Financial Services Authority Regulation Number 12 of 2023 Concerning Sharia Business Units

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FINANCIAL SERVICES AUTHORITY REGULATION
REPUBLIC OF INDONESIA
NUMBER 12 OF 2023
CONCERNING
SHARIA BUSINESS UNITS
BY THE GRACE OF THE ALMIGHTY GOD
THE BOARD OF COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY, Considering: that to encourage Sharia business units to carry out various developments and adjustments in procedures and business processes to strengthen institutional aspects, in order to create a stable and competitive national Sharia banking industry so that it is able to respond to challenges arising from the increasingly dynamic and complex development of the banking industry, and to implement the provisions of Article 68 paragraph (3) of Law Number 21 of 2008 concerning Sharia Banking as amended by Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector, it is necessary to establish a Financial Services Authority Regulation concerning Sharia Business Units; Considering: 1. Law Number 21 of 2008 concerning Sharia Banking (State Gazette of the Republic of Indonesia Year 2008 Number 94, Supplement to the State Gazette of the Republic of Indonesia Number 4867) as amended by Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (State Gazette of the Republic of Indonesia Year 2023 Number 4, Supplement to the State Gazette of the Republic of Indonesia Number 6845);
2. Law Number 21 of 2011 concerning the Financial Services Authority (State Gazette of the Republic of Indonesia Year 2011 Number 111, Supplement to the State Gazette of the Republic of Indonesia Number 5253) as amended by Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (State Gazette of the Republic of Indonesia Year 2023 Number 4, Supplement to the State Gazette of the Republic of Indonesia Number 6845);

DECIDES:
Determining: FINANCIAL SERVICES AUTHABILITY REGULATION CONCERNING SHARIA BUSINESS UNITS.

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

Conventional Universal Bank, hereinafter abbreviated as BUK, is a bank that conducts conventional business activities, which in its activities provides services in the payment transaction system.
Sharia Universal Bank, hereinafter abbreviated as BUS, is a bank that conducts business activities based on Sharia principles, which in its activities provides services in the payment transaction system.
Sharia Business Unit, hereinafter abbreviated as UUS, is a work unit of the BUK headquarters that functions as the parent office of offices or units that conduct business activities based on Sharia Principles, or a work unit at the branch office of a bank located abroad that conducts conventional business activities and functions as the parent office of Sharia auxiliary branch offices and/or Sharia business units.
Sharia Principles are Islamic legal principles based on fatwas and/or Sharia conformity statements issued by institutions that have authority in determining fatwas in the field of Sharia.
Sharia Branch Office, hereinafter abbreviated as KCS, is a UUS branch office that is responsible to the UUS in the BUK, with a clear business location address in accordance with the location where the KCS conducts its business, including Sharia auxiliary branch offices of a bank located abroad.
Sharia Auxiliary Branch Office, hereinafter abbreviated as KCPS, is a UUS office under the KCS that assists the KCS in carrying out banking business activities, with a clear business location address where the KCPS conducts its business.
Functional Sharia Office, hereinafter abbreviated as KFS, is a UUS office that conducts limited banking business activities in 1 (one) activity.
Electronic Banking Terminal, hereinafter abbreviated as TPE, is a UUS service consisting of electronic devices or machines provided to give banking services to customers, which are placed both inside and outside the UUS office.
Foreign Office is a UUS office operating outside the territory of the Republic of Indonesia, which can be a KCS, KCPS, representative office, or other office following the form or naming based on regulations in the country where the UUS operates.
General Meeting of Shareholders, hereinafter abbreviated as GMS, is the GMS of BUK and BUS in accordance with laws concerning limited liability companies, or organs or parties equivalent to BUK with legal forms other than limited liability companies.
Controlling Shareholders, hereinafter abbreviated as CS, are legal entities, individual persons, and/or business groups that own BUK or BUS shares amounting to 25% (twenty-five percent) or more of the issued shares with voting rights, or own BUK or BUS shares of less than 25% (twenty-five percent) of the issued shares with voting rights but can be proven to have controlled the BUK or BUS, either directly or indirectly.
Board of Directors is the organ of BUK and BUS authorized and fully responsible for the management of BUK and BUS for the interests of BUK and BUS, in accordance with the purposes and objectives of BUK and BUS, and representing BUK and BUS, both inside and outside the court, in accordance with the articles of association.
Board of Commissioners is the organ of BUK and BUS tasked with conducting general and/or specific supervision in accordance with the articles of association and providing advice to the Board of Directors.
Sharia Supervisory Board, hereinafter abbreviated as DPS, is a party tasked with providing advice and suggestions to the Board of Directors and supervising UUS activities to ensure compliance with Sharia Principles.
UUS Executive Officials are executive officials who oversee the UUS, who are directly responsible to the Director overseeing the UUS or have significant influence over UUS policies and/or operations.
Minister is the minister in charge of government affairs in the field of law and human rights.
Financial Services Authority, hereinafter abbreviated as OJK, is an independent institution that has the functions, duties, and authorities for regulation, supervision, examination, and investigation.

