Financial Services Authority Regulation Number 1/POJK.05/2017 Regarding Business Licensing and Institutional Framework of Guarantee Institutions

FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 1 /POJK.05/20172017
REGARDING
BUSINESS LICENSING AND INSTITUTIONAL FRAMEWORK OF GUARANTEE INSTITUTIONS BY THE GRACE OF GOD THE ALMIGHTY THE COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY,

Considering: that to implement the provisions of Article 9 paragraph (4), Article 12 paragraph (3), Article 14 paragraph (3), Article 18 paragraph (5), Article 22 paragraph (2), Article 23 paragraph (5), Article 25 paragraph (3), Article 29 paragraph (9), Article 52 paragraph (6), and Article 62 paragraph (2) of Law Number 1 of 2016 concerning Guarantees, it is necessary to establish a Financial Services Authority Regulation concerning Business Licensing and Institutional Framework of Guarantee Institutions;

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);
2. Law Number 1 of 2016 concerning Guarantees (State Gazette of the Republic of Indonesia Year 2016 Number 9, Supplement to the State Gazette of the Republic of Indonesia Number 3835);

COPY

DECIDES:
Establish: FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING BUSINESS LICENSING AND INSTITUTIONAL FRAMEWORK OF GUARANTEE INSTITUTIONS.

CHAPTER I
GENERAL PROVISIONS

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

1. Guarantee is the activity of providing a guarantee by the Guarantor for the fulfillment of the financial obligations of the Guaranteed party to the Guarantee Recipient as referred to in Law Number 1 of 2016 concerning Guarantees.

2. Sharia Guarantee is the activity of providing a guarantee by the Guarantor for the fulfillment of the financial obligations of the Guaranteed party to the Guarantee Recipient based on Sharia Principles as referred to in Law Number 1 of 2016 concerning Guarantees.

3. Sharia Principles are Islamic legal principles in guarantee activities based on fatwas issued by institutions having the authority to issue fatwas in the field of Sharia as referred to in Law Number 1 of 2016 concerning Guarantees.

4. Re-guarantee is the activity of providing a guarantee for the fulfillment of the financial obligations of the Guarantee Company as referred to in Law Number 1 of 2016 concerning Guarantees.

5. Sharia Re-guarantee is the activity of providing a guarantee for the fulfillment of the financial obligations of the Sharia Guarantee Company and Sharia Business Unit as referred to in Law Number 1 of 2016 concerning Guarantees.

6. Guarantee Institution is a Guarantee Company, Sharia Guarantee Company, Re-guarantee Company, and Sharia Re-guarantee Company that conducts guarantee activities as referred to in Law Number 1 of 2016 concerning Guarantees.

7. Guarantee Company is a legal entity operating in the financial sector with its main business activity being Guarantee as referred to in Law Number 1 of 2016 concerning Guarantees.

8. Sharia Guarantee Company is a legal entity operating in the financial sector with its main business activity being Sharia Guarantee as referred to in Law Number 1 of 2016 concerning Guarantees.

9. Re-guarantee Company is a legal entity operating in the financial sector with its business activity being Re-guarantee as referred to in Law Number 1 of 2016 concerning Guarantees.

10. Sharia Re-guarantee Company is a legal entity operating in the financial sector with its business activity being Sharia Re-guarantee as referred to in Law Number 1 of 2016 concerning Guarantees.

11. Guarantor is the party conducting guarantee activities as referred to in Law Number 1 of 2016 concerning Guarantees.

12. Guarantee Recipient is a financial institution or non-financial institution that has provided Credit, Financing, Sharia-Based Financing, or service contracts to the Guaranteed party as referred to in Law Number 1 of 2016 concerning Guarantees.

13. Guaranteed party is the party that has obtained Credit, Financing, Sharia-Based Financing, or service contracts from a financial institution or non-financial institution which is guaranteed by the Guarantee Company or Sharia Guarantee Company as referred to in Law Number 1 of 2016 concerning Guarantees.

14. Credit is the provision of money or receivables that can be equated with it, based on a loan agreement or consensus made by a bank or cooperative with another party, obligating the borrower to repay their debt after a certain period with the provision of interest as referred to in Law Number 1 of 2016 concerning Guarantees.

15. Financing is the provision of financial facilities or receivables that can be equated with it, based on an agreement or consensus made by a financing institution with another party, obligating the financed party to repay their debt after a certain period as referred to in Law Number 1 of 2016 concerning Guarantees.

16. Sharia-Based Financing is financing as referred to in laws regulating Sharia banking.

17. Sharia Business Unit hereinafter referred to as UUS, is a working unit of the Guarantee Company functioning as the head office of offices or units conducting Sharia Guarantee activities as referred to in Law Number 1 of 2016 concerning Guarantees.

18. Financial Institution is a bank and non-bank financial institution.

19. Branch Office is an office of the Guarantee Institution that is directly responsible to the head office or UUS.

20. Guarantee Certificate is proof of the Guarantee Agreement from the Guarantee Company to the Guarantee Recipient regarding the financial obligations of the Guaranteed party as referred to in Law Number 1 of 2016 concerning Guarantees.

21. Kafalah Certificate is proof of the Sharia Guarantee Agreement from the Sharia Guarantee Company and UUS to the Guarantee Recipient regarding the financial obligations of the Guaranteed party as referred to in Law Number 1 of 2016 concerning Guarantees.

22. Controlling Shareholder hereinafter abbreviated as PSP is Any Person who:
    a. directly holds shares or capital of the Guarantee Institution amounting to 25% (twenty-five percent) or more of the issued shares and having voting rights; or b. directly holds shares or capital of the Guarantee Institution less than 25% (twenty-five percent) of the issued shares and having voting rights but the person concerned can be proven to have controlled the Guarantee Institution, either directly or indirectly.

23. Paid-up Capital:
    a. for Guarantee Institutions in the form of a limited liability company is paid-up capital; b. for Guarantee Institutions in the form of a cooperative legal entity is principal savings and mandatory savings; or
    c. for Guarantee Institutions in the form of a state-owned enterprise legal entity is state capital participation.

24. Board of Directors is the board of directors as referred to in Law Number 40 of 2007 concerning

Limited Liability Companies for Guarantee Institutions in the form of a limited liability company legal entity or equivalent to the Board of Directors for Guarantee Institutions in the form of a state-owned enterprise or cooperative legal entity.
25. Board of Commissioners is the board of commissioners as referred to in Law Number 40 of 2007 concerning Limited Liability Companies for Guarantee Institutions in the form of a limited liability company legal entity or equivalent to the Board of Commissioners for Guarantee Institutions in the form of a state-owned enterprise or cooperative legal entity.
26. Sharia Supervisory Board hereinafter abbreviated as DPS is a part of the organ of the Sharia Guarantee Company, Sharia Re-guarantee Company, and Guarantee Company having a UUS that has the task and function of supervision over the implementation of Sharia Guarantee and Sharia Re-guarantee business activities to ensure compliance with Sharia Principles.
27. General Meeting of Shareholders hereinafter abbreviated as GMS is the general meeting of shareholders as referred to in Law Number 40 of 2007 concerning Limited Liability Companies for Guarantee Institutions in the form of a limited liability company legal entity or equivalent to the GMS for Guarantee Institutions in the form of a state-owned enterprise or cooperative legal entity.
28. Merger is a legal act performed by 2 (two) or more Guarantee Institutions to merge by establishing 1 (one) new Guarantee Institution which by law acquires the assets, liabilities, and equity of the merging Guarantee Institutions and the legal entity status of the merging Guarantee Institutions ends by law.

29. Consolidation is a legal act performed by 1 (one) or more Guarantee Institutions to merge with an existing Guarantee Institution resulting in the assets, liabilities, and equity of the consolidating Guarantee Institution transferring by law to the Guarantee Institution receiving the consolidation and subsequently the legal entity status of the consolidating Guarantee Institution ends by law.
30. Takeover is a legal act performed by a legal entity or individual to take over the shares of a Guarantee Institution resulting in the transfer of control over that Guarantee Institution.
31. Separation is a legal act performed by a Guarantee Institution to separate business operations resulting in all assets, liabilities, and equity of the Guarantee Institution transferring by law to 2 (two) or more legal entities, or part of the assets, liabilities, and equity of the Guarantee Institution transferring by law to 1 (one) or more legal entities.
32. Professional Certification Institution is an institution conducting professional certification activities that obtains a license from a state institution authorized to grant licenses to professional certification institutions in Indonesia.
33. Any Person is an individual or business entity, whether in the form of a legal entity or not, as referred to in Law Number 1 of 2016 concerning Guarantees.

CHAPTER II
LEGAL ENTITY FORMS AND CAPITAL
First Section
Legal Entity Forms

Article 2
The legal entity form of the Guarantee Institution is:
a. state-owned enterprise; b. limited liability company; or
c. cooperative.

Article 3
Guarantee Institutions in the form of a state-owned enterprise legal entity as referred to in Article 2 letter a can only be owned by the central government in accordance with laws regulating state-owned enterprises.

Article 4
(1) Guarantee Institutions in the form of a limited liability company legal entity as referred to in Article 2 letter b can only be owned by:
a. Indonesian citizens and/or Indonesian legal entities that are directly or indirectly wholly owned by Indonesian citizens; b. Indonesian citizens and/or Indonesian legal entities as referred to in letter a together with foreign citizens or foreign legal entities;
c. the central government; and/or
d. local governments.
(2) Foreign ownership in Guarantee Institutions in the form of a limited liability company legal entity, either directly or indirectly, is at most 30% (thirty percent) of the Paid-up Capital.

(3) Foreign ownership in Guarantee Institutions as referred to in paragraph (2) must be paid in the form of money placed in a domestic bank account in the name of the Guarantee Institution. (4) Foreign legal entities as referred to in paragraph (1) letter b must be financial service institutions in their country of origin.

Article 5
Guarantee Institutions in the form of a cooperative legal entity as referred to in Article 2 letter c can only be owned by cooperative members in accordance with laws regulating cooperatives.

Article 6
Guarantee Institutions in the form of a cooperative legal entity as referred to in Article 2 letter c that conduct guarantee activities cannot act as Guarantee Recipients and/or Guaranteed parties.

Second Section
Capital

Article 7
(1) Paid-up Capital in Guarantee Institutions is determined according to the operational area scope.
(2) The amount of Paid-up Capital for Guarantee Companies and Sharia Guarantee Companies is determined to be at least:
a. IDR 100,000,000,000.00 (one hundred billion rupiah), for the national scope; b. IDR 25,000,000,000.00 (twenty-five billion rupiah), for the provincial scope; or
c. IDR 10,000,000,000.00 (ten billion rupiah), for the district or city scope.

(3) The amount of Paid-up Capital for Re-guarantee Companies and Sharia Re-guarantee Companies for all operational area scopes is determined to be at least IDR 200,000,000,000.00 (two hundred billion rupiah). (4) Paid-up Capital as referred to in paragraph (2) and paragraph (3) must be paid in cash and in full in the form of time deposits in the name of the Guarantee Company and Re-guarantee Company at one of the general banks or Sharia general banks in Indonesia. (5) Paid-up Capital as referred to in paragraph (2) and paragraph (3) must be paid in cash and in full in the form of time deposits in the name of the Sharia Guarantee Company and Sharia Re-guarantee Company at one of the Sharia general banks or Sharia business units of general banks in Indonesia.

Third Section
Operational Area Scope

Article 8
(1) The operational area scope of Guarantee Institutions consists of national, provincial, and district/city areas.
(2) The operational area scope of Guarantee Institutions must be clearly stated in the Articles of Association of the Guarantee Institution.

Article 9
(1) Guarantee Institutions are prohibited from opening Branch Offices outside their operational area scope.
(2) Guarantee Institutions with a provincial or district/city scope are prohibited from conducting direct Guarantee or Sharia Guarantee activities with Guaranteed parties outside their operational area. (3) Guarantee Institutions with a provincial or district/city scope are prohibited from conducting indirect Guarantee or Sharia Guarantee activities with Guaranteed parties outside their operational area, unless they meet the following provisions:
a. The Guarantee Institution collaborates with other Guarantee Institutions outside its operational area scope through a joint Guarantee or Sharia Guarantee mechanism; or b. The Guaranteed party is a debtor of the Guarantee Recipient owned by the same shareholders as the Guarantee Institution.

CHAPTER III
OWNERSHIP

Article 10
(1) In the event that the shareholder is an Indonesian legal entity, the amount of capital participation in the Guarantee Institution is determined to be at most:
a. the equity of the concerned legal entity if there are no other participations; or b. the equity of the concerned legal entity minus the amount of other participations already made if there are other participations. (2) Equity as referred to in paragraph (1) is:
a. the sum of Paid-up Capital, reserves, and retained earnings if the owning legal entity is in the form of a limited liability company and state-owned enterprise; or b. the sum of principal savings, mandatory savings, donations, capital participation, reserve funds, and remaining business results if the owning legal entity is in the form of a cooperative.

Article 11
(1) Any Person can only become a PSP in 1 (one) Guarantee Company, 1 (one) Sharia Guarantee Company, 1 (one) Re-guarantee Company, and/or 1 (one) Sharia Re-guarantee Company.

(2) The provisions as referred to in paragraph (1) do not apply if the PSP is the government and/or local government.

CHAPTER IV
BUSINESS LICENSES

Article 12
(1) Any Person conducting business in Guarantee, Sharia Guarantee, Re-guarantee, and Sharia Re-guarantee must first obtain a business license from the Financial Services Authority. (2) To obtain a business license as referred to in paragraph (1), the Board of Directors must submit a business license application to the Financial Services Authority.

Article 13
(1) The business license application as referred to in Article 12 paragraph (2) must be submitted by the Board of Directors to the Financial Services Authority using Format 1 as stated in the Appendix which is an integral part of this Financial Services Authority Regulation. (2) The submission of the business license application as referred to in paragraph (1) must be accompanied by documents:
a. photocopy of the deed of establishment of the legal entity that has been certified by the competent authority, which must at least contain:

1. name, domicile, and operational area scope;
2. purpose and objectives as well as business activities;
3. capital;
4. ownership; and
5. authority, responsibility, and term of office of Board of Directors members, Board of Commissioners members and/or DPS members,
   and changes to the articles of association (if any) accompanied by proof of certification, approval, and/or

notification acceptance letter from the competent authority; b. organizational structure depicting risk management functions, financial management functions, and service functions established by the Board of Directors, complete with personnel structure, job descriptions, authority, and responsibility;
c. data on shareholders or members other than PSP:

1. in the event that the shareholder or member is an individual, the documents attached are:
   a) 1 (one) sheet of the latest 4 x 6 cm passport photo; b) photocopy of identification card such as citizen identity card (KTP) or valid passport; c) curriculum vitae; d) photocopy of tax identification number (NPWP); e) photocopy of tax return (SPT) for the last 1 (one) year; f) shareholder statement letter stating that:

1. capital deposits do not originate from loans;

2. capital deposits do not originate from money laundering activities and financial crimes;

3. do not have non-performing loans and/or financing;

4. 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;

5. have never been sentenced for committing criminal offenses in the field of financial services business and/or economy based on a court decision that has had permanent legal force in the last 5 (five) years;

6. have never been sentenced for committing criminal offenses based on a court decision that has had permanent legal force in the last 5 (five) years;

7. have never been declared bankrupt or declared guilty causing a company/company to be declared bankrupt based on a court decision having permanent legal force in the last 5 (five) years;
   and

8. have never been a controlling shareholder, board of directors member, board of commissioners member, or board of Sharia supervisory member at a financial service company whose business license was revoked due to violations in the last 5 (five) years;

2. in the event that the shareholder is a legal entity, the documents attached are:
   a) photocopy of the deed of establishment of the legal entity, including the latest articles of association and amendments that have taken effect in accordance with prevailing regulations;

b) financial reports audited by public accountants and/or the latest financial reports; c) list of shareholders including details of each share ownership accompanied by supporting documents showing ownership percentage both directly and indirectly; d) photocopy of tax identification number (NPWP); and e) data on the board of directors of the legal entity including:

1. 1 (one) sheet of the latest 4 x 6 cm passport photo;
2. photocopy of identification card such as citizen identity card (KTP) or valid passport;
3. curriculum vitae;
4. photocopy of tax identification number (NPWP); and
5. statement letter from the board of directors or equivalent of the concerned legal entity stating that:
   (a) capital deposits do not originate from loans; (b) capital deposits do not originate from money laundering activities and financial crimes; (c) do not have non-performing loans and/or financing; (d) 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; (e) have never been declared bankrupt or declared guilty causing a company/company to be declared bankrupt based on a court decision having permanent legal force in the last 5 (five) years; and (f) have never been a controlling shareholder at a financial service company whose business license was revoked due to violations in the last 5 (five) years;

3. in the event that the shareholder is the Republic of Indonesia, a photocopy of the Government Regulation regarding state capital participation by the Republic of Indonesia for the establishment of the Guarantee Institution is attached; and
4. in the event that the shareholder is a local government, a photocopy of the Regional Regulation regarding regional capital participation for the establishment of the Guarantee Institution is attached;
   d. work system and procedures for Guarantee, Sharia Guarantee, Re-guarantee, or Sharia Re-guarantee business activities consisting of:
5. standard operating procedures;
6. examples of cooperation agreements; and
7. examples of Guarantee Certificates or Kafalah Certificates to be used by the Guarantee Institution;

e. proof of employing Guarantee or Sharia Guarantee experts consisting of:

1. proof of appointment of experts; and
2. supporting documents fulfilling expert requirements;
   f. photocopy of proof of settlement of Paid-up Capital in the form of cash deposits from shareholders or members and photocopy of proof of placement of minimum Paid-up Capital in the form of time deposits in the name of the concerned Guarantee Institution at:
3. one of the general banks or Sharia general banks in Indonesia for Guarantee Companies or Re-guarantee Companies; or
4. one of the Sharia general banks or Sharia business units of general banks in Indonesia for Sharia Guarantee Companies or Sharia Re-guarantee Companies,
   which is legalized by the receiving bank and remains valid during the business license application process; g. work plan for the first 3 (three) years at least containing:
5. feasibility study regarding market opportunities and economic potential;
6. business activity plan of the Guarantee Institution and steps of activities to be carried out to realize the aforementioned plan; and
7. projection of monthly financial position reports, profit and loss reports, and cash flow reports and the underlying assumptions starting from when the Guarantee Institution commences operational activities;

---

h. evidence of infrastructure readiness at minimum consisting of:

1. a list of fixed assets and inventory along with proof of ownership or control;
2. proof of ownership or control of the office building; and
3. a photocopy of the tax identification number (NPWP);
   i. confirmation from the supervisory authority in the home country of the foreign party, if there is direct participation by a foreign party; and
   j. other documents to support healthy business growth, including:
4. a photocopy of the Extraordinary General Meeting of Shareholders (EGMS) deed stating the appointment of the Sharia Supervisory Board (DPS), for Sharia Guarantee Companies or Sharia Reinsurance Companies;
5. initial/closing financial position reports of the Guarantee Institution;
6. human resources development plans, including human resource development plans for at least the next 3 (three) years;
7. a photocopy of good governance guidelines for the Guarantee Institution;
8. a photocopy of cooperation agreements between foreign and Indonesian parties, for Guarantee Institutions that include participation from foreign legal entities or foreign citizens, which are made in the Indonesian language and at minimum contain:
   a) capital composition, composition of the Board of Directors members, and composition of the Board of Commissioners members as referred to in applicable regulations on guarantee; and b) obligations of the foreign party to formulate and implement education and training programs according to their field of expertise; and
9. proof of payment of licensing fees in the context of granting business licenses.
   (3) The business license application as referred to in paragraph (1) is submitted simultaneously with the application for fitness and propriety assessment for prospective members of the Board of Directors, members of the Board of Commissioners, Sharia Supervisory Board (PSP), and members of the Sharia Supervisory Board (DPS) of the Guarantee Institution. (4) Regulations regarding the fitness and propriety assessment for prospective members of the Board of Directors, members of the Board of Commissioners, Sharia Supervisory Board (PSP), and members of the Sharia Supervisory Board (DPS) of the Guarantee Institution, and the application format for the fitness and propriety assessment as referred to in paragraph (3) are regulated in Financial Services Authority Regulations regarding fitness and propriety assessment.

Article 14
(1) The Financial Services Authority grants approval, requests document completeness, or rejects the business license application as referred to in Article 13 paragraph (1) within a maximum period of 20 (twenty) working days since the business license application is received. (2) In order to grant approval or rejection as referred to in paragraph (1), the Financial Services Authority conducts:
a. examination of document completeness; b. examination of capital deposits;
c. feasibility analysis of the work plan as referred to in Article 13 paragraph (2) letter g;
d. fitness and propriety assessment of prospective members of the Board of Directors, members of the Board of Commissioners, Sharia Supervisory Board (PSP), and members of the Sharia Supervisory Board (DPS) of the Guarantee Institution; and e. analysis of compliance with regulations in the field of guarantee. (3) The Financial Services Authority may conduct inspections at the office of the Guarantee Institution to ensure the operational readiness of the Guarantee Institution. (4) The Board of Directors of the Guarantee Institution must submit the completeness of documents as referred to in paragraph (1) within a maximum of 20 (twenty) working days since the date of the document completeness request letter from the Financial Services Authority. (5) In the event that the Board of Directors of the Guarantee Institution has submitted the completeness of documents as referred to in paragraph (4), the Financial Services Authority grants approval or rejection in accordance with the provisions as referred to in paragraph (1). (6) If within 20 (twenty) working days since the date of the document completeness request letter as referred to in paragraph (1), the Financial Services Authority has not received a response to the document completeness request, the applicant is deemed to have cancelled the business license application. (7) In the event that the business license application is approved, the Financial Services Authority establishes the decision on the granting of the business license. (8) Rejection of the business license application as referred to in paragraph (1) is conducted in writing and accompanied by the reasons for rejection.

Article 15
(1) Guarantee Institutions that have received a business license from the Financial Services Authority must conduct business activities no later than 4 (four) months calculated from the date the business license is established by the Financial Services Authority. (2) Guarantee Institutions must submit reports on the implementation of business activities as referred to in paragraph (1) to the Financial Services Authority no later than 15 (fifteen) days calculated from the date the business activities begin. (3) Reporting on the implementation of business activities as referred to in paragraph (2) must be submitted by the Board of Directors to the Financial Services Authority using Format 2 as contained in the Appendix which is an integral part of this Financial Services Authority Regulation. (4) Reporting on the implementation of business activities as referred to in paragraph (2) must be accompanied by:
a. a photocopy of cooperation agreements (if any); b. Guarantee Certificates or Kafalah Certificates that have been issued; and
c. a photocopy of residence permits and/or work permits for foreign labor issued by competent authorities for members of the Board of Directors and/or Board of Commissioners who are foreign citizens.

Article 16
(1) The name of the Guarantee Institution as referred to in Article 13 paragraph (2) letter a number 1 must be clearly stated in the articles of association which begins with the form of legal entity and contains the word:
a. Guarantee or guarantee, for Guarantee Companies; b. Reinsurance or re-guarantee, for Reinsurance Companies;
c. Guarantee or guarantee and the word Sharia, for Sharia Guarantee Companies; or
d. Reinsurance or re-guarantee and the word Sharia, for Sharia Reinsurance Companies.
(2) The use of names as referred to in paragraph (1) for Guarantee Institutions in the form of limited liability companies must comply with regulations on limited liability companies.

CHAPTER V
SHARIA BUSINESS UNITS
First Section
Establishment of SBU
Article 17
(1) Guarantee Companies may conduct part of their Guarantee business activities based on Sharia Principles by establishing an SBU.
(2) Guarantee Companies that establish an SBU as referred to in paragraph (1) must comply with the following provisions:
a. containing the purpose and objectives of the Guarantee Company to conduct part of its business activities as Guarantee based on Sharia Principles in its articles of association; and b. having separate bookkeeping from the Guarantee Company.

Second Section
SBU Working Capital
Article 18
(1) SBU must have working capital amounting to:
a. Rp25,000,000,000.00 (twenty-five billion rupiah) for SBU from Guarantee Companies with national scope; b. Rp10,000,000,000.00 (ten billion rupiah) for SBU from Guarantee Companies with provincial scope; or
c. Rp5,000,000,000.00 (five billion rupiah) for SBU from Guarantee Companies with regency/city scope.

(2) Working capital as referred to in paragraph (1) must have been fully deposited in a Sharia commercial bank or a Sharia business unit of a commercial bank in Indonesia in the form of time deposits and has been legalized by the receiving bank and remains valid during the SBU license application process.

Third Section
SBU Licensing
Article 19
(1) The establishment of an SBU as referred to in Article 17 paragraph (1) must first obtain approval from the Financial Services Authority.
(2) To obtain SBU approval as referred to in paragraph (1), the Board of Directors of the Guarantee Company must submit an SBU license application to the Financial Services Authority using Format 3 as contained in the Appendix which is an integral part of this Financial Services Authority Regulation. (3) The submission of the SBU license application as referred to in paragraph (2) must be accompanied by:
a. amendments to the articles of association containing:

1. one of the purposes and objectives of the Guarantee Company, namely conducting Sharia Guarantee business activities; and
2. the authority and responsibilities of the Sharia Supervisory Board (DPS), accompanied by proof of approval and/or notification receipt letters from competent authorities;
   b. a photocopy of proof of minimum working capital deposits in the form of time deposits in the name of the Guarantee Company at one of the Sharia commercial banks or Sharia business units of commercial banks in Indonesia, legalized by the receiving bank and remaining valid during the SBU licensing process;
   c. Board of Directors decision letters of the Guarantee Company approving the placement of working capital in the SBU, accompanied by the amount of working capital placement;
   d. minutes of the Extraordinary General Meeting of Shareholders (EGMS) regarding the appointment of the Sharia Supervisory Board (DPS); e. SBU leadership data, including:
3. a photocopy of identification cards such as citizen identity cards (KTP) or valid passports;
4. a photocopy of the tax identification number (NPWP);
5. a curriculum vitae completed with 4 x 6 cm color photos;
6. proof of appointment as SBU leadership;
7. proof of expertise, training, and/or experience in the field of Sharia finance; and
8. a statement letter stating:
   a) does not have non-performing loans and/or financing; and b) does not hold concurrent positions in other functions within the same Guarantee Company, except if the SBU leadership is the Board of Directors; f. initial financial reports of the SBU separate from the business activities of the Guarantee Company; g. organizational structure illustrating the position of the SBU and the SBU structure established by the Board of Directors, accompanied by the number and composition of personnel, job descriptions, authority, and responsibilities; h. SBU work plans to be opened for the first 3 (three) years at minimum containing:
9. feasibility studies of market opportunities and economic potential;
10. Sharia Guarantee targets and steps taken to achieve the aforementioned targets;
11. work systems and procedures; and
12. monthly cash flow projections and underlying assumptions starting from when the SBU begins operational activities, as well as projections of financial position reports and financial performance reports.
    (4) The SBU license application as referred to in paragraph (2) is submitted simultaneously with the application for fitness and propriety assessment for prospective members of the Sharia Supervisory Board (DPS) of the Guarantee Company. (5) Regulations regarding the fitness and propriety assessment for prospective members of the Sharia Supervisory Board (DPS) of the Guarantee Company are conducted in accordance with provisions regulated in Financial Services Authority Regulations regarding fitness and propriety assessment.

Article 20
(1) The Financial Services Authority grants approval, requests document completeness, or rejects the SBU license application as referred to in Article 19 paragraph (2) within a maximum period of 20 (twenty) working days since the application is received. (2) In order to grant approval or rejection as referred to in paragraph (1), the Financial Services Authority conducts:
a. examination of document completeness; b. examination of SBU working capital deposits;
c. feasibility analysis of the SBU work plan as referred to in Article 19 paragraph (3) letter h;
d. fitness and propriety assessment of prospective members of the Sharia Supervisory Board (DPS); and e. analysis of compliance with regulations in the field of guarantee. (3) The Board of Directors of the Guarantee Company must submit the completeness of documents as referred to in paragraph (1) within a maximum of 20 (twenty) working days since the date of the document completeness request letter from the Financial Services Authority. (4) In the event that the Board of Directors of the Guarantee Company has submitted the completeness of documents as referred to in paragraph (3), the Financial Services Authority grants approval or rejection in accordance with the provisions as referred to in paragraph (1). (5) If within 20 (twenty) working days since the date of the document completeness request letter as referred to in paragraph (1), the Financial Services Authority has not received a response to the document completeness request, the Guarantee Company is deemed to have cancelled the SBU license application. (6) In the event that the SBU license application is approved, the Financial Services Authority establishes the decision on the granting of the SBU license to the respective Guarantee Company. (7) Rejection of the SBU license application as referred to in paragraph (1) is conducted in writing and accompanied by the reasons for rejection.

