementation of Direct Inspections as referred to in paragraph (2) letter a is carried out in accordance with Financial Services Authority Regulations regarding Direct Inspections of non-bank financial service institutions. (4) The Financial Services Authority (OJK) conducts integrated supervision over Organizers that are part of financial conglomerates in accordance with Financial Services Authority Regulations regarding financial conglomerates.

Part Two

Determination of Supervision Status

Article 206
(1) The supervision status of Organizers is determined by the Financial Services Authority (OJK).
(2) The supervision status of Organizers as referred to in paragraph (1) consists of:
a. normal supervision; b. intensive supervision; and
c. special supervision.
(3) The determination of supervision status as referred to in paragraph (2) is based on factors:
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a. composite ratings; and/or b. quantitative parameters.
(4) The determination of supervision status as referred to in paragraph (1) is carried out at any time according to the Financial Services Authority (OJK)'s assessment, considering the Organizer's condition based on factors as referred to in paragraph (3).

Part Three

Criteria for Supervision Status

Article 207
The determination of Organizers in intensive supervision status as referred to in Article 206 paragraph (2) letter b, if:
a. the Health Level of the Organizer is set at composite rating 4 (four); and/or b. meets quantitative parameters:

Equity to Paid-up Capital ratio is greater than or equal to 0% (zero percent) and less than 50% (fifty percent); and/or
Non-performing Funding Quality ratio is greater than 5% (five percent) and less than 25% (twenty-five percent).

Article 208
(1) Organizers with intensive supervision status as referred to in Article 206 paragraph (2) letter b are determined by the Financial Services Authority (OJK) for a maximum period of 1 (one) year from the date of the Financial Services Authority (OJK) notification letter. (2) If the duration of intensive supervision status as referred to in paragraph (1) expires and the Organizer still meets the criteria as referred to in Article 207, the Financial Services Authority (OJK) may determine an extension of the duration of the Organizer's supervision status at most 1 (one) time for a maximum period of 1 (one) year. (3) The determination of the extension of the duration of intensive supervision status as referred to in paragraph (2) is accompanied by increased supervision actions. (4) The determination of the extension of the duration as referred to in paragraph (3) is based on the Financial Services Authority (OJK)'s assessment, considering the resolution of approved action plans.

Article 209
The determination of Organizers in special supervision status as referred to in Article 206 paragraph (2) letter c, if:
a. the duration as referred to in Article 208 paragraph (1) or paragraph (2) expires and the Organizer does not meet the criteria as referred to in Article 207; b. the Health Level of the Organizer is set at Composite Rating 5 (five); https://jdih.ojk.go.id/

c. meets quantitative parameters:

Equity to Paid-up Capital ratio is below 0% (zero percent); and/or
Net Non-performing Funding Quality ratio is greater than 25% (twenty-five percent); and/or
d. meets criteria other than those referred to in letters a, b, and c that impact the continuity of the Organizer's business and/or significantly harm User interests.

Article 210
(1) Organizers with special supervision status as referred to in Article 206 paragraph (2) letter c, the duration of supervision status is determined by the Financial Services Authority (OJK) for a maximum of 6 (six) months from the date of the Financial Services Authority (OJK) notification letter. (2) If the duration for Organizers with special supervision status as referred to in paragraph (1) expires, the Financial Services Authority (OJK) may determine an extension of the duration of the Organizer's supervision status at most 1 (one) time with a maximum duration of 6 (six) months. (3) The determination of the extension of the duration of special supervision status as referred to in paragraph (2) is accompanied by increased supervision actions. (4) The determination of the extension of the duration as referred to in paragraph (2) is based on the Financial Services Authority (OJK)'s assessment, considering the resolution of approved action plans. (5) Organizers who meet the intensive supervision criteria as referred to in Article 207 or special supervision criteria as referred to in Article 209 may not be determined in intensive supervision or special supervision status if:
a. the Organizer is in the process of Merger, Consolidation, or Takeover; and/or b. the Organizer is in the process of increasing capital contributions which have at least been recorded in the criteria for capital contribution funds.

Article 211
Organizers with special supervision status determined by the Financial Services Authority (OJK) cannot be rehabilitated, in the event that:
a. the deadline for special supervision status expires; and b. the Organizer still meets the criteria as referred to in Article 207.

Article 212
(1) In the event that the Financial Services Authority (OJK) determines that Organizers with special supervision status cannot be rehabilitated as referred to in Article 211, the Financial Services Authority (OJK) revokes the business license of the Organizer. https://jdih.ojk.go.id/

(2) The revocation of the Organizer's business license as referred to in paragraph (1) is communicated in writing to:
a. the Board of Directors; b. the Board of Commissioners; and
c. PSPs.
(3) The revocation of the Organizer's business license as referred to in paragraph (1) is announced on the Financial Services Authority (OJK) website.

Part Four

Follow-up on Supervision Status and Procedures for Submitting Supervision Status Reports

Article 213
Follow-up on supervision status and procedures for submitting supervision status reports are carried out in accordance with Financial Services Authority Regulations regarding the determination of status and follow-up on supervision of non-bank financial service institutions.

CHAPTER XXII

SUBMISSION OF LICENSING APPLICATIONS, APPROVAL APPLICATIONS, AND REPORTING VIA NETWORK

Article 214
(1) Applications for licensing, applications for approval, and reporting as referred to in Article 10 paragraph (1), Article 14 paragraph (6), Article 17 paragraph (1), Article 22 paragraph (2), Article 24 paragraph (3), Article 35 paragraph (2), Article 37 paragraph (1), Article 39 paragraph (1), Article 42 paragraph (2), Article 43 paragraph (2), Article 44 paragraph (5), Article 47 paragraph (2), Article 53 paragraph (3), Article 59 paragraph (1), Article 62 paragraph (1), Article 63 paragraph (2), Article 65 paragraph (2), Article 65 paragraph (3), Article 65 paragraph (4), Article 66 paragraph (4), Article 67 paragraph (2), Article 69 paragraph (5), Article 72 paragraph (2), Article 73 paragraph (1), Article 75 paragraph (1), Article 76 paragraph (1), Article 78 paragraph (1), Article 81 paragraph (1), Article 83 paragraph (2), Article 93 paragraph (1), Article 105 paragraph (4), Article 131 paragraph (2), Article 183 paragraph (4), Article 185 paragraph (3), Article 186 paragraph (3), and/or Article 189 paragraph (3), are submitted through the Financial Services Authority (OJK) data communication network system. (2) With the submission of licensing applications, approval applications, and reporting to the Financial Services Authority (OJK) online as referred to in paragraph (1), Organizers do not need to submit printed documents. (3) Organizers must account for every document submitted online through the Financial Services Authority (OJK) data communication network system as being documents consistent with the original documents. (4) In the event that the Financial Services Authority (OJK) data communication network system as referred to in paragraph (1) is not yet available or experiences technical difficulties, Organizers submit licensing applications, approval applications, and reporting in the form of electronic data via email designated by the Financial Services Authority (OJK). (5) Further provisions regarding licensing applications, approval applications, and reporting through the Financial Services Authority (OJK) data communication network system as referred to in paragraph (1) are established by the Financial Services Authority (OJK).

CHAPTER XXIII

BENEFICIAL OWNERS

Article 215
(1) Organizers must designate beneficial owners of the Organizer.
(2) The designation of beneficial owners of Organizers is carried out in accordance with provisions of legislation governing the application of the principle of knowing beneficial owners of corporations in the context of implementing anti-money laundering, terrorism financing, weapons of mass destruction proliferation financing, and other financial crime programs. (3) Organizers must submit reports on the designation of beneficial owners as referred to in paragraph (1) or changes in beneficial owners, at the latest 10 (ten) working days after the designation or changes to the beneficial owners of the Organizer. (4) In addition to the designation of beneficial owners as referred to in paragraph (1), the Financial Services Authority (OJK) may designate parties that meet the requirements as beneficial owners of Organizers.

Article 216
(1) Organizers who violate the provisions as referred to in Article 214 paragraph (3) and/or Article 215 paragraph (1), paragraph (3) are subject to administrative sanctions in the form of:
a. written warnings; b. suspension of part or all of business activities;
c. restriction of certain business activities;
d. reduction of risk assessment results; e. cancellation of approval; f. prohibition from becoming a PSP, Board of Directors, Board of Commissioners, and/or DPS; and/or g. administrative fines. (2) Administrative sanctions as referred to in paragraph (1) letters b through g may be imposed with or without prior imposition of administrative sanctions in the form of written warnings as referred to in paragraph (1) letter a. (3) Administrative sanctions in the form of administrative fines as referred to in paragraph (1) letter g are imposed https://jdih.ojk.go.id/

at most IDR 50,000,000.00 (fifty million rupiah).
(4) In the event that Organizers have fulfilled the provisions as referred to in paragraph (1), the Financial Services Authority (OJK) revokes the administrative sanctions.
(5) In the event that violations of the provisions as referred to in paragraph (1) occur and the violations have been corrected, the Financial Services Authority (OJK) provides administrative sanctions in the form of written warnings that end automatically. (6) In addition to the administrative sanctions as referred to in paragraph (1), the Financial Services Authority (OJK) has the authority to:
a. reduce the results of the Health Level assessment; b. conduct a re-evaluation of Principal Parties that cause Organizers to violate the provisions as referred to in paragraph (1); and/or
c. record the track record of parties that cause Organizers to violate the provisions as referred to in paragraph (1) in the Financial Services Authority (OJK) Electronic System.

CHAPTER XXIV

OTHER PROVISIONS

Article 217
The Financial Services Authority (OJK) may, based on certain considerations, provide approvals or policies that differ from this Financial Services Authority Regulation.

Article 218
(1) The Financial Services Authority (OJK) has the authority to request Organizers to submit plans for fulfilling violations of this Financial Services Authority Regulation. (2) Organizers must submit fulfillment plans at the latest 1 (one) month from the date of the determination of the violation by the Financial Services Authority (OJK). (3) Fulfillment plans as referred to in paragraph (1) must at least contain:
a. plans to be carried out by the Organizer; and b. a specific timeframe required to fulfill the provisions as referred to in letter a.
(4) Fulfillment plans as referred to in paragraph (1) must be signed by all members of the Board of Directors and Board of Commissioners. https://jdih.ojk.go.id/

Article 219
(1) Organizers who violate the provisions as referred to in Article 218 paragraph (2) are subject to administrative sanctions in the form of:
a. written warnings; b. suspension of part or all of business activities;
c. restriction of certain business activities;
d. reduction of risk assessment results; e. cancellation of approval; f. prohibition from becoming a PSP, Board of Directors, Board of Commissioners, and/or DPS; and/or g. administrative fines. (2) Administrative sanctions as referred to in paragraph (1) letters b through g may be imposed with or without prior imposition of administrative sanctions in the form of written warnings as referred to in paragraph (1) letter a. (3) Administrative sanctions in the form of administrative fines as referred to in paragraph (1) letter g are imposed at most IDR 50,000,000.00 (fifty million rupiah). (4) In the event that Organizers have fulfilled the provisions as referred to in paragraph (1), the Financial Services Authority (OJK) revokes the administrative sanctions. (5) In the event that violations of the provisions as referred to in paragraph (1) occur and the violations have been corrected, the Financial Services Authority (OJK) provides administrative sanctions in the form of written warnings that end automatically. (6) In addition to the administrative sanctions as referred to in paragraph (1), the Financial Services Authority (OJK) has the authority to:
a. reduce the results of the Health Level assessment; b. conduct a re-evaluation of principal parties that cause Companies to violate the provisions as referred to in paragraph (1); and/or
c. record the track record of parties that cause Companies to violate the provisions as referred to in paragraph (1) in the Financial Services Authority (OJK) electronic system.

CHAPTER XXV

TRANSITIONAL PROVISIONS

Article 220
At the time this Financial Services Authority Regulation comes into force, Executive Directors of Associations who have obtained approval from the Financial Services Authority (OJK) through competence and propriety assessments as members of the Board of Directors and/or members of the Board of Commissioners of Organizers before this Financial Services Authority Regulation comes into force, are exempted from the requirements for competence, financial reputation, and integrity assessments. https://jdih.ojk.go.id/

Article 221
(1) Business licenses issued to Organizers prior to the implementation of this Financial Services Authority Regulation are declared to remain valid.
(2) Licensing applications, approvals, and/or reports that have been received by the Financial Services Authority and have not yet received approval or rejection at the time this Financial Services Authority Regulation becomes effective, shall continue to be processed in accordance with Financial Services Authority Regulation Number 10/POJK.05/2022 concerning Information Technology-Based Collective Financing Services.

Article 222
Provisions regarding Paid-Up Capital as referred to in Article 7 paragraph (1) do not apply to Organizers that have obtained licenses prior to the promulgation of this Financial Services Authority Regulation.

Article 223
(1) Competency certificates in the field of financial technology obtained from:
a. professional certification bodies registered with the Financial Services Authority; and/or b. Associations, obtained before the promulgation of this Financial Services Authority Regulation are declared to remain valid. (2) In the event that the professional certification body conducting competency certification in the field of financial technology as referred to in Article 51 paragraph (1) has not yet been formed, competency certification in the field of financial technology may be conducted by the Association.

Article 224
(1) In the event that an Organizer has utilized foreign workers as referred to in Article 53 paragraph (1) prior to the promulgation of this Financial Services Authority Regulation, the aforementioned foreign workers may continue to be employed until the end of the agreed foreign worker employment contract. (2) In the event of changes to the foreign worker employment contract as referred to in paragraph (1) after the promulgation of this Financial Services Authority Regulation, changes to the foreign worker employment contract must comply with the provisions of this Financial Services Authority Regulation. (3) Principal parties of an Organizer who have held office prior to the implementation of this Financial Services Authority Regulation may continue to serve as principal parties until the end of their term of office. (4) Principal parties as referred to in paragraph (3) must undergo fitness and propriety assessments prior to the extension of their position or transfer of position. https://jdih.ojk.go.id/

Article 225
(1) Associations that have been officially designated by the Financial Services Authority prior to the implementation of this Financial Services Authority Regulation may continue to serve as Organizer Associations. (2) For Associations that have been officially designated by the Financial Services Authority as referred to in paragraph (1) at the time of the promulgation of this Financial Services Authority Regulation, the provisions regarding:
a. written approval from the Financial Services Authority as referred to in Article 81 paragraph (1); b. ownership of the ethics committee function within the organizational structure of the Association as referred to in Article 84 paragraph (4); and
c. Association management being members of the Board of Directors and/or members of the Board of Commissioners as referred to in Article 86 paragraph (1),
shall become effective 1 (one) year from the promulgation of this Financial Services Authority Regulation.
(3) For Associations that have been officially designated by the Financial Services Authority, provisions regarding the submission of annual Association reports as referred to in Article 85 shall become effective for the Association's annual report for the year 2027.

Article 226
For Organizers that have obtained business licenses at the time of the promulgation of this Financial Services Authority Regulation, the provisions regarding:
a. the inclusion of warnings regarding LPBBTI business risks on the Organizer's electronic system as referred to in Article 142 paragraph (5); b. the inclusion of warnings regarding LPBBTI business risks on the web interface or application pages owned by the Organizer that are clearly visible to Users as referred to in Article 142 paragraph (6); and
c. User understanding of all risks prior to providing Funding as referred to in Article 142 paragraph (7),
shall become effective no later than 3 (three) months from the promulgation of this Financial Services Authority Regulation.