CHAPTER II
CAPITAL AND LICENSING
First Section
General
Article 2
(1) BUK intending to conduct business activities based on Sharia Principles must establish a UUS.
(2) The plan to open a UUS must be included in the BUK business plan.
(3) Without prejudice to criminal sanctions in accordance with applicable laws and regulations, BUK violating the provisions as referred to in paragraph (1) shall be subject to administrative sanctions in the form of suspension of UUS business activities.

Second Section
Capital
Article 3
(1) The business funds for opening a UUS are set and maintained at a minimum of IDR 1,000,000,000,000.00 (one trillion rupiah).
(2) Existing UUS must meet the business funds as referred to in paragraph (1) no later than December 31, 2024, carried out in stages:
a. IDR 500,000,000,000.00 (five hundred billion rupiah) by December 31, 2023; and b. IDR 1,000,000,000,000.00 (one trillion rupiah) by December 31, 2024.
(3) Existing UUS owned by local government banks must meet the business funds as referred to in paragraph (1) no later than December 31, 2025, carried out in stages:
a. IDR 500,000,000,000.00 (five hundred billion rupiah) by December 31, 2024; and b. IDR 1,000,000,000,000.00 (one trillion rupiah) by December 31, 2025.
(4) The UUS business funds as referred to in paragraphs (1), (2), and (3) must be set aside in cash.
(5) BUK having a UUS must maintain the net amount of funds placed in the UUS after deducting the UUS placements in the said BUK at a minimum equal to the UUS business funds. (6) OJK may determine the business funds for new UUS opening as referred to in paragraph (1) to be different based on specific considerations.

Article 4
(1) In the event that a UUS does not meet the business fund requirements as referred to in Article 3 paragraph (2) letter b or Article 3 paragraph (3) letter b, the BUK having the UUS must transfer or sell the UUS assets to an existing BUS or another UUS. (2) The business funds as referred to in paragraph (1) are based on quarterly financial publication reports in accordance with OJK regulations regarding the transparency and publication of reports for Sharia universal banks and Sharia business units. (3) The submission of license applications to transfer or sell UUS assets to an existing BUS or another UUS as referred to in paragraph (1) is submitted to OJK no later than 6 (six) months after the deadline for submitting quarterly financial publication reports in accordance with OJK regulations regarding reporting for Sharia universal banks and Sharia business units through the OJK reporting system. (4) BUK having a UUS that does not transfer or sell UUS assets to an existing BUS or another UUS as referred to in paragraph (1) must submit an application for the revocation of the UUS business license in accordance with this Financial Services Authority Regulation no later than 3 (three) months after the deadline for submitting the license to transfer or sell UUS assets to an existing BUS or another UUS as referred to in paragraph (3).

Third Section
Licensing
Article 5
(1) A UUS is opened and conducts business activities after obtaining an OJK license.
(2) The license as referred to in paragraph (1) is issued in the form of a business license.
(3) Applications to obtain a UUS business license as referred to in paragraph (2) are submitted by BUK to OJK, accompanied by the fulfillment of document requirements for the application for a UUS opening business license contained in Appendix I, which is an integral part of this Financial Services Authority Regulation. (4) BUK submitting a UUS business license application as referred to in paragraph (1) must provide an explanation regarding the entire plan for opening the UUS.