Article 21
(1) SBU must conduct Sharia Guarantee business activities no later than 3 (three) months calculated from the date the SBU license is established.
(2) SBU must submit reports on the implementation of Sharia Guarantee business activities to the Financial Services Authority no later than 15 (fifteen) working days since the date the SBU business activities begin. (3) Reporting on the implementation of SBU business activities as referred to in paragraph (2) must be conducted by the Board of Directors of the Guarantee Company using Format 4 as contained in the Appendix which is an integral part of this Financial Services Authority Regulation, accompanied by documents:
a. a photocopy of Sharia Guarantee cooperation agreements that have been issued (if any); and b. a photocopy of issued Kafalah Certificates.

Fourth Section
SBU Leadership
Article 22
(1) SBU must be led by an SBU leader.
(2) The SBU leader as referred to in paragraph (1) must at minimum comply with the following provisions:
a. does not have non-performing loans and/or financing; b. does not hold concurrent positions in other functions within the same Guarantee Company, except if the SBU leader is the Board of Directors; and
c. has expertise, training, and/or experience in the field of Sharia finance.

Article 23
(1) Guarantee Companies must report changes in SBU leadership to the Financial Services Authority no later than 15 (fifteen) working days since the date of the appointment of the SBU leader. (2) Reporting on changes in SBU leadership as referred to in paragraph (1) must be submitted by the Board of Directors of the Guarantee Company accompanied by documents as referred to in Article 19 paragraph (3) letter e.

Fifth Section
SBU Branch Offices
Article 24
(1) SBU may open SBU Branch Offices within the territory of the Republic of Indonesia according to its operational scope.
(2) SBU Branch Offices as referred to in paragraph (1) have the authority to:
a. decide and sign Kafalah Certificates; and b. determine to pay or reject claims.
(3) SBU Branch Offices as referred to in paragraph (1) must first obtain approval from the Financial Services Authority.
(4) SBU opening SBU Branch Offices must meet the following requirements:
a. does not violate Sharia financial health ratio regulations; b. is not currently subject to business activity suspension sanctions by the Financial Services Authority; and
c. has human resources with experience and/or training regarding Sharia finance.

Article 25
(1) To obtain approval for the opening of SBU Branch Offices as referred to in Article 24 paragraph (3), the Board of Directors of the Guarantee Company must submit an application to the Financial Services Authority using Format 5 as contained in the Appendix which is an integral part of this Financial Services Authority Regulation. (2) The application for approval for the opening of SBU Branch Offices as referred to in paragraph (1) must be accompanied by documents:
a. SBU Branch Office leadership data, including:

1. a photocopy of identification cards such as citizen identity cards (KTP) or valid passports; and
2. curriculum vitae;
   b. human resources data with experience and/or training regarding Sharia finance, accompanied by proof of experience and/or training attended;
   c. complete address data of the SBU Branch Office accompanied by proof of ownership or control of the office building; and
   d. work plans for the SBU Branch Office to be opened at minimum containing:
3. Sharia Guarantee targets and steps to achieve the aforementioned targets accompanied by supporting assumptions;
4. work systems and procedures;
5. organizational structure; and
6. number and composition of personnel.

Article 26
(1) The Financial Services Authority grants approval, requests document completeness, or rejects the approval for the opening of SBU Branch Offices as referred to in Article 25 paragraph (1) within a maximum period of 20 (twenty) working days since the complete application is received. (2) In order to process the application for approval for the opening of SBU Branch Offices, the Financial Services Authority conducts:
a. analysis and examination of document completeness as referred to in Article 25 paragraph (2); b. feasibility analysis of the work plan as referred to in Article 25 paragraph (2) letter d; and
c. analysis of compliance with regulations in the field of guarantee.
(3) If within 20 (twenty) working days since the date of the document completeness request letter as referred to in paragraph (1), the Financial Services Authority has not received a response to the document completeness request, the Guarantee Company is deemed to have cancelled the application for the opening of SBU Branch Offices. (4) In the event that the application for the approval of the establishment of SBU Branch Offices is approved, the Financial Services Authority establishes the decision on the granting of approval for the establishment of SBU Branch Offices to the respective Guarantee Company. (5) Rejection of the application for approval for the opening of SBU Branch Offices as referred to in paragraph (1) is accompanied by the reasons for rejection.

Article 27
(1) SBU intending to close SBU Branch Offices must first notify the Insured and/or Guarantee Recipients regarding:
a. plans to close SBU Branch Offices; and b. procedures for settling rights and obligations.
(2) Procedures for settling rights and obligations as referred to in paragraph (1) letter b must be conducted in accordance with applicable regulations and considering the interests of the Insured and/or Guarantee Recipients.

Article 28
(1) SBU must report the closure of SBU Branch Offices to the Financial Services Authority no later than 10 (ten) working days calculated from the date of the closure of the SBU Branch Offices. (2) Reporting on the closure of SBU Branch Offices as referred to in paragraph (1) must be submitted by the Board of Directors of the Guarantee Company using Format 6 as contained in the Appendix which is an integral part of this Financial Services Authority Regulation, accompanied by:
a. proof of notification of plans to close SBU Branch Offices as referred to in Article 27 paragraph (1) letter a; and b. proof of settlement of rights and obligations of the Insured and/or Guarantee Recipients. (3) Based on the report as referred to in paragraph (1), the Financial Services Authority revokes the approval for the opening of SBU Branch Offices.

Article 29
The Financial Services Authority may revoke the approval for the opening of SBU Branch Offices if within a period of 6 (six) months continuously, the SBU Branch Offices in question are proven not to conduct operational activities.

Sixth Section
Closure of SBU
Article 30
(1) Guarantee Companies may cease business activities based on Sharia Principles by first submitting an application for revocation of the SBU license to the Financial Services Authority. (2) The cessation of business activities based on Sharia Principles conducted by SBU must comply with the following provisions:
a. does not harm the interests of the Insured and Guarantee Recipients; b. notifies the Guarantee Recipients;
c. transfers Sharia Guarantee portfolios to Sharia Guarantee Companies or other SBUs; and
d. settles existing obligations.
(3) Procedures and implementation of provisions as referred to in paragraph (2) must be conducted in accordance with applicable regulations and considering the interests of the parties and other relevant stakeholders.

Article 31
(1) Applications for revocation of SBU licenses as referred to in Article 30 paragraph (1) must be submitted by the Board of Directors of the Guarantee Company to the Financial Services Authority using Format 7 as contained in the Appendix which is an integral part of this Financial Services Authority Regulation. (2) Applications for revocation of SBU licenses as referred to in paragraph (1) must be accompanied by:
a. original copies of decisions regarding the granting of SBU licenses; b. reasons for closure; and
c. proof of implementation of provisions as referred to in Article 30 paragraph (2).
(3) In processing applications for revocation of SBU licenses as referred to in paragraph (1), the Financial Services Authority conducts:
a. examination of document completeness; and b. analysis of compliance with provisions as referred to in Article 30 paragraph (2) and compliance with other applicable regulations. (4) Revocation of SBU licenses as referred to in paragraph (1) is granted within a maximum period of 20 (twenty) working days after the application documents are received completely.

Seventh Section
Separation of SBU
Article 32
(1) Guarantee Companies must separate SBUs into Sharia Guarantee Companies with the following provisions:
a. if the value of SBU assets has reached at least 50% (fifty percent) of the total value of assets of the parent Guarantee Company based on the latest monthly reports submitted to the Financial Services Authority; or b. at the latest 15 (fifteen) years since the enactment of Law Number 1 of 2016 on Guarantee. (2) Separation of SBUs into Sharia Guarantee Companies due to provisions as referred to in paragraph (1) letter a must be completed within a maximum period of 12 (twelve) months since the aforementioned conditions are met. (3) In the event that during the separation process as referred to in paragraph (2), SBU assets decrease and no longer reach at least 50% (fifty percent) of the total value of assets of the parent Guarantee Company, the aforementioned conditions do not eliminate the obligation of the Guarantee Company to separate the SBU as referred to in paragraph (1). (4) Guarantee Companies that have SBUs may separate SBUs before the conditions as referred to in paragraph (1) are met by complying with requirements as regulated in this Financial Services Authority Regulation and applicable regulations.

Article 33
(1) Sharia Guarantee Companies resulting from separation as referred to in Article 32 paragraph (1) and paragraph (4) are exempt from the Paid-up Capital provisions as referred to in Article 7 paragraph (2) at the time of their establishment. (2) Paid-up Capital of Sharia Guarantee Companies resulting from separation as referred to in Article 32 paragraph (1) and paragraph (4) is set at minimum:
a. Rp50,000,000,000.00 (fifty billion rupiah), for Sharia Guarantee Companies with national scope; b. Rp15,000,000,000.00 (fifteen billion rupiah), for Sharia Guarantee Companies with provincial scope; or
c. Rp5,000,000,000.00 (five billion rupiah), for Sharia Guarantee Companies with regency/city scope.
(3) Fulfillment of Paid-up Capital as referred to in paragraph (2) can be conducted in cash and fully in the form of time deposits in the name of the Sharia Guarantee Company at one of the Sharia commercial banks or Sharia business units of commercial banks in Indonesia, or in other forms permitted based on applicable regulations and in accordance with Sharia financial accounting standards. (4) Sharia Guarantee Companies resulting from separation as referred to in Article 32 paragraph (1) and paragraph (4) must increase Paid-up Capital to at least the amount of capital provisions as referred to in Article 7 paragraph (2) no later than 5 (five) years since the date the business license for the Sharia Guarantee Company resulting from separation is established.

Article 34
The implementation of the separation of Unsecured Business Units (UUS) must be carried out based on the provisions as regulated in this Financial Services Authority Regulation and other applicable legislation.

CHAPTER VI
ORGANIZATIONAL STRUCTURE

Article 35
(1) A Guarantee Institution must have an organizational structure that clearly depicts the separation of risk management functions, financial management functions, and service functions. (2) A Guarantee Institution must have a work unit that handles the following functions:
a. marketing; b. Guarantee or Shariah Guarantee engineering;
c. claim administrative settlement;
d. finance, including investment management; e. risk management; f. internal audit; g. administration and accounting; h. compliance;
i. service and complaint resolution; and
j. development of information/guaranteed database.
(3) The organizational structure as referred to in paragraph (1) must be completed with written descriptions of duties, authorities, responsibilities, and work procedures, which are established by the Board of Directors. (4) The organizational structure as referred to in paragraph (1) and paragraph (2) must reflect good internal control. (5) A Guarantee Institution must have employees who are responsible for each function as referred to in paragraph (1).

CHAPTER VII
HUMAN RESOURCES
First Section
Certification

Article 36
(1) Members of the Board of Directors and members of the Board of Commissioners must possess expertise certificates in the field of risk management from a Professional Certification Body in the field of risk management. (2) Further provisions regarding certification for members of the Board of Directors and members of the Board of Commissioners as referred to in paragraph (1) are regulated in a circular letter of the Financial Services Authority. Second Section Expert Personnel

Article 37
(1) A Guarantee Institution must employ expert personnel in Guarantee or Shariah Guarantee.
(2) Expert personnel in Guarantee or Shariah Guarantee as referred to in paragraph (1) must meet the following requirements:
a. possess an expertise certificate in the field of Guarantee or Shariah Guarantee with an expert qualification from a Professional Certification Body in the field of Guarantee or Shariah Guarantee; b. have work experience in the field of risk management for at least 1 (one) year; and
c. not currently subject to sanctions from the Guarantee Institution Association.
(3) Further provisions regarding certification for expert personnel as referred to in paragraph (2) letter a are regulated in a circular letter of the Financial Services Authority.

Article 38
(1) A Guarantee Institution must report the appointment and/or dismissal of expert personnel in Guarantee or Shariah Guarantee no later than 10 (ten) working days from the date of appointment and/or dismissal of the expert personnel. (2) The reporting of the appointment of expert personnel in Guarantee or Shariah Guarantee as referred to in paragraph (1) must be submitted by the Board of Directors to the Financial Services Authority using Format 8 as contained in the Appendix which is an integral part of this Financial Services Authority Regulation, accompanied by:
a. photocopy of the expertise certificate from the Professional Certification Body in the field of Guarantee or Shariah Guarantee; b. photocopy of identification cards in the form of resident identity cards (KTP) or valid passports;
c. curriculum vitae list completed with the latest color photos sized 4 x 6 cm; and
d. statement letter from the Guarantee Institution Association stating that they are not currently subject to sanctions.
Third Section
Human Resource Development

Article 39
(1) A Guarantee Institution must implement programs for developing the capabilities and knowledge of workers every year.
(2) The development of capabilities and knowledge of workers as referred to in paragraph (1) must be carried out in the form of education and training programs.

CHAPTER VIII
CHANGES IN OPERATIONAL AREA SCOPE

Article 40
(1) A Guarantee Institution may make changes to its operational area scope.
(2) Changes in operational area scope as referred to in paragraph (1) include:
a. increase in operational area scope; or b. decrease in operational area scope.
(3) Changes in operational area scope as referred to in paragraph (2) must meet the following requirements:
a. meet the Paid-up Capital requirements for the target operational area scope; and b. have obtained approval for the change in operational area scope from the PSP. (4) A Guarantee Institution that decreases its operational area scope as referred to in paragraph (2) letter b is prohibited from reducing its Paid-up Capital. (5) To make changes in operational area scope as referred to in paragraph (1), the Board of Directors must submit a request for approval to the Financial Services Authority using Format 9 as contained in the Appendix which is an integral part of this Financial Services Authority Regulation, attaching:
a. draft amendment to the Articles of Association; b. proof of approval for the change in operational area scope from the PSP; and
c. work plan which at least contains:

1. business activity plan of the Guarantee Institution and steps of activities to be carried out to realize the aforementioned plan; and
2. projection of monthly financial position reports, profit and loss statements, and cash flow statements starting from when the Guarantee Institution carries out operational activities with the new operational area scope.
   (6) In the event of the expansion of a province or district/city area, a Guarantee Institution may choose to:
   a. increase its operational area scope; or b. select one of the expanded province or district/city areas as its operational area scope.
   (7) A Guarantee Institution must determine the choice as referred to in paragraph (6) within a period of no more than 3 (three) years since the determination of the area expansion. (8) Provisions regarding changes in operational area scope as referred to in paragraph (3) and paragraph (5) apply mutatis mutandis to the increase in operational area scope as referred to in paragraph (6) letter a. (9) A Guarantee Institution that chooses to select one of the expanded province or district/city areas as its operational area scope as referred to in paragraph (6) letter b must report to the Financial Services Authority by attaching:
   a. proof of approval for the change in operational area scope from the PSP; and b. legislation underlying the area expansion.

Article 41
(1) The Financial Services Authority provides approval or rejection of the request for change in operational area scope as referred to in Article 40 paragraph (5) within a period of no more than 20 (twenty) working days since the request for approval of the change in operational area scope is declared complete. (2) In order to provide approval or rejection as referred to in paragraph (1), the Financial Services Authority conducts:
a. examination of document completeness as referred to in Article 40 paragraph (5); b. feasibility analysis of the work plan as referred to in Article 40 paragraph (5) letter c; and
c. analysis of compliance with regulations in the field of guarantees.
(3) In the event that the request for change in operational area scope submitted is incomplete, the Financial Services Authority notifies the Guarantee Institution of the requirements to be met and/or documents to be completed no later than 20 (twenty) working days after the request is received. (4) In the event that the request for change in operational area scope is approved, the Financial Services Authority issues a letter of approval for the change in operational area scope to the Guarantee Institution. (5) Rejection of the request for change in operational area scope as referred to in paragraph (1) is done in writing and accompanied by reasons for rejection.

CHAPTER IX
REPORTING
First Section
Reporting of Amendments to Articles of Association

Article 42
(1) A Guarantee Institution in the form of a limited liability company that makes certain amendments to its Articles of Association must report to the Financial Services Authority no later than 15 (fifteen) working days since the approval or receipt of the notification letter from the competent authority. (2) A Guarantee Institution in the form of a cooperative and/or state-owned enterprise that makes certain amendments to its Articles of Association must report to the Financial Services Authority no later than 15 (fifteen) working days since the implementation of the amendments to the Articles of Association. (3) Certain amendments to the Articles of Association as referred to in paragraph (1) or paragraph (2) include changes to:
a. the name of the Guarantee Institution; b. the purpose and business activities of the Guarantee Institution;
c. change of the head office location of the Guarantee Institution;
d. reduction of Paid-up Capital for Guarantee Institutions in the form of a limited liability company; e. addition of Paid-up Capital for Guarantee Institutions in the form of a limited liability company; and/or f. status of a Guarantee Institution in the form of a closed limited liability company becoming an open limited liability company or vice versa.

Article 43
(1) Reporting of the name change of the Guarantee Institution as referred to in Article 42 paragraph (3) letter a must be submitted by the Board of Directors of the Guarantee Institution to the Financial Services Authority using Format 10 as contained in the Appendix which is an integral part of this Financial Services Authority Regulation, attached with documents consisting of a photocopy of the tax identification number (NPWP) under the new name of the Guarantee Institution and:
a. amendment to the Articles of Association accompanied by proof of approval from the competent authority for Guarantee Institutions in the form of a limited liability company; b. photocopy of the minutes of the General Meeting of Shareholders and/or amendment to the Articles of Association for Guarantee Institutions in the form of a cooperative; or
c. government regulation underlying the name change for Guarantee Institutions in the form of a state-owned enterprise.
(2) Reporting of changes to the purpose and business activities of the Guarantee Institution as referred to in Article 42 paragraph (3) letter b must be submitted by the Board of Directors of the Guarantee Institution to the Financial Services Authority using Format 11 as contained in the Appendix which is an integral part of this Financial Services Authority Regulation, attached with documents consisting of the amendment to the Articles of Association and proof of ratification or approval from the competent authority. (3) Reporting of the change of the head office location of the Guarantee Institution as referred to in Article 42 paragraph (3) letter c must be submitted by the Board of Directors of the Guarantee Institution to the Financial Services Authority using Format 12 as contained in the Appendix which is an integral part of this Financial Services Authority Regulation, attached with documents consisting of a photocopy of the tax identification number (NPWP) under the new address of the Guarantee Institution and:
a. amendment to the Articles of Association accompanied by proof of approval from the competent authority for Guarantee Institutions in the form of a limited liability company; b. photocopy of the minutes of the General Meeting of Shareholders and/or amendment to the Articles of Association for Guarantee Institutions in the form of a cooperative; or
c. government regulation underlying the change of location for Guarantee Institutions in the form of a state-owned enterprise.
(4) Reduction of Paid-up Capital as referred to in Article 42 paragraph (3) letter d may be implemented by the Guarantee Institution while still observing the fulfillment of minimum Paid-up Capital requirements and minimum equity requirements. (5) Reporting of the reduction of Paid-up Capital for Guarantee Institutions in the form of a limited liability company as referred to in Article 42 paragraph (3) letter d must be submitted by the Board of Directors of the Guarantee Institution to the Financial Services Authority using Format 13 as contained in the Appendix which is an integral part of this Financial Services Authority Regulation, attached with documents consisting of the amendment to the Articles of Association and proof of approval from the competent authority. (6) Addition of Paid-up Capital as referred to in Article 42 paragraph (3) letter e conducted by foreign corporate shareholders can only be done in the form of money placed in a domestic bank account under the name of the Guarantee Institution. (7) Addition of Paid-up Capital as referred to in Article 42 paragraph (3) letter e can only be done in the form of:
a. cash deposits; b. conversion of retained earnings;
c. conversion of loans issued in the form of mandatory convertible bonds;
d. stock dividends; and/or e. land and buildings.
(8) Addition of Paid-up Capital in the form of land and buildings as referred to in paragraph (7) letter e can only be done by shareholders that are the central government or local governments. (9) Reporting of the addition of Paid-up Capital of the Guarantee Institution as referred to in Article 42 paragraph (3) letter e must be submitted by the Board of Directors of the Guarantee Institution to the Financial Services Authority using Format 14 as contained in the Appendix which is an integral part of this Financial Services Authority Regulation, attached with documents:
a. amendment to the Articles of Association accompanied by proof of receipt of notification letter from the competent authority; b. proof of addition of Paid-up Capital, namely:

1. photocopy of proof of payment of Paid-up Capital installment from shareholders and photocopy of proof of placement of Paid-up Capital under the name of the Guarantee Institution at one of the general banks or sharia general banks in Indonesia and legalized by the receiving deposit bank, in the case where the addition of Paid-up Capital is done in the form of cash;
2. financial statements of the Guarantee Institution audited by public accountants before capital addition, in the case where the addition of Paid-up Capital is done in the form of conversion of retained earnings, conversion of loans issued in the form of mandatory convertible bonds, and/or stock dividends; and
3. independent appraiser's report on the value of land and buildings, in the case where the addition of Paid-up Capital is done in the form of land and buildings;
   c. statement letter from shareholders or cooperative members stating that the capital deposit does not originate from loans, money laundering activities, and financial crimes in the case where capital addition is done in the form of cash;
   d. financial statements audited by public accountants and/or the latest financial statements, in the case where shareholders are business entities, institutions, or cooperative legal entities; and e. business plan and steps of the Guarantee Institution in the use of added Paid-up Capital. (10) Reporting of the change of status of the Guarantee Institution in the form of a closed limited liability company becoming an open limited liability company or vice versa as referred to in Article 42 paragraph (3) letter f must be submitted by the Board of Directors of the Guarantee Institution to the Financial Services Authority using Format 15 as contained in the Appendix which is an integral part of this Financial Services Authority Regulation, attached with documents consisting of the amendment to the Articles of Association accompanied by proof of approval from the competent authority. Second Section Reporting of Changes to Members of the Board of Directors, Members of the Board of Commissioners, Members of the Sharia Supervisory Board, and Shareholders

Article 44
(1) A Guarantee Institution that makes changes to members of the Board of Directors, members of the Board of Commissioners, members of the DPS, and/or shareholders must report to the Financial Services Authority no later than 15 (fifteen) working days since:
a. the date of recording the change of members of the Board of Directors, members of the Board of Commissioners, and/or shareholders in the shareholder register; b. approval by the General Meeting; or
c. the date of appointment of members of the DPS.
(2) Reporting of changes to members of the Board of Directors, members of the Board of Commissioners, and/or members of the DPS of the Guarantee Institution as referred to in paragraph (1) must be submitted by the Board of Directors of the Guarantee Institution to the Financial Services Authority using Format 16 as contained in the Appendix which is an integral part of this Financial Services Authority Regulation, attached with documents:
a. photocopy of the minutes of the Extraordinary General Meeting of Shareholders for Guarantee Institutions in the form of a limited liability company; b. photocopy of the minutes of the General Meeting for Guarantee Institutions in the form of a cooperative; and
c. proof of appointment of members of the Board of Directors, members of the Board of Commissioners, and/or members of the DPS for Guarantee Institutions in the form of a state-owned enterprise.
(3) Reporting of changes to shareholders of the Guarantee Institution in the form of a limited liability company as referred to in paragraph (1) must be submitted by the Board of Directors of the Guarantee Institution to the Financial Services Authority using Format 17 as contained in the Appendix which is an integral part of this Financial Services Authority Regulation, attached with documents:
a. photocopy of the deed of transfer of rights over shares, in the event of a transfer of rights over shares; b. data of shareholders other than PSP as referred to in Article 13 paragraph (2) letter c, in the event there are new shareholders; and
c. statement letter from shareholders stating that the money used to buy shares of the Guarantee Institution does not originate from money laundering activities and financial crimes, in the event of share sales.
(4) In the event that the Guarantee Institution trades its shares on the stock exchange, the obligation to report changes to shareholders as referred to in paragraph (1) applies if:
a. there is a change of shareholders from shares obtained not from stock exchange trading; and/or b. there is a change of PSP.
Third Section
Reporting of Changes to Legal Entity Form

Article 45
(1) A Guarantee Institution that makes changes to its legal entity form must report to the Financial Services Authority no later than 15 (fifteen) working days since obtaining the approval letter for the change of legal entity form from the competent authority. (2) Reporting of the change of legal entity form as referred to in paragraph (1) must be submitted by the Board of Directors of the Guarantee Institution to the Financial Services Authority using Format 18 as contained in the Appendix which is an integral part of this Financial Services Authority Regulation, and attached with documents:
a. minutes of the Extraordinary General Meeting of Shareholders or government regulations regarding the change of legal entity form of the Guarantee Institution; b. proof of change of legal entity form that has been ratified by the competent authority;
c. minutes of the transfer of all rights and obligations from the old legal entity to the new legal entity; and
d. photocopy of the tax identification number (NPWP) under the name of the new legal entity form of the Guarantee Institution.
Fourth Section
Reporting of Address Changes

Article 46
(1) A Guarantee Institution that makes changes to the address of its head office and Branch Offices must report to the Financial Services Authority no later than 15 (fifteen) working days after the date of implementation of the change. (2) Changes to the office address as referred to in paragraph (1) must correspond to its operational area scope. (3) Reporting of the change of office address as referred to in paragraph (1) must be submitted by the Board of Directors of the Guarantee Institution using Format 19 as contained in the Appendix which is an integral part of this Financial Services Authority Regulation, attached with:
a. complete address data of the head office and/or branch office; and b. proof of building ownership/control.

CHAPTER X
MERGER, CONSOLIDATION, ACQUISITION, AND SEPARATION First Section Merger and Consolidation

Article 47
(1) A Guarantee Institution may conduct:
a. Merger; or b. Consolidation.
(2) Merger or Consolidation as referred to in paragraph (1) letter a and letter b can only be conducted by Guarantee Institutions in the form of the same legal entity. (3) A Guarantee Institution conducting guarantee activities based on Shariah Principles can only conduct Merger or Consolidation with a Guarantee Institution that is also based on Shariah Principles.

Article 48
(1) A Guarantee Institution intending to conduct Merger or Consolidation, as referred to in Article 47 paragraph (1), must submit a plan for the implementation of Merger or Consolidation to the Financial Services Authority to obtain approval. (2) The request for approval as referred to in paragraph (1) must be submitted by the Board of Directors to the Financial Services Authority using Format 20 as contained in the Appendix which is an integral part of this Financial Services Authority Regulation, attaching:
a. draft minutes of the Extraordinary General Meeting of Shareholders approving the Merger or Consolidation; b. draft deed of Merger or Consolidation;
c. planned ownership list of the Guarantee Institution resulting from the Merger or Consolidation;
d. data of shareholders or members other than PSP as referred to in Article 13 paragraph (2) letter c of the Guarantee Institution resulting from the Merger or Consolidation; e. the latest audited financial statements of the Guarantee Institution conducting the Merger or Consolidation; f. proforma financial statements of the Guarantee Institution resulting from the Merger or Consolidation; g. work plan for the first 3 (three) years as referred to in Article 13 paragraph (2) letter g of the Guarantee Institution resulting from the Merger or Consolidation; h. organizational structure of the Guarantee Institution as referred to in Article 13 paragraph (2) letter b of the Guarantee Institution resulting from the Merger or Consolidation;
i. draft deed of establishment of the Guarantee Institution resulting from the Consolidation; and
j. documents as referred to in Article 13 paragraph (2) letter d, letter e, letter h, letter i, and letter j of the Guarantee Institution resulting from the Consolidation. (3) The request for approval of the plan for the implementation of Merger or Consolidation as referred to in paragraph (1) is submitted together with the request for fit-and-proper assessment for candidates for members of the Board of Directors, members of the Board of Commissioners, members of the DPS, and PSP of the Guarantee Institution resulting from the Merger or Consolidation. (4) The request for fit-and-proper assessment for candidates for members of the Board of Directors, members of the Board of Commissioners, members of the DPS, and PSP of the Guarantee Institution as referred to in paragraph (3) is implemented by referring to the Financial Services Authority Regulation regarding the fit-and-proper assessment of financial service institutions.