Article 227
(1) Funding Agreements signed prior to the implementation of this Financial Services Authority Regulation are declared to remain valid until the end of the agreement.
(2) In the event of changes or extensions to the agreement as referred to in paragraph (1) after the promulgation of this Financial Services Authority Regulation, changes or extensions to the agreement must comply with the provisions of this Financial Services Authority Regulation. https://jdih.ojk.go.id/

Article 228
(1) Credit insurance and/or credit guarantee products that have been facilitated by the Organizer for risk mitigation purposes as referred to in Article 148 paragraph (2) letter b, which are already in operation at the time of the promulgation of this Financial Services Authority Regulation, are declared to remain valid until the end of the insurance coverage period. (2) In the event that the Organizer facilitates credit insurance or credit guarantee products as referred to in paragraph (1) that do not yet meet the provisions as referred to in Article 148 paragraph (5), paragraph (6), and/or paragraph (7), the Organizer must provide information to Users regarding:
a. premium values, contributions, and/or guarantee service fees; b. risks covered;
c. promised benefits; and
d. claims related to credit insurance or credit guarantee products.
(3) In the event of changes to:
a. premium values, contributions, and/or guarantee service fees; b. risks covered;
c. promised benefits; and/or
d. claims related to credit insurance or credit guarantee products, as referred to in paragraph (1), the Organizer must ensure that the aforementioned credit insurance and/or credit guarantee products meet the provisions as referred to in Article 148 paragraph (5), paragraph (6), and/or paragraph (7).

Article 229
For Organizers that have obtained business licenses at the time of the promulgation of this Financial Services Authority Regulation, the provisions regarding:
a. credit scoring guidelines as referred to in Article 151 paragraph (1); b. responsibility for credit scoring assessments as referred to in Article 152 paragraph (1);
c. evaluation of credit scoring effectiveness as referred to in Article 152 paragraph (2); and
d. provision of credit scoring guideline documents during verification and/or validation by the Financial Services Authority as referred to in Article 152 paragraph (4), shall become effective no later than 6 (six) months from the promulgation of this Financial Services Authority Regulation.

Article 230
For Organizers that have obtained business licenses at the time of the promulgation of this Financial Services Authority Regulation, the provisions regarding:
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a. direct participation as referred to in Article 155 paragraph (1); b. the total amount of direct participation as referred to in Article 155 paragraph (2);
c. the total amount of direct participation to entities within 1 (one) group as referred to in Article 155 paragraph (3); and
d. fulfillment of the direct participation amount as referred to in Article 155 paragraph (4), shall become effective no later than 1 (one) year from the promulgation of this Financial Services Authority Regulation.

Article 231
(1) Provisions regarding the Minimum Health Level of at least Composite Rating 3 as referred to in Article 167 paragraph (1) shall become effective 1 (one) year from the promulgation of this Financial Services Authority Regulation. (2) For Organizers that have obtained business licenses at the time of the promulgation of this Financial Services Authority Regulation, the provisions regarding:
a. the Equity to Paid-Up Capital ratio as referred to in Article 170; b. the Non-Performing Funding ratio as referred to in Article 172 paragraph (2); and
c. the liquidity ratio as referred to in Article 174 paragraph (2),
shall become effective 1 (one) year from the promulgation of this Financial Services Authority Regulation.

Article 232
For Organizers that have obtained business licenses prior to the promulgation of this Financial Services Authority Regulation, obligations regarding:
a. posting annual financial reports audited by public accountants registered with the Financial Services Authority as referred to in Article 189 paragraph (9) on the Organizer's website; and b. disclosure of key audit matters in annual financial reports audited by public accountants as referred to in Article 190 paragraph (1), shall become effective for the first time in the annual financial reporting period ending on December 31, 2025.

Article 233
For Organizers that have obtained business licenses at the time of the promulgation of this Financial Services Authority Regulation, the provisions regarding guidelines for conducting General Meetings of Funders as referred to in Article 199 paragraph (1) shall become effective 6 (six) months from the promulgation of this Financial Services Authority Regulation.

Article 234
(1) Administrative sanctions imposed on Organizers based on Financial Services Authority Regulation Number 10/POJK.05/2022 concerning Information Technology-Based Collective Financing Services are declared to remain valid insofar as they do not conflict with this Financial Services Authority Regulation. (2) Organizers who have not been able to overcome the causes of the imposition of administrative sanctions as referred to above for violations of the provisions as referred to in Article 169 paragraph (2) shall be subject to further sanctions in accordance with Financial Services Authority Regulation Number 10/POJK.05/2022 concerning Information Technology-Based Collective Financing Services. (3) Organizers who have not been able to overcome the causes of the imposition of administrative sanctions as referred to in paragraph (1) shall be subject to further sanctions in accordance with the procedures for imposing sanctions as regulated in this Financial Services Authority Regulation.

CHAPTER XXVI
FINAL PROVISIONS

Article 235
At the time this Financial Services Authority Regulation becomes effective, implementation provisions:
a. Financial Services Authority Regulation Number 77/POJK.01/2016 Year 2016 concerning Technology-Based Money Lending Services (State Gazette of the Republic of Indonesia Year 2016 Number 324, Supplement to the State Gazette of the Republic of Indonesia 6005); and b. Financial Services Authority Regulation Number 10/POJK.05/2022 Year 2022 concerning Information Technology-Based Collective Financing Services (State Gazette of the Republic of Indonesia Year 2022 Number 2/OJK, Supplement to the State Gazette of the Republic of Indonesia Number 2/OJK), are declared to remain valid insofar as they do not conflict with the provisions in this Financial Services Authority Regulation.

Article 236
At the time this Financial Services Authority Regulation becomes effective, Financial Services Authority Regulation Number 10 Year 2022 concerning Information Technology-Based Collective Financing Services (State Gazette of the Republic of Indonesia Year 2022 Number 2/OJK, Supplement to the State Gazette of the Republic of Indonesia Number 2/OJK) is repealed and declared invalid.

Article 237
This Financial Services Authority Regulation becomes effective on the date of its promulgation. https://jdih.ojk.go.id/

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

In order that everyone may know it, 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 24, 2024
DEPUTY CHAIRMAN OF THE COMMISSIONERS BOARD
FINANCIAL SERVICES AUTHORITY OF THE REPUBLIC
OF INDONESIA AS A MEMBER OF THE COMMISSIONERS
BOARD REPLACING THE CHAIRMAN OF THE COMMISSIONERS BOARD OF THE FINANCIAL SERVICES AUTHORITY OF THE REPUBLIC OF INDONESIA, signed MIRZA ADITYASWARA

Promulgated in Jakarta on December 27, 2024
MINISTER OF LAW OF THE REPUBLIC OF INDONESIA, signed SUPRATMAN ANDI AGTAS

STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2024 NUMBER 53/OJK https://jdih.ojk.go.id/

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
OF THE REPUBLIC OF INDONESIA
NUMBER 40 OF 2024
CONCERNING
INFORMATION TECHNOLOGY-BASED COLLECTIVE FINANCING SERVICES

I. GENERAL
With the implementation of Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector, which is a significant milestone in the history of the Indonesian financial sector, including for the LPBBTI industry. Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector provides a legal basis for LPBBTI activities, including the regulation of the scope of LPBBTI activities, legal entity forms, ownership, funding sources for participation, business licenses, and business organization. Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector also mandates provisions in Article 106 paragraph (6), Article 111 paragraph (2), Article 112 paragraph (3), Article 113 paragraph (4), Article 114 paragraph (3), Article 115 paragraph (5), Article 116 paragraph (3), Article 121 paragraph (2), Article 122 paragraph (3), Article 123 paragraph (2), Article 124 paragraph (2), Article 125 paragraph (4), Article 128 paragraph (4), Article 252 paragraph (4), Article 269, Article 270 paragraph (3), and Article 282 paragraph (3) to be further regulated in a Financial Services Authority Regulation governing LPBBTI.

The LPBBTI business model, which differs from other financial service sectors, where the Organizer only acts as an intermediary and cannot act as a party collecting third-party funds or participating in the risk of loans provided by Funders to Borrowers, carries a fairly high risk. Additionally, the LPBBTI business model's complex use of Information Technology also contributes to a fairly high risk exposure.

Current LPBBTI regulations are governed by Financial Services Authority Regulation Number 10/POJK.05/2022 concerning Information Technology-Based Collective Financing Services. In its development, Financial Services Authority Regulation Number 10/POJK.05/2022 concerning Information Technology-Based Collective Financing Services needs to be adjusted to follow up on the mandate of Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector, harmonization with Law Number 1 of 2024 concerning the Second Amendment to Law Number 11 of 2008 concerning Information and Electronic Transactions, and strengthening of regulations including adjustments to the maximum Funding limit, adjustments to the mechanism for granting approval for ownership changes, regulation of credit scoring, regulations regarding transparency of debt forgiveness, and supervision mechanisms.

II. ARTICLE-BY-ARTICLE EXPLANATION

Article 1
Clear enough.

Article 2
Clear enough.

Article 3
Clear enough.

Article 4
Clear enough.

Article 5
Paragraph (1)
Example of prohibition to become a PSP on more than 1 (one) conventional Organizer or 1 (one) Organizer based on Sharia Principles:

A is a PSP at PT X which is a conventional Organizer. A cannot become a PSP at another conventional Organizer;
B is a PSP at PT Y which is an Organizer based on Sharia Principles. B cannot become a PSP at another Organizer based on Sharia Principles;
A is a PSP at PT X which is a conventional Organizer and can become a PSP at PT Y which is an Organizer based on Sharia Principles; and
A is a PSP at PT X which is an Organizer based on Sharia Principles and can become a PSP at PT Y which is a conventional Organizer.

Paragraph (2)
Clear enough.

Article 6
Clear enough.

Article 7
Clear enough.

Article 8
Paragraph (1)
Letter a
What is meant by loan is a loan in the form of money that causes the borrower to have an obligation to return a certain amount of value.
Example:
a. loan from a bank; b. loan from a business entity and/or institution; and
c. loan from other sources.

Letter b
Clear enough.

Paragraph (2)
Clear enough.

Paragraph (3)
Clear enough.

Paragraph (4)
Clear enough.

Paragraph (5)
Clear enough.

Paragraph (6)
Clear enough.

Paragraph (7)
Clear enough.

Article 9
Paragraph (1)
The imposition of administrative sanctions considers among others:
a. the impact of the violation of provisions on consumer losses, the condition of the Organizer, and the financial service sector; b. the complexity of the violation of provisions;
c. the financial condition of the Organizer; and/or
d. repeated violations of provisions.

Paragraph (2)
Clear enough.

Paragraph (3)
Clear enough.

Paragraph (4)
Clear enough.

Paragraph (5)
Clear enough.

Paragraph (6)
Clear enough.

Paragraph (7)
Clear enough.

Paragraph (8)
Clear enough.

Article 10
Paragraph (1)
Clear enough.

Paragraph (2)
Clear enough.

Paragraph (3)
Clear enough.

Paragraph (4)
What is meant by "exposure of the Electronic System" is exposure related to the Electronic System owned by the Organizer, the Funding flow from both Funders and Borrowers, the reliability of the Electronic System, and the integration of the Electronic System with the Financial Services Authority's data communication network system.

Paragraph (5)
Clear enough.

Paragraph (6)
Clear enough.

Paragraph (7)
What is meant by "completeness of documents" is that documents are complete and meet the requirements and provisions in this Financial Services Authority Regulation.

Paragraph (8)
Clear enough.

Paragraph (9)
Clear enough.

Paragraph (10)
Clear enough.

Paragraph (11)
Clear enough.

Paragraph (12)
Clear enough.

Article 11
Paragraph (1)
What is meant by "competent agency" is the ministry in charge of communication and digital affairs.

Paragraph (2)
Clear enough.

Paragraph (3)
Clear enough.

Paragraph (4)
What is meant by "from the date" is that the time calculation starts from the specified date. Example: if the Organizer is registered on June 5, that date is calculated.

Paragraph (5)
Clear enough.

Article 12
Clear enough.

Article 13
Paragraph (1)
See explanation of Article 9 paragraph (1).

Paragraph (2)
Clear enough.

Paragraph (3)
Clear enough.

Paragraph (4)
Clear enough.

Paragraph (5)
Clear enough.

Paragraph (6)
Clear enough.

Article 14
Clear enough.

Article 15
Clear enough.

Article 16
Clear enough.

Article 17
Clear enough.

Article 18
Clear enough.

Article 19
Paragraph (1)
See explanation of Article 9 paragraph (1).

Paragraph (2)
Clear enough.

Paragraph (3)
Clear enough.

Paragraph (4)
Clear enough.

Paragraph (5)
Clear enough.

Paragraph (6)
Clear enough.

Article 20
Clear enough.

Article 21
Clear enough.

Article 22
Clear enough.

Article 23
Clear enough.

Article 24
Clear enough.

Article 25
Paragraph (1)
Clear enough.

Paragraph (2)
Letter a
Clear enough.

Letter b
Experience in the field of Sharia finance or LPBBTI based on Sharia Principles is proven by a personnel decision letter or assignment letter.

Letter c
Clear enough.

Article 26
Clear enough.

Article 27
Clear enough.

Article 28
Clear enough.

Article 29
Clear enough.

Article 30
Paragraph (1)
Clear enough.

Paragraph (2)
Letter a
Clear enough.

Letter b
As an example of other forms permitted based on statutory regulations and in accordance with Sharia financial accounting standards, namely the recognition of assets owned by the previous UUS as the Paid-Up Capital of the Organizer based on Sharia Principles, proven by the closing financial position report of the UUS and the opening financial position report of the Organizer based on Sharia Principles. Assets of the UUS that can be recognized as Paid-Up Capital are at least equal to the Equity of the UUS.

Article 31
Clear enough.

Article 32
Clear enough.

Article 33
Clear enough.

Article 34
Clear enough.

Article 35
Clear enough.

Article 36
Clear enough.

Article 37
Clear enough.

Article 38
Clear enough.

Article 39
Clear enough.

Article 40
Clear enough.

Article 41
Clear enough.

Article 42
Clear enough.

Article 43
Clear enough.

Article 44
Paragraph (1)
Clear enough.

Paragraph (2)
Clear enough.

Paragraph (3)
Clear enough.

Paragraph (4)
What is meant by "the parties and other related stakeholders" are parties outside the Organizer and Users who are impacted by the closure of the UUS.

Paragraph (5)
Clear enough.

Article 45
Clear enough.

Article 46
Clear enough.

Article 47
Clear enough.

Article 48
Paragraph (1)
See explanation of Article 9 paragraph (1).

Paragraph (2)
Clear enough.

Paragraph (3)
Clear enough.

Paragraph (4)
Clear enough.

Paragraph (5)
Clear enough.

Paragraph (6)
Clear enough.

Article 49
Clear enough.

Article 50
Clear enough.

Article 51
Paragraph (1)
What is meant by "competency certificate" refers to the Indonesian National Qualification Framework applicable in the field of financial technology.

What is meant by "professional certification body" is a professional certification body accredited by the National Professional Certification Body and registered with the Financial Services Authority.

Paragraph (2)
Clear enough.

Paragraph (3)
Clear enough.