Article 6
(1) OJK provides approval or rejection of the UUS business license application as referred to in Article 5 no later than 60 (sixty) working days after the application documents are received completely. (2) To provide approval or rejection as referred to in paragraph (1), OJK conducts:
a. research on the completeness and correspondence of documents; b. evaluation of the explanations provided by BUK as referred to in Article 5 paragraph (4);
c. interviews with the President Director of BUK, the President Commissioner of BUK, and the candidate director overseeing the UUS; and
d. interviews with candidate DPS members.

Article 7
(1) BUK that has obtained a UUS business license from OJK must conduct business activities based on Sharia Principles no later than 60 (sixty) working days calculated from the date the business license is issued. (2) The Director overseeing the UUS must report the implementation of business activities as referred to in paragraph (1) to OJK no later than 10 (ten) working days after the date of business activity implementation. (3) In the event of force majeure or other considerations acceptable to OJK, the time limit as referred to in paragraph (1) may be extended based on OJK approval. (4) In the event that BUK that has obtained a business license does not conduct business activities based on Sharia Principles within the time limit as referred to in paragraph (1) or paragraph (3), the business license issued by OJK becomes void and invalid.

Article 8
(1) A UUS that has obtained a business license from OJK must clearly state the phrase “Sharia Business Unit” after the name of the BUK, at the relevant UUS office.
(2) In the event that a UUS uses a logo as an additional identity, the UUS must state the UUS name as the primary identity.

Fourth Section
Administrative Sanctions
Article 9
(1) BUK having a UUS and/or UUS violating the provisions as referred to in Article 3 paragraph (2), paragraph (3), paragraph (5), Article 4 paragraph (1), Article 7 paragraph (2), and/or Article 8 shall be subject to administrative sanctions in the form of written reprimands. (2) UUS that are late in fulfilling the obligation to submit reports as referred to in Article 7 paragraph (2) shall be subject to administrative sanctions in the form of fines of IDR 1,000,000.00 (one million rupiah) per working day and a maximum of IDR 30,000,000.00 (thirty million rupiah). (3) In the event that BUK having a UUS and/or UUS have been subject to administrative sanctions as referred to in paragraph (1) and/or paragraph (2), and continue to violate the provisions as referred to in Article 3 paragraph (2), paragraph (3), paragraph (5), Article 4 paragraph (1), Article 7 paragraph (2), and/or Article 8, they shall be subject to administrative sanctions in the form of:
a. prohibition on expanding business activities; and/or b. suspension of certain business activities.
(4) In the event that UUS have been subject to administrative sanctions as referred to in paragraph (1), paragraph (2), and/or paragraph (3), and continue to violate the provisions as referred to in Article 3 paragraph (2), paragraph (3), paragraph (5), Article 4 paragraph (1), Article 7 paragraph (2), and/or Article 8, the main party of the BUK having the UUS may be subject to administrative sanctions in the form of prohibition from acting as a main party in accordance with OJK regulations regarding the re-evaluation of main parties of financial service institutions. (5) BUK having a UUS and/or UUS violating the provisions as referred to in Article 4 paragraph (4) may be subject to administrative sanctions in the form of revocation of the UUS business license.

CHAPTER III
BOARD OF DIRECTORS, BOARD OF COMMISSIONERS, DPS, AND UUS EXECUTIVE OFFICIALS First Section Board of Directors and Board of Commissioners
Article 10
(1) All Board of Directors and Board of Commissioners of BUK having a UUS are responsible for the development of the UUS.
(2) BUK having a UUS must have 1 (one) Director overseeing the UUS.
(3) The Director overseeing the UUS as referred to in paragraph (2) may concurrently hold other BUK positions.
(4) The Director overseeing the UUS as referred to in paragraph (2) must have competence and commitment in the development of the UUS.

Article 11
The duties and responsibilities of all Board of Directors and Board of Commissioners of BUK having a UUS are carried out in accordance with OJK regulations regarding the application of governance for universal banks and applicable laws and regulations regarding the application of Sharia governance.