Article 49
(1) The Financial Services Authority provides approval, request for document completeness, or rejection of the request for approval of the plan for the implementation of Merger or Consolidation as referred to in Article 48 paragraph (1) within a period of no more than 20 (twenty) working days since the request is received. (2) In order to provide approval or rejection as referred to in paragraph (1), the Financial Services Authority conducts:
a. examination of document completeness as referred to in Article 48 paragraph (2); b. feasibility analysis of the plan for the implementation of Merger or Consolidation;
c. fit-and-proper assessment of candidates for members of the Board of Directors, members of the Board of Commissioners, members of the DPS, and PSP of the Guarantee Institution resulting from the Merger or Consolidation; and
d. analysis of compliance with regulations in the field of guarantees.
(3) The Board of Directors of the Guarantee Institution must submit the complete documents as referred to in paragraph (1) no later than 20 (twenty) working days since the date of the letter requesting document completeness from the Financial Services Authority. (4) In the event that the Board of Directors of the Guarantee Institution has submitted the complete documents as referred to in paragraph (3), the Financial Services Authority provides approval or rejection according to the provisions as referred to in paragraph (2). (5) If within 20 (twenty) working days since the date of the letter requesting document completeness

as referred to in paragraph (1), if the Financial Services Authority has not received a response to the request for document completeness, the Board of Directors of the Guarantee Institution is deemed to have canceled the application for approval of the plan to implement a Merger or Consolidation.

The Financial Services Authority issues a letter of approval for the plan to implement a Merger or Consolidation to the Board of Directors of the Guarantee Institution.

(7) Rejection of the application for approval of the plan to implement a Merger or Consolidation as referred to in paragraph (1) is done in writing and accompanied by reasons for rejection.

Article 50
(1) A Guarantee Institution that has obtained approval for the plan to implement a Merger or Consolidation from the Financial Services Authority must hold a General Meeting of Shareholders (GMS) approving the Merger or Consolidation within a maximum of 60 (sixty) working days calculated from the date of the Financial Services Authority's approval letter.

(2) In the event that the implementation of the GMS approving the plan to implement a Merger or Consolidation does not comply with the time limit as referred to in paragraph (1), the Financial Services Authority's approval letter becomes invalid.

Article 51
(1) A Guarantee Institution receiving a Merger must report the implementation of the GMS approving the Merger to the Financial Services Authority no later than 10 (ten) working days calculated from the date of the GMS.

(2) The reporting of the implementation of the GMS approving the Merger as referred to in paragraph (1)

must be submitted by the Board of Directors to the Financial Services Authority using Format 21 as contained in the Appendix which is an integral part of this Financial Services Authority Regulation, accompanied by:
a. a photocopy of the minutes of the GMS approving the Merger; b. a photocopy of the Merger deed; and
c. a document stating that the Guarantee Institution merging does not have tax debts from the competent authority.

(3) In the context of reporting the implementation of the GMS approving the Merger as referred to in paragraph (1), the Guarantee Institution receiving the Merger may submit an application for UUS licenses and/or branch office opening licenses previously owned by the Guarantee Institution merging to the Financial Services Authority in its name.

(4) The application for UUS licenses and/or branch office opening licenses as referred to in paragraph (3) must be submitted by the Board of Directors of the Guarantee Institution to the Financial Services Authority using Format 22 as contained in the Appendix which is an integral part of this Financial Services Authority Regulation, accompanied by:
a. the previous UUS licenses and/or branch office opening licenses owned by the Guarantee Institution merging; and b. proof of ownership or control of the branch office building.

(5) Based on the reporting of the implementation of the GMS approving the Merger as referred to in paragraph (2) and the application for UUS licenses and/or branch office opening licenses (if any) as referred to in paragraph (4), the Financial Services Authority:
a. conducts an examination of document completeness as referred to in paragraph (2) and paragraph (4); b. revokes the business license, UUS license, and/or branch office opening license (if any) of the Guarantee Institution merging which becomes effective calculated from the date the articles of association are approved, agreed upon, or notified to the competent authority; and
c. provides approval or rejection of the application for UUS licenses and/or branch office opening licenses (if any) to the Guarantee Institution that is the result of the Merger which becomes effective calculated from the date the articles of association are approved, agreed upon, or notified to the competent authority.

(6) The provision of approval or rejection of UUS licenses and/or branch office opening licenses (if any) of the Guarantee Institution that is the result of the Merger as referred to in paragraph (5) letter c is done within a maximum of 20 (twenty) working days after the documents as referred to in paragraph (2) and paragraph (4) are received completely.

(7) In the event that the Financial Services Authority rejects the establishment of UUS licenses and/or branch office opening licenses (if any) as referred to in paragraph (5) letter c, the rejection must be done in writing with accompanying reasons.

Article 52
The Guarantee Institution resulting from the Merger must report the implementation of the Merger to the Financial Services Authority no later than 20 (twenty) working days calculated from the date the articles of association are approved, agreed upon, or notified to the competent authority using Format 23 as contained in the Appendix which is an integral part of this Financial Services Authority Regulation, accompanied by the articles of association that have been approved, agreed upon, or notified to the competent authority.

Article 53
(1) The Guarantee Institution resulting from a Consolidation must report the implementation of the GMS approving the Consolidation to the Financial Services Authority no later than 10 (ten) working days calculated from the date of the GMS.

(2) The reporting of the implementation of the GMS approving the Consolidation as referred to in paragraph (1), must be submitted by the Board of Directors to the Financial Services Authority using Format 24 as contained in the Appendix which is an integral part of this Financial Services Authority Regulation, accompanied by:
a. a photocopy of the minutes of the GMS approving the Consolidation; b. a photocopy of the Consolidation deed;
c. a photocopy of the minutes of the GMS regarding the establishment of the company resulting from the Consolidation; and
d. a document stating that the Guarantee Institution performing the Consolidation does not have tax debts from the competent authority.

(3) In the context of reporting the implementation of the GMS approving the Consolidation as referred to in paragraph (1), the Guarantee Institution resulting from the Consolidation may submit an application for UUS licenses and/or branch office opening licenses previously owned by the Guarantee Institution consolidating to the Financial Services Authority in its name.

(4) The application for UUS licenses and/or branch office opening licenses (if any) as referred to in paragraph (3) must be submitted by the Board of Directors to the Financial Services Authority using Format 25 as contained in the Appendix which is an integral part of this Financial Services Authority Regulation, accompanied by:
a. the previous UUS licenses and/or branch office opening licenses (if any) owned by the Guarantee Institution consolidating; and b. proof of ownership or control of the branch office building.

(5) Based on the reporting of the implementation of the GMS approving the Consolidation as referred to in paragraph (2) and the application for UUS licenses and/or branch office opening licenses (if any) as referred to in paragraph (4), the Financial Services Authority:
a. conducts an examination of document completeness as referred to in paragraph (2) and paragraph (4); b. revokes the business license, UUS establishment license, and/or branch office opening license (if any) of the Guarantee Institution consolidating which becomes effective calculated from the date the articles of association are approved, agreed upon, or notified to the competent authority;
c. provides approval or rejection of the business license to the Guarantee Institution that is the result of the Consolidation which becomes effective calculated from the date the articles of association are approved, agreed upon, or notified to the competent authority; and
d. provides approval or rejection of the application for UUS licenses and/or branch office opening licenses (if any) of the Guarantee Institution that is the result of the Consolidation which becomes effective calculated from the date the articles of association are approved, agreed upon, or notified to the competent authority.

(6) The provision of approval or rejection of the business license, UUS license, and/or branch office opening license (if any) as referred to in paragraph (5) letters c and d is done within a maximum of 20 (twenty) working days after the reporting documents as referred to in paragraph (2) and paragraph (4) are received completely.

(7) In the event that the Financial Services Authority rejects the establishment of the business license as referred to in paragraph (5) letter c and the UUS licenses and/or branch office opening licenses of the Guarantee Institution that is the result of the Consolidation as referred to in paragraph (5) letter d, the rejection must be done in writing with accompanying reasons.

Article 54
The Guarantee Institution resulting from the Consolidation must report the implementation of the Consolidation to the Financial Services Authority no later than 20 (twenty) working days calculated from the date of approval, agreement, or notification using Format 26 as contained in the Appendix which is an integral part of this Financial Services Authority Regulation, accompanied by the articles of association that have been approved, agreed upon, or notified to the competent authority.

Second Section
Takeover

Article 55
(1) The Takeover of a Guarantee Institution must first obtain approval from the Financial Services Authority.

(2) To obtain approval from the Financial Services Authority as referred to in paragraph (1), the Guarantee Institution must submit a Takeover plan to the Financial Services Authority, using Format 27 as contained in the Appendix which is an integral part of this Financial Services Authority Regulation, attaching:
a. a draft of the minutes of the GMS approving the Takeover; b. a draft of the Takeover deed;
c. a draft of the deed of transfer of share rights, in the event that share Takeover is done directly from the shareholder;
d. a statement letter from the shareholder stating that the money used to buy the shares of the Guarantee Institution does not come from loans, money laundering activities, and financial crimes; e. data of shareholders or members other than PSP as referred to in Article 13 paragraph (2) letter c after the Takeover; and f. the latest audited financial report of the Guarantee Institution.

(3) The application for approval of the Takeover plan as referred to in paragraph (1) is submitted simultaneously with the application for suitability and propriety assessment for the prospective PSP of the Guarantee Institution.

(4) The suitability and propriety assessment application for the prospective PSP of the Guarantee Institution as referred to in paragraph (3) is implemented with reference to the Financial Services Authority Regulation regarding the suitability and propriety assessment of financial service institutions.

Article 56
(1) The Financial Services Authority provides approval, request for document completeness, or rejection of the application for approval of the Takeover plan as referred to in Article 55 paragraph (1) within a maximum time limit of 20 (twenty) working days from the date the application is received.

(2) In order to provide approval or rejection as referred to in paragraph (1), the Financial Services Authority conducts:
a. an examination of document completeness as referred to in Article 55 paragraph (2); b. a feasibility analysis of the Takeover plan;
c. a suitability and propriety assessment of the prospective PSP; and
d. an analysis of compliance with regulations in the field of guarantee.

(3) The Board of Directors of the Guarantee Institution must submit document completeness as referred to in paragraph (1) within a maximum of 20 (twenty) working days from the date of the letter requesting document completeness from the Financial Services Authority.

(4) In the event that the Board of Directors of the Guarantee Institution has submitted document completeness as referred to in paragraph (3), the Financial Services Authority provides approval or rejection in accordance with the provisions as referred to in paragraph (1).

(5) If within 20 (twenty) working days from the date of the letter requesting document completeness as referred to in paragraph (1), the Financial Services Authority has not received a response to the request for document completeness, the Board of Directors of the Guarantee Institution is deemed to have canceled the application for approval of the Takeover plan.

The Financial Services Authority establishes a decision on approval of the Takeover plan to the Board of Directors of the Guarantee Institution.

(7) Rejection of the application for approval of the Takeover plan as referred to in paragraph (1) is done in writing and accompanied by reasons for rejection.

Article 57
(1) A Guarantee Institution that has obtained approval for the Takeover plan from the Financial Services Authority must hold a GMS approving the Takeover within a maximum of 60 (sixty) working days calculated from the date of the Financial Services Authority's approval letter.

(2) In the event that the implementation of the GMS approving the Takeover plan does not comply with the time limit as referred to in paragraph (1), the Financial Services Authority's approval letter becomes invalid.

Article 58
(1) A Guarantee Institution must report the implementation of the GMS approving the Takeover to the Financial Services Authority no later than 20 (twenty) working days calculated from the date of notification to the competent authority.

(2) The reporting of the implementation of the GMS approving the Takeover as referred to in paragraph (1), must be submitted by the Board of Directors to the Financial Services Authority using Format 28 as contained in the Appendix which is an integral part of this Financial Services Authority Regulation, accompanied by:
a. a photocopy of the minutes of the GMS approving the Takeover; b. a photocopy of the Takeover deed; and
c. proof of notification to the competent authority.

Third Section
Separation

Article 59
(1) A Guarantee Institution may perform Separation, by means of:
a. Pure Separation; or b. Impure Separation.

(2) Regarding Pure Separation as referred to in paragraph (1) letter a, the following provisions apply:
a. all assets, liabilities, and equity of the Guarantee Institution transfer by law to 2 (two) or more legal entities receiving the transfer; and b. the Guarantee Institution performing the Separation ends by law.

(3) Regarding Impure Separation as referred to in paragraph (1) letter b, the following provisions apply:
a. part of the assets, liabilities, and equity of the Guarantee Institution transfer by law to 1 (one) or more other legal entities receiving the transfer; and b. the Guarantee Institution performing the Separation remains.

Article 60
(1) A Guarantee Institution may perform Pure Separation as referred to in Article 59 paragraph (1) letter a, by establishing a new legal entity.

(2) One of the new legal entities resulting from Pure Separation as referred to in paragraph (1) must be a Guarantee Institution.

(3) The guarantee portfolio owned by the Guarantee Institution as referred to in paragraph (1) may only be transferred to the new legal entity resulting from Pure Separation that is a Guarantee Institution.

Article 61
(1) A Guarantee Institution that will perform Pure Separation as referred to in Article 60 paragraph (1) must submit a plan to implement Pure Separation to the Financial Services Authority to obtain approval.

(2) The application for approval as referred to in paragraph (1) must be submitted by the Board of Directors of the Guarantee Institution that will perform Pure Separation to the Financial Services Authority using Format 29 as contained in the Appendix which is an integral part of this Financial Services Authority Regulation, attached with documents:
a. a draft of the Separation deed; b. a draft of the deed of establishment of the new Guarantee Institution and/or new legal entity that will receive assets, liabilities, and equity;
c. a draft of the settlement of rights and obligations of the Guaranteed and the Recipient of Guarantee for the Guarantee Institution performing Pure Separation;
d. a plan of the ownership list from the new Guarantee Institution and/or new legal entity that will receive assets, liabilities, and equity; e. data of shareholders or members other than PSP as referred to in Article 13 paragraph (2) letter c of the new Guarantee Institution resulting from Pure Separation; f. the latest audited financial report of the Guarantee Institution performing Pure Separation; g. proforma financial reports of the Guarantee Institution resulting from Pure Separation; h. a work plan to be carried out for the first 3 (three) years after obtaining a business license from the new legal entity that is a Guarantee Institution, which at least contains:

1. a feasibility study of market opportunities and economic potential;
2. a plan for Guarantee or Sharia Guarantee business activities and steps taken to realize the aforementioned plan; and
3. projections of monthly financial position reports, income statements, and cash flow statements and the assumptions underlying them starting from when the Guarantee Institution begins operational activities; and
   i. the organizational structure of the Guarantee Institution as referred to in Article 13 paragraph (2) letter c of the new Guarantee Institution resulting from Pure Separation.

(3) The application for approval of the Pure Separation plan as referred to in paragraph (1) is submitted simultaneously with the application for suitability and propriety assessment for prospective members of the Board of Directors, members of the Board of Commissioners, members of the Sharia Supervisory Board (DPS), and/or PSP of the Guarantee Institution resulting from Pure Separation.

(4) The suitability and propriety assessment application for prospective members of the Board of Directors, members of the Board of Commissioners, members of the DPS, and/or PSP of the Guarantee Institution as referred to in paragraph (3) is implemented with reference to the Financial Services Authority Regulation regarding the suitability and propriety assessment of financial service institutions.

Article 62
(1) The Financial Services Authority provides approval, request for document completeness, or rejection of the application for approval of the Pure Separation plan as referred to in Article 61 paragraph (1) within a maximum time limit of 20 (twenty) working days from the date the application is received.

(2) In order to provide approval or rejection as referred to in paragraph (1), the Financial Services Authority conducts:
a. an examination of document completeness as referred to in Article 61 paragraph (2); b. a feasibility analysis of the Pure Separation plan;
c. a suitability and propriety assessment of prospective members of the Board of Directors, members of the Board of Commissioners, members of the DPS, and/or PSP of the Guarantee Institution resulting from Pure Separation; and
d. an analysis of compliance with regulations in the field of guarantee.

(3) The Board of Directors of the Guarantee Institution must submit document completeness as referred to in paragraph (1) within a maximum of 20 (twenty) working days from the date of the letter requesting document completeness from the Financial Services Authority.

(4) In the event that the Board of Directors of the Guarantee Institution has submitted document completeness as referred to in paragraph (2), the Financial Services Authority provides approval or rejection in accordance with the provisions as referred to in paragraph (1).

(5) If within 20 (twenty) working days from the date of the letter requesting document completeness as referred to in paragraph (3), the Financial Services Authority has not received a response to the request for document completeness, the Board of Directors of the Guarantee Institution is deemed to have canceled the application for approval of the Pure Separation plan.

The Financial Services Authority issues a letter of approval for the Pure Separation plan to the Guarantee Institution.

(7) Rejection of the application for approval of the Pure Separation plan as referred to in paragraph (1) is done in writing and accompanied by reasons for rejection.

Article 63
(1) A Guarantee Institution that has obtained approval for the Pure Separation plan from the Financial Services Authority must hold a GMS approving the Pure Separation within a maximum of 60 (sixty) working days calculated from the date of the Financial Services Authority's approval letter.

(2) In the event that the implementation of the GMS approving the Pure Separation does not comply with the time limit as referred to in paragraph (1), the Financial Services Authority's approval letter becomes invalid.

Article 64
(1) The Guarantee Institution resulting from Pure Separation must report the implementation of the GMS approving the Pure Separation to the Financial Services Authority no later than 10 (ten) working days calculated from the date of the GMS.

(2) The reporting of the implementation of the GMS approving the Pure Separation as referred to in paragraph (1), must be submitted by the Board of Directors to the Financial Services Authority using Format 30 as contained in the Appendix which is an integral part of this Financial Services Authority Regulation, accompanied by:
a. a photocopy of the minutes of the GMS approving the Pure Separation; b. a photocopy of the Pure Separation deed;
c. a document stating that the Guarantee Institution performing Pure Separation does not have tax debts from the competent authority;
d. a photocopy of the minutes of the GMS stating the appointment of the Board of Directors, Board of Commissioners, and/or DPS; e. a photocopy of proof of paid-up capital settlement in the form of cash deposits from shareholders or members, a photocopy of proof of placement of paid-up capital in the form of time deposits in the name of the respective Guarantee Institution, in the event there are new shareholders or members (if any); f. an initial/closing financial position report from the new legal entity resulting from Pure Separation; and g. proof of operational readiness from the new legal entity resulting from Pure Separation that is a Guarantee Institution at least consisting of:

1. a list of fixed assets and inventories along with proof of ownership or control;
2. proof of ownership or control of the office building; and
3. a photocopy of the tax identification number (NPWP).

(3) In the context of reporting the implementation of the GMS approving the Pure Separation as referred to in paragraph (1), the Guarantee Institution resulting from Pure Separation may submit an application for branch office opening licenses previously owned by the Guarantee Institution performing Pure Separation to the Financial Services Authority in its name.

(4) The application for branch office opening licenses as referred to in paragraph (3) must be submitted by the Board of Directors of the Guarantee Institution to the Financial Services Authority using Format 31 as contained in the Appendix which is an integral part of this Financial Services Authority Regulation, accompanied by:
a. the previous branch office opening licenses owned by the Guarantee Institution performing Pure Separation; and b. proof of ownership or control of the branch office building.

(5) Based on the reporting of the implementation of the GMS approving the Pure Separation as referred to in paragraph (2) and branch office opening licenses (if any) as referred to in paragraph (4), the Financial Services Authority:
a. conducts an examination of document completeness as referred to in paragraph (2) and paragraph (4); b. revokes the business license and/or branch office opening license of the Guarantee Institution performing Pure Separation (if any) which becomes effective calculated from the date the articles of association are approved, agreed upon, or notified to the competent authority; and
c. provides approval or rejection of the application for business licenses and branch office opening licenses (if any) to the new legal entity that is a Guarantee Institution resulting from Pure Separation which becomes effective calculated from the date the articles of association are approved, agreed upon, or notified to the competent authority.

(6) The provision of approval of business licenses and/or branch office opening licenses (if any) as referred to in paragraph (5) letter c is done within a maximum of 20 (twenty) working days after the reporting documents as referred to in paragraph (2) and paragraph (4) are received completely.

(7) In the event that the Financial Services Authority rejects the establishment of business licenses and/or branch office opening licenses

Branch Offices (if any) as referred to in Article 5 paragraph (5) letter c, rejection must be done in writing accompanied by the reasons.

Article 65
Guarantee Institutions resulting from pure separation must report the implementation of pure separation to the Financial Services Authority no later than 20 (twenty) working days calculated from the date the articles of association are approved, agreed upon by, or notified to the competent authority, using Format 32 as contained in the Appendix which is an integral part of this Financial Services Authority Regulation, attached with the approved articles of association, agreed upon by, or notified to the competent authority.

Article 66
Guarantee Institutions may carry out impure separation as referred to in Article 59 paragraph (1) letter b, by:
a. establishing a new Guarantee Institution; b. establishing a new legal entity that is not a Guarantee Institution;
c. transferring part of the assets, liabilities, and equity of the Guarantee Institution to another Guarantee Institution; or
d. transferring part of the assets, liabilities, and equity of the Guarantee Institution to another legal entity that is not a Guarantee Institution.

Article 67
(1) Guarantee Institutions intending to carry out impure separation as referred to in Article 59 paragraph (1) letter b must submit a plan for the implementation of impure separation to the Financial Services Authority to obtain approval.

(2) The request for approval as referred to in paragraph (1) must be submitted by the Board of Directors of the Guarantee Institution intending to carry out impure separation to the Financial Services Authority using Format 33 as contained in the Appendix which is an integral part of this Financial Services Authority Regulation, attached with documents:
a. for impure separation by establishing a new Guarantee Institution as referred to in Article 66 letter a, including:

1. draft deed of separation;
2. draft deed of establishment of the new Guarantee Institution;
3. plan for settling the rights and obligations of the Guaranteed, the Recipient of Guarantee, and other related parties;
4. plan for the ownership list of the new Guarantee Institution;
5. the latest audited financial statements of the Guarantee Institution carrying out impure separation;
6. proforma financial statements of the new Guarantee Institution;
7. work plan to be carried out for the first 3 (three) years after obtaining the business license of the new Guarantee Institution, which at least contains:
   a) feasibility study of market opportunities and economic potential; b) plan for Guarantee or Shariah Guarantee business activities and steps taken to realize the aforementioned plan; and c) projection of financial position reports, income statements, and monthly cash flow statements and the underlying assumptions starting from when the new Guarantee Institution commences operational activities;
8. projection of financial position reports, income statements, and monthly cash flow statements for 3 (three) years from the Guarantee Institution carrying out separation calculated from the date separation is completed; and
9. documents as referred to in Article 13 paragraph (2) letter b and letter c, for the new Guarantee Institution resulting from impure separation;
   b. for impure separation by establishing a new legal entity that is not a Guarantee Institution as referred to in Article 66 letter b, including:
10. draft deed of separation;
11. draft deed of establishment of the new legal entity;
12. the latest audited financial statements of the Guarantee Institution carrying out impure separation; and
13. projection of financial position reports, income statements, and monthly cash flow statements for 3 (three) years from the Guarantee Institution carrying out separation calculated from the date separation is completed;
    c. for Guarantee Institutions carrying out impure separation by transferring part of the assets, liabilities, and equity of the Guarantee Institution to another Guarantee Institution as referred to in Article 66 letter c, including:
14. draft deed of separation;
15. the latest audited financial statements of the Guarantee Institution carrying out impure separation;
16. plan for settling the rights and obligations of the Guaranteed, the Recipient of Guarantee, and other related parties;
17. plan for the ownership list of the other Guarantee Institution;
18. documents of the Guarantee Institution that will receive the transfer of part of the assets, liabilities, and equity, including:
    a) photocopy of the business license as a Guarantee Institution; b) the latest audited annual financial statements by a public accounting firm; and c) financial position report, income statement, and cash flow statement for the month prior to receiving the transfer of assets, liabilities, and equity;
19. projection of financial position reports, income statements, and monthly cash flow statements for 3 (three) years from the Guarantee Institution carrying out separation calculated from the date separation is completed;
    d. for Guarantee Institutions carrying out impure separation by transferring part of the assets, liabilities, and equity of the Guarantee Institution to another legal entity that is not a Guarantee Institution as referred to in Article 66 letter d, including:
20. draft deed of separation;
21. the latest audited financial statements of the Guarantee Institution carrying out impure separation; and
22. projection of financial position reports, income statements, and monthly cash flow statements for 3 (three) years from the Guarantee Institution carrying out separation calculated from the date separation is completed.

(3) The request for approval of the impure separation implementation plan 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, Board of Commissioners, Shariah Supervisory Board (DPS), and/or Shariah Compliance Unit (PSP) of the new Guarantee Institution. (4) The request for fit and proper assessment for prospective members of the Board of Directors, Board of Commissioners, DPS, and/or PSP of the Guarantee Institution as referred to in paragraph (3) is carried out by referring to the Financial Services Authority Regulation regarding fit and proper assessment of financial service institutions.

Article 68
(1) The Financial Services Authority provides approval, requests document completeness, or rejects the request for approval of impure separation as referred to in Article 67 paragraph (2) within a maximum period of 20 (twenty) working days from the date the request is received. (2) In order to provide approval or rejection as referred to in Article 67 paragraph (2), the Financial Services Authority conducts:
a. examination of document completeness; b. feasibility analysis of the impure separation plan;
c. fit and proper assessment of prospective members of the Board of Directors, Board of Commissioners, DPS, and/or PSP of the new Guarantee Institution; and
d. analysis of compliance with regulations in the field of guarantee.
(3) The Board of Directors of the Guarantee Institution must submit document completeness as referred to in paragraph (1) no later than 20 (twenty) working days from the date of the letter requesting document completeness from the Financial Services Authority. (4) In the event that the Board of Directors of the Guarantee Institution has submitted document completeness as referred to in paragraph (3), the Financial Services Authority provides approval or rejection in accordance with the provisions as referred to in paragraph (1). (5) If within 20 (twenty) working days from the date of the letter requesting document completeness as referred to in paragraph (1), the Financial Services Authority has not received a response to the request for document completeness, the Board of Directors of the Guarantee Institution is deemed to have cancelled the request for approval of impure separation. (6) The Financial Services Authority establishes a decision on the approval of the impure separation plan to the Board of Directors of the Guarantee Institution. (7) Rejection of the request for approval of the impure separation plan as referred to in paragraph (1) is done in writing and accompanied by the reasons for rejection.

Article 69
(1) Guarantee Institutions that have obtained approval for the implementation plan of impure separation from the Financial Services Authority must hold a General Meeting of Shareholders (GMS) approving the impure separation no later than 60 (sixty) working days calculated from the date of the Financial Services Authority's approval letter. (2) In the event that the implementation of the GMS approving impure separation exceeds the time limit as referred to in paragraph (1), the Financial Services Authority's approval letter becomes invalid.

Article 70
(1) Guarantee Institutions carrying out impure separation must report the implementation of the GMS approving impure separation to the Financial Services Authority no later than 10 (ten) working days calculated from the date of the GMS. (2) The reporting of the implementation of the GMS approving impure separation as referred to in paragraph (1) must be submitted by the Board of Directors to the Financial Services Authority using Format 34 as contained in the Appendix which is an integral part of this Financial Services Authority Regulation, attached with:
a. photocopy of the GMS minutes deed approving impure separation; b. photocopy of the impure separation deed;
c. photocopy of the GMS minutes deed stating the appointment of the Board of Directors and Board of Commissioners;
d. photocopy of proof of paid-up capital settlement in the form of cash deposits from shareholders or members, photocopy of proof of placement of paid-up capital in the form of time deposits in the name of the respective Guarantee Institution, in the event there are new shareholders or members (if any); e. opening financial statements of the new legal entity resulting from impure separation; and f. proof of operational readiness from the new legal entity resulting from impure separation that is a Guarantee Institution at least consisting of:

1. list of fixed assets and inventories along with proof of ownership or possession;
2. proof of ownership or possession of the office building; and
3. photocopy of the tax identification number (NPWP).
   (3) In the context of reporting the implementation of the GMS approving impure separation as referred to in paragraph (1), Guarantee Institutions receiving impure separation may submit a request for the determination of the license to open Branch Offices and/or Shariah Branch Offices (if any) which were previously owned by the Guarantee Institution carrying out impure separation to become Branch Offices in the name of the Guarantee Institution resulting from impure separation to the Financial Services Authority. (4) The request for the determination of the license to open Branch Offices and/or Shariah Branch Offices (if any) as referred to in paragraph (3) must be submitted by the Board of Directors of the Guarantee Institution to the Financial Services Authority using Format 35 as contained in the Appendix which is an integral part of this Financial Services Authority Regulation, attached with:
   a. the previous license to open Branch Offices and/or Shariah Branch Offices (if any) owned by the Guarantee Institution carrying out impure separation; and b. proof of ownership or possession of the Branch Office and/or Shariah Branch Office building (if any). (5) Based on the reporting of the implementation of the GMS approving impure separation as referred to in paragraph (2) and the request for the determination of the license to open Branch Offices and/or Shariah Branch Offices (if any) as referred to in paragraph (4), the Financial Services Authority:
   a. examines the completeness of documents as referred to in paragraph (2) and paragraph (4); b. revokes the license to open Branch Offices and/or Shariah Branch Offices of the Guarantee Institution carrying out impure separation (if any) which starts to be effective calculated from the date the articles of association are approved, agreed upon by, or notified to the competent authority;
   c. revokes the Shariah Branch Office license, for impure separation carried out against Shariah Branch Offices;
   d. provides approval or rejection of the business license request to the new Guarantee Institution resulting from impure separation which starts to be effective calculated from the date the articles of association are approved, agreed upon by, or notified to the competent authority; and e. provides approval or rejection of the request for the determination of the license to open Branch Offices and/or Shariah Branch Offices (if any) to the Guarantee Institution receiving impure separation which starts to be effective calculated from the date the articles of association are approved, agreed upon by, or notified to the competent authority. (6) The provision of approval for business licenses and/or the determination of licenses to open Branch Offices and/or Shariah Branch Offices as referred to in paragraph (5) letter c and letter d is carried out no later than 20 (twenty) working days after the reporting documents as referred to in paragraph (2) and paragraph (4) are received in complete form. (7) In the event that the Financial Services Authority rejects the determination of the business license as referred to in paragraph (5) letter c, the rejection must be done in writing accompanied by the reasons.