Article 52
Paragraph (1)
Example of Electronic Systems used by the Organizer include websites and mobile applications.

Paragraph (2)
Expertise can be proven among others with a certificate of competency in the field of Information Technology.

Article 53
Clear enough.

Article 54
Clear enough.

Article 55
Paragraph (1)
Letter a
Clear enough.

Letter b
Experts at level 1 (one) below the Board of Directors are functional officials.

Paragraph (2)
Clear enough.

Paragraph (3)
Clear enough.

Paragraph (4)
Clear enough.

Paragraph (5)
Clear enough.

Paragraph (6)
Clear enough.

Paragraph (7)
Clear enough.

Paragraph (8)
Clear enough.

Paragraph (9)
Clear enough.

Article 56
Paragraph (1)
Clear enough.

Paragraph (2)
Clear enough.

Paragraph (3)
Clear enough.

Paragraph (4)
Letter a
Users are known as users.

Letter b
Management of databases is commonly known as database.

Paragraph (5)
Clear enough.

Paragraph (6)
Letter a
Source code is commonly known as source code.

Letter b
Clear enough.

Letter c
What is meant by "deployment" is the process of implementing or applying Information Technology into an environment or system that can be accessed by end-users.

What is meant by "maintenance production" is the process of maintaining Information Technology to ensure that Information Technology runs according to the appropriate conditions.

Paragraph (7)
Letter a
Clear enough.

Letter b
What is meant by "registered in an association of similar third-party companies" is an association recognized under Indonesian law or recognized internationally when there is no similar association in Indonesia.

Letter c
Clear enough.

Letter d
Clear enough.

Paragraph (8)
Clear enough.

Article 57
Paragraph (1)
See explanation of Article 9 paragraph (1).

Paragraph (2)
Clear enough.

Paragraph (3)
Clear enough.

Paragraph (4)
Clear enough.

Paragraph (5)
Clear enough.

Paragraph (6)
Clear enough.

Article 58
Paragraph (1)
What is meant by takeover is a legal act performed by a legal entity or individual to take over shares of the Organizer resulting in the transfer of control over the Organizer.

The ownership structure of LPBBTI Organizers is described as follows:

LPBBTI Organizer shares are owned by:
a. BHI A by 40% b. WNI B by 40%
c. BHI C by 20%
BHI A shares are owned by:
d. Limited Company D by 99% e. WNA E by 1%

What is meant by 'ownership change resulting in a takeover including PSP change' is depicted in 'Condition D'. BHI A, which is the PSP of the LPBBTI Organizer, changes ownership with BHI Z, resulting in a change of PSP from BHI A to BHI Z. The occurrence of 'Condition D' requires approval from the Financial Services Authority.

What is meant by 'ownership change resulting in a takeover including change of controlling shareholder of the PSP' is depicted in 'Condition A'. Limited Company D, which is the controlling shareholder of PSP BHI A, changes ownership with Limited Company X, resulting in the controlling shareholder of PSP BHI A changing from Limited Company D to Limited Company X. The occurrence of 'Condition A' requires approval from the Financial Services Authority.

Paragraph (2)
What is meant by “ownership change resulting in a change of shareholders other than the PSP in an Organizer that is not a public company” is depicted in Condition C. BHI C, which is not a PSP and is not a public company, undergoes an ownership change with BHI Y, resulting in the shareholder who was previously BHI C changing to BHI Y. The occurrence of this “Condition C” requires reporting to the Financial Services Authority. What is meant by “ownership change resulting in a change of shareholders other than the controlling shareholder of the PSP in an Organizer that is not a public company” is depicted in “Condition B”. WNA E, which is a shareholder other than the controlling shareholder of PSP BHI A, undergoes an ownership change with Limited Company Y, which is not a public company, resulting in the shareholder other than the controlling shareholder of the PSP changing from WNA E to Limited Company Y. The occurrence of this “Condition B” requires reporting to the Financial Services Authority.

Paragraph (3)
What is meant by “in the context of rehabilitating the Organizer” is an ownership change carried out in the context of fulfilling capital adequacy requirements for an Organizer that still has a viable business prospect. What is meant by a change in PSP is a change in share ownership proportion or shareholder structure as a result of share sales, whether directly or through a public offering, which results in a change in the PSP.

Paragraph (4)
What is meant by “bonus shares” are shares distributed free of charge to shareholders based on the number of shares owned. Bonus shares consist of two, namely:

a. those that are stock dividends, originating from the capitalization of retained earnings balances; and b. those that are not stock dividends, originating from the capitalization of:

share premium; and/or
other Equity elements.

Paragraph (5)
Is sufficiently clear.

Paragraph (6)
Is sufficiently clear.

Paragraph (7)
Is sufficiently clear.

Paragraph (8)
Is sufficiently clear.

Article 59
Is sufficiently clear.

Article 60
Is sufficiently clear.

Article 61
Is sufficiently clear.

Article 62
Is sufficiently clear.

Article 63
Is sufficiently clear.

Article 64
Paragraph (1)
See the explanation of Article 9 paragraph (1).

Paragraph (2)
Is sufficiently clear.

Paragraph (3)
Is sufficiently clear.

Paragraph (4)
Is sufficiently clear.

Paragraph (5)
Is sufficiently clear.

Paragraph (6)
Is sufficiently clear.

Article 65
Is sufficiently clear.

Article 66
Is sufficiently clear.

Article 67
Is sufficiently clear.

Article 68
Paragraph (1)
See the explanation of Article 9 paragraph (1).

Paragraph (2)
Is sufficiently clear.

Paragraph (3)
Is sufficiently clear.

Paragraph (4)
Is sufficiently clear.

Paragraph (5)
Is sufficiently clear.

Paragraph (6)
Is sufficiently clear.

Article 69
Paragraph (1)
Is sufficiently clear.

Paragraph (2)
Is sufficiently clear.

Paragraph (3)
Is sufficiently clear.

Paragraph (4)
What is meant by “principle of similar financing” is:
a. Conventional Organizers carrying out a Merger or Consolidation, with Conventional Organizers; or b. Organizers with Sharia Principles carrying out a Merger or Consolidation, with Organizers with Sharia Principles.

Paragraph (5)
Is sufficiently clear.

Paragraph (6)
Is sufficiently clear.

Paragraph (7)
Is sufficiently clear.

Article 70
Is sufficiently clear.

Article 71
Is sufficiently clear.

Article 72
Paragraph (1)
Is sufficiently clear.

Paragraph (2)
Is sufficiently clear.

Paragraph (3)
Announcing a Merger or Consolidation to the public can be done through newspapers, print media, electronic media, or the Organizer’s website.

Article 73
Is sufficiently clear.

Article 74
Is sufficiently clear.

Article 75
Is sufficiently clear.

Article 76
Is sufficiently clear.

Article 77
Is sufficiently clear.

Article 78
Is sufficiently clear.

Article 79
Paragraph (1)
See the explanation of Article 9 paragraph (1).

Paragraph (2)
Is sufficiently clear.

Paragraph (3)
Is sufficiently clear.

Paragraph (4)
Is sufficiently clear.

Paragraph (5)
Is sufficiently clear.

Paragraph (6)
Is sufficiently clear.

Article 80
Is sufficiently clear.

Article 81
Is sufficiently clear.

Article 82
Is sufficiently clear.

Article 83
Is sufficiently clear.

Article 84
Paragraph (1)
Is sufficiently clear.

Paragraph (2)
Letter a
Is sufficiently clear.

Letter b
Is sufficiently clear.

Letter c
Is sufficiently clear.

Letter d
What is meant by other duties includes the Association participating in carrying out specific efforts in the context of developing, strengthening, and rehabilitating the LPBBTI industry and/or being asked to disseminate information from the Financial Services Authority to all Association members.

Paragraph (3)
Is sufficiently clear.

Paragraph (4)
Is sufficiently clear.

Paragraph (5)
Is sufficiently clear.

Paragraph (6)
Is sufficiently clear.

Paragraph (7)
Is sufficiently clear.

Article 85
Annual reports submitted to the Financial Services Authority include the implementation of the Association’s duties and financial reports that have been audited by a public accounting firm registered with the Financial Services Authority.

Article 86
Paragraph (1)
What is meant by officials is the chairman, vice chairman, secretary general, treasurer, cluster chairman, and field chairman of the Association.

Paragraph (2)
Is sufficiently clear.

Paragraph (3)
What is meant by “Executive Director of the Association” is the party that fully manages the Association.

Paragraph (4)
Is sufficiently clear.

Paragraph (5)
Is sufficiently clear.

Article 87
Paragraph (1)
See the explanation of Article 9 paragraph (1).

Paragraph (2)
Is sufficiently clear.

Paragraph (3)
Is sufficiently clear.

Paragraph (4)
Is sufficiently clear.

Paragraph (5)
Is sufficiently clear.

Paragraph (6)
Is sufficiently clear.

Article 88
Paragraph (1)
See the explanation of Article 9 paragraph (1).

Paragraph (2)
Is sufficiently clear.

Paragraph (3)
Is sufficiently clear.

Paragraph (4)
Is sufficiently clear.

Paragraph (5)
Is sufficiently clear.

Article 89
Is sufficiently clear.

Article 90
Is sufficiently clear.

Article 91
Is sufficiently clear.

Article 92
Is sufficiently clear.

Article 93
Is sufficiently clear.

Article 94
Is sufficiently clear.

Article 95
Is sufficiently clear.

Article 96
Is sufficiently clear.

Article 97
Paragraph (1)
Is sufficiently clear.

Paragraph (2)
Is sufficiently clear.

Paragraph (3)
The determination of the deadline for preparing the Closing Balance Sheet is carried out by considering among other things the office location, asset conditions, and the complexity of the Organizer’s problems.

Paragraph (4)
Is sufficiently clear.

Paragraph (5)
Is sufficiently clear.

Paragraph (6)
Is sufficiently clear.

Paragraph (7)
Is sufficiently clear.

Paragraph (8)
Is sufficiently clear.

Article 98
Is sufficiently clear.

Article 99
Is sufficiently clear.

Article 100
Paragraph (1)
Letter a
This provision can be carried out by meeting one of the following conditions:

The General Meeting of Shareholders (GMS) cannot be held;
The GMS can be held but fails to decide on Dissolution and fails to form a Liquidation Team; or
The GMS can be held and successfully decides on Dissolution but fails to form a Liquidation Team.

Letter b
Is sufficiently clear.

Letter c
Is sufficiently clear.

Letter d
Is sufficiently clear.

Paragraph (2)
Is sufficiently clear.

Paragraph (3)
Is sufficiently clear.

Paragraph (4)
Is sufficiently clear.

Paragraph (5)
Is sufficiently clear.

Article 101
Is sufficiently clear.

Article 102
Is sufficiently clear.

Article 103
Is sufficiently clear.

Article 104
Letter a
Is sufficiently clear.

Letter b
Is sufficiently clear.

Letter c
Is sufficiently clear.

Letter d
Is sufficiently clear.

Letter e
What is meant by “other parties” includes among other things actuarial consultants, appraisers, and advocates/lawyers/legal consultants.

Letter f
Is sufficiently clear.

Letter g
Is sufficiently clear.

Letter h
Is sufficiently clear.

Letter i
Is sufficiently clear.

Article 105
Paragraph (1)
Is sufficiently clear.

Paragraph (2)
Is sufficiently clear.

Paragraph (3)
Is sufficiently clear.

Paragraph (4)
Is sufficiently clear.

Paragraph (5)
Is sufficiently clear.

Paragraph (6)
Is sufficiently clear.

Paragraph (7)
Is sufficiently clear.

Paragraph (8)
Is sufficiently clear.

Paragraph (9)
Is sufficiently clear.

Paragraph (10)
Is sufficiently clear.

Paragraph (11)
Is sufficiently clear.

Paragraph (12)
Letter a
Is sufficiently clear.

Letter b
An example of other resolution steps is an agreement between shareholders and the Liquidation Team to resolve problematic assets and obligations that must be fulfilled within a certain period.

Article 106
Paragraph (1)
Is sufficiently clear.

Paragraph (2)
Is sufficiently clear.

Paragraph (3)
Considering “effectiveness and efficiency” includes considering the number of creditors and the number of assets.

Paragraph (4)
Is sufficiently clear.

Article 107
Paragraph (1)
Is sufficiently clear.

Paragraph (2)
Is sufficiently clear.

Paragraph (3)
Is sufficiently clear.

Paragraph (4)
What is meant by “marital relationship, in-law relationship, or blood relationship upwards, downwards, and sideways up to the first degree” is:
a. husband or wife; b. parents and children;

c. parents of husband or wife;
d. husband or wife of children; e. full/half siblings; or f. full/half siblings of husband/wife.

Article 108
Is sufficiently clear.

Article 109
Is sufficiently clear.

Article 110
Is sufficiently clear.

Article 111
Is sufficiently clear.

Article 112
Is sufficiently clear.

Article 113
Is sufficiently clear.

Article 114
Is sufficiently clear.

Article 115
Is sufficiently clear.

Article 116
Is sufficiently clear.

Article 117
Is sufficiently clear.

Article 118
Is sufficiently clear.

Article 119
Paragraph (1)
Is sufficiently clear.

Paragraph (2)
Is sufficiently clear.

Paragraph (3)
Is sufficiently clear.

Paragraph (4)
What is meant by “other parties” includes among other things actuaries and appraisers registered with the Financial Services Authority.

Article 120
Is sufficiently clear.

Article 121
Is sufficiently clear.

Article 122
Is sufficiently clear.

Article 123
Is sufficiently clear.

Article 124
Is sufficiently clear.

Article 125
Is sufficiently clear.

Article 126
Paragraph (1)
Is sufficiently clear.

Paragraph (2)
Is sufficiently clear.

Paragraph (3)
What is meant by “different Liquidation mechanisms and requirements” is simple Liquidation mechanisms and requirements.

Article 127
Paragraph (1)
See the explanation of Article 9 paragraph (1).

Paragraph (2)
See the explanation of Article 9 paragraph (1).

Paragraph (3)
Is sufficiently clear.

Paragraph (4)
Is sufficiently clear.

Paragraph (5)
Is sufficiently clear.

Paragraph (6)
Is sufficiently clear.

Paragraph (7)
Is sufficiently clear.

Paragraph (8)
Is sufficiently clear.

Article 128
Is sufficiently clear.

Article 129
Is sufficiently clear.

Article 130
Paragraph (1)
Is sufficiently clear.

Paragraph (2)
Letter a
Is sufficiently clear.

Letter b
Is sufficiently clear.

Letter c
What is meant by ‘other activities after obtaining approval from the Financial Services Authority’ is business activities that are still related to LPBBTI business activities and do not contradict other legislation. Example:
An LPBBTI Organizer carries out other activities in the form of cooperation to provide User data (referral) to financial service institutions.

Paragraph (3)
Is sufficiently clear.

Article 131
Is sufficiently clear.

Article 132
Is sufficiently clear.

Article 133
Paragraph (1)
Letter a
What is meant by “al-bai'” is an agreement between a seller and a buyer that results in the transfer of ownership of the object being exchanged (goods and price).

Letter b
What is meant by “ijarah” is an agreement for the transfer of the right to use (benefit) over a good or service for a certain period with payment of ujrah or wages.