Article 12
The provisions as referred to in Article 10 paragraph (1) must be included in the articles of association of BUK having a UUS.

Article 13
(1) The Director overseeing the UUS may come from a new candidate for the Board of Directors or a member of the Board of Directors who has already served in the BUK.
(2) For directors overseeing the UUS who come from new candidates for the Board of Directors, they must meet the fitness and propriety assessment in accordance with OJK regulations regarding the fitness and propriety assessment for main parties of financial service institutions. (3) The appointment of members of the Board of Directors who have already served in BUK as directors overseeing the UUS as referred to in paragraph (1) must be reported by BUK no later than 10 (ten) working days after the effective date of appointment. (4) For directors overseeing the UUS who come from members of the Board of Directors who have already served in BUK as referred to in paragraph (1), they must undergo an interview process. (5) In the event that the director overseeing the UUS as referred to in paragraph (1) is assessed to lack competence and commitment in the development of the UUS, the BUK having the UUS must review the appointment.

Second Section
DPS
Article 14
(1) BUK having a UUS must form a DPS located at the UUS office.
(2) The number of DPS members is at least 2 (two) and at most 3 (three).
(3) The DPS must be led by a chairman from among the DPS members.
(4) DPS members may concurrently hold positions as DPS members in at most 4 (four) other Sharia financial institutions.

Article 15
The duties and responsibilities of the DPS are carried out in accordance with applicable laws and regulations regarding the application of Sharia governance.

Article 16
DPS members must meet the requirements:
a. integrity, which at a minimum includes:

having good character and morality;
having a commitment to comply with applicable laws and regulations and support OJK policies;
having a commitment to the development of healthy Sharia banking; and
not being among the parties prohibited from becoming main parties of financial service institutions in accordance with OJK regulations regarding the re-evaluation of main parties of financial service institutions;
b. competence, which at a minimum has:
knowledge and experience in Sharia muamalah; and
knowledge in banking and/or general financial knowledge; and
c. financial reputation, which at a minimum includes:
not being included in the list of non-performing loans and/or financing; and
never declared bankrupt and/or as a shareholder, member of the Board of Directors, or member of the Board of Commissioners who was declared guilty causing a company to be declared bankrupt, within the last 5 (five) years before nomination.

Article 17
(1) The DPS must obtain OJK approval.
(2) BUK having a UUS must submit an application for OJK approval as referred to in paragraph (1) for candidate DPS members before assuming their positions.
(3) The submission of candidate DPS members as referred to in paragraph (2) is done after receiving a recommendation from the Indonesian Ulema Council (Majelis Ulama Indonesia). (4) The appointment of DPS members by the GMS becomes effective after obtaining OJK approval.

Article 18
(1) Applications for OJK approval as referred to in Article 17 paragraph (2) are submitted to OJK accompanied by administrative documents for DPS contained in Appendix I, which is an integral part of this Financial Services Authority Regulation. (2) Approval or rejection of applications as referred to in paragraph (1) is provided by OJK considering at a minimum:
a. completeness and correspondence of documents; and b. interviews with candidate DPS members.
(3) Candidate DPS members who have obtained approval from OJK are appointed by the GMS no later than 6 (six) months after obtaining OJK approval.
(4) In the event that candidate DPS members who have obtained OJK approval are not appointed by the GMS within the time limit as referred to in paragraph (3), the approval issued by OJK becomes void and invalid. (5) BUK having a UUS must inform the appointment of DPS members no later than 10 (ten) working days after the effective appointment.

Article 19
(1) In the event that there are DPS members who are dismissed, resign, or pass away, BUK having the UUS must inform OJK no later than 10 (ten) working days from the date of the dismissal letter, resignation, or declaration of death. (2) Information on dismissal, resignation, or declaration of death as referred to in paragraph (1) is accompanied by supporting documents for dismissal, resignation, or documents declaring death. (3) In the event that DPS members are dismissed, resign, or pass away, resulting in the minimum number of DPS members as referred to in Article 14 paragraph (2) not being met, BUK having the UUS must immediately appoint replacement DPS members no later than 6 (six) months after the DPS members are dismissed, resign, or pass away. (4) Provisions regarding DPS members as referred to in Article 18 apply mutatis mutandis to the appointment of replacement DPS members as referred to in paragraph (3).