Article 71
Guarantee Institutions carrying out impure separation must report the implementation of impure separation to the Financial Services Authority no later than 20 (twenty) working days calculated from the date the articles of association are approved, agreed upon by, or notified to the competent authority, using Format 36 as contained in the Appendix which is an integral part of this Financial Services Authority Regulation, attached with the approved articles of association, agreed upon by, or notified to the competent authority.

Article 72
(1) Merger, Consolidation, Takeover, or Separation must be carried out in accordance with the provisions of regulations.
(2) Merger, Consolidation, Separation, and Takeover of Guarantee Institutions do not reduce the rights of the Recipient of Guarantee and the obligations of the Guaranteed.

CHAPTER XI
BRANCH OFFICES

Article 73
(1) Guarantee Institutions may open Branch Offices within the territory of the Republic of Indonesia according to their operational area scope.
(2) Branch Offices as referred to in paragraph (1) have the authority:
a. to sign Guarantee Certificates or Kafalah Certificates; and b. to determine to pay or reject claims.
(3) To be able to open Branch Offices as referred to in paragraph (1), Guarantee Institutions must first obtain permission from the Financial Services Authority.
(4) To obtain permission as referred to in paragraph (3), the Board of Directors submits a request to the Financial Services Authority according to Format 37 as contained in the Appendix which is an integral part of this Financial Services Authority Regulation, and must be attached with:
a. proof of possession of the office building; b. organizational structure and name of the prospective Branch Office Head as well as the number of employees; and
c. business plan containing the plan to open the Guarantee Institution's Branch Office.

Article 74
(1) The Financial Services Authority provides approval, requests document completeness, or rejects the request for permission to open Branch Offices as referred to in Article 73 paragraph (3) no later than 20 (twenty) working days after the request documents are received. (2) In order to provide approval or rejection of the request for permission to open Branch Offices, the Financial Services Authority conducts:
a. examination of document completeness as referred to in Article 73 paragraph (4); b. analysis of documents as referred to in Article 73 paragraph (4); and
c. direct verification to the Branch Office to be opened, if necessary.
(3) The Board of Directors of the Guarantee Institution must submit document completeness as referred to in paragraph (1) no later than 20 (twenty) working days from the date of the letter requesting document completeness from the Financial Services Authority. (4) In the event that the Board of Directors of the Guarantee Institution has submitted document completeness as referred to in paragraph (3), the Financial Services Authority provides approval or rejection in accordance with the provisions as referred to in paragraph (1). (5) If within 20 (twenty) working days from the date of the letter requesting document completeness as referred to in paragraph (1), the Financial Services Authority has not received a response to the request for document completeness, the Board of Directors of the Guarantee Institution is deemed to have cancelled the request for permission to open Branch Offices. (6) In the event that the request for permission to open Branch Offices is approved, the Financial Services Authority establishes a decision on the granting of permission to open Branch Offices to the Guarantee Institution. (7) Rejection of the request for permission to open Branch Offices as referred to in paragraph (1) is done in writing and accompanied by the reasons for rejection.

Article 75
The Financial Services Authority may revoke the permission to open Branch Offices if within a period of 6 (six) months continuously the Branch Office in question is proven not to carry out operational activities.

Article 76
(1) Guarantee Institutions intending to close Branch Offices must first notify parties bound in Guarantee or Shariah Guarantee regarding:
a. the plan to close the Branch Office; and b. the procedure for settling rights and obligations.
(2) The procedure for settling rights and obligations as referred to in paragraph (1) letter b must be carried out based on regulations and considering the interests of parties bound in Guarantee or Shariah Guarantee. (3) Guarantee Institutions must report the closure of Branch Offices as referred to in paragraph (1) in writing to the Financial Services Authority no later than 10 (ten) working days calculated from the date of the closure of the Branch Office. (4) The reporting of the closure of Branch Offices as referred to in paragraph (3) must be submitted by the Board of Directors of the Guarantee Institution using Format 38 as contained in the Appendix which is an integral part of this Financial Services Authority Regulation, attached with:
a. proof of notification of the plan to close the Branch Office as referred to in paragraph (1) letter a; b. proof of notification of the procedure for settling rights and obligations as referred to in paragraph (1) letter b; and
c. proof of settlement of debtor rights and obligations.
(5) Based on the reporting as referred to in paragraph (4), the Financial Services Authority revokes the permission to open Branch Offices calculated from the date of closure.

CHAPTER XII
CONVERSION OF GUARANTEE COMPANIES OR REINSURANCE COMPANIES INTO SHARIAH GUARANTEE COMPANIES OR SHARIAH REINSURANCE COMPANIES

Article 77
(1) Guarantee Companies or Reinsurance Companies may convert into Shariah Guarantee Companies or Shariah Reinsurance Companies.
(2) Guarantee Companies or Reinsurance Companies intending to carry out conversion as referred to in paragraph (1) must submit a plan for the implementation of conversion to the Financial Services Authority to obtain approval. (3) The request for approval as referred to in paragraph (2) must be submitted by the Board of Directors of the Guarantee Company or Reinsurance Company intending to carry out conversion to the Financial Services Authority, using Format 39 as contained in the Appendix which is an integral part of this Financial Services Authority Regulation, attached with documents:
a. draft GMS minutes deed approving conversion into a Shariah Guarantee Company or Shariah Reinsurance Company; b. draft amendment to the articles of association containing:

1. name, one of the purposes and objectives of the company, namely to carry out Shariah Guarantee or Shariah Reinsurance business activities; and
2. authority and responsibility of the DPS;
   c. the latest audited financial statements;
   d. list of Branch Offices owned by the Guarantee Company or Reinsurance Company; e. organizational structure completed with personnel composition, job descriptions, authority, and responsibility; f. work plan related to Shariah Guarantee or Shariah Reinsurance business activities to be carried out for the first 3 (three) years after obtaining the business license as a Shariah Guarantee Company or Shariah Reinsurance Company, which at least contains:
3. standard operating procedures;
4. examples of cooperation agreements; and
5. examples of Guarantee Certificates or Kafalah Certificates to be used by the Guarantee Institution;
   g. plan for settling the rights and obligations of the Guaranteed, the Recipient of Guarantee, and other related parties; h. feasibility study of market opportunities and economic potential;
   i. plan for Shariah Guarantee or Shariah Reinsurance business activities and steps taken to realize the aforementioned plan;
   j. projection of financial position reports, income statements, and monthly cash flow statements and the underlying assumptions starting from when the Shariah Guarantee Company or Shariah Reinsurance Company commences operational activities; and k. proof of employing experts in the field of Shariah Guarantee. (4) The request for approval of the plan for the implementation of conversion 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, Board of Commissioners, DPS, and PSP of the Guarantee Institution. (5) The request for fit and proper assessment for prospective Board of Directors, Board of Commissioners, DPS, and PSP of the Guarantee Institution as referred to in paragraph (4) is carried out by referring to the Financial Services Authority Regulation regarding fit and proper assessment of financial service institutions.

Article 78
(1) The Financial Services Authority provides approval, requests document completeness, or rejects the request for approval of the plan for the implementation of conversion as referred to in Article 77 paragraph (2) within a maximum period of 20 (twenty) working days from the date the request is received. (2) In order to provide approval or rejection as referred to in paragraph (1), the Financial Services Authority conducts:
a. examination of document completeness as referred to in Article 77 paragraph (3); b. feasibility analysis of the plan for the implementation of conversion;
c. fit and proper assessment of prospective members of the Board of Directors, Board of Commissioners, DPS, and PSP; and
d. analysis of compliance with regulations in the field of guarantee.
(3) The Board of Directors of the Guarantee Company or Reinsurance Company must submit document completeness as referred to in paragraph (1) no later than 20 (twenty) working days from the date of the letter requesting document completeness from the Financial Services Authority. (4) In the event that the Board of Directors of the Guarantee Company or Reinsurance Company has submitted document completeness as referred to in paragraph (3), the Financial Services Authority provides approval or rejection in accordance with the provisions as referred to in paragraph (1). (5) If within 20 (twenty) working days from the date of the letter requesting document completeness as referred to in paragraph (1), the Financial Services Authority has not received a response to the request for document completeness, the Board of Directors of the Guarantee Company or Reinsurance Company is deemed to have cancelled the request for approval of the plan for the implementation of conversion.

The Financial Services Authority sets the decision approving the implementation plan for conversion to the Board of Directors of the Guarantee Company or Reinsurance Guarantee Company.

(7) Rejection of the application for approval of the implementation plan for conversion as referred to in paragraph (1) is done in writing and accompanied by reasons for rejection.

Article 79
(1) Guarantee Companies or Reinsurance Guarantee Companies that have obtained approval for the implementation plan for conversion from the Financial Services Authority must hold a General Meeting of Shareholders (GMS) within a maximum of 60 (sixty) working days calculated from the date of the Financial Services Authority's approval letter.

(2) In the event that the implementation of the GMS approving the implementation plan for conversion does not comply with the time limit as referred to in paragraph (1), the Financial Services Authority's approval letter becomes invalid.

Article 80
(1) Guarantee Companies or Reinsurance Guarantee Companies are required to report the implementation of the GMS that approved the conversion into a Sharia Guarantee Company or Sharia Reinsurance Guarantee Company in writing to the Financial Services Authority within a maximum of 10 (ten) working days calculated from the date of the GMS.

(2) The reporting of the implementation of the GMS approving the conversion as referred to in paragraph (1) must be submitted by the Board of Directors of the Guarantee Company or Reinsurance Guarantee Company to the Financial Services Authority using Format 40 as contained in the Appendix which is an integral part of this Financial Services Authority Regulation, accompanied by:

a. a photocopy of the minutes of the GMS deed approving the conversion into a Sharia Guarantee Company or Sharia Reinsurance Guarantee Company; b. a photocopy of the minutes of the GMS deed stating the appointment of the Board of Directors, Board of Commissioners, and DPS;
c. a photocopy of the amended Articles of Association containing:

1. the name, one of the purposes and objectives of the company, namely conducting Sharia Guarantee or Sharia Reinsurance business activities; and
2. the authority and responsibility of the DPS; and
   d. a photocopy of the Taxpayer Identification Number (NPWP) in the name of the Sharia Guarantee Company or Sharia Reinsurance Guarantee Company resulting from the conversion.

(3) In the context of reporting the implementation of the GMS approving the conversion as referred to in paragraph (1), Guarantee Companies or Reinsurance Guarantee Companies undergoing conversion may submit an application for a license to open Branch Offices previously owned by the converted Guarantee Company or Reinsurance Guarantee Company to the Financial Services Authority in their name.

(4) The application for a license to open Branch Offices as referred to in paragraph (3) must be submitted by the Board of Directors to the Financial Services Authority using Format 41 as contained in the Appendix which is an integral part of this Financial Services Authority Regulation, accompanied by:

a. the previous license to open Branch Offices owned by the converted Guarantee Company or Reinsurance Guarantee Company; and b. proof of ownership or control of the Branch Office building.

(5) Based on the reporting of the implementation of the GMS approving the conversion as referred to in paragraph (2) and the application for a license to open Branch Offices as referred to in paragraph (4) (if any), the Financial Services Authority:

a. conducts an examination of the completeness of documents as referred to in paragraph (2) and paragraph (4); b. provides approval or rejection of the change in business license as a Sharia Guarantee Company or Sharia Reinsurance Guarantee Company, which becomes effective calculated from the date the Articles of Association are approved, agreed upon by, or notified to the competent agency; and
c. provides approval or rejection of the license to open Branch Offices as referred to in paragraph (4), which becomes effective calculated from the date the Articles of Association are approved, agreed upon by, or notified to the competent agency (if any).

(6) The issuance of approval for the business license and/or license to open Branch Offices for Sharia Guarantee Companies or Sharia Reinsurance Guarantee Companies in conversion as referred to in paragraph (5) letters b and c is done within a maximum of 20 (twenty) working days after the reporting documents as referred to in paragraph (5) are received in complete form.

(7) In the event that the Financial Services Authority rejects the establishment of the business license as referred to in paragraph (5) letter b, the rejection must be done in writing accompanied by its reasons.

Article 81
Sharia Guarantee Companies or Sharia Reinsurance Guarantee Companies resulting from conversion are required to report the implementation of the conversion to the Financial Services Authority no later than 20 (twenty) working days calculated from the date the Articles of Association are approved, agreed upon by, or notified to the competent agency using Format 42 as contained in the Appendix which is an integral part of this Financial Services Authority Regulation, accompanied by the Articles of Association that have been approved, agreed upon by, or notified to the competent agency.

Article 82
The conversion of Guarantee Companies or Reinsurance Guarantee Companies into Sharia Guarantee Companies or Sharia Reinsurance Guarantee Companies does not reduce the rights of Guarantee Recipients and the obligations of the Guaranteed Parties.

CHAPTER XIII
REVOCATION OF BUSINESS LICENSES

Article 83
(1) Revocation of the business license of Guarantee Institutions or UUS is carried out by the Financial Services Authority.

(2) Revocation of the business license of Guarantee Institutions or UUS as referred to in paragraph (1) is carried out in the event:

a. dissolution in accordance with applicable legislation; b. subject to administrative sanctions of business license revocation;
c. no longer becomes a Guarantee Institution;
d. dissolution as a result of Merger, Consolidation, or Separation; e. has not conducted business activities no later than 4 (four) months after the date the business license is established as referred to in Article 15 paragraph (1); or f. has not conducted business activities no later than 3 (three) months after the date the UUS license is established as referred to in Article 21 paragraph (1).

(3) Before the revocation of the business license is established by the Financial Services Authority, Guarantee Institutions are required to settle their obligations to Guaranteed Parties and/or Guarantee Recipients.

(4) The procedure for settling obligations as referred to in paragraph (3) must be carried out based on applicable legislation and considering the interests of Guaranteed Parties and/or Guarantee Recipients.

Article 84
Guarantee Institutions dissolve due to:

a. GMS decision; b. the establishment period of the Guarantee Institution set in the Articles of Association expires;
c. court decision; or
d. government decision.

Article 85
(1) In the event that a Guarantee Institution dissolves due to a GMS decision as referred to in Article 84 letter a, the liquidator or meeting representative must report the GMS results to the Financial Services Authority no later than 15 (fifteen) days after the GMS is held.

(2) If the deadline for submitting the dissolution report as referred to in paragraph (1) falls on a holiday, the deadline for submission is the next working day.

(3) The dissolution report as referred to in paragraph (1) uses Format 43 as contained in the Appendix which is an integral part of this Financial Services Authority Regulation, and must be accompanied by:

a. documents serving as the basis for the establishment of the dissolution decision or decree; and b. the original copy of the decision regarding the issuance of the business license for the Guarantee Institution.

(4) Based on the report as referred to in paragraph (1), the Financial Services Authority revokes the business license of the Guarantee Institution.

Article 86
(1) In the event that a Guarantee Institution dissolves because the establishment period of the Guarantee Institution set in the Articles of Association expires as referred to in Article 84 letter b, the liquidator or settlement officer must report the termination of the Guarantee Institution to the Financial Services Authority no later than 45 (forty-five) days after the establishment period of the Guarantee Institution set in the Articles of Association expires.

(2) If the deadline for submitting the dissolution report as referred to in paragraph (1) falls on a holiday, the deadline for submission is the next working day.

(3) The dissolution report as referred to in paragraph (1) uses Format 43 as contained in the Appendix which is an integral part of this Financial Services Authority Regulation, and must be accompanied by:

a. documents serving as the basis for the termination of the Guarantee Institution; and b. the original copy of the decision regarding the issuance of the business license for the Guarantee Institution.

(4) Based on the report as referred to in paragraph (1), the Financial Services Authority revokes the business license of the Guarantee Institution.

Article 87
(1) In the event that a Guarantee Institution dissolves based on a court decision or government decision as referred to in Article 84 letter c or letter d, the liquidator or settlement officer must report the dissolution to the Financial Services Authority no later than 15 (fifteen) working days since the court decision that has permanent legal force or since the government decision is received.

(2) If the deadline for submitting the dissolution report as referred to in paragraph (1) falls on a holiday, the deadline for submission is the next working day.

(3) The dissolution report as referred to in paragraph (1) uses Format 43 as contained in the Appendix which is an integral part of this Financial Services Authority Regulation, and must be accompanied by the original copy of the decision regarding the issuance of the business license for the Guarantee Institution and:

a. a court decision that has permanent legal force; or b. a government decision.

(4) Based on the report as referred to in paragraph (1), the Financial Services Authority revokes the business license of the Guarantee Institution.

Article 88
(1) In the event that a Guarantee Institution is declared bankrupt or liquidated, claim reserves and general reserves must be used first to meet obligations to Guarantee Recipients.

(2) In the event that there is an excess of claim reserves and general reserves after meeting obligations as referred to in paragraph (1), the excess claim reserves and general reserves may be used to meet obligations to third parties other than Guarantee Recipients in accordance with applicable legislation.

Article 89
(1) Guarantee Institutions that will cease their business activities so that they no longer become Guarantee Institutions must first obtain approval from the Financial Services Authority.

(2) To obtain approval as referred to in paragraph (1), the Board of Directors must submit an application for approval of cessation of business activities containing at least the following matters:

a. reasons for cessation of business activities; b. description of the condition of the Guarantee Institution, including data on the number of valid Guarantee Certificates or Kafalah Certificates, the number of Guaranteed Parties and/or Guarantee Recipients, and the amount of the Guarantee Institution's obligations to Guaranteed Parties and/or Guarantee Recipients;
c. plan for settling the Guarantee Institution's obligations to all creditors; and
d. plan for dissolution or other plans after the Guarantee Institution has settled its obligations to all creditors and the business license of the Guarantee Institution has been revoked by the Financial Services Authority.

(3) The application for approval of cessation of business activities as referred to in paragraph (2) must be submitted to the Financial Services Authority using Format 44 as contained in the Appendix which is an integral part of this Financial Services Authority Regulation, accompanied by the following documents:

a. original copy of the decision regarding the issuance of the business license for the Guarantee Institution; b. GMS decision regarding approval of the plan for cessation of business activities of the Guarantee Institution;
c. the latest financial statements of the Guarantee Institution;
d. proof of tax settlement and other obligations to the state; and e. proof of settlement of Financial Services Authority levies and payable administrative fines.

Article 90
(1) The Financial Services Authority conducts an examination of the application for approval of cessation of business activities submitted by the Board of Directors as referred to in Article 89 paragraph (2).

(2) Based on the examination results as referred to in paragraph (1), the Financial Services Authority provides approval, request for document completeness, or rejection of the application for approval of cessation of business activities within a maximum of 20 (twenty) working days since the application for approval of cessation of business activities is received.

(3) The Board of Directors of the Guarantee Institution must submit document completeness as referred to in paragraph (2) within a maximum of 20 (twenty) working days since the date of the document completeness request letter from the Financial Services Authority.

(4) In the event that the Board of Directors of the Guarantee Institution has submitted document completeness as referred to in paragraph (3), the Financial Services Authority provides approval or rejection in accordance with the provisions as referred to in paragraph (2).

(5) If within 20 (twenty) working days since the date of the document completeness request letter as referred to in paragraph (2), the Financial Services Authority has not received a response to the document completeness request, the applicant is deemed to have cancelled the application for approval of cessation of business activities.

(6) In the event that the application for approval of cessation of business activities is approved, the Financial Services Authority issues a letter of approval for cessation of business activities to the Guarantee Institution.

(7) Rejection of the application for approval of cessation of business activities as referred to in paragraph (2) is done in writing and accompanied by reasons for rejection.

(8) In the event that the Financial Services Authority provides approval as referred to in paragraph (2), the Guarantee Institution is required to:

a. cease all business activities of the Guarantee Institution; b. announce the plan for cessation of business activities and the plan for settling the Guarantee Institution's obligations in a newspaper for 3 (three) consecutive days no later than 10 (ten) working days since the date of the letter of approval for the plan for cessation of business activities;
c. settle all obligations of the Guarantee Institution within a maximum of 4 (four) months since the date of the letter of approval for the plan for cessation of business activities; and
d. appoint a public accountant to prepare the final balance sheet including conducting verification to ensure the settlement of all obligations of the Guarantee Institution.

Article 91
After all obligations of the Guarantee Institution as referred to in Article 90 paragraph (8) letter c are settled, the Board of Directors is required to submit a report to the Financial Services Authority using Format 45 as contained in the Appendix which is an integral part of this Financial Services Authority Regulation, which must contain at least:

a. implementation of the cessation of business activities of the Guarantee Institution; b. implementation of the announcement as referred to in Article 90 paragraph (8) letter b;
c. implementation of the settlement of obligations of the Guarantee Institution;
d. the final balance sheet of the Guarantee Institution audited by a public accountant; and e. a statement letter from shareholders stating that all obligations of the Guarantee Institution have been settled and that if claims arise in the future, they become the responsibility of the shareholders.

Article 92
(1) The Financial Services Authority conducts an examination of the report submitted by the Board of Directors as referred to in Article 91.

(2) Based on the examination results as referred to in paragraph (1), within a maximum of 20 (twenty) working days since the report is received in complete form, the Financial Services Authority issues a decision regarding the revocation of the business license of the Guarantee Institution.

(3) Guarantee Institutions whose business licenses are revoked are required to cease their business activities.

Article 93
Since the date of revocation of the business license of the Guarantee Institution as referred to in Article 92 paragraph (2), if obligations of the Guarantee Institution that have not been settled arise in the future, shareholders are responsible for such obligations.

CHAPTER XIV
ASSOCIATION OF GUARANTEE INSTITUTIONS

Article 94
(1) Guarantee Institutions are required to become members of the Association of Guarantee Institutions.

(2) Guarantee Institutions that newly obtain a business license are required to fulfill the provisions for becoming members of the Association of Guarantee Institutions as referred to in paragraph (1) no later than 1 (one) year since the date the business license is established.

(3) The Association of Guarantee Institutions as referred to in paragraph (1) must obtain written approval from the Financial Services Authority.

(4) To obtain approval as referred to in paragraph (3), the Association of Guarantee Institutions must submit a written application to the Financial Services Authority accompanied by:

a. the deed of establishment containing the Articles of Association and House Rules that have obtained approval from the competent agency; and b. the management structure.

CHAPTER XV
SUPPORTING INSTITUTIONS FOR GUARANTEE

Article 95
(1) In conducting their business activities, Guarantee Institutions may use the services of supporting institutions for guarantee.

(2) Supporting institutions for guarantee as referred to in paragraph (1) consist of:

a. micro, small, medium, and cooperative business rating agencies; b. guarantee agents; and
c. brokers.

(3) Supporting institutions for guarantee as referred to in paragraph (2) must be registered first at the Financial Services Authority.

(4) Guarantee Institutions are required to use supporting institutions for guarantee that have been registered at the Financial Services Authority.

Article 96
(1) Micro, small, medium, and cooperative business rating agencies as referred to in Article 95 paragraph (2) letter a must meet the following criteria:

a. in the form of a Limited Liability Company; and b. independent.

(2) To be registered at the Financial Services Authority, micro, small, medium, and cooperative business rating agencies as referred to in Article 95 paragraph (2) letter a must submit a registration application by attaching documents:

a. the deed of establishment of the legal entity that has been approved by the competent agency; b. ownership data in the form of a list of prospective shareholders along with details of each shareholder's ownership amount;
c. a list of the composition of the Board of Directors and Board of Commissioners members;
d. organizational structure and human resources; e. the information technology system used; and f. operational policies and procedures.

Article 97
(1) Guarantee agents as referred to in Article 95 paragraph (2) letter b are individuals or legal entities acting on behalf of and for the name of the Guarantee Institution and meeting the requirements to represent the Guarantee Institution in marketing guarantee business.

(2) Guarantee agents in the form of individuals must meet the following criteria:

a. possess an agency certificate from the Professional Certification Body in the field of Guarantee; b. registered as members of the Association of Guarantee Institutions; and
c. registered at the Financial Services Authority.

(3) To be registered at the Financial Services Authority, guarantee agents in the form of individuals must submit a registration application to the Financial Services Authority by attaching documents:

a. agency certificate from the Professional Certification Body in the field of Guarantee; b. photocopy of identification cards in the form of an Identity Card (KTP) or valid passport;
c. a curriculum vitae completed with a recent 4 x 6 cm color photo; and
d. a letter of recommendation from the Association of Guarantee Institutions stating that they are not currently subject to sanctions.

(4) Guarantee agents in the form of legal entities must meet the following criteria:

a. in the form of a Limited Liability Company; b. registered as members of the Association of Guarantee Institutions; and
c. registered at the Financial Services Authority.

(5) To be registered at the Financial Services Authority, guarantee agents in the form of legal entities must submit a registration application by attaching documents:

a. Articles of Association or House Rules that have been approved by the competent agency; b. ownership data in the form of a list of prospective shareholders along with details of each shareholder's ownership amount;
c. management structure;
d. organizational structure and human resources; e. the information technology system used; and f. operational policies and procedures.

Article 98
(1) Brokers as referred to in Article 95 paragraph (2) letter c consist of:

a. guarantee brokers; and b. reinsurance guarantee brokers.

(2) Brokers as referred to in paragraph (1) must be in the form of a Limited Liability Company.

(3) Brokers must have human resources who possess brokerage certificates from the Professional Certification Body in the field of guarantee.

(4) Brokers must be registered as members of the Association of Guarantee Institutions.

(5) To be registered at the Financial Services Authority, brokers as referred to in paragraph (1) must submit a registration application by attaching documents:

a. the deed of establishment of the legal entity that has been approved by the competent agency; b. ownership data in the form of a list of prospective shareholders along with details of each shareholder's ownership amount;
c. management structure;
d. organizational structure and human resources; e. the information technology system used; and f. operational policies and procedures.

Article 99
(1) The Financial Services Authority issues proof of registration, requests for document completeness, or rejections of the submission of registration applications as referred to in Article 96 paragraph (2), Article 97 paragraph (3) and paragraph (5), and Article 98 paragraph (5) within a maximum of 20 (twenty) working days since the application is received in complete form.

(2) If within 20 (twenty) working days since the date of the document completeness request letter as referred to in paragraph (1), the Financial Services Authority has not received a response to the document completeness request, the applicant is deemed to have cancelled the registration application.

(3) In the event that the registration application is approved, the Financial Services Authority issues a letter of registration.

(4) In the event that the Financial Services Authority rejects the registration application as referred to in paragraph (1), the rejection must be done in writing accompanied by its reasons.

CHAPTER XVI
COMPLIANCE ENFORCEMENT

First Section
Notification

Article 100
(1) Guarantee Institutions that do not fulfill the provisions as referred to in Article 35 paragraph (1), paragraph (2), paragraph (3), and paragraph (5), Article 36 paragraph (1), Article 37 paragraph (1), Article 39 paragraph (1) and paragraph (2), Article 48 paragraph (1), Article 55 paragraph (1), Article 61 paragraph (1), Article 67 paragraph (1), Article 72 paragraph (1), Article 76 paragraph (1), paragraph (2), and paragraph (3), Article 77 paragraph (2), Article 89 paragraph (1), Article 92 paragraph (3), and/or Article 94 paragraph (1) and paragraph (2) of this Financial Services Authority Regulation are given a notification letter.

(2) For Guarantee Institutions that have a UUS and do not fulfill the provisions as referred to in Article 24 paragraph (3), Article 27 paragraph (1) and paragraph (2), Article 30 paragraph (2) and paragraph (3), and/or Article 34 of this Financial Services Authority Regulation, a notification letter is given.