Letter c
What is meant by “mudharabah” is a business cooperation agreement between the capital owner (shahibu al-maal) who provides all the capital and the manager ('amil/mudharib), and business profits are divided among them according to the ratio agreed upon in the agreement, while losses are borne by the capital owner.

Letter d
What is meant by “musyarakah” is a cooperation agreement between two or more parties for a specific business where each party provides a contribution of funds/business capital (ra's al-mal) with the provision that profits are divided according to the agreed ratio or proportionally, while losses are borne by the parties proportionally.

Letter e
What is meant by “wakalah” is the delegation of authority from the delegator (muwakkil) to the delegatee (wakil) to carry out certain legal acts that can be delegated.

Letter f
What is meant by “wakalah bi al ujrah” is a wakalah agreement accompanied by compensation in the form of ujrah (fee).

Letter g
What is meant by “qardh” is a loan agreement from the lender with the provision that the borrower must return the money received according to the time and method agreed upon.

Article 134
What is meant by “adl” is placing something only in its place, giving something only to those entitled, and treating something according to its position.
What is meant by “tawazun” is the balance of material and spiritual aspects, private and public aspects, the financial sector and the real sector, business and social aspects, and the balance of utilization and sustainability aspects. What is meant by “maslahah” is all forms of goodness with worldly and hereafter dimensions, material and spiritual, and individual and collective dimensions, and must meet 3 (three) elements, namely Sharia compliance/halal, beneficial, and bringing goodness (thoyib) in all overall aspects without causing harm. What is meant by “alamiyah” is all forms of activities that can be carried out by, with, and for all parties concerned without distinguishing ethnicity, religion, race, and sect, in accordance with the spirit of universal mercy (rahmatan lil alamin). What is meant by “gharar” is a transaction where the object is unclear, not owned, its existence is unknown, or it cannot be delivered at the time the transaction is carried out, unless otherwise regulated in Sharia. What is meant by “maysir” is a transaction that is speculative and not directly related to productivity in the real sector. What is meant by “riba” is the assurance of unlawful (bathil) income addition, among other things, in transactions exchanging similar goods that are not equal in quality, quantity, and time of delivery (fadhl), or in loan transactions requiring the recipient of the facility to return funds received exceeding the principal loan due to the passage of time (nasiah). What is meant by “zhulm” is a transaction that causes injustice to other parties. What is meant by “risywah” is the giving of bribes in the form of money, facilities, or other forms that violate the law as an effort to obtain facilities or ease in a transaction. What is meant by “tadlis” is the act of hiding defects in the object of the agreement carried out by the seller to deceive the buyer as if the object of the agreement were not defective. What is meant by ‘dharar’ is an act that can cause danger or harm to other parties. What is meant by “haram object” is a good or service that is prohibited in Sharia.

Article 135
Is sufficiently clear.

Article 136
Paragraph (1)
Letter a
What is meant by “Productive Financing” is Financing for businesses that produce goods and/or services, including businesses that add value and increase income for Fund Recipients. Productive financing includes among other things invoice financing, purchase order procurement, online selling goods procurement (online seller), business capital facilities, or Project Financing.

Letter b
What is meant by “Consumptive Financing” is Financing for goods and/or services needed by the Fund Recipient for use/consumption and not for business or productive activities within the agreed period.

Paragraph (2)
Letter a
What is meant by “provision of guarantees” is the seller of receivables bearing the risk of non-collection of part or all of the receivables involved in factoring.

Letter b
Is sufficiently clear.

Paragraph (3)
Is sufficiently clear.

Article 137
Paragraph (1)
Is sufficiently clear.

Paragraph (2)
Letter a
The fulfillment of the maximum limit of Financing to each Fund Recipient is carried out by considering the provisions and requirements for Fund Recipients and Organizers regulated in this Financial Services Authority Regulation.

Letter b
What is meant by “affiliation” is:
a. when the Fund Provider is a company that has:

family relationship due to marriage or descent up to the second degree, both horizontally and vertically, with employees, members of the board of directors, members of the board of commissioners, members of the Sharia supervisory board, and/or shareholders of the company;
relationship with a company due to the existence of one or more members of the board of directors or board of commissioners;
control relationship with a company, whether directly or indirectly;
share ownership relationship in the company of 20% (twenty percent) or more; and/or
relationship between 2 (two) companies controlled, whether directly or indirectly, by the same party.
b. when the Fund Provider is an individual who has:
family relationship due to marriage or descent up to the second degree, both horizontally and vertically;
employees employed directly by the Fund Provider; and/or
parties other than in letters a and b acting on behalf of another Fund Provider.

Paragraph (3)
What is meant by “maximum limit of Consumptive and Productive Financing to each Fund Recipient” is the maximum total limit of Financing that has not been repaid by each Fund Recipient in one Organizer, covering total Financing both productive and consumptive. Example:
A is a Fund Recipient at Organizer ABCD, cannot submit a new Financing application if the total Financing both productive and consumptive that has not been repaid by A has reached IDR 2,000,000,000 (two billion rupiah), if A has repaid part or all of the loan, then A can submit a new Financing application again until the total Financing both productive and consumptive that has not been repaid by A reaches IDR 2,000,000,000 (two billion rupiah).

Paragraph (4)
Provision of Productive Financing exceeding the maximum limit of IDR 2,000,000,000.00 (two billion rupiah) up to IDR 5,000,000,000 (five billion rupiah) can be provided for:
a. Fund Recipients who have previously received Financing, both Productive and/or Consumptive with a maximum limit of IDR 2,000,000,000.00 (two billion rupiah), who receive additional new Productive Financing facilities; or b. Fund Recipients who have never received Financing from the Organizer, but are provided with Productive Financing. Example:
a. B is a Fund Recipient at Organizer ABCD, B has received total Financing both productive and consumptive that has not been repaid by B reaching IDR 1,500,000,000 (one billion five hundred million rupiah). B can be provided with additional new Productive Financing again until the total Financing both productive and consumptive that has not been repaid by B reaches IDR 5,000,000,000 (five billion rupiah). b. B is a Fund Recipient at Organizer ABCD, B has never received Productive or Consumptive Financing previously, B can be provided with Productive Financing up to a total Financing that has not been repaid by B of IDR 5,000,000,000 (five billion rupiah).

Paragraph (5)
What is meant by “25% (twenty-five percent) of the final position (outstanding) of Financing at the end of the month” is determined based on information on the final position (outstanding) of Financing of each Fund Provider at the end of the month compared to the total final position (outstanding) of Financing of the Organizer. For example, on April 30, 2024, LPBBTI Organizer DEF had a total final position (outstanding) of IDR 50,000,000,000.00 (fifty billion rupiah). The Organizer has 4 (four) Fund Providers, namely Fund Provider A, Fund Provider B, Fund Provider C, and Fund Provider D. No Fund Provider is a financial service institution supervised by the Financial Services Authority. LPBBTI Organizer DEF must ensure that on April 30, 2024, the final position (outstanding) of Financing for each Fund Provider A, Fund Provider B, Fund Provider C, and Fund Provider D does not exceed 25% x IDR 50,000,000,000.00 (fifty billion rupiah), namely IDR 12,500,000,000.00 (twelve billion five hundred million rupiah).

Paragraph (6)
The maximum limit of Financing for financial service business actors supervised by the Financial Services Authority is applied while still following the provisions of legislation for those financial service business actors.

Paragraph (7)
Is sufficiently clear.

Paragraph (8)
Is sufficiently clear.

Article 138
Paragraph (1)
Is sufficiently clear.

Paragraph (2)
Letter a
Is sufficiently clear.

Letter b
Is sufficiently clear.

Letter c
Indonesian legal entities do not include the government or government institutions such as ministries, public service agencies, and/or revolving fund management institutions.

Letter d.
Is sufficiently clear.

Letter e
Is sufficiently clear.

Letter f
Is sufficiently clear.

Letter g
Is sufficiently clear.

Article 139
Is sufficiently clear.

Article 140
Is sufficiently clear.

Article 141
Is sufficiently clear.

Article 142
Paragraph (1)
Is sufficiently clear.

Paragraph (2)
Is sufficiently clear.

Paragraph (3)
Is sufficiently clear.

Paragraph (4)
Is sufficiently clear.

Paragraph (5)
Is sufficiently clear.

Paragraph (6)
What is meant by clearly visible to Users is a warning regarding the risks of LPBBTI business activities displayed in a pop-up window format on the Electronic System with sufficient time adjusted to each Organizer’s policy.

Paragraph (7)
Is sufficiently clear.

Paragraph (8)
Is sufficiently clear.

Paragraph (9)
Is sufficiently clear.

Paragraph (10)
Is sufficiently clear.

Paragraph (11)
Is sufficiently clear.

Paragraph (12)
Is sufficiently clear.

Article 143
Is sufficiently clear.

Article 144
Paragraph (1)
Is sufficiently clear.

Paragraph (2)
Letter a
Is sufficiently clear.

Letter b
Is sufficiently clear.

Letter c
Is sufficiently clear.

Letter d
Is sufficiently clear.

Letter e
Is sufficiently clear.

Letter f
Is sufficiently clear.

Letter g
Is sufficiently clear.

Letter h
Is sufficiently clear.

Letter i
Is sufficiently clear.

Letter j
Is sufficiently clear.

Letter k
What is meant by “use of Personal Data” includes among other things the consent for the use of Personal Data from Fund Providers and the scope of data usage by the Organizer.

Letter l
What is meant by “Financing collection mechanism” is collection by the Organizer and the transfer of collection to third parties.

Letter m
What is meant by “risk mitigation in the event of overdue Financing” is the resolution of overdue Financing that can be carried out by Fund Providers, consisting of collection by the Organizer, transfer of collection to third parties, and insurance or guarantee claims.

Letter n
Is sufficiently clear.

Letter o
Examples of Organizers that cannot continue operational activities are:
a. The Organizer has returned the license to the Financial Services Authority; b. The Financial Services Authority has revoked the Organizer’s business license; and
c. The Organizer is undergoing conversion from conventional LPBBTI organization to LPBBTI organization based on Sharia Principles.

Paragraph (3)
Is sufficiently clear.

Paragraph (4)
Is sufficiently clear.

Paragraph (5)
Letter a
What is meant by “Financing final position” includes among other things the remaining amount of Financing that has not been paid.

Letter b
Is sufficiently clear.

Letter c
Is sufficiently clear.

Letter d
Is sufficiently clear.

Paragraph (6)
The submission of agreements is carried out by providing a special section on the Electronic System used by the Organizer. Examples of websites or mobile applications that provide access to Fund Providers to view signed agreements again.

Article 145
Paragraph (1)
Is sufficiently clear.

Paragraph (2)
Letter a
Is sufficiently clear.

Letter b
Is sufficiently clear.

Letter c
The identities of the parties only include:
a. names of the parties and National Identity Number (NIK) or equivalent, for parties who are individuals; or b. names of the parties and Business Identification Number (NIB) or equivalent, for parties who are business entities.

Letter d
Is sufficiently clear.

Letter e
Is sufficiently clear.

Letter f
Is sufficiently clear.

Letter g
Is sufficiently clear.

Letter h
Is sufficiently clear.

Letter i
Is sufficiently clear.

Letter j
Is sufficiently clear.

Letter k
Is sufficiently clear.

Letter l
Is sufficiently clear.

Letter m
Is sufficiently clear.

Letter n
Is sufficiently clear.

Paragraph (3)
Is sufficiently clear.

Paragraph (4)
Is sufficiently clear.

Paragraph (5)
Is sufficiently clear.

Paragraph (6)
Is sufficiently clear.

Pasal 146
What is meant by “ensuring that Users have read and understood the content of the agreement” is by providing facilities that ensure that Users have read and understood the content of the agreement before the agreement is signed. Example:
Before the User agrees to the agreement in the Electronic System, there is a notification “Has the User read and understood the content of the agreement?” which is communicated to the User.

Pasal 147
It is clear enough.

Pasal 148
Paragraph (1)
Letter a
In conducting risk analysis of Financing to be facilitated, the Provider may conduct it independently or in cooperation with other parties, such as credit management providers or data providers. What is meant by “Financing risk analysis” includes, among others, the Provider conducting scoring/assessment of potential Fund Recipients who apply for Financing. Potential Fund Recipients who meet the criteria to receive funds are presented to potential Fund Providers to be selected/provided with Financing. The position of all potential Fund Recipients is equal or all are eligible for funding. Providers are prohibited from directing potential Fund Providers to select some potential Fund Recipients who meet the criteria (eligible). Providers free (without providing input/suggestions/directions) potential Fund Providers to choose potential Fund Recipients presented by the Provider. Example:
From 5 (five) potential Fund Recipients who applied, only 4 (four) people met the criteria based on the Provider's scoring/assessment for funding (with different or same scoring/assessment results). The Provider presents the scoring/assessment results of 4 (four) people to potential Fund Providers to be selected/funded. Providers are prohibited from providing input/suggestions/directions so that potential Fund Providers give funds to specific people among the 4 (four) people mentioned.

Letter b
In conducting User identity verification, Providers cooperate with electronic certification providers.
In ensuring the authenticity of documents, Providers may examine the truth and authenticity of documents submitted by either Fund Recipients or Fund Providers, including in cases where there is collateral in the process mentioned.

Letter c
In facilitating Fund Providers to conduct collection until Financing is paid, Providers may conduct collection independently until Financing is paid or transfer to third parties to conduct collection. In addition, Providers may also represent Fund Providers to take actions in the context of collection or payment settlement to Fund Recipients both inside and outside the court.

Paragraph (2)
Letter a
In the context of transferring Financing risk, it can be done through the transfer of risks arising from Financing conducted by Fund Providers.

Letter b
What is meant by “transfer of risk over collateral objects” is to insure the collateral objects.
Other risk mitigation that can be done by Providers includes, when there is collateral in the Financing agreement between Fund Providers and Fund Recipients, Providers cooperate with other parties who have the authority to accept or store collateral objects based on applicable regulations.

Letter c
It is clear enough.

Paragraph (3)
It is clear enough.

Paragraph (4)
It is clear enough.

Paragraph (5)
It is clear enough.

Paragraph (6)
It is clear enough.

Paragraph (7)
It is clear enough.

Paragraph (8)
It is clear enough.

Pasal 149
Paragraph (1)
It is clear enough.

Paragraph (2)
The Financial Services Authority sets the minimum age limit for potential Fund Recipients and the minimum income limit for potential Fund Recipients, among others, for:
a. maintaining healthy business competition; b. maintaining healthy industry growth;
c. maintaining public interests; and/or
d. supporting national policies.

Paragraph (3)
It is clear enough.

Pasal 150
It is clear enough.

Pasal 151
It is clear enough.

Pasal 152
Paragraph (1)
It is clear enough.

Paragraph (2)
What is meant by the effectiveness of Credit Score assessment (credit scoring) in risk mitigation can be known from the development of the quality of bad Financing).

Paragraph (3)
The evaluation of the effectiveness of credit scoring assessment (credit scoring) is done by methods including back testing, data adequacy, model analysis, or error analysis.

Paragraph (4)
It is clear enough.

Paragraph (5)
It is clear enough.

Pasal 153
Paragraph (1)
What is meant by “using Escrow Accounts and Virtual Accounts or payment gateways for ITCF” is all Financing activities between Users not through the Provider's account but using Escrow Accounts and Virtual Accounts or payment gateways.

Paragraph (2)
What is meant by “special fund accounts” are accounts at banks specifically used for ITCF transactions.