Third Section
UUS Executive Officials
Article 20
(1) UUS must conduct assessments of candidate UUS Executive Officials before making appointments or replacements of UUS Executive Officials.
(2) Assessments of candidate UUS Executive Officials as referred to in paragraph (1) are conducted regarding integrity, financial reputation, and competence.
(3) Assessments as referred to in paragraph (2) at a minimum include:
a. assessment of track record including sanctions previously given by BUK having the UUS; b. ownership of non-performing loans and/or financing or bankruptcy;
c. educational background, both formal and informal;
d. achievements achieved in the implementation of duties; e. the candidate's ability to hold the position to be held; and f. concurrent positions.

Article 21
(1) In the event of a vacancy in the position of UUS Executive Officials or UUS Executive Officials who cannot perform duties for more than 3 (three) months, UUS may make temporary appointments of UUS Executive Officials. (2) Temporary appointments of UUS Executive Officials as referred to in paragraph (1) must undergo assessments as referred to in Article 20. (3) UUS must appoint definitive UUS Executive Officials no later than 6 (six) months from the date of temporary appointment of UUS Executive Officials as referred to in paragraph (1).

Article 22
(1) UUS must report the appointment, dismissal, or replacement of UUS Executive Officials and temporary appointments of UUS Executive Officials to OJK.
(2) In the event that UUS Executive Officials have a negative track record based on OJK assessments, UUS must terminate the term of office of the UUS Executive Officials. (3) Negative track records as referred to in paragraph (2) include:
a. being among the parties prohibited from becoming main parties of financial service institutions; b. having non-performing loans and/or financing or bankruptcy in accordance with OJK regulations regarding the fitness and propriety assessment for main parties of financial service institutions; and/or
c. recorded in negative data and information held by OJK resulting from OJK supervision or other sources.
(4) UUS must implement the termination of the term of office of UUS Executive Officials as referred to in paragraph (2) no later than 10 (ten) working days from the date the UUS receives the OJK notification letter regarding the negative track record of UUS Executive Officials.

Fourth Section
Foreign Labor
Article 23
UUS utilizing foreign labor must comply with the requirements and procedures for utilizing foreign labor in accordance with applicable laws and regulations.

Fifth Section
Administrative Sanctions
Article 24
(1) BUK having a UUS and/or UUS violating the provisions as referred to in Article 10 paragraph (2), paragraph (4), Article 12, Article 13 paragraph (3), paragraph (4), paragraph (5), Article 14 paragraph (1), paragraph (3), Article 17 paragraph (1), Article 18 paragraph (5), Article 19 paragraph (1), paragraph (3), Article 20 paragraph (1), Article 21 paragraph (2), paragraph (3), Article 22 paragraph (1), paragraph (2), and/or paragraph (4) shall be subject to administrative sanctions in the form of written reprimands. (2) BUK having a UUS and/or UUS that are late in fulfilling the obligation to submit reports or

information as referred to in Article 13 paragraph (3), Article 18 paragraph (5), and/or Article 19 paragraph (1) shall be subject to administrative sanctions in the form of a fine of Rp1,000,000.00 (one million rupiah) per working day and a maximum of Rp30,000,000.00 (thirty million rupiah).

(3) In the event that an Islamic Bank (BUK) possessing an SBU and/or an SBU has been subject to administrative sanctions as referred to in paragraph (1) and/or paragraph (2), and continues to violate the provisions as referred to in Article 10 paragraph (2), paragraph (4), Article 12, Article 13 paragraph (3), paragraph (4), paragraph (5), Article 14 paragraph (1), paragraph (3), Article 17 paragraph (1), Article 18 paragraph (5), Article 19 paragraph (1), paragraph (3), Article 20 paragraph (1), Article 21 paragraph (2), paragraph (3), Article 22 paragraph (1), paragraph (2), and/or paragraph (4), the BUK possessing an SBU and/or the SBU shall be subject to administrative sanctions in the form of:

a. prohibition on expanding business activities; and/or

b. suspension of certain business activities.