(3) Guarantee Institutions are required to fulfill the provisions as referred to in paragraph (1) and/or paragraph (2) no later than 1 (one) month since the date of the notification letter.

Part Two
Compliance Plan
Article 101
(1) Guarantee Institutions that do not meet the provisions as referred to in Article 9 paragraph (1), paragraph (2), and paragraph (3), Article 33 paragraph (4), and/or Article 83 paragraph (3) and paragraph (4) of this Financial Services Authority Regulation must submit a compliance plan to the Financial Services Authority no later than 1 (one) month from the date of the determination of the violation. (2) The compliance plan as referred to in paragraph (1) must at least contain the plan to be carried out by the Guarantee Institution for compliance with the provisions accompanied by a specific time period required to fulfill the provisions as referred to in paragraph (1). (3) The compliance plan as referred to in paragraph (1) contains:
a. asset and/or liability restructuring; b. increase in paid-up capital;
c. transfer of part or all of the assets;
d. restriction on profit distribution; e. restriction on activities causing violations of provisions; f. restriction on opening new branch offices; g. Merger of business entities; and/or h. other matters to be implemented to fulfill the provisions as referred to in paragraph (1). (4) The compliance plan as referred to in paragraph (1) must be signed by all Directors and Commissioners. (5) The compliance plan as referred to in paragraph (1) must first be approved by the General Meeting of Shareholders if the plan involves a plan to increase Paid-up Capital or a plan to implement a Business Merger. (6) The compliance plan as referred to in paragraph (1) must obtain a statement of non-objection from the Financial Services Authority. (7) In the event that the compliance plan as referred to in paragraph (1) is assessed by the Financial Services Authority as insufficient to address the problems, the Guarantee Institution must make improvements to the compliance plan. (8) The Financial Services Authority issues a statement of non-objection to the compliance plan submitted by the Guarantee Institution by considering the conditions of the problems faced by the Guarantee Institution no later than 15 (fifteen) working days calculated from the date of receipt of the complete compliance plan. (9) If within the time period as referred to in paragraph (7), the Financial Services Authority does not issue a statement of non-objection or response, the Guarantee Institution may implement the compliance plan as referred to in paragraph (1). (10) The Guarantee Institution is required to implement the compliance plan as referred to in paragraph (1).

CHAPTER XVII
ADMINISTRATIVE SANCTIONS
Article 102
(1) In the event that by the end of the time period of the notification letter as referred to in Article 100 paragraph (3), the Guarantee Institution has not fulfilled the provisions as referred to in Article 100 paragraph (1) and/or paragraph (2), the Guarantee Institution is subject to graduated administrative sanctions in the form of:
a. written warning; b. suspension of business activities and/or suspension of Sharia Business Unit (UUS) business activities; or
c. revocation of business license and/or revocation of UUS license.

(2) In addition to the sanctions as referred to in paragraph (1), the Financial Services Authority may impose additional sanctions in the form of:
a. restriction on certain business activities; b. reduction of risk assessment results;
c. cancellation of approval; and/or
d. re-evaluation of competence and propriety.
(3) Guarantee Institutions that do not meet the provisions as referred to in paragraph (1) but the violation has been resolved, are still subject to the first written warning sanction which ends automatically. (4) The written warning sanction as referred to in paragraph (1) letter a may be given at most 3 (three) times consecutively with a validity period of each at most 2 (two) months. (5) In the event that before the end of the validity period of the written warning sanction as referred to in paragraph (4), the Guarantee Institution has fulfilled the provisions as referred to in Article 100 paragraph (1) and/or paragraph (2), the Financial Services Authority revokes the written warning sanction. (6) In the event that the validity period of the third written warning as referred to in paragraph (4) expires and the Guarantee Institution still does not fulfill the provisions as referred to in Article 100 paragraph (1) and/or paragraph (2), the Financial Services Authority imposes a sanction of suspension of business activities and/or suspension of UUS business activities. (7) The sanction of suspension of business activities and/or suspension of UUS business activities is given in writing and is valid from the date of determination for a period of at most 6 (six) months. (8) In the event that the validity period of the written warning sanction, suspension of business activities sanction, and/or suspension of UUS business activities sanction ends on a holiday, the written warning sanction, suspension of business activities sanction, and/or suspension of UUS business activities sanction are valid until the first working day following. (9) Guarantee Institutions subject to the sanction of suspension of business activities and/or suspension of UUS business activities as referred to in paragraph (6) are prohibited from conducting business activities. (10) In the event that before the end of the validity period of the suspension of business activities sanction as referred to in paragraph (7), the Guarantee Institution has fulfilled the provisions as referred to in Article 100 paragraph (1) and/or paragraph (2), the Financial Services Authority revokes the sanction of suspension of business activities and/or suspension of UUS business activities. (11) In the event that the sanction of suspension of business activities and/or suspension of UUS business activities is still in effect and the Guarantee Institution continues to conduct Guarantee business activities, the Financial Services Authority may directly impose a sanction of revocation of business license and/or revocation of UUS license. (12) In the event that by the end of the validity period of the suspension of business activities and/or suspension of UUS business activities as referred to in paragraph (7), the Guarantee Institution has not fulfilled the provisions as referred to in Article 100 paragraph (1) and/or paragraph (2), the Financial Services Authority revokes the business license and/or
UUS license concerned. (13) The Financial Services Authority may announce the sanction of suspension of business activities and/or sanction of suspension of UUS business activities as referred to in paragraph (1) letter b, and/or sanction of revocation of business license and/or sanction of revocation of UUS license as referred to in paragraph (1) letter c to the public.

Article 103
(1) Guarantee Institutions that do not meet the provisions as referred to in Article 4 paragraph (1), paragraph (2), and paragraph (3), Article 7 paragraph (4) and paragraph (5), Article 11 paragraph (1), Article 15 paragraph (2), Article 19 paragraph (1), Article 38 paragraph (1), Article 40 paragraph (4), paragraph (7), and paragraph (9), Article 42 paragraph (1) and paragraph (2), Article 43 paragraph (6), paragraph (7), and paragraph (8), Article 44 paragraph (1), Article 45, Article 46 paragraph (1), Article 47 paragraph (2) and paragraph (3), Article 51 paragraph (1), Article 52, Article 53 paragraph (1), Article 54, Article 55 paragraph (2), Article 58 paragraph (1), Article 60 paragraph (3), Article 64 paragraph (1), Article 65, Article 70 paragraph (1), Article 71, Article 73 paragraph (3), Article 76 paragraph (1), paragraph (2), and paragraph (3), Article 80 paragraph (1), Article 81, Article 90 paragraph (8), Article 91, Article 95 paragraph (3) and paragraph (4), and/or Article 101 paragraph (1), paragraph (7), and paragraph (10) of this Financial Services Authority Regulation may be subject to administrative sanctions in the form of:
a. written warning; b. suspension of business activities; or
c. revocation of business license.
(2) In addition to the sanctions as referred to in paragraph (1), the Financial Services Authority may impose additional sanctions in the form of:
a. restriction on certain business activities; b. reduction of risk assessment results;
c. cancellation of certain approvals; and/or
d. re-evaluation of competence and propriety.
(3) Guarantee Institutions that do not meet the provisions as referred to in paragraph (1) but the violation has been resolved, are still subject to the first written warning sanction which ends automatically. (4) The written warning sanction as referred to in paragraph (1) letter a may be given at most 3 (three) times consecutively with a validity period of each at most 2 (two) months. (5) In the event that before the end of the validity period of the written warning sanction as referred to in paragraph (4), the Guarantee Institution has fulfilled the provisions as referred to in paragraph (1), the Financial Services Authority revokes the written warning sanction. (6) In the event that the validity period of the third written warning as referred to in paragraph (4) expires and the Guarantee Institution still does not fulfill the provisions as referred to in paragraph (1), the Financial Services Authority imposes a sanction of suspension of business activities. (7) The sanction of suspension of business activities is given in writing and is valid from the date of determination for a period of at most 6 (six) months. (8) In the event that the validity period of the written warning sanction and/or suspension of business activities sanction ends on a holiday, the written warning sanction and/or suspension of business activities sanction are valid until the first working day following. (9) During the validity period of the sanction of suspension of business activities as referred to in paragraph (7), the Guarantee Institution:
a. is prohibited from conducting new Guarantee or Reinsurance; and b. remains responsible for settling all obligations including Guarantee or Reinsurance obligations that have been carried out as stated in the Guarantee Certificate and/or cooperation agreement. (10) In the event that before the end of the validity period of the suspension of business activities sanction as referred to in paragraph (7), the Guarantee Institution has fulfilled the provisions as referred to in paragraph (1), the Financial Services Authority revokes the sanction of suspension of business activities. (11) In the event that the sanction of suspension of business activities is still in effect and the Guarantee Institution continues to conduct Guarantee business activities, the Financial Services Authority may directly impose a sanction of revocation of business license. (12) In the event that by the end of the validity period of the suspension of business activities sanction as referred to in paragraph (7), the Guarantee Institution has not fulfilled the provisions as referred to in paragraph (1), the Financial Services Authority revokes the business license of the concerned Guarantee Institution. (13) The Financial Services Authority may announce the sanction of restriction on certain business activities as referred to in paragraph (2) letter a, suspension of business activities as referred to in paragraph (1) letter b, and/or sanction of revocation of business license as referred to in paragraph (1) letter c to the public.

Article 104
(1) Guarantee Companies that have a Sharia Business Unit (UUS) and do not meet the provisions as referred to in Article 17 paragraph (2), Article 18 paragraph (1), Article 21 paragraph (2), Article 22 paragraph (1), Article 23 paragraph (1), Article 28 paragraph (1), and/or Article 32 paragraph (1) and paragraph (2) of this Financial Services Authority Regulation are subject to graduated administrative sanctions in the form of:
a. written warning; b. suspension of UUS business activities; or
c. revocation of UUS license.
(2) In addition to the sanctions as referred to in paragraph (1), the Financial Services Authority may impose additional sanctions in the form of:
a. restriction on certain business activities; b. reduction of risk assessment results;
c. cancellation of approval; and/or
d. re-evaluation of competence and propriety.
(3) Guarantee Companies that have a UUS that does not meet the provisions as referred to in paragraph (1) but the violation has been resolved, are still subject to the first written warning sanction which ends automatically. (4) The written warning sanction as referred to in paragraph (1) letter a is given in writing at most 3 (three) times consecutively with a validity period of each at most 2 (two) months. (5) In the event that before the end of the validity period of the written warning sanction as referred to in paragraph (4), the Guarantee Company that has a UUS has fulfilled the provisions as referred to in paragraph (1), the Financial Services Authority revokes the written warning sanction. (6) In the event that the validity period of the third written warning as referred to in paragraph (4) expires and the Guarantee Company that has a UUS still does not fulfill the provisions as referred to in paragraph (1), the Financial Services Authority imposes a sanction of suspension of UUS business activities. (7) The sanction of suspension of UUS business activities as referred to in paragraph (6) is given in writing and is valid from the date of determination for a period of at most 6 (six) months. (8) During the validity period of the sanction of suspension of UUS business activities as referred to in paragraph (7), the Guarantee Company that has a UUS:
a. is prohibited from conducting Sharia Guarantee; and b. remains responsible for settling all obligations including Sharia Guarantee obligations that have been carried out as stated in the Kafalah Certificate and/or cooperation agreement. (9) In the event that the validity period of the written warning sanction and/or suspension of UUS business activities sanction ends on a holiday, the written warning sanction and/or suspension of UUS business activities sanction are valid until the first working day following. (10) In the event that before the end of the validity period of the suspension of UUS business activities sanction as referred to in paragraph (7), the Guarantee Company that has a UUS has fulfilled the provisions as referred to in paragraph (1), the Financial Services Authority revokes the sanction of suspension of UUS business activities concerned. (11) In the event that the sanction of suspension of UUS business activities is still in effect and the Guarantee Company that has a UUS continues to conduct Sharia Guarantee business activities, the Financial Services Authority may directly impose a sanction of revocation of UUS license. (12) In the event that by the end of the validity period of the suspension of UUS business activities sanction as referred to in paragraph (7), the Guarantee Company has not fulfilled the provisions as referred to in paragraph (1), the Financial Services Authority revokes the UUS license concerned. (13) The Financial Services Authority may announce the sanction of suspension of UUS business activities as referred to in paragraph (1) letter b and/or sanction of revocation of UUS license as referred to in paragraph (1) letter c to the public.

Article 105
Guarantee Institutions that do not meet the provisions of Article 15 paragraph (1) and Article 21 paragraph (1) are subject to sanctions in the form of revocation of business license or UUS license.

CHAPTER XVIII
OTHER PROVISIONS
Article 106
(1) In the event that the Financial Services Authority has provided an electronic service system (e-licensing), requests for licensing, approval, or reporting as referred to in Article 12 paragraph (2), Article 15 paragraph (3), Article 19 paragraph (2), Article 21 paragraph (3), Article 23 paragraph (2), Article 25 paragraph (1), Article 28 paragraph (2), Article 31 paragraph (1), Article 38 paragraph (2), Article 40 paragraph (5), Article 43 paragraph (1), paragraph (2), paragraph (3), paragraph (5), paragraph (9), and paragraph (10), Article 44 paragraph (2) and paragraph (3), Article 45 paragraph (2), Article 46 paragraph (3), Article 48 paragraph (2), Article 51 paragraph (2) and paragraph (4), Article 52, Article 53 paragraph (2) and paragraph (4), Article 54, Article 55 paragraph (2), Article 58 paragraph (2), Article 61 paragraph (2), Article 64 paragraph (2) and paragraph (4), Article 65, Article 67 paragraph (2), Article 70 paragraph (2), Article 71, Article 73 paragraph (4), Article 76 paragraph (4), Article 77 paragraph (3), Article 80 paragraph (2) and paragraph (4), Article 81, Article 85 paragraph (3), Article 86 paragraph (3), Article 87 paragraph (3), Article 89 paragraph (3), Article 91, Article 94 paragraph (4), Article 96 paragraph (2), Article 97 paragraph (3) and paragraph (5), and Article 98 paragraph (5) must be submitted to the Financial Services Authority online through the Financial Services Authority's data communication network system. (2) Further provisions regarding electronic services (e-licensing) as referred to in paragraph (1) will be further regulated in a Financial Services Authority circular letter.

Article 107
(1) Professional Certification Institutions must be registered with the Financial Services Authority.
(2) To be registered with the Financial Services Authority, the Professional Certification Institution as referred to in paragraph (1) must submit a request to the Financial Services Authority accompanied by:
a. proof of certification of the Professional Certification Institution from other agencies designated based on legislation; and b. photocopy of the deed.

CHAPTER XIX
TRANSITIONAL PROVISIONS
Article 108
(1) Guarantee Institutions that have obtained a business license before the enactment of Law Number 1 of 2016 concerning Guarantee must adjust to the foreign ownership provisions in guarantee institutions in the form of a limited liability company as referred to in Article 4 paragraph (2) no later than 2 (two) years from the enactment of Law Number 1 of 2016 concerning Guarantee. (2) Foreign legal entities that have become shareholders of Guarantee Institutions at the time this Financial Services Authority Regulation is enacted are exempt from the provisions as referred to in Article 4 paragraph (4).

Article 109
(1) Business licenses of Guarantee Institutions that have been issued before the determination of this Financial Services Authority Regulation are declared to remain valid. (2) In the event that there are business license requests that have not received approval at the time this Financial Services Authority Regulation takes effect, the provisions in this Financial Services Authority Regulation apply to the concerned request. (3) In the event that Professional Certification Institutions have not yet been formed, the requirements regarding proof of employing Guarantee or Sharia Guarantee experts as referred to in Article 13 paragraph (2) letter e are fulfilled with a statement regarding employees who have experience in the field of guarantee or credit analysis for at least 2 (two) years.

Article 110
(1) Guarantee Institutions that have obtained a business license at the time this Financial Services Authority Regulation is enacted are required to fulfill the provisions regarding certification for Directors and Commissioners as referred to in Article 36 paragraph (1) no later than 3 (three) years after this Financial Services Authority Regulation is enacted. (2) Guarantee Institutions that have obtained a business license at the time this Financial Services Authority Regulation is enacted are required to fulfill the provisions to have Guarantee experts as referred to in Article 37 paragraph (1) no later than 3 (three) years after this Financial Services Authority Regulation is enacted.

Article 111
(1) Every administrative sanction that has been imposed on Guarantee Institutions based on Financial Services Authority Regulation Number 5/POJK.05/2014 concerning Business Licensing and Institutional Organization of Guarantee Companies is declared to remain valid and effective. (2) Guarantee Institutions that have not been able to overcome the causes of the imposition of administrative sanctions as referred to in paragraph (1) are subject to further sanctions in accordance with this Financial Services Authority Regulation.

CHAPTER XX
CLOSING PROVISIONS
Article 112
At the time this Financial Services Authority Regulation takes effect, provisions concerning business licensing and institutional organization of Guarantee Institutions are subject to this Financial Services Authority Regulation.

Article 113
At the time this Financial Services Authority Regulation takes effect, Financial Services Authority Regulation Number 5/POJK.05/2014 concerning Business Licensing and Institutional Organization of Guarantee Companies (State Gazette of the Republic of Indonesia Year 2014 Number 72, Supplement to the State Gazette of the Republic of Indonesia Number 5527) is repealed and declared invalid.

Article 114
This Financial Services Authority Regulation takes effect on the date of enactment.

In order that everyone knows it, it is ordered to promulgate this Financial Services Authority Regulation by placing it in the State Gazette of the Republic of Indonesia. Determined in Jakarta on January 11, 2017 CHAIRMAN OF THE BOARD OF COMMISSIONERS FINANCIAL SERVICES AUTHORITY, signed MULIAMAN D. HADAD Promulgated in Jakarta on January 11, 2017 MINISTER OF LAW AND HUMAN RIGHTS REPUBLIC OF INDONESIA, signed YASONNA H. LAOLY STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2017 NUMBER 6 Copy in accordance with the original Legal Director 1 Department of Law signed Yuliana

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 1 /POJK.05/20172017
CONCERNING
BUSINESS LICENSING AND INSTITUTIONAL ORGANIZATION OF GUARANTEE INSTITUTIONS

I. GENERAL
The Financial Services Authority Regulation concerning Business Licensing and Institutional Organization of Guarantee Institutions is an implementing regulation that is a mandate from Law Number 1 of 2016 concerning Guarantee. The role of Guarantee Companies, Sharia Guarantee Companies, Reinsurance Companies, and Sharia Reinsurance Companies in the development of the guarantee industry is very large. Companies and industry players play an important role in creating a healthier, reliable, trustworthy, and competitive guarantee industry. The culmination of all these efforts is the growth of the national economy, which will ultimately create collective welfare as an effort to realize the nation's ideals. This Financial Services Authority Regulation is also an improvement to Financial Services Authority Regulation Number 5/POJK.05/2014 concerning Business Licensing and Institutional Organization of Guarantee Institutions. As an improvement effort, this Financial Services Authority Regulation adopts the mandate from Law Number 1 of 2016 concerning Guarantee that must be regulated in a Financial Services Authority Regulation, namely:
a. foreign ownership; b. paid-up capital or cooperative capital and operational area scope;
c. controlling shareholders;
d. requirements and procedures for licensing of guarantee and reinsurance business; e. procedures for cessation of UUS business activities; f. requirements and procedures for licensing of Sharia Guarantee and Sharia Reinsurance business; g. branch offices of Guarantee Institutions; h. Merger, Consolidation, Takeover, or Separation of Guarantee Institutions;
i. supporting institutions for guarantee; and
j. separation of UUS and sanctions for Guarantee Companies that do not carry out UUS Separation.
In addition to the aforementioned material, efforts are also made to improve materials in the previously applicable regulations, such as licensing, reporting, opening offices, Merger, Consolidation, Separation, up to the application of sanctions. This is an effort to meet the legal needs of the guarantee industry.

II. ARTICLE BY ARTICLE
Article 1
Clear enough.
Article 2
Clear enough.
Article 3
Clear enough.
Article 4
Clear enough.
Article 5
Clear enough.
Article 6
Clear enough.
Article 7
Clear enough.
Article 8
Paragraph (1)
Clear enough.
Paragraph (2)
Provisions regarding the operational area scope of Guarantee Institutions are stated in the articles of association in the part regarding the place of domicile.
Article 9
Paragraph (1)
Clear enough.
Paragraph (2)
Provisions regarding Direct Guarantee or Sharia Guarantee are directly regulated in a Financial Services Authority Regulation concerning the conduct of business by Guarantee Institutions. Paragraph (3) Provisions regarding Indirect Guarantee or Sharia Guarantee and co-guarantee are regulated in a Financial Services Authority Regulation concerning the conduct of business by Guarantee Institutions. Letter a As an example, PT Jamkrida Sumsel can conduct Indirect Guarantee against Guarantors domiciled in the Bangka and Belitung Province as long as it is carried out through a co-guarantee mechanism. Letter b As an example, PT Jamkrida Jakarta, which is a provincial scope Guarantee Company, can conduct Indirect Guarantee against Guarantors who are customers of PT Bank DKI considering that PT Jamkrida Jakarta and PT Bank DKI are owned by the same shareholders.

Article 10
Paragraph (1)
What is meant by the amount of capital participation is the amount of capital participation at the time of initial participation.
Paragraph (2)
Clear enough.
Article 11
Paragraph (1)
Clear enough
Paragraph (2)
The exception in these provisions is intended so that the state can own and/or control more than one company with similar business in order to provide guarantee services for certain groups of people or certain areas, become a pioneer in guarantee business activities that cannot yet be carried out by the private sector, or carry out other strategic public benefits for the community.
Article 12
Clear enough.
Article 13
Paragraph (1)
Clear enough.
Paragraph (2)
Letter a
Clear enough.
Letter b
Clear enough.
Letter c
Clear enough.
Letter d
Clear enough.
Letter e
Clear enough.

Letter f
The term “proof of settlement of Paid-in Capital” refers to proof of capital settlement from shareholders to the Guarantee Institution.
While “proof of placement of Paid-in Capital” refers to proof of capital placement in the name of the Guarantee Institution.

Letter g
Clearly stated.

Letter h
Clearly stated.

Letter i
Clearly stated.

Letter j
Clearly stated.

Paragraph (3)
Clearly stated.

Paragraph (4)
Clearly stated.

Article 14
Paragraph (1)
Clearly stated.

Paragraph (2)
Letter a
The term “research on document completeness” includes the correspondence of documents with the requirements stipulated in legislation.

Letter b
The examination of capital deposits can be conducted, among others, by examining the receipt of capital deposits by the Guarantee Institution and verifying financial transactions related to capital deposits originating from intra-group transactions.

Letter c
Clearly stated.

Letter d
Clearly stated.

Letter e
Clearly stated.

Paragraph (3)
Clearly stated.

Paragraph (4)
Clearly stated.

Paragraph (5)
Clearly stated.

Paragraph (6)
Clearly stated.

Paragraph (7)
Clearly stated.

Paragraph (8)
Clearly stated.

Article 15
Paragraph (1)
Clearly stated.

Paragraph (2)
Clearly stated.

Paragraph (3)
Clearly stated.

Paragraph (4)
Letter a
Clearly stated.

Letter b
Clearly stated.

Letter c
Regulations regarding residence permits and/or work permits for foreign labor for the Board of Directors and/or Board of Commissioners are governed by the ministry responsible for labor.

Article 16
Clearly stated.

Article 17
Clearly stated.

Article 18
Clearly stated.

Article 19
Paragraph (1)
Clearly stated.

Paragraph (2)
Clearly stated.

Paragraph (3)
Clearly stated.

Paragraph (4)
This provision is intended so that Guarantee Companies or Re-guarantee Companies can prepare documents for the assessment of ability and propriety for prospective Sharia Supervisory Board (DPS) members of Guarantee Companies or Re-guarantee Companies simultaneously with the application for the Sharia Business Unit (UUS) opening license. The Financial Services Authority will process the application for the UUS opening license if it is followed by or submitted simultaneously with an application for the assessment of ability and propriety for prospective DPS members of Guarantee Companies or Re-guarantee Companies. Conversely, the application for the assessment of ability and propriety for prospective DPS members of Guarantee Companies or Re-guarantee Companies will be processed by the Financial Services Authority if it is followed by or submitted simultaneously with an application for the UUS opening license.

Paragraph (5)
Clearly stated.

Article 20
Paragraph (1)
Clearly stated.

Paragraph (2)
Clearly stated.

Paragraph (3)
Clearly stated.

Paragraph (4)
Clearly stated.

Paragraph (5)
Clearly stated.

Paragraph (6)
With the recording of amendments to the articles of association in the context of establishing a Sharia Business Unit (UUS), the Guarantee Company is not required to report again to the Financial Services Authority regarding the amendments to the articles of association that have been made.

Paragraph (7)
Clearly stated.

Article 21
Paragraph (1)
Clearly stated.

Paragraph (2)
Clearly stated.

Paragraph (3)
Letter a
Clearly stated.

Letter b
Photocopies of agreements that must be attached are several photocopies (not the entirety) that can represent or reflect business activities that have been conducted according to the list of agreements submitted to the Financial Services Authority.

Article 22
Clearly stated.

Article 23
Clearly stated.

Article 24
Clearly stated.

Article 25
Clearly stated.

Article 26
Clearly stated.

Article 27
Clearly stated.

Article 28
Clearly stated.

Article 29
Clearly stated.

Article 30
Clearly stated.

Article 31
Clearly stated.

Article 32
Clearly stated.

Article 33
Paragraph (1)
Clearly stated.

Paragraph (2)
Clearly stated.

Paragraph (3)
As an example, other forms permitted under legislation and in accordance with accounting standards include the recognition of assets owned by the UUS previously as Paid-in Capital of Sharia Guarantee Companies or Sharia Re-guarantee Companies, evidenced by the UUS closing financial position report and the opening financial position report of the Sharia Guarantee Company or Sharia Re-guarantee Company.

Paragraph (4)
Clearly stated.

Article 34
Clearly stated.

Article 35
Paragraph (1)
Clearly stated.

Paragraph (2)
The functions in this paragraph can be held concurrently by specific work units according to company policy, while observing good internal controls.

Paragraph (3)
Clearly stated.

Paragraph (4)
Clearly stated.

Paragraph (5)
Clearly stated.

Article 36
Clearly stated.

Article 37
Clearly stated.

Article 38
Clearly stated.

Article 39
Paragraph (1)
Program implementation can be conducted internally or externally by the company.

Paragraph (2)
The implementation of workforce capability and knowledge development programs is conducted by the internal Guarantee Institution and/or by involving Guarantee Institution workforce in education and training programs organized by third parties outside the Guarantee Institution, such as socialization, seminars, workshops, courses, training, educational programs, or similar activities.

Article 40
Paragraph (1)
Clearly stated.

Paragraph (2)
Clearly stated.

Paragraph (3)
Clearly stated.

Paragraph (4)
Clearly stated.

Paragraph (5)
Letter a
The submitted plan for amendments to the articles of association must include plans for increasing the operational scope and proof of fulfillment of Paid-in Capital.

Letter b
Clearly stated.

Letter c
Clearly stated.

Paragraph (6)
Clearly stated.

Paragraph (7)
Clearly stated.

Paragraph (8)
Clearly stated.

Paragraph (9)
Clearly stated.

Article 41
Clearly stated.

Article 42
Clearly stated.

Article 43
Clearly stated.

Article 44
Clearly stated.

Article 45
Clearly stated.

Article 46
Clearly stated.

Article 47
Clearly stated.

Article 48
Clearly stated.

Article 49
Clearly stated.

Article 50
Clearly stated.

Article 51
Clearly stated.

Article 52
Clearly stated.

Article 53
Clearly stated.

Article 54
Clearly stated.

Article 55
Clearly stated.

Article 56
Clearly stated.

Article 57
Clearly stated.

Article 58
Clearly stated.

Article 59
Clearly stated.

Article 60
Paragraph (1)
Clearly stated.

Paragraph (2)
As an example, PT Penjaminan Kredit UMKM conducted a Pure Separation into 3 (three) legal entities, namely:
a. PT Penjaminan Kredit Nasional; b. PT Penjaminan Pembiayaan Syariah; and
c. PT Pemeringkat UMKM Nasional.

Paragraph (3)
Clearly stated.

Article 61
Clearly stated.

Article 62
Paragraph (1)
Within the period before the approval for pure separation is issued, the Guarantee Institution may continue to conduct business activities.

Paragraph (2)
Clearly stated.

Paragraph (3)
Clearly stated.

Paragraph (4)
Clearly stated.

Paragraph (5)
Clearly stated.