Paragraph (3)
It is clear enough.

Paragraph (4)
It is clear enough.

Paragraph (5)
It is clear enough.

Paragraph (6)
It is clear enough.

Paragraph (7)
It is clear enough.

Paragraph (8)
It is clear enough.

Paragraph (9)
It is clear enough.

Pasal 154
It is clear enough.

Pasal 155
It is clear enough.

Pasal 156
Paragraph (1)
What is meant by “non-financial institutions” includes, among others, the use of population data, data center providers, partnerships, and others.

Paragraph (2)
It is clear enough.

Paragraph (3)
Letter (a)
What is meant by “informational services” is services that are limited only to the provision of information in the Provider's Electronic System without further interaction and not followed by financial transaction execution, including the provision of information on potential Fund Recipients to financial service institutions through referral business models. Example:
An insurance company cooperates on informational services with the Provider by placing advertisements; when Users click on the relevant advertisement, Users will be directed to the website of the insurance company without being followed by financial transaction execution.

Letter b
It is clear enough.

Letter c
It is clear enough.

Paragraph (4)
It is clear enough.

Paragraph (5)
It is clear enough.

Paragraph (6)
What is meant by “fully responsible” is that Providers are fully responsible for all impacts arising from cooperation with other parties as long as the other parties mentioned act in accordance with the cooperation agreement.

Paragraph (7)
It is clear enough.

Pasal 157
Paragraph (1)
What is meant by “data exchange cooperation” is cooperation with information technology-based support service providers in the context of data exchange.
Examples of information technology-based support service providers include credit information management institutions, alternative credit scoring providers based on telecommunications, or e-commerce providers. What is meant by “data” is data needed in the credit scoring process, including Personal Data and transaction data.

Paragraph (2)
It is clear enough.

Paragraph (3)
It is clear enough.

Paragraph (4)
It is clear enough.

Paragraph (5)
It is clear enough.

Paragraph (6)
It is clear enough.

Pasal 158
Letter a
It is clear enough.

Letter b
It is clear enough.

Letter c
What is meant by “Automatic Financing” is Financing that uses a scheme where Fund Providers hand over their funds to the Provider to be distributed to Fund Recipients without any interaction or involvement of Fund Providers in the Financing conducted.

Letter d
It is clear enough.

Letter e
It is clear enough.

Letter f
What is meant by “providing guarantees in all forms” is providing certainty of fulfillment of Fund Recipients' financial obligations to Fund Providers through guarantee practices as regulated in regulations regarding guarantees or by other means, including:
a. Providers cooperate with other parties/affiliates to conduct guarantee practices; b. Providers are prohibited from conducting guarantee practices on bad loans with an accounts receivable transfer scheme (buy back); and/or
c. Providers are prohibited from conducting repayment warranty transactions.

Letter g
What is meant by “debt instruments” are debt securities, either short-term or long-term, issued by Providers to other parties, including, among others, promissory notes, medium term notes (MTN), or bonds.

Letter h
What is meant by “loans” are loans in the form of money that cause Providers to have obligations to return a certain amount, including, among others:
a. loans from banks; b. loans from shareholders; and
c. loans from other sources.

Letter i
What is meant by “prohibited from giving recommendations to Users” is that Providers are prohibited from directing potential Fund Providers to select some potential Fund Recipients who meet the criteria. Providers are free (without providing input/suggestions/directions) to potential Fund Providers to choose potential Fund Recipients presented by the Provider. Example:
From 5 (five) potential Fund Recipients who applied, only 4 (four) people met the criteria based on the Provider's scoring/assessment for funding with different or same scoring/assessment results. The Provider presents the scoring/assessment results of 4 (four) people to potential Fund Providers to be selected/funded. Providers are prohibited from providing input/suggestions/directions so that potential Fund Providers give funds to specific people among the 4 (four) people mentioned. The explanation above does not fall into the category of providing recommendations as mentioned in letter i, because the activities conducted by Providers fall under the core business of operating ITCF.

Letter j
It is clear enough.

Letter k
What is meant by “conducting service offerings both directly and indirectly” is offerings conducted by Providers either independently or through specific cooperation with other parties to offer Provider products through facilities or means owned by them.

Letter l
It is clear enough.

Letter m
Example “conducting actions that cause or force other financial service institutions” includes Providers cooperating with Rural Credit Banks (BPR); Providers must pay attention to the operational area of Rural Credit Banks according to applicable regulations.

Letter n
It is clear enough.

Letter o
Explanation:
Example of prohibition on using third parties to manage funds from Fund Providers:
Provider XYZ hands over the management of funds from Fund Providers to company ABC or other related parties to be forwarded to Fund Recipients based on certain terms and conditions.

Letter p
What is meant by Unhealthy Financing is the practice of providing loans that impose unfair terms, conditions, interest rates, and/or costs for Fund Recipients, or that do not consider the Fund Recipients' ability to repay. Examples of Unhealthy Financing include:
a. setting terms, conditions, or costs (including late fees or penalties) containing elements of fraud; b. setting terms, conditions, interest rates, and/or costs that do not consider Fund Recipients' ability to repay loans; or
c. loans to small and medium enterprises, micro loans, consumer loans, daily loans, and/or other forms of loans that impose unfair terms, conditions, interest rates, and costs (including late fees or penalties).

Pasal 159
Paragraph (1)
See the explanation of Article 9 paragraph (1).

Paragraph (2)
It is clear enough.

Paragraph (3)
It is clear enough.

Paragraph (4)
It is clear enough.

Paragraph (5)
It is clear enough.

Paragraph (6)
It is clear enough.

Pasal 160
Paragraph (1)
It is clear enough.

Paragraph (2)
What is meant by “owned, controlled, and directed” includes the ability to develop, change, and delete the Electronic System.

Paragraph (3)
What is meant by “registered” is that the Electronic System is registered with the authority overseeing the communication and digital sector.

Paragraph (4)
It is clear enough.

Pasal 161
It is clear enough.

Pasal 162
Paragraph (1)
It is clear enough.

Paragraph (2)
It is clear enough.

Paragraph (3)
What is meant by “other needs” is the use of audit trails for purposes other than supervision, law enforcement, dispute resolution, verification, and testing.
Example of examination to obtain certification from international standardization organizations (ISO).

Paragraph (4)
It is clear enough.

Pasal 163
It is clear enough.

Pasal 164
Paragraph (1)
What is meant by “consent” is consent from Users in writing or in other forms according to applicable regulations.

Paragraph (2)
It is clear enough.

Paragraph (3)
It is clear enough.

Paragraph (4)
It is clear enough.

Paragraph (5)
What is meant by “written application” is an application via letter, electronic mail (e-mail), or other channels in the Electronic System provided by the Provider.

Pasal 165
It is clear enough.

Pasal 166
Paragraph (1)
See the explanation of Article 9 paragraph (1).

Paragraph (2)
It is clear enough.

Paragraph (3)
It is clear enough.

Paragraph (4)
It is clear enough.

Paragraph (5)
It is clear enough.

Paragraph (6)
It is clear enough.

Pasal 167
It is clear enough.

Pasal 168
It is clear enough.

Pasal 169
It is clear enough.

Pasal 170
It is clear enough.

Pasal 171
It is clear enough.

Pasal 172
It is clear enough.

Pasal 173
It is clear enough.

Pasal 174
It is clear enough.

Pasal 175
It is clear enough.

Pasal 176
It is clear enough.

Pasal 177
It is clear enough.

Pasal 178
Paragraph (1)
See the explanation of Article 9 paragraph (1).

Paragraph (2)
It is clear enough.

Paragraph (3)
It is clear enough.

Paragraph (4)
It is clear enough.

Paragraph (5)
It is clear enough.

Paragraph (6)
It is clear enough.

Pasal 179
It is clear enough.

Pasal 180
It is clear enough.

Pasal 181
It is clear enough.

Pasal 182
It is clear enough.

Pasal 183
It is clear enough.

Pasal 184
It is clear enough.

Pasal 185
It is clear enough.

Pasal 186
Paragraph (1)
What is meant by “business model changes” is changes or additions to business models that have significant differences from the business model operated by the Provider.
Example:
Provider X is a platform providing Consumer Financing services; if it wants to open Productive Financing services, then the Provider reports to the Financial Services Authority. Provider X operates in distributing Agricultural Financing; if the Provider intends to distribute Financing to employees with fixed incomes, then the Provider reports to the Financial Services Authority. Provider X, which previously distributed Financing to employees with fixed incomes of a certain company, when wanting to distribute Financing generally, then the Provider reports to the Financial Services Authority.

Paragraph (2)
It is clear enough.

Paragraph (3)
It is clear enough.

Paragraph (4)
It is clear enough.

Pasal 187
Paragraph (1)
It is clear enough.

Paragraph (2)
It is clear enough.

Paragraph (3)
It is clear enough.

Paragraph (4)
What is meant by “force majeure” includes, among others, fires, riots, war, armed conflict, sabotage, and natural disasters such as floods and earthquakes that disrupt the Provider's operational activities.

Paragraph (5)
Letter a
It is clear enough.

Letter b
What is meant by “Financing transaction information” includes information related to Financing applications and the provision of Financing, including the final position of total Financing not yet paid off, the number of transactions, and the amount of distribution.

Letter c
What is meant by “Financing quality information” is information regarding Financing payments consisting of due dates, payment status, penalties, and payment values.

Paragraph (6)
It is clear enough.

Pasal 188
Paragraph (1)
Incidental reports are reports not regulated in Financial Services Authority Regulations and must be reported immediately.
Incidental reports include reports caused by fraud actions, including internal audit implementation reports, and education implementation reports.

Paragraph (2)
It is clear enough.

Paragraph (3)
What is meant by “certain significance criteria” is the determination of transaction values that have a significant impact on the Provider's financial condition, determined based on considerations. Based on considerations, including, among others, relative materiality, risk, and the needs of financial report users.

Paragraph (4)
Other reports besides incidental reports include reports related to beneficial owners.

Pasal 189
Paragraph (1)
What is meant by “correct” is in accordance with the actual conditions of the financial service institution and does not contain incorrect material information or facts.
What is meant by “complete” is containing all report elements and not omitting material information or facts.

Paragraph (2)
It is clear enough.

Paragraph (3)
It is clear enough.

Paragraph (4)
It is clear enough.

Paragraph (5)
It is clear enough.

Paragraph (6)
It is clear enough.

Paragraph (7)
It is clear enough.

Paragraph (8)
It is clear enough.

Paragraph (9)
It is clear enough.

Paragraph (10)
It is clear enough.

Paragraph (11)
It is clear enough.

Pasal 190
Paragraph (1)
What is meant by key audit matters are matters considered by the auditor's professional judgment to be the most significant in the audit of current period financial statements.

Paragraph (2)
Letter a
It is clear enough.

Letter b
Conditions that have adverse consequences for public interests exceeding their benefits, among others, can cause significant stock price changes or cause a run.

Pasal 191
Paragraph (1)
See the explanation of Article 9 paragraph (1).

Paragraph (2)
It is clear enough.

Paragraph (3)
It is clear enough.

Paragraph (4)
It is clear enough.

Paragraph (5)
It is clear enough.

Paragraph (6)
It is clear enough.

Paragraph (7)
It is clear enough.

Paragraph (8)
It is clear enough.

Paragraph (9)
It is clear enough.

Paragraph (10)
It is clear enough.

Pasal 192
Paragraph (1)
It is clear enough.

Paragraph (2)
Letter a
Transparency includes transparency in decision-making processes and transparency in the disclosure and provision of relevant and easily accessible information by stakeholders.

Letter b
Accountability includes clarity of functions and the execution of accountability.

Letter c
Responsibility includes the suitability of management with applicable regulations and ethical values, standards, principles, and practices.

Letter d
Independence includes a state managed independently and professionally and free from conflicts of interest and influence or pressure from any party that is not in accordance with applicable regulations and ethical values, standards, principles, and practices.

Letter e
Fairness includes equality, balance, and justice in fulfilling the rights of stakeholders arising from agreements, applicable regulations, and ethical values, standards, principles, and practices.

Paragraph (3)
Letter a
What is meant by “stakeholders” are parties who have interests in the Provider, both directly and indirectly, including Users, members/shareholders, employees, goods and service providers, and/or the government.

Letter b
It is clear enough.

Letter c
It is clear enough.

Letter d
It is clear enough.

Letter e
It is clear enough.

Paragraph (4)
Letter a
It is clear enough.

Letter b
It is clear enough.

Letter c
What is meant by “conflict of interest” is a state where there is a conflict between the Provider's economic interests and the personal economic interests of shareholders, members of the Board of Directors, members of the Board of Commissioners, and/or members of the Supervisory Board (DPS), as well as Provider employees.

Letter d
It is clear enough.

Letter e
It is clear enough.

Letter f
It is clear enough.

Letter g
It is clear enough.

Letter h
It is clear enough.

Paragraph (5)
It is clear enough.

Paragraph (6)
It is clear enough.

Pasal 193
Paragraph (1)
It is clear enough.

Paragraph (2)
Specific actions to improve the implementation of good corporate governance include, among others:
a. adding or reducing the number of members of the Board of Directors and/or members of the Board of Commissioners in cases where the number of existing members of the Board of Directors and/or members of the Board of Commissioners is deemed ineffective and inefficient; and

b. adding information regarding the transparency of share ownership of less than 5% (five percent) by members of the Board of Directors on:

Providers where the relevant members of the Board of Directors serve and/or
other companies located inside and outside the country,
against members of the Board of Directors who are proven to exercise control.

Paragraph (3)
It is clear enough.

Pasal 194
It is clear enough.

Pasal 195
It is clear enough.

Pasal 196
It is clear enough.

Pasal 197
Paragraph (1)
It is clear enough.

Paragraph (2)
What is meant by “managerial level” is persons who have held managerial positions and have the authority to make decisions.

Paragraph (3)
It is clear enough.

Paragraph (4)
It is clear enough.

Paragraph (5)
It is clear enough.

Paragraph (6)
It is clear enough.

Paragraph (7)
It is clear enough.

Pasal 198
Paragraph (1)
It is clear enough.

Paragraph (2)
Example of dual position prohibition regulations as members of the Supervisory Board (DPS) except for at most 3 (three) other Sharia financial institutions, namely:
A is a member of the DPS of Provider based on Sharia Principles O. A holds dual positions as:
a. member of the DPS of Sharia financing company P; b. member of the DPS of Sharia insurance company Q;
c. member of the DPS of Sharia commercial bank R; and
d. member of the DPS of Sharia rural credit bank S.

Pasal 199
Paragraph (1)
General Meetings of Fund Providers are held in the context of decision-making, including regarding changes to Financing agreements.
Example:
a. restructuring of fund provision; b. write-off of fund provision; and
c. write-off of fund claims.

Paragraph (2)
It is clear enough.

Paragraph (3)
It is clear enough.

Paragraph (4)
It is clear enough.

Pasal 200
It is clear enough.

Pasal 201
Paragraph (1)
See the explanation of Article 9 paragraph (1).

Paragraph (2)
It is clear enough.

Paragraph (3)
It is clear enough.

Paragraph (4)
It is clear enough.

Paragraph (5)
It is clear enough.

Paragraph (6)
It is clear enough.

Pasal 202
It is clear enough.

Pasal 203
It is clear enough.