(4) In the event that a BUK possessing an SBU and/or an SBU has been subject to administrative sanctions as referred to in paragraph (1), paragraph (2), and/or paragraph (3), and continues to violate the provisions as referred to in Article 10 paragraph (2), paragraph (4), Article 12, Article 13 paragraph (3), paragraph (4), paragraph (5), Article 14 paragraph (1), paragraph (3), Article 17 paragraph (1), Article 18 paragraph (5), Article 19 paragraph (1), paragraph (3), Article 20 paragraph (1), Article 21 paragraph (2), paragraph (3), Article 22 paragraph (1), paragraph (2), and/or paragraph (4), the main party of the BUK possessing an SBU may be subject to administrative sanctions in the form of prohibition as a main party in accordance with the OJK Regulation regarding re-evaluation for main parties of financial service institutions.

CHAPTER IV
SHARIA BUSINESS UNIT OFFICES

First Section
General

Article 25

(1) In carrying out its business activities, an SBU may open a network of SBU offices.

(2) In addition to the SBU office network, an SBU may use the office network owned by the BUK.

(3) The SBU office network consists of Customer Service Counters (KCS), Branch Offices (KCPS), Cash Offices (KFS), and Offices Abroad.

(4) To expand services to customers, an SBU may provide Transaction Processing Equipment (TPE).

Article 26

SBU offices as referred to in Article 25 paragraph (3) may carry out service and operational activities for customers using electronic channels and/or the provision of TPE, either fully or partially.

Article 27

(1) An SBU designates an office or organizational unit responsible as the manager of the TPE provided.

(2) An SBU is required to report the provision, relocation of address, or termination of TPE provision to the OJK after the implementation of the provision, relocation of address, or termination of TPE provision.

Second Section
Opening of SBU Offices

Paragraph 1
General

Article 28

(1) The plan to open an SBU office and provide TPE as referred to in Article 25 must be based on an analysis containing at least:

a. consistency of the plan with the business strategy and impact on projected financial performance; and

b. operational readiness plans related to the opening of the SBU office.

(2) An SBU is required to administer documents of the analysis related to the plan to open an SBU office as referred to in paragraph (1).

Article 29

An SBU is required to include the plan to open SBU offices in the form of KCS and Offices Abroad for the next 1 (one) year in the SBU business plan.

Paragraph 2
Opening of KCS

Article 30

(1) The opening of KCS must obtain OJK approval.

(2) An SBU submits an application for KCS opening approval as referred to in paragraph (1) to the OJK at most 30 (thirty) working days before the planned implementation of the KCS opening.

(3) The approval application as referred to in paragraph (2) is submitted by the competent official in accordance with internal SBU regulations, accompanied by the KCS opening approval application documents listed in Appendix I which is an integral part of this OJK Regulation.

Article 31

(1) The OJK provides approval or rejection of the KCS opening approval application as referred to in Article 30 paragraph (2).

(2) The approval or rejection as referred to in paragraph (1) is provided within a maximum period of 14 (fourteen) working days from the date the documents as referred to in Article 30 paragraph (3) are received in complete form.

(3) To provide approval or rejection of the approval application as referred to in paragraph (1), the OJK conducts an examination of:

a. the KCS opening plan which has been included in the SBU business plan as referred to in Article 29; and

b. the completeness and consistency of the documents submitted as referred to in Article 30 paragraph (3).

Article 32

(1) An SBU must carry out the opening of KCS at most 30 (thirty) working days from the date of OJK approval.

(2) In the event of force majeure or other considerations acceptable to the OJK, the time period as referred to in paragraph (1) may be extended based on OJK approval.

(3) In the event that an SBU does not carry out the opening of KCS within the time period as referred to in paragraph (1) or paragraph (2), the OJK approval becomes void and invalid.

(4) An SBU is required to report the opening of KCS to the OJK after the implementation of the KCS opening.

Paragraph 3
Opening of KCPS

Article 33

(1) KCPS may be in permanent or mobile form.

(2) An SBU is required to report the opening of KCPS to the OJK after the implementation of the KCPS opening.