Paragraph (6)
Clearly stated.

Paragraph (7)
Clearly stated.

Article 63
Clearly stated.

Article 64
Clearly stated.

Article 65
This obligation applies to every new company resulting from a Pure Separation that is structured as a Guarantee Institution. If there is more than one new company resulting from a Pure Separation structured as a Guarantee Institution, each such new company is obligated to fulfill the provisions of this paragraph.

Article 66
Clearly stated.

Article 67
Clearly stated.

Article 68
Clearly stated.

Article 69
Clearly stated.

Article 70
Clearly stated.

Article 71
Clearly stated.

Article 72
Clearly stated.

Article 73
Clearly stated.

Article 74
Clearly stated.

Article 75
Clearly stated.

Article 76
Clearly stated.

Article 77
Paragraph (1)
Clearly stated.

Paragraph (2)
Clearly stated.

Paragraph (3)
Letter a
Clearly stated.

Letter b
Clearly stated.

Letter c
Clearly stated.

Letter d
Clearly stated.

Letter e
Clearly stated.

Letter f
Clearly stated.

Letter g
Included in the plan for the settlement of rights and obligations is the plan for the settlement of conventional Guarantee or Re-guarantee portfolios already owned.

Letter h
Clearly stated.

Letter i
Clearly stated.

Letter j
Clearly stated.

Letter k
Clearly stated.

Paragraph (4)
Clearly stated.

Paragraph (5)
Clearly stated.

Article 78
Clearly stated.

Article 79
Clearly stated.

Article 80
Clearly stated.

Article 81
Clearly stated.

Article 82
Clearly stated.

Article 83
Clearly stated.

Article 84
Clearly stated.

Article 85
Clearly stated.

Article 86
Clearly stated.

Article 87
Clearly stated.

Article 88
Clearly stated.

Article 89
Clearly stated.

Article 90
Clearly stated.

Article 91
Clearly stated.

Article 92
Clearly stated.

Article 93
Clearly stated.

Article 94
Clearly stated.

Article 95
Clearly stated.

Article 96
Clearly stated.

Article 97
Clearly stated.

Article 98
Clearly stated.

Article 99
Clearly stated.

Article 100
Clearly stated.

Article 101
Clearly stated.

Article 102
Paragraph (1)
Written warning sanctions for violations committed by the Guarantee Institution due to business activities conducted based on Sharia Principles are issued separately. The suspension of Sharia Business Unit (UUS) activities and the revocation of the UUS license are continuations of the written warning sanctions due to violations in the conduct of business activities based on Sharia Principles.

Paragraph (2)
Clearly stated.

Paragraph (3)
Clearly stated.

Paragraph (4)
Clearly stated.

Paragraph (5)
Clearly stated.

Paragraph (6)
Clearly stated.

Paragraph (7)
Clearly stated.

Paragraph (8)
Clearly stated.

Paragraph (9)
Clearly stated.

Paragraph (10)
Clearly stated.

Paragraph (11)
Clearly stated.

Paragraph (12)
Clearly stated.

Paragraph (13)
Clearly stated.

Article 103
Clearly stated.

Article 104
Clearly stated.

Article 105
Clearly stated.

Article 106
Clearly stated.

Article 107
Clearly stated.

Article 108
Clearly stated.

Article 109
Clearly stated.

Article 110
Clearly stated.

Article 111
Clearly stated.

Article 112
Clearly stated.

Article 113
Clearly stated.

Article 114
Clearly stated.

SUPPLEMENT TO THE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 6013

FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA
APPENDIX
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 1 /POJK.05/20172017
CONCERNING
BUSINESS LICENSING AND INSTITUTIONAL REQUIREMENTS FOR GUARANTEE INSTITUTIONS

EXAMPLE FORMAT 1 APPLICATION FOR BUSINESS LICENSE OF GUARANTEE INSTITUTION

To:
Executive Head of Non-Bank Financial Industry Supervisor u.p. Director of Institutions and Non-Bank Financial Industry Products Director of Non-Bank Financial Industry Sharia) Menara Merdeka Building Jl. Budi Kemuliaan I No. 2 Jakarta 10110

Referring to Financial Services Authority Regulation Number ../POJK.05/.... concerning Business Licensing and Institutional Requirements for Guarantee Institutions, we hereby:

Name : Public Company/Limited Partnership/Cooperative*) .....
Address : .....
City .....
Province .....
Phone/fax No. : .....
Email : .....

submit an application to obtain a business license as a Guarantee Company/Re-guarantee Company/Sharia Guarantee Company/Sharia Re-guarantee Company*).

To complete the aforementioned application, we hereby submit the following documents:

1. Photocopy of the articles of incorporation approved by the competent authority, which must at least contain:
   a. name, domicile, and operational scope; b. objectives and business activities;
   c. capital;
   d. ownership; and e. authority, responsibilities, and term of office for members of the Board of Directors, Board of Commissioners, and/or Sharia Supervisory Board (DPS) members; and amendments to the articles of association (if any) accompanied by proof of approval, consent, and/or notification letter from the competent authority;

2. Organizational structure depicting risk management functions, financial management functions, and service functions established by the Board of Directors, complete with personnel structure, job descriptions, authority, and responsibilities;

3. Shareholder or member data other than PSP:
   a. in the case where shareholders or members are individuals, the attached documents are:

1. 1 (one) recent 4 x 6 cm passport-sized photo;
2. photocopy of identification such as Identity Card (KTP) or valid passport;
3. curriculum vitae;
4. photocopy of tax identification number (NPWP);
5. photocopy of tax return (SPT) for the last 1 (one) year;
6. shareholder statement letter stating that:
   a) capital deposits do not originate from loans; b) capital deposits do not originate from money laundering and financial crimes; c) there are no non-performing loans and/or financing; d) they 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; e) they have never been convicted of criminal offenses in the field of financial services and/or economy based on a final court decision within the last 5 (five) years; f) they have never been convicted of criminal offenses based on a final court decision within the last 5 (five) years; g) they have never been declared bankrupt or declared guilty causing a company to be declared bankrupt based on a final court decision within the last 5 (five) years; and h) they have never been controlling shareholders, board members, board of commissioners members, or Sharia Supervisory Board members at financial service companies whose business licenses were revoked due to violations within the last 5 (five) years; b. in the case where shareholders are legal entities, the attached documents are:
7. photocopy of the articles of incorporation, including the latest valid articles of association and amendments according to legislation;
8. audited financial statements and/or the latest financial statements;
9. list of shareholders along with details of each share ownership, accompanied by supporting documents showing ownership percentage, both direct and indirect;
10. photocopy of tax identification number (NPWP); and
11. data of the legal entity's directors, including:
    a) 1 (one) recent 4 x 6 cm passport-sized photo; b) photocopy of identification such as Identity Card (KTP) or valid passport; c) curriculum vitae; d) photocopy of tax identification number (NPWP); and e) statement letter from the Directors or equivalent of the aforementioned legal entity stating that:
    (1) capital deposits do not originate from loans; (2) capital deposits do not originate from money laundering and financial crimes; (3) there are no non-performing loans and/or financing; (4) they 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; (5) they have never been declared bankrupt or declared guilty causing a company to be declared bankrupt based on a final court decision within the last 5 (five) years; and (6) they have never been PSP at financial service companies whose business licenses were revoked due to violations within the last 5 (five) years;
    c. in the case where shareholders are the Republic of Indonesia, a photocopy of Government Regulations regarding state capital participation for the establishment of Guarantee Institutions is attached; and
    d. in the case where shareholders are local governments, a photocopy of Regional Regulations regarding regional capital participation for the establishment of Guarantee Institutions is attached;

4. Business systems and procedures for Guarantee/Sharia Guarantee/Re-guarantee/Sharia Re-guarantee*) activities, including:
   a. standard operating procedures; b. sample cooperation agreements; and
   c. sample Guarantee Certificates or Kafalah Certificates to be used by the Guarantee Institution;

5. Proof of employing guarantee or Sharia guarantee experts, including:
   a. proof of appointment of experts; and b. supporting documents fulfilling expert requirements.

6. Photocopy of proof of settlement of Paid-in Capital in the form of cash deposits from shareholders or members, and photocopy of proof of minimum paid-in capital placement in the form of time deposits in the name of the respective Guarantee Institution at:
   a. one of the general banks or Sharia general banks in Indonesia for Guarantee Companies or Re-guarantee Companies; or b. one of the Sharia general banks or Sharia business units of general banks in Indonesia for Sharia Guarantee Companies or Sharia Re-guarantee Companies; legalized by the receiving bank and still valid during the business license application process.

7. Work plan for the first 3 (three) years, at least containing:
   a. feasibility study regarding market opportunities and economic potential; b. business activity plans and steps to achieve the aforementioned plans; and
   c. projections of monthly financial position reports, income statements, and cash flow statements, along with underlying assumptions, starting from when the Guarantee Institution begins operational activities.

8. Proof of infrastructure readiness, at least including:
   a. list of fixed assets and inventory along with proof of ownership or possession; b. proof of ownership or possession of office buildings; and
   c. photocopy of tax identification number (NPWP).

9. Confirmation from the supervisory authority in the home country of foreign parties, if there is direct foreign participation; and

10. Other documents to support healthy business growth, including:
    a. photocopy of the General Meeting of Shareholders (GMS) minutes stating the appointment of DPS, for Sharia Guarantee Companies or Sharia Re-guarantee Companies; b. initial/opening financial position reports;
    c. manpower plans including human resource development plans for at least 3 (three) years;
    d. photocopy of good corporate governance guidelines for Guarantee Institutions; e. photocopy of cooperation agreements between foreign and Indonesian parties, for Guarantee Institutions involving foreign legal entity participation, made in Indonesian language and at least containing:

1. capital composition, composition of Board of Directors and Board of Commissioners members as stipulated in guarantee legislation; and
2. obligations of foreign parties to formulate and implement education and training programs according to their expertise; and
   f. proof of payment of licensing fees for the issuance of business licenses.

We may inform you that for the purposes of this business license application, you may contact Mr./Ms. ..., via email ... or phone number ....

This is our application, and for your attention, Sir/Madam*), we express our gratitude.

Board of Directors
Public Company/Limited Partnership/Cooperative*) ....................
………………………………
*) strike out what is not needed
) for those conducting Sharia business activities

EXAMPLE FORMAT 2 REPORT ON THE IMPLEMENTATION OF BUSINESS ACTIVITIES OF GUARANTEE INSTITUTIONS

To:
Executive Head of Non-Bank Financial Industry Supervisor u.p. Director of Institutions and Non-Bank Financial Industry Products Director of Non-Bank Financial Industry Sharia) Menara Merdeka Building Jl. Budi Kemuliaan I No. 2 Jakarta 10110

Referring to Financial Services Authority Regulation Number ../POJK.05/.... concerning Business Licensing and Institutional Requirements for Guarantee Institutions, we hereby:

Name : Public Company/Limited Partnership/Cooperative*) .....
Address : .....
City .....
Province .....
Phone/fax No. : .....
Email : .....

report that we have commenced guarantee/Sharia guarantee/re-guarantee/Sharia re-guarantee*) business activities on date .....

As supplementary data, we hereby submit:

1. Photocopy of cooperation agreements (if any);
2. Guarantee Certificates or Kafalah Certificates that have been executed; and
3. Photocopy of residence permits and/or work permits for foreign labor issued by competent authorities for Board of Directors and/or Board of Commissioners members who are foreign nationals.

We may inform you that for the purposes of this reporting, you may contact Mr./Ms. ..., via email ... or phone number ....

This is our report, and for your attention, Sir/Madam*), we express our gratitude.

Board of Directors
Public Company/Limited Partnership/Cooperative*) ....................
………………………………
*) strike out what is not needed
) for those conducting Sharia business activities

EXAMPLE FORMAT 3 SHARIA BUSINESS UNIT LICENSE

To:
Executive Head of Non-Bank Financial Industry Supervisor u.p. Director of Non-Bank Financial Industry Sharia Menara Merdeka Building Jl. Budi Kemuliaan I No. 2 Jakarta 10110

Referring to Financial Services Authority Regulation Number ../POJK.05/.... concerning Business Licensing and Institutional Requirements for Guarantee Institutions, we hereby:

Name : Public Company/Limited Partnership/Cooperative*) .....
Address : .....
City .....
Province .....
Phone/fax No. : .....
Email : .....

submit an application to obtain a business license as a Sharia Guarantee Company/Sharia Re-guarantee Company*).

To complete the aforementioned application, we hereby submit the following documents:

1. Amendments to the articles of association stating:
   a. one of the objectives of the Guarantee Company is to conduct Sharia Guarantee business activities; and b. authority and responsibilities of the Sharia Supervisory Board (DPS), accompanied by proof of approval and/or notification letter from the competent authority;

2. Photocopy of proof of minimum working capital deposits in the form of time deposits in the name of the Guarantee Company at one of the Sharia general banks or Sharia business units of general banks in Indonesia, legalized by the receiving bank and still valid during the UUS licensing process;

3. Board of Directors decision approving the placement of working capital on the UUS, along with the amount of capital placement;

4. GMS minutes regarding the appointment of DPS;

5. UUS leadership data, including:
   a. photocopy of identification such as Identity Card (KTP) or valid passport; b. photocopy of tax identification number (NPWP);
   c. curriculum vitae complete with 4 x 6 cm color passport-sized photos;
   d. proof of appointment as UUS leadership; e. proof of expertise, training, and/or experience in the field of Sharia finance; and f. statement letter stating:

1. there are no non-performing loans and/or financing; and
2. there is no concurrent position in other functions within the same Guarantee Company, except if the UUS leadership is the Board of Directors.

6. Initial UUS financial reports separate from the business activities of the Guarantee Company;

7. Organizational structure depicting the position and structure of the UUS established by the Board of Directors, complete with the number and composition of personnel, job descriptions, authority, and responsibilities;

8. UUS work plan for the first 3 (three) years to be opened, at least containing:
   a. feasibility study of market opportunities and economic potential; b. Sharia Guarantee targets and steps to achieve the aforementioned targets;
   c. business systems and procedures; and
   d. monthly cash flow projections and underlying assumptions starting from when the UUS begins operational activities, as well as projections of financial position reports and financial performance reports.

We may inform you that for the purposes of this business license application, you may contact Mr./Ms. ..., via email ... or phone number ....

This is our application, and for your attention, Sir/Madam*), we express our gratitude.

Board of Directors
Public Company/Limited Partnership/Cooperative*) ....................
………………………………
*) strike out what is not needed

EXAMPLE FORMAT 4 REPORT ON THE IMPLEMENTATION OF SHARIA BUSINESS UNIT ACTIVITIES

To:
Executive Head of Non-Bank Financial Industry Supervisor u.p. Director of Non-Bank Financial Industry Sharia Menara Merdeka Building Jl. Budi Kemuliaan I No. 2 Jakarta 10110

Referring to Financial Services Authority Regulation Number ../POJK.05/.... concerning Business Licensing and Institutional Requirements for Guarantee Institutions, we hereby:

Name : Public Company/Limited Partnership/Cooperative*) .....
Address : .....
City .....
Province .....
Phone/fax No. : .....
Email : .....

report that we have commenced Sharia Business Unit activities on date .....

As supplementary data, we hereby submit:

1. Photocopy of executed Sharia Guarantee cooperation agreements (if any); and
2. Photocopy of executed Kafalah Certificates.

We may inform you that for the purposes of this reporting, you may contact Mr./Ms. ..., via email ... or phone number ....

This is our report, and for your attention, Sir/Madam*), we express our gratitude.

Board of Directors
Public Company/Limited Partnership/Cooperative*) ....................
………………………………
*) strike out what is not needed

EXAMPLE FORMAT 5 APPLICATION FOR OPENING A SHARIA BUSINESS UNIT BRANCH OFFICE

To the
Executive Head of the Supervisor of Non-Bank Financial Industry attn Director of Sharia Non-Bank Financial Industry Merdeka Tower Building Jl. Budi Kemuliaan I No. 2 Jakarta 10110

Referring to the Financial Services Authority Regulation Number ../POJK.05/.... concerning Business Licensing and Institutional Matters of Guarantee Institutions, we hereby:

Name : State-Owned Enterprise/Limited Liability Company/Cooperative*) .....
Address : .....
City .....
Province .....
Phone/Fax No. : .....
Email : .....

Submit an application for the opening of a Sharia Business Unit Branch Office of the State-Owned Enterprise/Limited Liability Company/Cooperative*)........ on date .....

As supporting data, we attach the following documents:

1. Data of the Sharia Business Unit Branch Office management, including:
   a. photocopy of valid identification in the form of an identity card (KTP) or passport; and b. curriculum vitae;
2. Data of human resources with experience and/or training in Sharia finance, accompanied by proof of experience and/or training attended;
3. Data of the complete address of the Sharia Business Unit Branch Office accompanied by proof of ownership or control of the office building; and
4. Work plan for the Sharia Business Unit Branch Office to be opened, which must at least contain:
   a. Sharia Guarantee targets and steps to achieve said targets accompanied by supporting assumptions; b. work systems and procedures;
   c. organizational structure; and
   d. number and composition of personnel.

We inform you that for the purposes of this application, you may contact Mr./Ms. ..., via email ... or phone number ...

This application is submitted, and for your attention, Sir/Madam*), we express our gratitude.

Board of Directors
State-Owned Enterprise/Limited Liability Company/Cooperative*) ....................
………………………………
*) strike out what is not necessary

EXAMPLE FORMAT 6 REPORT ON THE CLOSURE OF A SHARIA BUSINESS UNIT BRANCH OFFICE

To the
Executive Head of the Supervisor of Non-Bank Financial Industry attn Director of Sharia Non-Bank Financial Industry Merdeka Tower Building Jl. Budi Kemuliaan I No. 2 Jakarta 10110

Referring to the Financial Services Authority Regulation Number ../POJK.05/.... concerning Business Licensing and Institutional Matters of Guarantee Institutions, we hereby:

Name : State-Owned Enterprise/Limited Liability Company/Cooperative*) .....
Address : .....
City .....
Province .....
Phone/Fax No. : .....
Email : .....

Report that we have closed the Sharia Business Unit Branch Office of the State-Owned Enterprise/Limited Liability Company/Cooperative*)........ on date .....

As supporting data, we attach the following documents:
a. proof of notification of the plan to close the Sharia Business Unit Branch Office; and b. proof of settlement of rights and obligations of the Guaranteed Party and/or Guarantee Recipient.

We inform you that for the purposes of this report, you may contact Mr./Ms. ..., via email ... or phone number ...

This report is submitted, and for your attention, Sir/Madam*), we express our gratitude.

Board of Directors
State-Owned Enterprise/Limited Liability Company/Cooperative*) ....................
………………………………
*) strike out what is not necessary

EXAMPLE FORMAT 7 APPLICATION FOR REVOCATION OF SHARIA BUSINESS UNIT LICENSE

To the
Executive Head of the Supervisor of Non-Bank Financial Industry attn Director of Sharia Non-Bank Financial Industry Merdeka Tower Building Jl. Budi Kemuliaan I No. 2 Jakarta 10110

Referring to the Financial Services Authority Regulation Number ../POJK.05/.... concerning Business Licensing and Institutional Matters of Guarantee Institutions, we hereby:

Name : State-Owned Enterprise/Limited Liability Company/Cooperative*) .....
Address : .....
City .....
Province .....
Phone/Fax No. : .....
Email : .....

Submit an application for the revocation of the Sharia Business Unit license ...........

To complete said application, we hereby submit the following documents:

1. original copy of the decision regarding the granting of the Sharia Business Unit license;
2. reasons for closure; and
3. proof of implementation of regulations.

We inform you that for the purposes of this application, you may contact Mr./Ms. ..., via email ... or phone number ...

This report is submitted, and for your attention, Sir/Madam*), we express our gratitude.

Board of Directors
State-Owned Enterprise/Limited Liability Company/Cooperative*) ....................
………………………………
*) strike out what is not necessary

EXAMPLE FORMAT 8 REPORT ON THE APPOINTMENT OF EXPERT PERSONNEL

To the
Executive Head of the Supervisor of Non-Bank Financial Industry attn Director of Institutions and Products of Non-Bank Financial Industry Director of Sharia Non-Bank Financial Industry) Merdeka Tower Building Jl. Budi Kemuliaan I No. 2 Jakarta 10110

Referring to the Financial Services Authority Regulation Number ../POJK.05/.... concerning Business Licensing and Institutional Matters of Guarantee Institutions, we hereby:

Name : State-Owned Enterprise/Limited Liability Company/Cooperative*) .....
Address : .....
City .....
Province .....
Phone/Fax No. : .....
Email : .....

Report that we have appointed expert personnel as follows:

No. Name Field of Expertise etc.

on date .....

As supporting data, we attach the following documents:
a. photocopy of expertise certificates from the Professional Certification Body in the field of Guarantee or Sharia Guarantee; b. photocopy of valid identification in the form of an identity card (KTP) or passport;
c. curriculum vitae completed with the latest 4x6 cm color photo; and
d. letter of recommendation from the Guarantee Institution Association stating that no sanctions are currently being imposed.

We inform you that for the purposes of this report, you may contact Mr./Ms. ..., via email ... or phone number ...

This report is submitted, and for your attention, Sir/Madam*), we express our gratitude.

Board of Directors
State-Owned Enterprise/Limited Liability Company/Cooperative*) ....................
………………………………
*) strike out what is not necessary
) for those conducting Sharia business activities

EXAMPLE FORMAT 9 APPLICATION FOR APPROVAL OF CHANGE IN OPERATIONAL AREA SCOPE

To the
Executive Head of the Supervisor of Non-Bank Financial Industry attn Director of Institutions and Products of Non-Bank Financial Industry Director of Sharia Non-Bank Financial Industry) Merdeka Tower Building Jl. Budi Kemuliaan I No. 2 Jakarta 10110

Referring to the Financial Services Authority Regulation Number ../POJK.05/.... concerning Business Licensing and Institutional Matters of Guarantee Institutions, we hereby report that we:

Name : State-Owned Enterprise/Limited Liability Company/Cooperative*) .....
Address : .....
City .....
Province .....
Phone/Fax No. : .....
Email : .....

hereby submit an application for a change in operational area scope:

Article Article Content (Before
Change)
Article Content (After Change)

As supporting data, we attach the following documents:
a. draft amendment to the Articles of Association; b. proof of approval of the change in operational area scope from the Sharia Guarantee Institution (PSP); and
c. work plan which must at least contain:

1. plan for the Guarantee Institution's business activities and steps to be taken to realize said plan; and
2. projection of monthly financial position reports, income statements, and cash flow statements starting from when the Guarantee Institution conducts operational activities with the new operational area scope.

We inform you that for the purposes of this application, you may contact Mr./Ms. ..., via email ... or phone number ...

This application is submitted, and for your attention, Sir/Madam*), we express our gratitude.

Board of Directors
State-Owned Enterprise/Limited Liability Company/Cooperative*) ....................
………………………………
*) strike out what is not necessary
) for those conducting Sharia business activities

EXAMPLE FORMAT 10 REPORT ON CHANGE OF GUARANTEE INSTITUTION NAME

To the
Executive Head of the Supervisor of Non-Bank Financial Industry attn Director of Institutions and Products of Non-Bank Financial Industry Director of Sharia Non-Bank Financial Industry) Merdeka Tower Building Jl. Budi Kemuliaan I No. 2 Jakarta 10110

Referring to the Financial Services Authority Regulation Number ../POJK.05/.... concerning Business Licensing and Institutional Matters of Guarantee Institutions, we hereby report that we:

Name : State-Owned Enterprise/Limited Liability Company/Cooperative*) .....
Address : .....
City .....
Province .....
Phone/Fax No. : .....
Email : .....

Based on the results of the General Meeting of Shareholders/member meeting*) on date....... have changed the company name to State-Owned Enterprise/Limited Liability Company/Cooperative*) .......... on date ..... as follows:

Article Article Content (Before
Change)
Article Content (After Change)

As supporting data, we attach documents in the form of a photocopy of the tax identification number (NPWP) under the new name of the Guarantee Institution and:
a. amendment to the Articles of Association accompanied by proof of approval from the competent authority for Guarantee Institutions in the form of a limited liability company; b. photocopy of the minutes of the member meeting and/or amendment to the Articles of Association for Guarantee Institutions in the form of a cooperative legal entity; or
c. government regulation serving as the basis for the name change for Guarantee Institutions in the form of a state-owned enterprise legal entity.

We inform you that for the purposes of this report, you may contact Mr./Ms. ..., via email ... or phone number ...

This report is submitted, and for your attention, Sir/Madam*), we express our gratitude.

Board of Directors
State-Owned Enterprise/Limited Liability Company/Cooperative*) ....................
………………………………
*) strike out what is not necessary
) for those conducting Sharia business activities

EXAMPLE FORMAT 11 REPORT ON CHANGE OF PURPOSE AND OBJECTIVES AND BUSINESS ACTIVITIES

To the
Executive Head of the Supervisor of Non-Bank Financial Industry attn Director of Institutions and Products of Non-Bank Financial Industry Director of Sharia Non-Bank Financial Industry) Merdeka Tower Building Jl. Budi Kemuliaan I No. 2 Jakarta 10110

Referring to the Financial Services Authority Regulation Number ../POJK.05/.... concerning Business Licensing and Institutional Matters of Guarantee Institutions, we hereby:

Name : State-Owned Enterprise/Limited Liability Company/Cooperative*) .....
Address : .....
City .....
Province .....
Phone/Fax No. : .....
Email : .....

Based on the results of the General Meeting of Shareholders/member meeting*) on date....... have changed the purpose and objectives and business activities on date ..... as follows:

Article Article Content (Before
Change)
Article Content (After Change)

As supporting data, we attach documents amendment to the Articles of Association accompanied by proof of approval or approval from the competent authority.

We inform you that for the purposes of this report, you may contact Mr./Ms. ..., via email ... or phone number ...

This report is submitted, and for your attention, Sir/Madam*), we express our gratitude.

Board of Directors
State-Owned Enterprise/Limited Liability Company/Cooperative*) ....................
………………………………
*) strike out what is not necessary
) for those conducting Sharia business activities

EXAMPLE FORMAT 12 REPORT ON CHANGE OF HEAD OFFICE LOCATION OF GUARANTEE INSTITUTION

To the
Executive Head of the Supervisor of Non-Bank Financial Industry attn Director of Institutions and Products of Non-Bank Financial Industry Director of Sharia Non-Bank Financial Industry) Merdeka Tower Building Jl. Budi Kemuliaan I No. 2 Jakarta 10110

Referring to the Financial Services Authority Regulation Number ../POJK.05/.... concerning Business Licensing and Institutional Matters of Guarantee Institutions, we hereby:

Name : State-Owned Enterprise/Limited Liability Company/Cooperative*) .....
Address : .....
City .....
Province .....
Phone/Fax No. : .....
Email : .....

based on the results of the General Meeting of Shareholders/member meeting*) on date....... have changed the head office location on date ..... as follows:

Article Article Content (Before
Change)
Article Content (After Change)

As supporting data, we attach documents in the form of a photocopy of the tax identification number (NPWP) under the new address of the Guarantee Institution and:
a. amendment to the Articles of Association accompanied by proof of approval from the competent authority for Guarantee Institutions in the form of a limited liability company; b. photocopy of the minutes of the member meeting and/or amendment to the Articles of Association for Guarantee Institutions in the form of a cooperative legal entity; or
c. government regulation serving as the basis for the change of location
for Guarantee Institutions in the form of a state-owned enterprise legal entity; and d. tax identification number (NPWP) under the new address of the Company.

We inform you that for the purposes of this report, you may contact Mr./Ms. ..., via email ... or phone number ...

This report is submitted, and for your attention, Sir/Madam*), we express our gratitude.

Board of Directors
State-Owned Enterprise/Limited Liability Company/Cooperative*) ....................
………………………………
*) strike out what is not necessary
) for those conducting Sharia business activities

EXAMPLE FORMAT 13 REPORT ON REDUCTION OF PAID-UP CAPITAL FOR GUARANTEE INSTITUTIONS IN THE FORM OF A LIMITED LIABILITY COMPANY

To the
Executive Head of the Supervisor of Non-Bank Financial Industry attn Director of Institutions and Products of Non-Bank Financial Industry Director of Sharia Non-Bank Financial Industry) Merdeka Tower Building Jl. Budi Kemuliaan I No. 2 Jakarta 10110

Referring to the Financial Services Authority Regulation Number ../POJK.05/.... concerning Business Licensing and Institutional Matters of Guarantee Institutions, we hereby:

Name : State-Owned Enterprise/Limited Liability Company/Cooperative*) .....
Address : .....
City .....
Province .....
Phone/Fax No. : .....
Email : .....

report that in accordance with the general meeting of shareholders/member meeting*) on date .................., an amendment to the company's articles of association in the form of a limited liability company legal entity regarding capital reduction has been made, as follows:

Capital Before
Change
After
Change

1. Authorized Capital
2. Paid-up Capital
   with the following shareholder composition:
   No. Shareholder Name
   Total Share Value
   Before Change
   (Rp)
   Total Share Value
   After Change
   (Rp)
3. etc.