Pasal 204
Paragraph (1)
See the explanation of Article 9 paragraph (1).

Paragraph (2)
It is clear enough.

Paragraph (3)
It is clear enough.

Paragraph (4)
It is clear enough.

Paragraph (5)
It is clear enough.

Paragraph (6)
It is clear enough.

Pasal 205
Paragraph (1)
It is clear enough.

Paragraph (2)
It is clear enough.

Paragraph (3)
It is clear enough.

Paragraph (4)
What is meant by “part of a financial conglomerate” is Providers that are part of a financial conglomerate meeting criteria according to financial conglomerates in Financial Services Authority Regulations regarding financial conglomerates.

Pasal 206
It is clear enough.

Pasal 207
It is clear enough.

Pasal 208
It is clear enough.

Pasal 209
It is clear enough.

Pasal 210
It is clear enough.

Pasal 211
It is clear enough.

Pasal 212
It is clear enough.

Pasal 213
It is clear enough.

Pasal 214
It is clear enough.

Pasal 215
Paragraph (1)
What is meant by beneficial owner (beneficial owner) is an individual who is entitled to and/or receives certain benefits related to customer accounts, is the actual owner of funds and/or securities placed with financial service providers (ultimately own account), controls customer transactions, grants power of attorney to conduct transactions, controls corporations or other legal arrangements, and/or is the ultimate controller of transactions conducted through legal entities or based on an agreement.

Paragraph (2)
It is clear enough.

Paragraph (3)
It is clear enough.

Paragraph (4)
The term "party meeting the requirements as a beneficial owner" of the Provider refers to a party that, based on identification and verification of identity conducted by the Financial Services Authority, can be proven to have the ability to control the Provider or other legal arrangements, such as the appointment of the Board of Directors and/or Board of Commissioners, even if that party is not visible from the ownership structure.

Article 216
Paragraph (1)
See the explanation of Article 9 paragraph (1).

Paragraph (2)
It is clear enough.

Paragraph (3)
It is clear enough.

Paragraph (4)
It is clear enough.

Paragraph (5)
It is clear enough.

Paragraph (6)
It is clear enough.

Article 217
The granting of different approvals or policies is intended, among others, to:
a. support national policy; b. protect public interest;
c. maintain industry growth; and/or
d. maintain healthy business competition.

Examples of conditions requiring specific consideration include Extraordinary Events, hereinafter abbreviated as KLB, which can cause a significant increase in morbidity and mortality, also impacting the economy and society, thus requiring attention and handling by all relevant parties and regulated in other provisions regarding considerations in facing possible KLB.

Article 218
Paragraph (1)
The Financial Services Authority has the authority to request the Provider to submit a fulfillment plan, among others, if:
a. the violation in question has a significant impact on the Provider's financial condition. b. Fulfillment regarding the violation requires a certain period of time.

Paragraph (2)
It is clear enough.

Paragraph (3)
It is clear enough.

Paragraph (4)
It is clear enough.

Article 219
Paragraph (1)
See the explanation of Article 9 paragraph (1).

Paragraph (2)
It is clear enough.

Paragraph (3)
It is clear enough.

Paragraph (4)
It is clear enough.

Paragraph (5)
It is clear enough.

Paragraph (6)
It is clear enough.

Article 220
It is clear enough.

Article 221
It is clear enough.

Article 222
It is clear enough.

Article 223
It is clear enough.

Article 224
It is clear enough.

Article 225
It is clear enough.

Article 226
It is clear enough.

Article 227
Paragraph (1)
It is clear enough.

Paragraph (2)
Changes or extensions to agreements, among others, include changes in the economic benefits of Financing; therefore, such changes must comply with the provisions in this Financial Services Authority Regulation.

Article 228
It is clear enough.

Article 229
It is clear enough.

Article 230
It is clear enough.

Article 231
It is clear enough.

Article 232
It is clear enough.

Article 233
It is clear enough.

Article 234
It is clear enough.

Article 235
It is clear enough.

Article 236
It is clear enough.

Article 237
It is clear enough.

SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 121/OJK

APPENDIX
FINANCIAL SERVICES AUTHORITY REGULATION
OF THE REPUBLIC OF INDONESIA
NUMBER 40 OF 2024
CONCERNING
INFORMATION TECHNOLOGY-BASED COLLECTIVE FINANCING SERVICES

Table 1: List of Licensing Requirements Documents for Providers

No.	List of Documents	Remarks
1.	Copy of the deed of establishment of the legal entity accompanied by proof of approval from the competent authority, at least containing:<br>a. name and domicile;<br>b. aims and objectives as well as business activities;<br>c. paid-up capital;<br>d. ownership; and<br>e. authority, responsibility, and term of office of members of the Board of Directors, members of the Board of Commissioners, and/or members of the Shariah Supervisory Board (DPS).
2.	Copy of the latest amendment to the articles of association accompanied by proof of approval, proof of approval, and/or notification receipt from the competent authority, if any.
3.	List of shareholders: Requirements in item 3 are adjusted to the form of the Provider's legal entity. The ultimate shareholder. The beneficial owner.<br>a. list of shareholders including details of each share ownership up to the ultimate shareholder and/or beneficial owner, and list of other companies owned by the shareholder, for Providers in the form of a Limited Liability Company (Perseroan Terbatas).<br>b. list of founding members including details of each founding capital contribution owned by the member, for Providers in the form of a Cooperative.
4.	Organizational structure containing the personnel structure consisting of the Board of Directors, Board of Commissioners, and functions in the Provider's business activities.
5.	Shareholder or member data:<br>a. individuals, accompanied by:<br>1) photocopy of identification card (KTP) or valid passport;<br>2) photocopy of tax identification number (NPWP);<br>3) curriculum vitae with a recent 4x6 cm color photo;<br>4) stamped declaration letter from the concerned party stating:<br>a. does not have non-performing loans and/or financing;<br>b. is not included in the list of parties prohibited from becoming shareholders or parties managing, supervising, and/or having significant influence on financial service institutions;<br>c. has never been sentenced for criminal offenses based on a final and binding court decision in the last 5 (five) years;<br>d. has never been declared bankrupt or guilty causing a company or enterprise to be declared bankrupt based on a final and binding court decision in the last 5 (five) years;<br>e. has never been a Shariah Supervisory Board member, director, commissioner, or Shariah Supervisory Board member at a financial service company whose business license was revoked due to violations in the last 5 (five) years;<br>b. legal entities, accompanied by:<br>1) copy of the deed of establishment of the legal entity, including the articles of association and amendments regarding business activities, capital, shareholder structure, and management, accompanied by proof of approval, consent, recording, and/or notification receipt from the competent authority;<br>2) financial reports audited by a public accountant and the latest non-consolidated financial report before capital deposit, signed by the director or equivalent shareholder;<br>3) photocopy of tax identification number (NPWP); and<br>4) data of directors or equivalent shareholders/members other than the Shariah Supervisory Board, including:<br>a) photocopy of identification card or valid passport;<br>b) photocopy of tax identification number;<br>c) curriculum vitae with a recent 4x6 cm color photo; and<br>d) stamped declaration letter from the director or equivalent of the legal entity stating that:<br>(1) shareholders/members do not have non-performing loans and/or financing;<br>(2) shareholders/members are not included in the list of parties prohibited from becoming shareholders or parties managing, supervising, and/or having significant influence on financial service institutions;<br>(3) shareholders/members have never been sentenced for criminal offenses in the financial service sector based on a court decision that has had legal force in the last 20 (twenty) years;<br>(4) shareholders/members have never been declared bankrupt or guilty causing a company or enterprise to be declared bankrupt based on a court decision that has had legal force in the last 5 (five) years; and<br>(5) shareholders/members have never been a Shariah Supervisory Board member at a financial service company whose business license was revoked due to violations in the last 5 (five) years;<br>c. Government, accompanied by photocopy of government regulation
regarding state capital participation for the establishment of the Provider; and<br>d. Local Government, accompanied by photocopy of regional regulation regarding regional capital participation for the establishment of the Provider;
6.	Photocopy of annual tax notification for the last 2 (two) years before capital deposit for prospective individual shareholders/members.
7.	Other documents showing financial capability and funding sources for prospective individual shareholders/members. The term "other documents showing financial capability and funding sources for prospective individual shareholders" includes, among others, bank statements and deposit certificates.
8.	Photocopy of proof of payment of Paid-up Capital. The funding source used for capital deposit explaining the entire flow of funds from the initial asset source of the shareholder to the funds recorded as capital deposit.
9.	Work systems and procedures.
10.	Proof of infrastructure readiness.
11.	Work plan including work systems and procedures for the first 3 (three) years.
12.	Guidelines for risk management implementation.
13.	Guidelines for Provider governance.
14.	Additional documents for Providers based on Shariah Principles:<br>a. copy of the minutes of the General Meeting of Shareholders regarding the appointment of DPS members, accompanied by notification receipt from the competent authority;<br>b. copy of the articles of association stating one of the company's aims and objectives is to conduct business activities based on Shariah Principles, approved/approved by the competent authority;<br>c. cooperation agreement for Escrow Account and Virtual Account with a bank conducting business activities based on Shariah Principles;<br>d. proof of appointment of DPS members and proof of approval by the National Shariah Board regarding the appointment of DPS members; and<br>e. approval by the DPS on the business model to be marketed for its suitability with Shariah Principles, at least including:<br>1) Provider's business model;<br>2) calculation of Financing economic benefits;<br>3) marketing methods; and<br>4) example of Akad (contract).
15.	Confirmation from the foreign supervisory authority concerned, for Providers containing direct foreign participation.
16.	Proof of payment of licensing fees for the issuance of business licenses. The term "proof of payment of licensing fees" means valid proof of payment of the Provider's licensing fees to the Financial Services Authority.
17.	Proof of expertise certification in financial technology for the Board of Directors and Board of Commissioners.
18.	Commitment to capital increase.
19.	Copy of application (specifically for mobile application-based Providers).

Table 2: List of Documents for Conversion License Requirements for Conventional to Shariah IT-Based Collective Financing Service Providers

No.	List of Documents	Remarks
1.	Proof of announcement regarding the conversion plan and the impact of conversion on Users via Electronic Systems such as websites and/or mobile applications.
2.	Draft minutes of the General Meeting of Shareholders approving the conversion to a Provider based on Shariah Principles.
3.	Draft amendment to the articles of association containing:<br>a. name based on Shariah Principles;<br>b. aims and objectives of the Provider based on Shariah Principles to conduct business activities based on Shariah Principles; and<br>c. authority and responsibility of the DPS.
4.	Plan for settling User rights and obligations. The term "plan for settling User rights and obligations" includes, among others:<br>a. settlement of rights for Users who do not agree to the conversion;<br>b. amount of User rights transferred; and<br>c. effective time of transfer.
5.	Projection of initial financial reports from the business activities of the Provider based on Shariah Principles resulting from the conversion.
6.	Work plan related to business activities based on Shariah Principles to be conducted for the first 3 (three) years after obtaining a business license as a Provider based on Shariah Principles, at least containing:<br>a. work systems and procedures;<br>b. example of Shariah-based Financing Akad to be used;<br>c. market opportunity feasibility study and economic potential;<br>d. plan for providing Financing and steps taken to realize the aforementioned plan; and<br>e. financial report projection for the next 1 (one) year on:<br>1) financial position report;<br>2) comprehensive income statement; and<br>3) cash flow report,<br>4) along with assumptions used.
7.	Draft cooperation agreement for Escrow Account and Virtual Account with a bank conducting business activities based on Shariah Principles.
8.	Organizational structure equipped with job descriptions, authority, responsibility, and personnel.
9.	Documents related to DPS<br>a. Identification<br>b. Curriculum Vitae<br>MUI Certification
10.	Financing Akad between Funders and the Provider in Islamic Sharia
11.	Akad between Funders and Recipients in Islamic Sharia

Table 3: List of Documents for Reporting the Implementation of the General Meeting of Shareholders Approving Conversion to a Provider Based on Shariah Principles

No.	List of Documents	Remarks
1.	Copy of the amendment to the articles of association.
2.	Photocopy of the tax identification number for the Provider based on Shariah Principles resulting from the conversion.
3.	Copy of the minutes of the General Meeting of Shareholders approving the conversion to a Provider based on Shariah Principles.
4.	Copy of the minutes of the General Meeting of Shareholders stating the appointment of members of the Board of Directors, members of the Board of Commissioners, and/or members of the DPS.
5.	Proof of appointment of DPS members and proof of approval by the institution having authority in setting fatwas in the Shariah field regarding the appointment of DPS members.
6.	Proof of DPS approval for business activities based on Shariah Principles.
7.	Cooperation agreement for Escrow Account and Virtual Account with a general bank conducting business activities based on Shariah Principles.
8.	Proof of settlement of User rights and obligations. Proof of settlement of User rights and obligations includes, among others:<br>a. proof of transfer of refund of funds for Users who do not agree to the conversion;<br>b. proof of the amount of User rights transferred to another provider;
9.	Copy of application (specifically for mobile application-based Providers).

Table 4: List of Document Requirements for UUS Formation License Application

No.	List of Documents	Remarks
1.	Copy of the amendment to the articles of association containing:<br>a. one of the Provider's aims and objectives is to conduct Shariah Financing business activities; and<br>b. authority and responsibility of the DPS,<br>accompanied by proof of approval and/or notification receipt from the competent authority.
2.	Photocopy of proof of deposit of working capital for the UUS in the form of time deposits in the name of the Provider at one of the Shariah general banks or Shariah business units of general banks in Indonesia, legalized by the bank, which remains valid during the UUS formation license application process.
3.	Board of Directors decision approving the placement of working capital in the UUS accompanied by the amount of working capital placement.
4.	DPS documents including:<br>a. minutes of the General Meeting of Shareholders regarding the appointment of DPS; and<br>b. DPS recommendation letter from the institution having authority in setting fatwas in the Shariah field.
5.	UUS leadership data, including:<br>a. photocopy of identification card or valid passport;<br>b. photocopy of tax identification number;<br>c. curriculum vitae with a recent 4x6 cm color photo;<br>d. proof of appointment as UUS leadership;<br>e. stamped declaration letter stating:<br>1) does not have non-performing loans and/or financing; and<br>2) does not hold dual positions in other functions within the same Provider; and<br>f. proof of expertise, training, and/or experience in the field of Shariah finance.
6.	Proof of ownership or control of the office building showing the UUS office address along with exterior building photos and interior room photos and room layout. Proof of ownership or control of the office building can be proven by, among others, deeds from competent authorities or proof of lease agreements.
7.	Work plan related to business activities based on Shariah Principles to be conducted for the first 3 (three) years after obtaining a business license as a Provider based on Shariah Principles.
8.	Initial UUS financial reports separated from the Provider's business activities.
9.	Documents reporting the use of Akads used in Shariah Financing activities and examples of Shariah Financing Akads.
10.	Work plan for the UUS to be formed including work systems and procedures for the first 3 (three) years, at least containing:<br>a. feasibility study regarding market opportunities and economic potential;<br>b. target for Shariah Financing distribution and steps taken to realize the aforementioned target;<br>c. work systems and procedures;<br>d. number and composition of personnel; and<br>e. monthly projection for 12 (twelve) months on:<br>1) financial position report;<br>2) comprehensive income statement; and<br>3) cash flow report,<br>along with assumptions used.

Table 5: List of Documents for Approval of UUS Separation Plan Based on Self-Request

No.	List of Documents	Remarks
1.	Draft deed of UUS Separation.
2.	Draft deed of establishment of a new Provider based on Shariah Principles.
3.	Plan for settling UUS User rights and obligations. The term "plan for settling UUS User rights and obligations" includes, among others:<br>a. settlement of rights for Users who do not agree to the UUS Separation;<br>b. amount of User rights transferred.
4.	Plan for the list of shareholders including details of each share ownership up to the ultimate shareholder and/or beneficial owner, and list of other companies owned by the shareholder from the new Provider based on Shariah Principles.
5.	Data of shareholders other than the Shariah Supervisory Board from the new Provider based on Shariah Principles.
6.	Stamped declaration letter from shareholders of the new Provider based on Shariah Principles stating that:<br>a. the funding source for capital participation does not come from money laundering, terrorism financing, and financing of proliferation of weapons of mass destruction activities;<br>b. the funding source for capital participation does not come from loans.
7.	Business plan to be conducted for the first 3 (three) years after obtaining a business license for the Provider based on Shariah Principles, at least containing:<br>a. vision, mission, and business strategy;<br>b. market opportunity feasibility study and economic potential;<br>c. policies and management plans, including:<br>1) business activity plan;<br>2) business activity development or expansion plan;<br>3) capital plan;<br>4) Financing plan;<br>5) office network or distribution channel development and/or change plan;<br>6) organization, human resources, and/or Information Technology development plan; and<br>7) activities plan to increase financial literacy and inclusion;<br>d. monthly projection on:<br>1) financial position report;<br>2) comprehensive income statement; and<br>3) cash flow report,<br>along with assumptions used.<br>e. projection of certain ratios and items.
8.	Proof of certification for the Board of Directors, Board of Commissioners, and officials one level below the Board of Directors according to the organizational structure at the time of the business license application. Example of certification proof in the field of financial technology.
9.	Organizational structure equipped with job descriptions, authority, responsibility, and work procedures, for the new Provider based on Shariah Principles resulting from the UUS Separation.

Table 6: List of Documents for Reporting UUS Separation Plans Meeting Certain Criteria

No.	List of Documents	Remarks
1.	Draft deed of UUS Separation.
2.	Draft deed of establishment of a new Provider based on Shariah Principles.
3.	Plan for settling UUS User rights and obligations. The term "plan for settling UUS User rights and obligations" includes, among others:<br>c. settlement of rights for Users who do not agree to the UUS Separation;<br>d. amount of User rights transferred.
4.	Plan for the list of shareholders including details of each share ownership up to the ultimate shareholder and/or beneficial owner, and list of other companies owned by the shareholder from the new Provider based on Shariah Principles.
5.	Data of shareholders other than the Shariah Supervisory Board from the new Provider based on Shariah Principles.
6.	Stamped declaration letter from shareholders of the new Provider based on Shariah Principles stating that:<br>a. the funding source for capital participation does not come from money laundering, terrorism financing, and financing of proliferation of weapons of mass destruction activities;<br>b. the funding source for capital participation does not come from loans.
7.	Business plan to be conducted for the first 3 (three) years after obtaining a business license for the Provider based on Shariah Principles, at least containing:<br>a. vision, mission, and business strategy;<br>b. market opportunity feasibility study and economic potential;<br>c. policies and management plans, including:<br>1) business activity plan;<br>2) business activity development or expansion plan;<br>3) capital plan;<br>4) Financing plan;<br>5) office network or distribution channel development and/or change plan;<br>6) organization, human resources, and/or Information Technology development plan; and<br>7) activities plan to increase financial literacy and inclusion;<br>d. monthly projection on:<br>1) financial position report;<br>2) comprehensive income statement; and<br>3) cash flow report,<br>along with assumptions used.<br>e. projection of certain ratios and items.
8.	Proof of certification for the Board of Directors, Board of Commissioners, and officials one level below the Board of Directors according to the organizational structure at the time of the business license application. Example of certification proof in the field of financial technology.
9.	Organizational structure equipped with job descriptions, authority, responsibility, and work procedures, for the new Provider based on Shariah Principles resulting from the UUS Separation.

Table 7: List of Documents for Approval of UUS Separation Plan upon Order of the Financial Services Authority

No.	List of Documents	Remarks
1.	Draft deed of UUS Separation.
2.	Draft deed of establishment of a new Provider based on Shariah Principles.
3.	Plan for settling UUS User rights and obligations. The term "plan for settling UUS User rights and obligations" includes, among others:<br>a. settlement of rights for Users who do not agree to the UUS Separation;<br>b. amount of User rights transferred.
4.	Plan for the list of shareholders including details of each share ownership up to the ultimate shareholder and/or beneficial owner, and list of other companies owned by the shareholder from the new Provider based on Shariah Principles.
5.	Data of shareholders other than the Shariah Supervisory Board as referred to in Article 9 paragraph (1) letter e from the new Provider based on Shariah Principles.
6.	Stamped declaration letter from shareholders of the new Provider based on Shariah Principles stating that:<br>a. the funding source for capital participation does not come from money laundering, terrorism financing, and financing of proliferation of weapons of mass destruction activities;<br>b. the funding source for capital participation does not come from loans.
7.	Business plan to be conducted for the first 3 (three) years after obtaining a business license for the Provider based on Shariah Principles, at least containing:<br>1) vision, mission, and business strategy;<br>2) market opportunity feasibility study and economic potential;<br>3) policies and management plans, including:<br>a. business activity plan;

No.	Document List	Description
b.	Development plan or expansion of business activities;
c.	Capital planning;
d.	Financing plan;
e.	Development plan and/or change of office network or distribution channels;
f.	Organization, human resources, and/or Information Technology development plan; and
g.	Activity plan to increase financial literacy and inclusion;
4)	Monthly projection of:
a.	Financial position report;
b.	Comprehensive income statement; and
c.	Cash flow statement, along with the assumptions used.
5)	Projection of ratios and specific items.
8.	Certification evidence for the Board of Directors, Board of Commissioners, and officials one level below the Board of Directors according to the organizational structure at the time of submitting the business license application. Example of certification evidence in the field of fintech.
9.	Organizational structure equipped with job descriptions, authorities, responsibilities, and work procedures, for Sharia-based Organizers newly resulting from UUS Separation.

Table 8: List of Reporting Documents for Implementation of GMS that Approved UUS Separation

No.	Document List	Description
1.	Copy of minutes of GMS approving UUS Separation
2.	Copy of UUS Separation deed
3.	Copy of establishment deed, which must at least contain:
a.	name and domicile;
b.	purpose and objectives as well as business activities;
c.	Paid-up Capital;
d.	ownership; and
e.	authority, responsibility, term of office of members of the Board of Directors, members of the Board of Commissioners, and/or members of DPS;
4.	Copy of minutes of GMS over the new Sharia Organizer resulting from UUS Separation stating the appointment of the Board of Directors, Board of Commissioners, and DPS
5.	Photocopy of proof of payment of Paid-up Capital of the new Sharia Organizer resulting from UUS Separation in the form of cash deposits from shareholders/members. The source of funds used for capital deposits explaining the entire flow of funds from the initial asset source of shareholders until the funds in question are recorded as capital deposits.
6.	Photocopy of proof of placement of Paid-up Capital of the new Sharia Organizer resulting from UUS Separation in the form of fixed-term deposits in the name of the relevant Sharia Organizer, if there are capital deposits from shareholders
7.	Initial or opening financial position report of the new Sharia Organizer resulting from UUS Separation
8.	Proof of infrastructure readiness of the new Sharia Organizer resulting from UUS Separation
9.	Proof of settlement of rights and obligations
10.	Proof of payment completion of licensing fees for the issuance of business licenses. What is meant by “proof of payment completion of licensing fees” is valid evidence of the payment of licensing fees by the Organizer to the Financial Services Authority.

Table 9: Document Requirements for Reporting Implementation of UUS Separation

No.	Document List	Description
1.	Copy of decision regarding the issuance of permission for the formation of UUS
2.	Latest financial position report of UUS
3.	Proof of implementation of announcement of plan to cease UUS business activities and plan to settle UUS obligations in daily newspapers with national circulation, Electronic System used by the Organizer, and letters and/or announcements through other media to each User at most 15 (fifteen) working days from the date of the approval letter for the UUS closure plan
4.	Proof of settlement of all rights and obligations of UUS. Example of proof of settlement of UUS obligations includes proof of payment documents or fulfillment of obligations.
5.	Statement letter from the Board of Directors of the Organizer stating that all obligations of UUS have been settled and if there are claims and lawsuits in the future, they become the responsibility of the Organizer

Table 10: List of Document Requirements for Application for Approval of UUS Closure

No.	Document List	Description
1.	Draft minutes of GMS approving the cessation of Sharia Financing business activities;
2.	Reasons for closing UUS
3.	List of Sharia Financing disbursements that have been carried out accompanied by information on User names, nominal amount of Sharia Financing received, and duration of Sharia Financing
4.	Procedure for settling rights and obligations of UUS Users. What is meant by the procedure for settling User rights and obligations, among others:
a.	Procedure for settling rights of Users who do not agree to the closure;
b.	magnitude of User rights transferred due to UUS closure;
c.	effective time of UUS closure.

Table 11: Documents for Reporting Cessation of UUS Business Activities

No.	Document List	Description
1.	Copy of decision regarding the issuance of permission for the formation of UUS
2.	Latest financial position report of UUS
3.	Proof of implementation of announcement of plan to cease UUS business activities and plan to settle UUS obligations in daily newspapers with national circulation, Electronic System used by the Organizer, and letters and/or announcements through other media to each User at most 15 (fifteen) working days from the date of the approval letter for the UUS closure plan
4.	Proof of settlement of all rights and obligations of UUS. Example of proof of settlement of UUS obligations includes proof of payment documents or fulfillment of obligations.
5.	Statement letter from the Board of Directors of the Organizer stating that all obligations of UUS have been settled and if there are claims and lawsuits in the future, they become the responsibility of the Organizer

Table 12: List of Documents for Approval of Employment of Foreign Workforce

No.	Document List	Description
1.	Photocopy of a still-valid passport
2.	Curriculum vitae of employed foreign workforce, accompanied by photocopies of documents reflecting their field of expertise. The curriculum vitae covers among others Education history, work, and training.
3.	Plan for education and training programs during the employment of the aforementioned foreign workforce
4.	Placement plan in the organizational structure and field of responsibility of the foreign workforce accompanied by reasons for using foreign workforce

Table 13: List of Document Requirements for Application for Approval of Ownership Changes Resulting in Takeover

No.	Document List	Description
1.	Draft minutes of GMS approving ownership changes in cases where ownership changes require GMS approval.
2.	Ownership structure plan including details of the size of each shareholding down to the ultimate shareholder and/or beneficial owner, both before and after the ownership change.
3.	List of other companies owned by shareholders.
4.	Statement letter from the Board of Directors of the Organizer signed on stamp paper stating the beneficial owner of the Organizer.
5.	Copy of government regulations regarding state capital participation of the Republic of Indonesia for ownership changes of the Organizer in cases where the shareholder is the central government.
6.	Copy of regional regulations regarding local government capital participation for ownership changes in cases where the shareholder is the local government.
7.	Draft deed of transfer of rights over shares. The draft share purchase and sale deed mentioned should include information on the transaction price of the shares.
8.	Latest financial report audited by a public accountant registered with the Financial Services Authority and the Organizer's proforma financial report.
9.	Photocopy of tax notification letters for the last 2 (two) years prior to the capital participation and other documents showing the financial capacity and source of funds of prospective individual shareholders, in cases where ownership changes result in:
a.	new PSPs; and/or
b.	new controlling shareholders of PSPs,
which are individuals.
10.	Confirmation from the supervisory authority in the country of origin of the foreign party, if there is direct participation by a foreign legal entity that has a supervisory authority in its home country.
11.	Debtor data documents from the Financial Services Information System (SLIK) of the Financial Services Authority from prospective shareholders due to ownership changes, or documents considered equivalent by the Financial Services Authority.
12.	Data of shareholders or members of the Organizer:
a.	individuals attach documents as per Table 1 item 6 letter a; or
b.	legal entities attach documents as per Table 1 item 6 letter b.
13.	Proof of fund placement in escrow accounts and/or fixed-term deposits in the name of the Organizer or shareholder, if the ownership change is carried out via cash deposits.
14.	Proof of readiness of funds for prospective PSPs:
a.	proof of copy of deposit ownership or ownership of funds belonging to prospective shareholders at banks according to fair value reflected in the draft deed and/or share purchase/transfer agreement;
b.	proof of fund deposits that have been disbursed to the Organizer;
c.	bank statements for the last 3 (three) months; and/or
d.	commitment letter to carry out necessary efforts if the Organizer faces financial difficulties.
15.	Proof that capital does not come from loans:
a.	Debtor data from the Financial Services Information System (SLIK) of the Financial Services Authority or other equivalent documents; and
b.	Other documents showing financial capacity to carry out participation.
16.	Statement letter from existing shareholders making an ownership change stating that capital deposits/source of funds do not come from loans, terrorism financing, proliferation financing of weapons of mass destruction, and other financial crimes in cases where there is additional capital from shareholders carried out in the form of cash deposits;
17.	Copy of audited financial reports (audited financial reports) of existing shareholders in case of ownership changes, completed with non-consolidated financial reports and the latest monthly financial reports before capital deposits signed by the directors of the shareholders;
18.	Current business plan period containing ownership change plans.

Table 14: List of Documents for Reporting Implementation of Ownership Changes

No.	Document List	Description
1.	Copy of minutes of GMS approving ownership changes, accompanied by a receipt notice letter from the competent agency;
2.	Copy of deed of transfer of rights over shares, if there are transfers of rights over shares other than due to sales;
3.	Copy of purchase and sale deed, if there is a sale of shares between shareholders;
4.	Proof of fund placement in the Organizer's account if ownership changes are caused by additions to paid-up capital carried out via cash deposits that do not result in new PSPs, in the form of:
a.	Photocopy of shareholder bank statements showing funds leaving to the Organizer as capital deposits, legalized by the bank; and
b.	Photocopy of Organizer bank statements showing funds entering from shareholders as capital deposits, legalized by the bank.
5.	Financial report of the Organizer after ownership changes caused by additions to paid-up capital signed by the Board of Directors of the Organizer.

Table 15: List of Documents for Reporting Ownership Changes Not Resulting in Takeover

No.	Document List	Description
1.	Ownership structure including details of the size of each shareholding down to the ultimate shareholder and/or beneficial owner, both before and after the ownership change.
2.	Copy of deed of transfer of rights over shares, if there are transfers of rights over shares other than due to sales;
3.	Copy of purchase and sale deed, if there is a sale of shares between shareholders;
4.	Proof of fund placement in the Organizer's account or shareholder's account, if ownership changes are caused by additions to paid-up capital carried out via cash deposits that do not result in new PSPs, in the form of:
a.	Photocopy of shareholder bank statements showing funds leaving to the Organizer as capital deposits, legalized by the bank; and
b.	Photocopy of Organizer bank statements showing funds entering from shareholders as capital deposits, legalized by the bank.
5.	Proof of fund placement in the old shareholder's account if ownership changes are caused by sales.
6.	Proof that capital does not come from loans, in the form of:
a.	Debtor data from the Financial Services Information System (SLIK) of the Financial Services Authority or other equivalent documents; and
b.	Other documents showing financial capacity to carry out participation.
7.	Statement letter from shareholders stating that capital deposits do not come from loans, terrorism financing, proliferation financing of weapons of mass destruction, and other financial crimes in cases where there is additional capital from shareholders carried out in the form of cash deposits.
8.	Financial report of the Organizer after ownership changes caused by additions to paid-up capital signed by the Board of Directors of the Organizer.