The reason for the capital reduction is
……………………….

As supporting data, we hereby attach the amendment to the Articles of Association accompanied by documents regarding the amendment to the Articles of Association accompanied by proof of approval from the competent authority, which we received approval on date ……..... ).

We inform you that for the purposes of this report, you may contact Mr./Ms. ..., via email ... or phone number ...

This report is submitted, and for your attention, Sir/Madam*), we express our gratitude.

Board of Directors
State-Owned Enterprise/Limited Liability Company/Cooperative*) ....................
………………………………
*) strike out what is not necessary
) for those conducting Sharia business activities

EXAMPLE FORMAT 14 REPORT ON ADDITION OF PAID-UP CAPITAL GUARANTEE INSTITUTION

To the
Executive Head of the Supervisor of Non-Bank Financial Industry attn Director of Institutions and Products of Non-Bank Financial Industry Director of Sharia Non-Bank Financial Industry) Merdeka Tower Building Jl. Budi Kemuliaan I No. 2 Jakarta 10110

Referring to the Financial Services Authority Regulation Number ../POJK.05/.... concerning Business Licensing and Institutional Matters of Guarantee Institutions, we hereby:

Name : State-Owned Enterprise/Limited Liability Company/Cooperative*) .....
Address : .....
City .....
Province .....
Phone/Fax No. : .....
Email : .....

report that in accordance with the general meeting of shareholders/member meeting*) on date .................., an amendment to the company's articles of association in the form of a limited liability company legal entity regarding the addition of paid-up and placed capital has been made, as follows:

Capital Before
Change
After
Change

1. Authorized Capital
2. Placed Capital
   with the following shareholder composition)*:
   No. Shareholder Name
   Total Share Value
   Before Change
   (Rp)
   Total Share Value
   After Change
   (Rp)
3. etc.

The reason for the capital addition is
……………………….

As supporting data, we attach the following documents:
a. amendment to the Articles of Association accompanied by proof of the letter of receipt of notification from the competent authority; b. proof of addition of Paid-up Capital, namely:

1. photocopy of proof of payment of Paid-up Capital from shareholders and photocopy of proof of placement of Paid-up Capital under the name
   of the Guarantee Institution at one of the commercial banks or Sharia commercial banks in Indonesia and legalized by the receiving bank, if the addition of Paid-up Capital is done in cash;

2. financial statements of the Guarantee Institution that have been audited by
   a public accountant before the addition of capital, in the event the addition of Paid-up Capital is done in the form of conversion of retained earnings, conversion of loans issued in the form of mandatory convertible bonds, and/or stock dividends; and

3. report from an independent appraiser on the value of land and buildings,
   if the addition of Paid-up Capital is done in the form of land and buildings
   c. statement letter from shareholders or cooperative members stating that the capital contribution does not come from loans,
   money laundering activities and financial crimes in the event that capital addition is done in the form of cash; d. financial statements that have been audited by a public accountant and/or last financial statements, in the event that shareholders are business entities, institutions, or cooperative legal entities; and e. business plan and steps of the Guarantee Institution in the use of the addition of Paid-up Capital.

We inform you that for the purposes of this report, you may contact Mr./Ms. ..., via email ... or phone number ...

This report is submitted, and for your attention, Sir/Madam*), we express our gratitude.

Board of Directors
State-Owned Enterprise/Limited Liability Company/Cooperative*) ....................
………………………………
*) strike out what is not necessary
) for those conducting Sharia business activities

EXAMPLE FORMAT 15 REPORT ON CHANGE OF STATUS OF GUARANTEE INSTITUTION IN THE FORM OF A CLOSED LIMITED LIABILITY COMPANY TO AN OPEN LIMITED LIABILITY COMPANY OR VICE VERSA

To the
Executive Head of the Supervisor of Non-Bank Financial Industry attn Director of Institutions and Products of Non-Bank Financial Industry Director of Sharia Non-Bank Financial Industry) Merdeka Tower Building Jl. Budi Kemuliaan I No. 2 Jakarta 10110

Referring to the Financial Services Authority Regulation Number ../POJK.05/.... concerning Business Licensing and Institutional Matters of Guarantee Institutions, we hereby:

Name : State-Owned Enterprise/Limited Liability Company/Cooperative*) .....
Address : .....
City .....
Province .....
Phone/Fax No. : .....
Email : .....

report that in accordance with the General Meeting of Shareholders on date .................., an amendment to the company's Articles of Association regarding the status of the closed/open limited liability company*) has been made, as follows:

Article Article Content (Before
Change)
Article Content (After Change)

As supporting data, we hereby attach documents amendment to the Articles of Association accompanied by proof of approval from the competent authority, which we received approval on date …….....…..

We inform you that for the purposes of this report, you may contact Mr./Ms. ..., via email ... or phone number ...

This report is submitted, and for your attention, Sir/Madam*), we express our gratitude.

Board of Directors
State-Owned Enterprise/Limited Liability Company/Cooperative*) ....................
………………………………
*) strike out what is not necessary
) for those conducting Sharia business activities

EXAMPLE FORMAT 16 REPORT ON CHANGE OF BOARD OF DIRECTORS MEMBERS, BOARD OF COMMISSARS MEMBERS, AND/OR SHARIA SUPERVISORY BOARD MEMBERS

To the
Executive Head of the Supervisor of Non-Bank Financial Industry attn Director of Institutions and Products of Non-Bank Financial Industry Director of Sharia Non-Bank Financial Industry) Merdeka Tower Building Jl. Budi Kemuliaan I No. 2 Jakarta 10110

Referring to the Financial Services Authority Regulation Number ../POJK.05/.... concerning Business Licensing and Institutional Matters of Guarantee Institutions, we hereby:

Name : State-Owned Enterprise/Limited Liability Company/Cooperative*) .....
Address : .....
City .....
Province .....
Phone/Fax No. : .....
Email : .....

report that in accordance with the general meeting of shareholders/member meeting*) on date .............. an amendment to the Articles of Association of the Guarantee Institution regarding the members of the Board of Directors, Board of Commissars, and/or Sharia Supervisory Board members*) has been made, namely:

Before Change After Change
Commissar
Director
Sharia Supervisory Board Member

As supporting data, we attach the following documents:
a. photocopy of the minutes of the General Meeting of Shareholders for Guarantee Institutions in the form of a limited liability company legal entity. b. photocopy of the minutes of the member meeting for Guarantee Institutions in the form of a cooperative legal entity; and
c. proof of appointment of Board of Directors members, Board of Commissars
members, and/or Sharia Supervisory Board members for Guarantee Institutions in the form of a state-owned enterprise legal entity.

We inform you that for the purposes of this report, you may contact Mr./Ms. ..., via email ... or phone number ...

This report is submitted, and for your attention, Sir/Madam*), we express our gratitude.

Board of Directors
State-Owned Enterprise/Limited Liability Company/Cooperative*) ....................
………………………………
*) strike out what is not necessary
) for those conducting Sharia business activities

EXAMPLE FORMAT 17 REPORT ON CHANGE OF SHAREHOLDERS OF GUARANTEE INSTITUTION IN THE FORM OF A LIMITED LIABILITY COMPANY LEGAL ENTITY

To the
Executive Head of the Supervisor of Non-Bank Financial Industry attn Director of Institutions and Products of Non-Bank Financial Industry Director of Sharia Non-Bank Financial Industry) Merdeka Tower Building Jl. Budi Kemuliaan I No. 2 Jakarta 10110

Referring to the Financial Services Authority Regulation Number ../POJK.05/.... concerning Business Licensing and Institutional Matters of Guarantee Institutions, we hereby:

Name : State-Owned Enterprise/Limited Liability Company/Cooperative*) .....
Address : .....
City .....
Province .....
Phone/Fax No. : .....
Email : .....

report that in accordance with the general meeting of shareholders/member meeting*) on date .............. an amendment to the Articles of Association of the Guarantee Institution regarding shareholders has been made, namely:

Before Change After Change
Shareholders

As supporting data, we attach the following documents:
a. photocopy of the share transfer deed, in the event of transfer of share rights; b. data of shareholders other than the Sharia Guarantee Institution (PSP), in the event of new shareholders; and
c. statement letter from shareholders stating that the money used
to purchase shares of the Guarantee Institution does not come from money laundering activities and financial crimes, in the event of share sales.

We inform you that for the purposes of this report, you may contact Mr./Ms. ..., via email ... or phone number ...

This report is submitted, and for your attention, Sir/Madam*), we express our gratitude.

Board of Directors
State-Owned Enterprise/Limited Liability Company/Cooperative*) ....................
………………………………
*) strike out what is not necessary
) for those conducting Sharia business activities

EXAMPLE FORMAT 18 REPORT ON CHANGE OF LEGAL ENTITY FORM OF GUARANTEE INSTITUTION

To the
Executive Head of the Supervisor of Non-Bank Financial Industry attn Director of Institutions and Products of Non-Bank Financial Industry Director of Sharia Non-Bank Financial Industry) Merdeka Tower Building Jl. Budi Kemuliaan I No. 2 Jakarta 10110

Referring to the Financial Services Authority Regulation Number ../POJK.05/.... concerning Business Licensing and Institutional Matters of Guarantee Institutions, we hereby:

Name : State-Owned Enterprise/Limited Liability Company/Cooperative*) .....
Address : .....
City .....
Province .....
Phone/Fax No. : .....
Email : .....

report that in accordance with the General Meeting of Shareholders on date .................., an amendment to the company's Articles of Association regarding the legal entity form has been made, as follows:

Article Article Content (Before
Change)
Article Content (After Change)

As supporting data, we attach the following documents:
a. minutes of the General Meeting of Shareholders or government regulation regarding the change of legal entity form of the Guarantee Institution; b. proof of change of legal entity form that has been approved by the competent authority;
c. minutes of the transfer of all rights and obligations from the old legal entity
to the new legal entity; and d. photocopy of the tax identification number (NPWP) under the name of the new legal entity form of the Guarantee Institution.

We inform you that for the purposes of this report, you may contact Mr./Ms. ..., via email ... or phone number ...

This report is submitted, and for your attention, Sir/Madam*), we express our gratitude.

Board of Directors
State-Owned Enterprise/Limited Liability Company/Cooperative*) ....................
………………………………
*) strike out what is not necessary
) for those conducting Sharia business activities

EXAMPLE FORMAT 19 REPORTING OF HEAD OFFICE AND BRANCH OFFICE ADDRESS CHANGES

To:
Head of Executive Supervisor of Non-Bank Financial Industry u.p. Director of Institutions and Non-Bank Financial Products Director of Sharia Non-Bank Financial Products) Menara Merdeka Building Jl. Budi Kemuliaan I No. 2 Jakarta 10110

Referring to the Financial Services Authority Regulation Number ../POJK.05/.... concerning Business Licensing and Institutions of Guarantee Institutions, we hereby:

Name : State-Owned Enterprise/Limited Liability Company/Cooperative*) .....
Address : .....
City .....
Province .....
Phone/Fax No. : .....
Email : .....

report that our head office/branch office located at ..... has been relocated with the following data:

Old Address : .....
Telephone : .....
New Address : .....
Telephone : .....
Relocation Date : .....

As supporting data, we attach the following documents:
a. complete address data of the head office and/or branch office; and b. proof of building ownership or control.

We would like to inform that for the purposes of this report, you may contact Mr./Ms. ..., via email ... or telephone number ....

This request is submitted, and we thank you for your attention, Sir/Madam*).

Board of Directors
State-Owned Enterprise/Limited Liability Company/Cooperative*) ....................
………………………………
*) delete if not applicable
) for those conducting Sharia business activities

EXAMPLE FORMAT 20 APPLICATION FOR APPROVAL OF MERGER OR ABSORPTION

To:
Head of Executive Supervisor of Non-Bank Financial Industry u.p. Director of Institutions and Non-Bank Financial Products Director of Sharia Non-Bank Financial Products) Menara Merdeka Building Jl. Budi Kemuliaan I No. 2 Jakarta 10110

Referring to the Financial Services Authority Regulation Number ../POJK.05/.... concerning Business Licensing and Institutions of Guarantee Institutions, we hereby:

Name : State-Owned Enterprise/Limited Liability Company/Cooperative*) .....
Address : .....
City .....
Province .....
Phone/Fax No. : .....
Email : .....

hereby submit an application for Approval of Merger/Absorption*) between State-Owned Enterprise/Limited Liability Company/Cooperative*) .......................
and State-Owned Enterprise/Limited Liability Company/Cooperative*) ................

As supporting data, we attach the following documents:
a. draft minutes of the General Meeting of Shareholders approving the Merger or Absorption; b. draft deed of Merger or Absorption;
c. draft ownership list of the Guarantee Institution resulting from the Merger or Absorption;
d. data of shareholders or members other than PSP of the Guarantee Institution resulting from the Merger or Absorption; e. latest audited financial statements of the Guarantee Institution conducting the Merger or Absorption; f. proforma financial statements of the Guarantee Institution resulting from the Merger or Absorption; g. work plan for the first 3 (three) years of the Guarantee Institution resulting from the Merger or Absorption; h. organizational structure of the Guarantee Institution from the resulting Company of the Merger or Absorption;
i. draft deed of establishment of the Guarantee Institution resulting from the Absorption; and
j. documents as referred to in Article 13 paragraph (2) letters d, e, h, i, and j of the Guarantee Institution resulting from the Absorption.

We would like to inform that for the purposes of this application, you may contact Mr./Ms. ..., via email ... or telephone number ....

This application is submitted, and we thank you for your attention, Sir/Madam*).

Board of Directors
State-Owned Enterprise/Limited Liability Company/Cooperative*) ....................
………………………………
*) delete if not applicable
) for those conducting Sharia business activities

EXAMPLE FORMAT 21 REPORTING OF GENERAL MEETING OF SHAREHOLDERS EXECUTION APPROVING MERGER

To:
Head of Executive Supervisor of Non-Bank Financial Industry u.p. Director of Institutions and Non-Bank Financial Products Director of Sharia Non-Bank Financial Products) Menara Merdeka Building Jl. Budi Kemuliaan I No. 2 Jakarta 10110

Referring to the Financial Services Authority Regulation Number ../POJK.05/.... concerning Business Licensing and Institutions of Guarantee Institutions, we hereby:

Name : State-Owned Enterprise/Limited Liability Company/Cooperative*) .....
Address : .....
City .....
Province .....
Phone/Fax No. : .....
Email : .....

report that we have conducted a Merger between State-Owned Enterprise/Limited Liability Company/Cooperative*) ....................... and
State-Owned Enterprise/Limited Liability Company/Cooperative*) ................ on date .....

As supporting data, we attach the following documents:
a. photocopy of the minutes of the General Meeting of Shareholders approving the Merger; b. photocopy of the deed of Merger; and
c. document stating that the Guarantee Institution merging does not have tax debts from the competent authority.

We would like to inform that for the purposes of this report, you may contact Mr./Ms. ..., via email ... or telephone number ....

This report is submitted, and we thank you for your attention, Sir/Madam*).

Board of Directors
State-Owned Enterprise/Limited Liability Company/Cooperative*) ....................
………………………………
*) delete if not applicable
) for those conducting Sharia business activities

EXAMPLE FORMAT 22 APPLICATION FOR SHARIA BUSINESS UNIT LICENSE AND/OR BRANCH OFFICE OPENING LICENSE PREVIOUSLY OWNED BY A GUARANTEE INSTITUTION MERGING

To:
Head of Executive Supervisor of Non-Bank Financial Industry u.p. Director of Institutions and Non-Bank Financial Products Director of Sharia Non-Bank Financial Products) Menara Merdeka Building Jl. Budi Kemuliaan I No. 2 Jakarta 10110

Referring to the Financial Services Authority Regulation Number ../POJK.05/.... concerning Business Licensing and Institutions of Guarantee Institutions, we hereby:

Name : State-Owned Enterprise/Limited Liability Company/Cooperative*) .....
Address : .....
City .....
Province .....
Phone/Fax No. : .....
Email : .....

submit an application for UUS license and/or branch office opening license*) of State-Owned Enterprise/Limited Liability Company/Cooperative*) ..... which was previously owned by the Guarantee Institution merging.

As supporting data, we attach the following documents:
a. previous UUS license and/or branch office opening license owned by the Guarantee Institution merging; and b. proof of ownership or control of the branch office building.

We would like to inform that for the purposes of this application, you may contact Mr./Ms. ..., via email ... or telephone number ....

This application is submitted, and we thank you for your attention, Sir/Madam*).

Board of Directors
State-Owned Enterprise/Limited Liability Company/Cooperative*) ....................
………………………………
*) delete if not applicable
) for those conducting Sharia business activities

EXAMPLE FORMAT 23 REPORTING OF MERGER EXECUTION

To:
Head of Executive Supervisor of Non-Bank Financial Industry u.p. Director of Institutions and Non-Bank Financial Products Director of Sharia Non-Bank Financial Products) Menara Merdeka Building Jl. Budi Kemuliaan I No. 2 Jakarta 10110

Referring to the Financial Services Authority Regulation Number ../POJK.05/.... concerning Business Licensing and Institutions of Guarantee Institutions, we hereby:

Name : State-Owned Enterprise/Limited Liability Company/Cooperative*) .....
Address : .....
City .....
Province .....
Phone/Fax No. : .....
Email : .....

report that we have conducted a Merger between State-Owned Enterprise/Limited Liability Company/Cooperative*).................. and State-Owned Enterprise/Limited Liability Company/Cooperative*)........... on date
.....

As supporting data, we attach the articles of association document that has been approved, agreed upon, or notified to the competent authority.

We would like to inform that for the purposes of this report, you may contact Mr./Ms. ..., via email ... or telephone number ....

This report is submitted, and we thank you for your attention, Sir/Madam*).

Board of Directors
State-Owned Enterprise/Limited Liability Company/Cooperative*) ....................
………………………………
*) delete if not applicable
) for those conducting Sharia business activities

EXAMPLE FORMAT 24 REPORTING OF GENERAL MEETING OF SHAREHOLDERS EXECUTION APPROVING ABSORPTION

To:
Head of Executive Supervisor of Non-Bank Financial Industry u.p. Director of Institutions and Non-Bank Financial Products Director of Sharia Non-Bank Financial Products) Menara Merdeka Building Jl. Budi Kemuliaan I No. 2 Jakarta 10110

Referring to the Financial Services Authority Regulation Number ../POJK.05/.... concerning Business Licensing and Institutions of Guarantee Institutions, we hereby:

Name : State-Owned Enterprise/Limited Liability Company/Cooperative*) .....
Address : .....
City .....
Province .....
Phone/Fax No. : .....
Email : .....

report that we have conducted an Absorption between State-Owned Enterprise/Limited Liability Company/Cooperative*).................. and State-Owned Enterprise/Limited Liability Company/Cooperative*)........... on date .....

As supporting data, we attach the following documents:
a. photocopy of the minutes of the General Meeting of Shareholders approving the Absorption; b. photocopy of the deed of Absorption;
c. photocopy of the minutes of the General Meeting of Shareholders regarding the establishment of the company resulting from the Absorption; and
d. document stating that the Guarantee Institution conducting the Absorption does not have tax debts from the competent authority..

We would like to inform that for the purposes of this report, you may contact Mr./Ms. ..., via email ... or telephone number ....

This report is submitted, and we thank you for your attention, Sir/Madam*).

Board of Directors
State-Owned Enterprise/Limited Liability Company/Cooperative*) ....................
………………………………
*) delete if not applicable
) for those conducting Sharia business activities

EXAMPLE FORMAT 25 APPLICATION FOR UUS LICENSE AND/OR BRANCH OFFICE OPENING LICENSE (IF ANY) PREVIOUSLY OWNED BY A GUARANTEE INSTITUTION ABSORBING

To:
Head of Executive Supervisor of Non-Bank Financial Industry u.p. Director of Institutions and Non-Bank Financial Products Director of Sharia Non-Bank Financial Products) Menara Merdeka Building Jl. Budi Kemuliaan I No. 2 Jakarta 10110

Referring to the Financial Services Authority Regulation Number ../POJK.05/.... concerning Business Licensing and Institutions of Guarantee Institutions, we hereby:

Name : State-Owned Enterprise/Limited Liability Company/Cooperative*) .....
Address : .....
City .....
Province .....
Phone/Fax No. : .....
Email : .....

submit an application for UUS license and/or branch office opening license*) of State-Owned Enterprise/Limited Liability Company/Cooperative*) ..... which was previously owned by the Guarantee Institution absorbing.

As supporting data, we attach the following documents:
a. previous UUS license and/or branch office opening license owned by the Guarantee Institution absorbing; and b. proof of ownership or control of the branch office building.

We would like to inform that for the purposes of this application, you may contact Mr./Ms. ..., via email ... or telephone number ....

This application is submitted, and we thank you for your attention, Sir/Madam*).

Board of Directors
State-Owned Enterprise/Limited Liability Company/Cooperative*) ....................
………………………………
*) delete if not applicable
) for those conducting Sharia business activities

EXAMPLE FORMAT 26 REPORTING OF ABSORPTION EXECUTION

To:
Head of Executive Supervisor of Non-Bank Financial Industry u.p. Director of Institutions and Non-Bank Financial Products Director of Sharia Non-Bank Financial Products) Menara Merdeka Building Jl. Budi Kemuliaan I No. 2 Jakarta 10110

Referring to the Financial Services Authority Regulation Number ../POJK.05/.... concerning Business Licensing and Institutions of Guarantee Institutions, we hereby:

Name : State-Owned Enterprise/Limited Liability Company/Cooperative*) .....
Address : .....
City .....
Province .....
Phone/Fax No. : .....
Email : .....

report that we have conducted an Absorption between State-Owned Enterprise/Limited Liability Company/Cooperative*).................. and State-Owned Enterprise/Limited Liability Company/Cooperative*)........... on date .....

As supporting data, we attach the articles of association document that has been approved, agreed upon, or notified to the competent authority.

We would like to inform that for the purposes of this report, you may contact Mr./Ms. ..., via email ... or telephone number ....

This report is submitted, and we thank you for your attention, Sir/Madam*).

Board of Directors
State-Owned Enterprise/Limited Liability Company/Cooperative*) ....................
………………………………
*) delete if not applicable
) for those conducting Sharia business activities

EXAMPLE FORMAT 27 APPLICATION FOR APPROVAL OF PLAN TO EXECUTE TAKEOVER

To:
Head of Executive Supervisor of Non-Bank Financial Industry u.p. Director of Institutions and Non-Bank Financial Products Director of Sharia Non-Bank Financial Products) Menara Merdeka Building Jl. Budi Kemuliaan I No. 2 Jakarta 10110

Referring to the Financial Services Authority Regulation Number ../POJK.05/.... concerning Business Licensing and Institutions of Guarantee Institutions, we hereby:

Name : State-Owned Enterprise/Limited Liability Company/Cooperative*) .....
Address : .....
City .....
Province .....
Phone/Fax No. : .....
Email : .....

hereby submit an application for approval of the plan to execute the Takeover of State-Owned Enterprise/Limited Liability Company/Cooperative*).......... by State-Owned Enterprise/Limited Liability Company/Cooperative*) ......... on date .....

As supporting data, we attach the following documents:
a. draft minutes of the General Meeting of Shareholders approving the Takeover; b. draft deed of Takeover;
c. draft deed of transfer of share rights, in the event that share Takeover is conducted directly from the shareholder;
d. shareholder statement letter stating that the funds used to purchase shares of the Guarantee Institution do not originate from loans, money laundering activities, and financial crimes; and e. data of shareholders or members other than PSP after the Takeover; and f. latest audited financial statements of the Guarantee Institution.

We would like to inform that for the purposes of this application, you may contact Mr./Ms. ..., via email ... or telephone number ....

This application is submitted, and we thank you for your attention, Sir/Madam*).

Board of Directors
State-Owned Enterprise/Limited Liability Company/Cooperative*) ....................
………………………………
*) delete if not applicable
) for those conducting Sharia business activities

EXAMPLE FORMAT 28 REPORTING OF GENERAL MEETING OF SHAREHOLDERS EXECUTION APPROVING TAKEOVER

To:
Head of Executive Supervisor of Non-Bank Financial Industry u.p. Director of Institutions and Non-Bank Financial Products Director of Sharia Non-Bank Financial Products) Menara Merdeka Building Jl. Budi Kemuliaan I No. 2 Jakarta 10110

Referring to the Financial Services Authority Regulation Number ../POJK.05/.... concerning Business Licensing and Institutions of Guarantee Institutions, we hereby:

Name : State-Owned Enterprise/Limited Liability Company/Cooperative*) .....
Address : .....
City .....
Province .....
Phone/Fax No. : .....
Email : .....

report that we have conducted the Takeover of State-Owned Enterprise/Limited Liability Company/Cooperative*).................. by State-Owned Enterprise/Limited Liability Company/Cooperative*)........... on date .....

As supporting data, we attach the following documents:
a. photocopy of the minutes of the General Meeting of Shareholders approving the Takeover; b. photocopy of the deed of Takeover; and
c. proof of notification to the competent authority.

We would like to inform that for the purposes of this report, you may contact Mr./Ms. ..., via email ... or telephone number ....

This report is submitted, and we thank you for your attention, Sir/Madam*).

Board of Directors
State-Owned Enterprise/Limited Liability Company/Cooperative*) ....................
………………………………
*) delete if not applicable
) for those conducting Sharia business activities

EXAMPLE FORMAT 29 APPLICATION FOR APPROVAL OF PLAN TO EXECUTE PURE SEPARATION

To:
Head of Executive Supervisor of Non-Bank Financial Industry u.p. Director of Institutions and Non-Bank Financial Products Director of Sharia Non-Bank Financial Products) Menara Merdeka Building Jl. Budi Kemuliaan I No. 2 Jakarta 10110

Referring to the Financial Services Authority Regulation Number ../POJK.05/.... concerning Business Licensing and Institutions of Guarantee Institutions, we hereby:

Name : State-Owned Enterprise/Limited Liability Company/Cooperative*) .....
Address : .....
City .....
Province .....
Phone/Fax No. : .....
Email : .....

submit an application for approval of the plan to execute the pure separation of State-Owned Enterprise/Limited Liability Company/Cooperative *) ............... into..............

As supporting data, we attach the following documents:
a. draft deed of Separation; b. draft deed of establishment of the new Guarantee Institution and/or new legal entity that will receive assets, liabilities, and equity;
c. draft settlement of rights and obligations of the Guaranteed Party and Guarantee Recipient for the Guarantee Institution conducting the pure separation;
d. draft ownership list of the new Guarantee Institution and/or new legal entity that will receive assets, liabilities, and equity; e. data of shareholders or members other than PSP of the new Guarantee Institution resulting from the pure separation; f. latest audited financial statements of the Guarantee Institution conducting the pure separation; g. proforma financial statements of the Guarantee Institution resulting from the pure separation; h. work plan to be carried out for the first 3 (three) years after obtaining the business license from the new legal entity which is the Guarantee Institution, at least containing:

1. feasibility study of market opportunities and economic potential;
2. plan for Guarantee or Sharia Guarantee business activities and steps taken to realize the aforementioned plan; and
3. projection of monthly financial position reports, income statements, and cash flow statements and the underlying assumptions starting from when the

Guarantee Institution commences operational activities; and
i. organizational structure of the new Guarantee Institution resulting from the pure separation.

This application is submitted, and we thank you for your attention, Sir/Madam*).

Board of Directors
State-Owned Enterprise/Limited Liability Company/Cooperative*) ....................
………………………………
*) delete if not applicable
) for those conducting Sharia business activities

EXAMPLE FORMAT 30 REPORTING OF GENERAL MEETING OF SHAREHOLDERS EXECUTION APPROVING PURE SEPARATION

To:
Head of Executive Supervisor of Non-Bank Financial Industry u.p. Director of Institutions and Non-Bank Financial Products Director of Sharia Non-Bank Financial Products) Menara Merdeka Building Jl. Budi Kemuliaan I No. 2 Jakarta 10110

Referring to the Financial Services Authority Regulation Number ../POJK.05/.... concerning Business Licensing and Institutions of Guarantee Institutions, we hereby:

Name : State-Owned Enterprise/Limited Liability Company/Cooperative*) .....
Address : .....
City .....
Province .....
Phone/Fax No. : .....
Email : .....

report that we have conducted the pure separation of State-Owned Enterprise/Limited Liability Company/Cooperative*).................. into State-Owned Enterprise/Limited Liability Company/Cooperative*) ......... on date...