Table 16: List of Documents for Reporting Changes in Purpose and Objectives as well as Business Activities of Organizers

NO.	DOCUMENT LIST	DESCRIPTION
1.	Copy of GMS deed and/or copy of deed of amendment of articles of association. Accompanied by proof of fulfillment of applicable regulatory provisions.
2.	Proof of approval or recording from competent agencies.
3.	Example of service cooperation agreements.

Table 17: List of Documents for Reporting Changes in Name and Electronic System of Organizers

NO.	DOCUMENT LIST	DESCRIPTION
1.	Copy of GMS deed and/or copy of deed of amendment of articles of association. Accompanied by proof of fulfillment of applicable regulatory provisions.
2.	Proof of approval or recording from competent agencies.
3.	Photocopy of tax identification number under the new name of the Organizer.
4.	Screenshot proof of realization of name and/or electronic system changes on the Electronic System used by the Organizer.

Table 18: List of Documents for Reporting Changes in Domicile of Organizer Headquarters

NO.	DOCUMENT LIST	DESCRIPTION
1.	Copy of GMS deed and/or copy of deed of amendment of articles of association. Accompanied by proof of fulfillment of applicable regulatory provisions.
2.	Proof of approval or recording from competent agencies.
3.	Proof of address information from local government.
4.	Proof of Ownership or control of office building
5.	Photocopy of tax identification number under the new address of the Organizer.
6.	Screenshot proof of listing changes in the domicile of the Organizer's headquarters on the Electronic System used by the Organizer.

Table 19: List of Documents for Reporting Plans to Issue Securities in the Form of Shares Through Public Offerings

NO.	DOCUMENT LIST	DESCRIPTION
1.	Details of the plan for use of funds to be obtained from public offerings.
2.	History of previous security issuances (if any) containing at least information regarding:
a.	size of security emissions;
b.	rating for debt securities;
c.	duration for debt securities; and
d.	profile of debt security holders.
3.	Projection of financial reports for the next 3 (three) years.
4.	Information regarding significant events and transactions after the date of the financial report audited by a public accounting firm.
5.	Management statement letter in the field of accounting issued by the public accounting firm regarding the plan to issue securities.

Table 20: List of Documents for Reporting Changes in Members of the Board of Directors, Members of the Board of Commissioners, and Members of DPS

NO.	DOCUMENT LIST	DESCRIPTION
1.	Copy of GMS deed and/or copy of deed of amendment of articles of association.
2.	Proof of approval or recording from competent agencies.
3.	Proof of fulfillment of regulatory provisions in cases where Key Parties are Foreign Nationals.

Table 21: List of Document Requirements for Application for Approval of Plans to Implement Mergers or Consolidations

No.	Document List	Description
1.	Work plan for implementing Merger or Consolidation, at least containing:
a.	Implementation steps;
b.	Implementation timeline; and
c.	Plan for notification to Users and other stakeholders.
2.	Draft minutes of GMS and/or amendment of articles of association for Organizers in the form of cooperative legal entities, approving Merger or Consolidation.
3.	Draft deed of Merger or Consolidation.
4.	Draft deed of establishment of the Organizer resulting from Consolidation.
5.	Draft list of ownership, for Organizers that will carry out Merger or Consolidation.
6.	Latest financial report audited by a public accountant registered with the Financial Services Authority for each Organizer.
7.	Proforma financial report of the Organizer resulting from Merger or Consolidation.
8.	Organizational structure resulting from Merger or Consolidation.
9.	List of shareholders/members and details of the size of each shareholding down to the ultimate shareholder and/or beneficial owner resulting from Merger or Consolidation. Ultimate shareholders are commonly known as ultimate shareholder. Beneficial owners are commonly known as beneficial owner.
10.	Business feasibility study for the first 3 (three) years of the Organizer resulting from Merger or Consolidation.

Table 22: List of Documents for Reporting Implementation of GMS Approving Merger or Consolidation

No.	Document List	Description
1.	Copy of minutes of GMS and/or amendment of articles of association for Organizers in the form of cooperative legal entities, approving Merger or Consolidation.
2.	Copy of deed of Merger, or Consolidation.
3.	Copy of deed of establishment of the Organizer resulting from Consolidation.
4.	Latest Articles of Association resulting from Merger or Consolidation.
5.	Document stating that the Organizer has no tax debts from the competent agency
6.	Proof of announcement of Merger or Consolidation. Proof of announcement is done among others through national newspapers and/or website of the Organizer

Table 23: List of Document Requirements for Application for Approval of Associations

No.	Document List	Description
1.	Copy of establishment deed accompanied by proof of approval by the competent agency
2.	Organizational structure containing personnel composition consisting of the Board of Directors, Board of Commissioners, and functions in the Organizer's business activities.
3.	Articles of Association and Bylaws. AD/ART has received approval from the relevant institution
4.	Code of Ethics
5.	Management Data
a.	Photocopy of ID cards in the form of identity cards (KTP) or still-valid passports;
b.	photocopy of tax identification number (NPWP);
c.	curriculum vitae completed with the latest color passport photo sized 4x6cm;
d.	stamped statement letter from the concerned party stating:
1)	does not have bad credit and/or financing;
2)	is not included in the list of parties prohibited from becoming shareholders or parties managing, supervising, and/or having significant influence on financial service institutions;
3)	has never been sentenced for committing criminal acts based on final court decisions within the last 5 (five) years;
4)	has never been declared bankrupt or guilty causing a company or enterprise to be declared bankrupt based on final court decisions within the last 5 (five) years;
5)	has never been a PSP, member of the board of directors, member of the board of commissioners, or member of the Sharia supervisory board at a financial service company whose business license was revoked due to violations within the last 5 (five) years;

Table 24: List of Document Requirements for Reporting Changes in Management, Articles of Association and/or Bylaws, and/or Code of Ethics of Associations

No.	Document List	Description
1.	Copy of establishment deed accompanied by proof of approval by the competent agency
2.	Organizational structure containing personnel composition consisting of the Board of Directors, Board of Commissioners, and functions in the Organizer's business activities.
3.	Articles of Association and Bylaws. AD/ART has received approval from the relevant institution
4.	Code of Ethics
5.	Management Data
a.	Photocopy of ID cards in the form of identity cards (KTP) or still-valid passports;
b.	photocopy of tax identification number (NPWP);
c.	curriculum vitae completed with the latest color passport photo sized 4x6cm;
d.	stamped statement letter from the concerned party stating:
1)	does not have bad credit and/or financing;
2)	is not included in the list of parties prohibited from becoming shareholders or parties managing, supervising, and/or having significant influence on financial service institutions;
3)	has never been sentenced for committing criminal acts based on final court decisions within the last 5 (five) years;
4)	has never been declared bankrupt or guilty causing a company or enterprise to be declared bankrupt based on final court decisions within the last 5 (five) years;
5)	has never been a PSP, director, member of the board of commissioners, or member of the Sharia supervisory board at a financial service company whose business license was revoked due to violations within the last 5 (five) years;

Table 25: List of Document Requirements for Application for Revocation of Business License

No.	Document List	Description
1.	Reasons for ceasing operational activities.
2.	Plan for settling User rights and obligations. What is meant by the plan for settling User rights and obligations, among others:
a.	Method for settling User rights;
b.	magnitude of User rights;
c.	effective time for settling rights.
3.	Minutes of GMS regarding the plan to cease Organizer business activities.
4.	Financial report audited by a Public Accountant registered with the Financial Services Authority.
5.	Details of funding positions, at least containing:
a.	List of Fund Providers;
b.	List of Fund Recipients;
c.	Total outstanding for each Fund Provider and Fund Recipient; and
d.	Total outstanding for each funding quality.
6.	Funding disbursement agreements for each funding that is still outstanding and its amendments (if any).

Table 26: List of Documents for Reporting Implementation of Obligations After Approval of Business License Revocation Based on Self-Request

No.	Document List	Description
1.	Proof of implementation of cessation of Organizer business activities.
2.	Proof of implementation of announcement.
3.	Proof of implementation of settlement of Organizer rights and obligations.
4.	Closing Balance Sheet of the Organizer audited by a public accountant.
5.	Statement letter from shareholders stating that all rights and obligations of the Organizer have been settled and if there are claims and lawsuits in the future, they become the responsibility of the shareholders.

Table 27: List of Document Requirements for Approval of Extension of Liquidation Implementation Period

No.	Document List	Description
1.	Copy of GMS extending the time for Liquidation implementation
2.	List of Liquidation Team
3.	Latest Report of the Liquidation Team
4.	Work Plan of the Liquidation Team Including previous work plans.

Table 28: List of Document Requirements for Approval to Carry Out Other Activities

NO.	DOCUMENT LIST	DESCRIPTION
1.	Products to be marketed
2.	Product prospect analysis
3.	Fee-based activity mechanisms
4.	Rights and obligations of the parties
5.	Example of agreements to be used. Agreements can add the use of foreign languages. If there is a difference in interpretation, the agreement using the Indonesian language prevails.
6.	Risk management strategy for new products
7.	Product disclosure mechanisms

Table 29: List of Documents for Reporting Data Exchange Cooperation

No.	List of Documents	Description
1.	Business license from the authority	During the implementation of cooperation
2.	Data exchange cooperation agreement document, which must contain at least:	The agreement may add the use of a foreign language. If there is an interpretation difference, the agreement using the Indonesian language prevails.<br>a. The parties<br>b. Purpose and scope of cooperation<br>c. Details of data provided<br>d. Rights and obligations of the parties<br>e. Data security and protection<br>f. Duration of cooperation implementation<br>g. Data deletion
3.	Data confidentiality agreement document, which must contain at least:	The agreement may add the use of a foreign language. If there is an interpretation difference, the agreement using the Indonesian language prevails.<br>a. The parties<br>b. Definition of confidential information<br>c. Purpose of disclosure<br>d. Rights and obligations of the parties<br>e. Data security and protection. Not disclosing or using data for purposes other than those agreed upon.<br>f. Duration of confidentiality. Remains valid even after the agreement has ended.

Table 30: List of Documents for Reporting Branch Office Opening

No.	List of Documents	Description
1.	Description of office name and function
2.	Domicile letter	From the competent authority or equivalent document for the Organizer.
3.	Board of Directors decision letter	Regarding the opening of the branch office.
4.	Proof of ownership or control of the branch office	Showing the branch office address along with photos of the building exterior, interior, and room layout. Proof of ownership or control of the office building can be evidenced by, among others, deeds from competent authorities or proof of lease agreements.
5.	Description stating the name, duties, and authority of the office head	Accompanied by:<br>a. Photocopy of identity documents in the form of a valid ID card or passport;<br>b. Photocopy of the tax identification number for Indonesian citizens or equivalent documents valid for foreign citizens;<br>c. Curriculum vitae; and<br>d. 2 (two) sheets of recent color passport photos with size 4 x 6 cm.
6.	Proof of appointment letter for branch office head
7.	Branch office work system and procedures
8.	Organizational structure
9.	Proof of inclusion of global positioning system (GPS) address of the branch office on the Electronic System website

Table 31: List of Documents for Reporting Branch Office Closure

No.	List of Documents	Description
1.	Cover letter containing reasons for branch office closure	The cover letter is signed by the Board of Directors.
2.	Proof of submission of announcement	Via the Electronic System used by the Organizer to Users regarding the closure of the branch office.
3.	Proof of submission of service transfer	From the closed branch office to the head office or nearest branch office.
4.	Proof of deletion of global positioning system (GPS) address of the branch office	From the Electronic System website.

Table 32: List of Documents for Reporting Changes to Organizer Name and/or Electronic System

No.	List of Documents	Description
1.	Document proving notification or approval from the competent authority	For example, for Organizers in the form of a Limited Liability Company (PT), approval from the Ministry of Law must be obtained.

Table 33: List of Documents for Reporting Changes to Head Office and Branch Office Address

No.	List of Documents	Description
1.	Data regarding the office address	Accompanied by supporting documents from the competent authority stating at least the name and address of the Organizer.
2.	Proof of ownership or control of the office building	Showing the Organizer's office address along with photos of the building exterior, interior, and room layout. Proof of ownership or control of the office building can be evidenced by, among others, deeds from competent authorities or proof of lease agreements.
3.	Proof of inclusion of global positioning system (GPS) address of the head office and non-head offices	On the Electronic System website.

Table 34: List of Documents for Reporting Changes to Business Model

NO.	LIST OF DOCUMENTS	DESCRIPTION
1.	Business feasibility study	Which must contain at least an explanation of the business model and a 3 (three) year or more Funding projection.
2.	Cost-benefit analysis
3.	Risk analysis and mitigation
4.	Cooperation agreements with other parties, if any	The agreement may add the use of a foreign language. If there is an interpretation difference, the agreement using the Indonesian language prevails.

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

Table 35: List of Documents for Reporting Changes to Mobile Device Operating Systems Used on the Electronic System

NO.	LIST OF DOCUMENTS	DESCRIPTION
1.	Business feasibility study	Which must contain at least an explanation of the business model and a 3 (three) year or more Funding projection.
2.	Cost-benefit analysis
3.	Risk analysis and mitigation
4.	Cooperation agreements with other parties, if any	The agreement may add the use of a foreign language. If there is an interpretation difference, the agreement using the Indonesian language prevails.
5.	Copy of application interface
6.	Report on the results of electronic system penetration testing	From an institution recognized by the competent authority

DEPUTY CHAIRMAN OF THE COMMISSIONERS BOARD
FINANCIAL SERVICES AUTHORITY OF THE
REPUBLIC OF INDONESIA AS A SUBSTITUTE MEMBER OF THE COMMISSIONERS BOARD OF THE FINANCIAL SERVICES AUTHORITY REPUBLIC OF INDONESIA, MIRZA ADITYASWARA signed

Financial Services Authority Regulation No. 40 of 2024 on Information Technology-Based Collective Financing Services

Part Three

Board of Commissioners

Part Four

Sharia Supervisory Board

Part Five

General Meeting of Funders

Part Six

Internal Audit

Part Seven

Administrative Sanctions

CHAPTER XX

ORGANIZER RISK MANAGEMENT

Part One

Application of Risk Management

Part Two

Administrative Sanctions

CHAPTER XXI

SUPERVISION AND DETERMINATION OF SUPERVISION STATUS

Part One

Supervision

Part Two

Determination of Supervision Status

Part Three

Criteria for Supervision Status

Part Four

Follow-up on Supervision Status and Procedures for Submitting Supervision Status Reports

CHAPTER XXII

SUBMISSION OF LICENSING APPLICATIONS, APPROVAL APPLICATIONS, AND REPORTING VIA NETWORK

CHAPTER XXIII

BENEFICIAL OWNERS

CHAPTER XXIV

OTHER PROVISIONS

CHAPTER XXV

TRANSITIONAL PROVISIONS

Lineage: In force

Timeline