As supporting data, we attach the following documents:
a. photocopy of the minutes of the General Meeting of Shareholders approving the pure separation; and b. photocopy of the deed of pure separation.
c. document stating that the Guarantee Institution conducting the pure separation does not have tax debts from the competent authority.
d. photocopy of the minutes of the General Meeting of Shareholders stating the appointment of Directors, Board of Commissioners, and/or DPS; e. photocopy of proof of paid-up capital settlement in the form of cash deposits from shareholders or members, photocopy of proof of placement of paid-up capital in the form of time deposits in the name of the relevant Guarantee Institution, in the event there are new shareholders or new members (if any). f. initial/closing financial position report of the new legal entity resulting from the pure separation; and g. proof of operational readiness of the new legal entity resulting from the pure separation which is the Guarantee Institution, at least consisting of:

1. list of fixed assets and inventories together with proof of ownership or control;
2. proof of ownership or control of the office building; and
3. photocopy of tax identification number (NPWP).

We would like to inform that for the purposes of this report, you may contact Mr./Ms. ..., via email ... or telephone number ....

This report is submitted, and we thank you for your attention, Sir/Madam*).

Board of Directors
State-Owned Enterprise/Limited Liability Company/Cooperative*) ....................
………………………………
*) delete if not applicable
) for those conducting Sharia business activities

EXAMPLE FORMAT 31 APPLICATION FOR BRANCH OFFICE OPENING LICENSE PREVIOUSLY OWNED BY A GUARANTEE INSTITUTION CONDUCTING PURE SEPARATION

To:
Head of Executive Supervisor of Non-Bank Financial Industry u.p. Director of Institutions and Non-Bank Financial Products Director of Sharia Non-Bank Financial Products) Menara Merdeka Building Jl. Budi Kemuliaan I No. 2 Jakarta 10110

Referring to the Financial Services Authority Regulation Number ../POJK.05/.... concerning Business Licensing and Institutions of Guarantee Institutions, we hereby:

Name : State-Owned Enterprise/Limited Liability Company/Cooperative*) .....
Address : .....
City .....
Province .....
Phone/Fax No. : .....
Email : .....

submit an application for branch office opening license previously owned by the Guarantee Institution conducting the pure separation, located at..............

As supporting data, we attach the following documents:
a. previous branch office opening license owned by the Guarantee Institution conducting the pure separation; and b. proof of ownership or control of the branch office building.

We would like to inform that for the purposes of this application, you may contact Mr./Ms. ..., via email ... or telephone number ....

This application is submitted, and we thank you for your attention, Sir/Madam*).

Board of Directors
State-Owned Enterprise/Limited Liability Company/Cooperative*) ....................
………………………………
*) delete if not applicable
) for those conducting Sharia business activities

EXAMPLE FORMAT 32 REPORTING OF PURE SEPARATION EXECUTION

To:
Head of Executive Supervisor of Non-Bank Financial Industry u.p. Director of Institutions and Non-Bank Financial Products Director of Sharia Non-Bank Financial Products) Menara Merdeka Building Jl. Budi Kemuliaan I No. 2 Jakarta 10110

Referring to the Financial Services Authority Regulation Number ../POJK.05/.... concerning Business Licensing and Institutions of Guarantee Institutions, we hereby:

Name : State-Owned Enterprise/Limited Liability Company/Cooperative*) .....
Address : .....
City .....
Province .....
Phone/Fax No. : .....
Email : .....

report that we have conducted a pure separation between State-Owned Enterprise/Limited Liability Company/Cooperative*).................. and State-Owned Enterprise/Limited Liability Company/Cooperative*)........... on date
.....

As supporting data, we attach the articles of association document that has been approved, agreed upon, or notified to the competent authority.

We would like to inform that for the purposes of this report, you may contact Mr./Ms. ..., via email ... or telephone number ....

This report is submitted, and we thank you for your attention, Sir/Madam*).

Board of Directors
State-Owned Enterprise/Limited Liability Company/Cooperative*) ....................
………………………………
*) delete if not applicable
) for those conducting Sharia business activities

EXAMPLE FORMAT 33 APPLICATION FOR APPROVAL OF IMPLANT SEPARATION PLAN To the Executive Head of Non-Bank Financial Industry Supervision u.p. Director of Institutions and IKNB Products (IKNB Sharia Director) Menara Merdeka Building Jl. Budi Kemuliaan I No. 2 Jakarta 10110

Referring to the Financial Services Authority Regulation Number ../POJK.05/.... concerning Business Licensing and Institutional Matters of Guarantee Institutions, we hereby:
Name : State-Owned Enterprise/Limited Liability Company/Cooperative*) .....
Address : .....
City .....
Province .....
Phone/Fax No. : .....
Email : .....

submit an application for approval of the plan to implement the implant separation of the State-Owned Enterprise/Limited Liability Company/Cooperative*).....
into.....

As supporting data, we attach the following documents:

1. for Implant Separation by establishing a new Guarantee Institution, including*):
   a. draft deed of separation; b. draft deed of establishment of the new Guarantee Institution;
   c. plan for the settlement of rights and obligations of the Guaranteed, Guarantee Recipient, and other related parties;
   d. plan for the ownership list of the new Guarantee Institution; e. the latest audited financial statements of the Guarantee Institution conducting the Implant Separation; f. pro forma financial statements of the new Guarantee Institution; g. work plan to be carried out for the first 3 (three) years after obtaining the business license of the new Guarantee Institution, which at least contains:

1. feasibility study of market opportunities and economic potential;
2. plan for Guarantee or Sharia Guarantee business activities and steps taken to realize the aforementioned plan; and
3. projection of monthly balance sheet, income statement, and cash flow reports and the underlying assumptions starting from when the new Guarantee Institution conducts operational activities;
   h. projection of monthly balance sheet, income statement, and cash flow reports for 3 (three) years from the Guarantee Institution that will conduct the Separation, calculated from the date the Separation is completed; and
   i. documents as referred to in Article 13 paragraph (2) letter b, and letter c, of POJK Number... ../POJK.05/.... concerning Business Licensing and Institutional Matters of Guarantee Institutions for the new Guarantee Institution resulting from the Implant Separation;

2. for Implant Separation by establishing a new legal entity that is not a Guarantee Institution, including*):
   a. draft deed of separation; b. draft deed of establishment of the new legal entity;
   c. the latest audited financial statements of the Guarantee Institution conducting the Implant Separation; and
   d. projection of monthly balance sheet, income statement, and cash flow reports for 3 (three) years from the Guarantee Institution that will conduct the Separation, calculated from the date the Separation is completed;
3. for Guarantee Institutions conducting Implant Separation by transferring part of the assets, liabilities, and equity of the Guarantee Institution to another Guarantee Institution, including*):
   a. draft deed of separation; b. the latest audited financial statements of the Guarantee Institution conducting the Implant Separation;
   c. plan for the settlement of rights and obligations of the Guaranteed, Guarantee Recipient, and other related parties;
   d. plan for the ownership list of the other Guarantee Institution; e. documents of the Guarantee Institution that will receive the transfer of part of the assets, liabilities, and equity of the Guarantee Institution conducting the Implant Separation, including:

1. photocopy of the business license as a Guarantee Institution;
2. the latest annual financial statements audited by a public accounting firm; and
3. balance sheet, income statement, and cash flow reports for the month prior to receiving the transfer of assets, liabilities, and equity;
   f. projection of monthly balance sheet, income statement, and cash flow reports for 3 (three) years from the Guarantee Institution that will conduct the Separation, calculated from the date the Separation is completed; and

4. for Guarantee Institutions conducting Implant Separation by transferring part of the assets, liabilities, and equity of the Guarantee Institution to a legal entity other than a Guarantee Institution, including*):
   a. draft deed of separation; b. the latest audited financial statements of the Guarantee Institution conducting the Implant Separation; and
   c. projection of monthly balance sheet, income statement, and cash flow reports for 3 (three) years from the Guarantee Institution that will conduct the Separation, calculated from the date the Separation is completed.

We inform that for the purposes of this application, you may contact Mr./Ms. ..., via email ... or telephone number ...

This application is submitted, and for your attention, Sir/Madam*), we express our gratitude.
Board of Directors
State-Owned Enterprise/PT/Cooperative*) ....................
………………………………
*) strike out what is not necessary
) for those conducting Sharia business activities

EXAMPLE FORMAT 34 REPORT ON THE IMPLEMENTATION OF THE GMS THAT APPROVED IMPLANT SEPARATION To the Executive Head of Non-Bank Financial Industry Supervision u.p. Director of Institutions and IKNB Products (IKNB Sharia Director) Menara Merdeka Building Jl. Budi Kemuliaan I No. 2 Jakarta 10110

Referring to the Financial Services Authority Regulation Number ../POJK.05/.... concerning Business Licensing and Institutional Matters of Guarantee Institutions, we hereby:
Name : State-Owned Enterprise/Limited Liability Company/Cooperative*) .....
Address : .....
City .....
Province .....
Phone/Fax No. : .....
Email : .....

report that we have held a GMS that approved the Implant Separation of the State-Owned Enterprise/Limited Liability Company/Cooperative*).....
into State-Owned Enterprise/Limited Liability Company/Cooperative*) ........... on date .....

As supporting data, we attach the following documents:
a. photocopy of the GMS minutes deed approving the Implant Separation; b. photocopy of the Implant Separation deed;
c. photocopy of the GMS minutes deed stating the appointment of the Board of Directors and Board of Commissioners;
d. photocopy of proof of paid-up capital settlement in the form of cash deposits from shareholders or members, photocopy of proof of placement of paid-up capital in the form of time deposits in the name of the relevant Guarantee Institution, in the event there are new shareholders (if any); e. opening financial statements of the new legal entity resulting from the Implant Separation; and f. proof of operational readiness of the new legal entity resulting from the Implant Separation that is a Guarantee Institution, at least consisting of:

1. list of fixed assets and inventories along with proof of ownership or control;
2. proof of ownership or control of the office building; and
3. photocopy of the Taxpayer Identification Number (NPWP).

We inform that for the purposes of this report, you may contact Mr./Ms. ..., via email ... or telephone number ...

This report is submitted, and for your attention, Sir/Madam*), we express our gratitude.
Board of Directors
State-Owned Enterprise/PT/Cooperative*) ....................
………………………………
*) strike out what is not necessary
) for those conducting Sharia business activities

EXAMPLE FORMAT 35 APPLICATION FOR LICENSE TO OPEN BRANCH OFFICE AND/OR SHARIA BUSINESS UNIT BRANCH OFFICE (IF ANY) PREVIOUSLY OWNED BY A GUARANTEE INSTITUTION CONDUCTING IMPLANT SEPARATION To the Executive Head of Non-Bank Financial Industry Supervision u.p. Director of Institutions and IKNB Products (IKNB Sharia Director) Menara Merdeka Building Jl. Budi Kemuliaan I No. 2 Jakarta 10110

Referring to the Financial Services Authority Regulation Number ../POJK.05/.... concerning Business Licensing and Institutional Matters of Guarantee Institutions, we hereby:
Name : State-Owned Enterprise/Limited Liability Company/Cooperative*) .....
Address : .....
City .....
Province .....
Phone/Fax No. : .....
Email : .....

submit an Application for license to open a Branch Office and/or Sharia Business Unit Branch Office (if any) previously owned by the Guarantee Institution conducting the implant separation, located at.....

As supporting data, we attach the following documents:
a. the previous license to open the Branch Office and/or Sharia Business Unit Branch Office (if any) owned by the Guarantee Institution conducting the Implant Separation; and b. proof of ownership or control of the Branch Office and/or Sharia Business Unit Branch Office (if any) building.

We inform that for the purposes of this application, you may contact Mr./Ms. ..., via email ... or telephone number ...

This application is submitted, and for your attention, Sir/Madam*), we express our gratitude.
Board of Directors
State-Owned Enterprise/PT/Cooperative*) ....................
………………………………
*) strike out what is not necessary
) for those conducting Sharia business activities

EXAMPLE FORMAT 36 REPORT ON THE IMPLEMENTATION OF IMPLANT SEPARATION To the Executive Head of Non-Bank Financial Industry Supervision u.p. Director of Institutions and IKNB Products (IKNB Sharia Director) Menara Merdeka Building Jl. Budi Kemuliaan I No. 2 Jakarta 10110

Referring to the Financial Services Authority Regulation Number ../POJK.05/.... concerning Business Licensing and Institutional Matters of Guarantee Institutions, we hereby:
Name : State-Owned Enterprise/Limited Liability Company/Cooperative*) .....
Address : .....
City .....
Province .....
Phone/Fax No. : .....
Email : .....

report that we have conducted the Implant Separation between the State-Owned Enterprise/Limited Liability Company/Cooperative*).....
and State-Owned Enterprise/Limited Liability Company/Cooperative*)........... on date .....

As supporting data, we attach the articles of association that have been approved, agreed upon by, or notified to the competent authority.

We inform that for the purposes of this report, you may contact Mr./Ms. ..., via email ... or telephone number ...

This report is submitted, and for your attention, Sir/Madam*), we express our gratitude.
Board of Directors
State-Owned Enterprise/PT/Cooperative*) ....................
………………………………
*) strike out what is not necessary
) for those conducting Sharia business activities

EXAMPLE FORMAT 37 APPLICATION FOR LICENSE TO OPEN BRANCH OFFICE IN THE TERRITORY OF THE REPUBLIC OF INDONESIA To the Executive Head of Non-Bank Financial Industry Supervision u.p. Director of Institutions and IKNB Products (IKNB Sharia Director) Menara Merdeka Building Jl. Budi Kemuliaan I No. 2 Jakarta 10110

Referring to the Financial Services Authority Regulation Number ../POJK.05/.... concerning Business Licensing and Institutional Matters of Guarantee Institutions, we hereby:
Name : State-Owned Enterprise/Limited Liability Company/Cooperative*) .....
Address : .....
City .....
Province .....
Phone/Fax No. : .....
Email : .....

submit an Application for license to open a Branch Office, located at.....

As supporting data, we attach the following documents:
a. proof of control of the office building; b. organizational structure and names of the prospective Branch Office Head and number of employees; and
c. business plan containing the plan to open the Branch Office of the Guarantee Institution.

We inform that for the purposes of this application, you may contact Mr./Ms. ..., via email ... or telephone number ...

This application is submitted, and for your attention, Sir/Madam*), we express our gratitude.
Board of Directors
State-Owned Enterprise/PT/Cooperative*) ....................
………………………………
*) strike out what is not necessary
) for those conducting Sharia business activities

EXAMPLE FORMAT 38 REPORT ON THE CLOSURE OF BRANCH OFFICE To the Executive Head of Non-Bank Financial Industry Supervision u.p. Director of Institutions and IKNB Products (IKNB Sharia Director) Menara Merdeka Building Jl. Budi Kemuliaan I No. 2 Jakarta 10110

Referring to the Financial Services Authority Regulation Number ../POJK.05/.... concerning Business Licensing and Institutional Matters of Guarantee Institutions, we hereby:
Name : State-Owned Enterprise/Limited Liability Company/Cooperative*) .....
Address : .....
City .....
Province .....
Phone/Fax No. : .....
Email : .....

report the closure of the Branch Office, located at.....

As supporting data, we attach the following documents:
a. proof of notification of the plan to close the Branch Office; b. proof of notification of the settlement procedure for rights and obligations; and
c. proof of settlement of rights and obligations of debtors.

We inform that for the purposes of this report, you may contact Mr./Ms. ..., via email ... or telephone number ...

This report is submitted, and for your attention, Sir/Madam*), we express our gratitude.
Board of Directors
State-Owned Enterprise/PT/Cooperative*) ....................
………………………………
*) strike out what is not necessary
) for those conducting Sharia business activities

EXAMPLE FORMAT 39 APPLICATION FOR APPROVAL OF THE PLAN TO CONVERT A GUARANTEE COMPANY OR RE-GUARANTEE COMPANY INTO A SHARIA GUARANTEE COMPANY OR SHARIA RE-GUARANTEE COMPANY To the Executive Head of Non-Bank Financial Industry Supervision u.p. Director of Institutions and IKNB Products Menara Merdeka Building Jl. Budi Kemuliaan I No. 2 Jakarta 10110

Referring to the Financial Services Authority Regulation Number ../POJK.05/.... concerning Business Licensing and Institutional Matters of Guarantee Institutions, we hereby:
Name : State-Owned Enterprise/Limited Liability Company/Cooperative*) .....
Address : .....
City .....
Province .....
Phone/Fax No. : .....
Email : .....

submit an Application for Approval of the conversion of the Guarantee Company/Re-Guarantee Company*) State-Owned Enterprise/ Limited Liability Company/Cooperative*).........into a Sharia Guarantee Company/ Sharia Re-Guarantee Company*) State-Owned Enterprise/
Limited Liability Company/Cooperative*).......... on date..............

To complete the aforementioned application, we submit the following documents:

1. draft GMS minutes deed approving the conversion into a Sharia Guarantee Company or Sharia Re-Guarantee Company;
2. draft amendment to the articles of association containing:
   a. name, one of the purposes and objectives of the company, namely conducting Sharia Guarantee or Sharia Re-Guarantee business activities; and b. authority and responsibilities of the DPS;
3. the latest audited financial statements;
4. list of Branch Offices owned by the Guarantee Company or Re-Guarantee Company;
5. organizational structure accompanied by personnel structure, job descriptions, authority, and responsibilities;
6. work plan related to Sharia Guarantee or Sharia Re-Guarantee business activities to be carried out for the first 3 (three) years after obtaining the business license as a Sharia Guarantee Company or Sharia Re-Guarantee Company, which at least contains:
   a. standard operating procedures;

b. example cooperation agreements; and
c. example Guarantee Certificate or Kafalah Certificate to be used by the Guarantee Institution;
7. plan for the settlement of rights and obligations of the Guaranteed, Guarantee Recipient, and other related parties;
8. feasibility study of market opportunities and economic potential;
9. plan for Sharia Guarantee or Sharia Re-Guarantee business activities and steps taken to realize the aforementioned plan;
10. projection of balance sheet, income statement, and monthly cash flow reports and the underlying assumptions starting from when the Sharia Guarantee Company or Sharia Re-Guarantee Company conducts operational activities; and
11. proof of employing experts in the field of Sharia guarantee.

We inform that for the purposes of this application, you may contact Mr./Ms. ..., via email ... or telephone number ...

This application is submitted, and for your attention, Sir/Madam*), we express our gratitude.
Board of Directors
State-Owned Enterprise/PT/Cooperative*) ....................
………………………………
*) strike out what is not necessary

EXAMPLE FORMAT 40 REPORT ON THE IMPLEMENTATION OF THE GMS THAT APPROVED CONVERSION To the Executive Head of Non-Bank Financial Industry Supervision u.p. Director of Institutions and IKNB Products Menara Merdeka Building Jl. Budi Kemuliaan I No. 2 Jakarta 10110

Referring to the Financial Services Authority Regulation Number ../POJK.05/.... concerning Business Licensing and Institutional Matters of Guarantee Institutions, we hereby:
Name : State-Owned Enterprise/Limited Liability Company/Cooperative*) .....
Address : .....
City .....
Province .....
Phone/Fax No. : .....
Email : .....

report that we have conducted the Conversion of the Guarantee Company/ Re-Guarantee Company*) State-Owned Enterprise/ Limited Liability Company/Cooperative*).....
into a Sharia Guarantee Company/ Sharia Re-Guarantee Company*) State-Owned Enterprise/ Limited Liability Company/Cooperative*) ........... on date .....

As supporting data, we attach the following documents:

1. photocopy of the GMS minutes deed approving the conversion into a Sharia Guarantee Company or Sharia Re-Guarantee Company;
2. photocopy of the GMS minutes deed stating the appointment of the Board of Directors, Board of Commissioners, and DPS;
3. photocopy of the amendment to the articles of association containing:
   a. name, one of the purposes and objectives of the company, namely conducting Sharia Guarantee or Sharia Re-Guarantee business activities; and b. authority and responsibilities of the DPS; and
4. photocopy of the Taxpayer Identification Number (NPWP) in the name of the Sharia Guarantee Company or Sharia Re-Guarantee Company resulting from the conversion.

We inform that for the purposes of this report, you may contact Mr./Ms. ..., via email ... or telephone number ...

This report is submitted, and for your attention, Sir/Madam*), we express our gratitude.
Board of Directors
State-Owned Enterprise/PT/Cooperative*) ....................
………………………………
*) strike out what is not necessary

EXAMPLE FORMAT 41 APPLICATION FOR LICENSE TO OPEN BRANCH OFFICE PREVIOUSLY OWNED BY A GUARANTEE COMPANY OR RE-GUARANTEE COMPANY THAT WAS CONVERTED To the Executive Head of Non-Bank Financial Industry Supervision u.p. Director of Institutions and IKNB Products Menara Merdeka Building Jl. Budi Kemuliaan I No. 2 Jakarta 10110

Referring to the Financial Services Authority Regulation Number ../POJK.05/.... concerning Business Licensing and Institutional Matters of Guarantee Institutions, we hereby:
Name : State-Owned Enterprise/Limited Liability Company/Cooperative*) .....
Address : .....
City .....
Province .....
Phone/Fax No. : .....
Email : .....

submit an Application for license to open a Branch Office previously owned by the Guarantee Company or Re-Guarantee Company that was converted, located at.....

As supporting data, we attach the following documents:
a. the previous license to open the Branch Office owned by the Guarantee Company or Re-Guarantee Company that was converted; and b. proof of ownership or control of the Branch Office building.

We inform that for the purposes of this application, you may contact Mr./Ms. ..., via email ... or telephone number ...

This application is submitted, and for your attention, Sir/Madam*), we express our gratitude.
Board of Directors
State-Owned Enterprise/PT/Cooperative*) ....................
………………………………
*) strike out what is not necessary

EXAMPLE FORMAT 42 REPORT ON THE IMPLEMENTATION OF CONVERSION To the Executive Head of Non-Bank Financial Industry Supervision u.p. Director of Institutions and IKNB Products Menara Merdeka Building Jl. Budi Kemuliaan I No. 2 Jakarta 10110

Referring to the Financial Services Authority Regulation Number ../POJK.05/.... concerning Business Licensing and Institutional Matters of Guarantee Institutions, we hereby:
Name : State-Owned Enterprise/Limited Liability Company/Cooperative*) .....
Address : .....
City .....
Province .....
Phone/Fax No. : .....
Email : .....

report that we have conducted the Conversion of the Guarantee Company/ Re-Guarantee Company*) State-Owned Enterprise/ Limited Liability Company/Cooperative*).....
into a Sharia Guarantee Company/ Sharia Re-Guarantee Company*) State-Owned Enterprise/ Limited Liability Company/Cooperative*) ........... on date .....

As supporting data, we attach the articles of association that have been approved, agreed upon by, or notified to the competent authority.

We inform that for the purposes of this report, you may contact Mr./Ms. ..., via email ... or telephone number ...

This report is submitted, and for your attention, Sir/Madam*), we express our gratitude.
Board of Directors
State-Owned Enterprise/PT/Cooperative*) ....................
………………………………
*) strike out what is not necessary

EXAMPLE FORMAT 43 REPORT ON THE DISSOLUTION OF A GUARANTEE INSTITUTION To the Executive Head of Non-Bank Financial Industry Supervision u.p. Director of Institutions and IKNB Products (IKNB Sharia Director) Menara Merdeka Building Jl. Budi Kemuliaan I No. 2 Jakarta 10110

Referring to the Financial Services Authority Regulation Number ../POJK.05/.... concerning Business Licensing and Institutional Matters of Guarantee Institutions, we hereby:
Name : State-Owned Enterprise/Limited Liability Company/Cooperative*) .....
Address : .....
City .....
Province .....
Phone/Fax No. : .....
Email : .....

hereby report the dissolution of the Guarantee Institution, State-Owned Enterprise/ Limited Liability Company/Cooperative*).....
because of the decision of the General Meeting of Shareholders/the establishment period of the Guarantee Institution set in the articles of association has expired/court decision or government decision *)..............

As supporting data, we attach the following documents:
a. documents serving as the basis for the determination of the dissolution decision or decree; and b. original copy of the decision regarding the issuance of the business license of the Guarantee Institution.

We inform that for the purposes of this report, you may contact Mr./Ms. ..., via email ... or telephone number ...

This report is submitted, and for your attention, Sir/Madam*), we express our gratitude.
Board of Directors
State-Owned Enterprise/PT/Cooperative*) ....................
………………………………
*) strike out what is not necessary
) for those conducting Sharia business activities

EXAMPLE FORMAT 44 APPLICATION FOR APPROVAL OF CESSATION OF BUSINESS ACTIVITIES To the Executive Head of Non-Bank Financial Industry Supervision u.p. Director of Institutions and IKNB Products (IKNB Sharia Director) Menara Merdeka Building Jl. Budi Kemuliaan I No. 2 Jakarta 10110

Referring to the Financial Services Authority Regulation Number ../POJK.05/.... concerning Business Licensing and Institutional Matters of Guarantee Institutions, we hereby:
Name : State-Owned Enterprise/Limited Liability Company/Cooperative*) .....
Address : .....
City .....
Province .....
Phone/Fax No. : .....
Email : .....

hereby submit an application for approval of the cessation of business activities as a Guarantee Institution, State-Owned Enterprise/ Limited Liability Company/Cooperative*)................... As material for consideration, we submit the following matters:
a. reasons for cessation of business activities; b. description of the condition of the Guarantee Institution, including data on the number of Guarantee Certificates or Kafalah Certificates still valid, number of Guaranteed and/or Guarantee Recipients, and number of obligations of the Guarantee Institution to the Guaranteed and/or Guarantee Recipients;
c. plan for the settlement of the Guarantee Institution's obligations to all creditors; and
d. plan for dissolution or other plans after the Guarantee Institution has settled its obligations to all creditors and the business license of the Guarantee Institution has been revoked by the Financial Services Authority.

As supporting data, we attach the following documents:
a. original copy of the decision regarding the issuance of the business license of the Guarantee Institution; b. GMS decision regarding approval of the plan to cease business activities of the Guarantee Institution;
c. latest financial statements of the Guarantee Institution;
d. proof of settlement of taxes and other obligations to the state; and e. proof of settlement of Financial Services Authority levies and owed administrative fines.

We inform that for the purposes of this application, you may contact Mr./Ms. ..., via email ... or telephone number ...

Thus, this application is submitted, and for your attention, Sir/Madam*), we express our gratitude.

Board of Directors
Perum/PT/Koperasi*) ....................
………………………………
*) strike what is not needed
) for those conducting Sharia business activities

EXAMPLE FORMAT 45 FOR REPORTING CESSATION OF BUSINESS ACTIVITIES

To the Honorable,
Executive Head of Financial Non-Bank Industry Supervision u.p. Director of Institutions and IKNB Products Director of IKNB Sharia) Menara Merdeka Building Jl. Budi Kemuliaan I No. 2 Jakarta 10110

Referring to the Financial Services Authority Regulation Number ../POJK.05/.... regarding Licensing and Institutional Matters of Guarantee Institutions, we hereby:

Name : Public Corporation/Limited Company/Cooperative*) .....
Address : .....
City .....
Province .....
Phone/Fax No. : .....
Email : .....

hereby report the cessation of business activities of the Guarantee Institution Public Corporation/Limited Company/Cooperative*)..................

As material for consideration, we can convey the following matters:
a. implementation of the cessation of business activities of the Guarantee Institution; b. implementation of announcements;
c. implementation of the settlement of obligations of the Guarantee Institution;
d. final balance sheet of the Guarantee Institution that has been audited by a public accountant; and e. a statement letter from shareholders stating that all obligations of the Guarantee Institution have been settled and that if there are claims in the future, they will become the responsibility of the shareholders.

We can convey that for the purposes of this reporting, you may contact Mr./Ms. ..., via email address ... or telephone number ...

Thus, this application is submitted, and for your attention, Sir/Madam*), we express our gratitude.

Board of Directors
Perum/PT/Koperasi*) ....................
………………………………
*) strike what is not needed
) for those conducting Sharia business activities

Determined in Jakarta on January 11, 2017

CHAIRMAN OF THE BOARD OF COMMISSIONERS
FINANCIAL SERVICES AUTHORITY, ttd
MULIAMAN D. HADAD

Copy in accordance with the original
Director of Law 1
Law Department ttd
Yuliana