(3) An SBU is required to combine the financial reports of KCPS with the financial reports of KCS from the date of KCPS opening.

Paragraph 4
Opening of KFS

Article 34

(1) KFS may carry out operational activities or carry out non-operational activities.

(2) An SBU is required to report the opening of KFS to the OJK after the implementation of the KFS opening.

(3) An SBU is required to combine the financial reports of KFS with the financial reports of KCS or the office that is the parent of the SBU's business activities from the date of KFS opening.

Paragraph 5
Opening of Offices Abroad

Article 35

(1) The opening of Offices Abroad must obtain OJK approval and approval from the local authority in the respective country.

(2) An SBU that can apply for the opening of an Office Abroad must meet the criteria:

a. has carried out business activities in foreign currency; and

b. meets the feasibility assessment from the OJK regarding the opening of an Office Abroad.

(3) An SBU submits an approval application as referred to in paragraph (1) to the OJK at most 30 (thirty) working days before the planned submission of the application for the opening of an Office Abroad to the local authority in the respective country, which refers to the regulations of the local authority in the respective country.

(4) The approval application as referred to in paragraph (3) is submitted by the competent official in accordance with internal regulations, accompanied by the Office Abroad opening approval application documents listed in Appendix I which is an integral part of this OJK Regulation.

Article 36

(1) Approval or rejection of the approval application as referred to in Article 35 paragraph (1) is provided within a period of 14 (fourteen) working days from the date the documents as referred to in Article 35 paragraph (4) are received in complete form.

(2) To provide approval or rejection of the approval application as referred to in paragraph (1), the OJK conducts an examination of:

a. the plan to open an Office Abroad has been included in the SBU business plan as referred to in Article 29;

b. fulfillment of SBU requirements as referred to in Article 35 paragraph (2) and conducting analysis; and

c. completeness and consistency of the documents submitted as referred to in Article 35 paragraph (4).

Article 37

(1) The opening of an Office Abroad must be implemented at most 1 (one) year from the date of OJK approval.

(2) In the event of force majeure or other considerations acceptable to the OJK, the time period as referred to in paragraph (1) may be extended based on OJK approval.

(3) In the event that after the time period as referred to in paragraph (1) or paragraph (2) an SBU does not carry out the opening of an Office Abroad, the OJK approval becomes void and invalid.

(4) An SBU is required to submit a copy of the Office Abroad opening approval from the local authority in the respective country to the OJK at most 10 (ten) working days from the effective date of the Office Abroad opening.

(5) An SBU is required to report the opening of an Office Abroad to the OJK after the effective date of the Office Abroad opening implementation.

Third Section
Changes in Status of SBU Offices

Paragraph 1
General

Article 38

An SBU may change the status of offices it owns.

Paragraph 2
Change of Status of KCPS to KCS

Article 39

(1) An SBU is required to include the plan to change the status of KCPS to KCS for the next 1 (one) year in the SBU business plan.

(2) The change of status of KCPS to KCS is carried out by meeting the requirements and procedures in accordance with the opening of KCS as referred to in Article 30, Article 31, and Article 32.

Paragraph 3
Change of Status of KCS to KCPS

Article 40

(1) An SBU is required to include the plan to change the status of KCS to KCPS for the next 1 (one) year in the SBU business plan.

(2) An SBU is required to inform the OJK of the change of status of KCS to KCPS at most 30 (thirty) working days before the planned implementation of the status change.

(3) The submission of information to the OJK as referred to in paragraph (2) is accompanied by the documents for the change of status of KCS to KCPS listed in Appendix I which is an integral part of this OJK Regulation.

(4) An SBU is required to carry out the change of status of KCS to KCPS at least 14 (fourteen) working days from the date of submission of information to the OJK and at most on the date of the planned implementation of the status change as referred to in paragraph (2).

(5) An SBU is required to report the change of status of KCS to KCPS to the OJK after the implementation of the status change.

Paragraph 4
Change of Status of Other SBU Offices

Article 41

Changes in status of offices other than as referred to in Article 39 and Article 40 are carried out by closing the SBU office that will change status and opening a new SBU office by meeting the requirements and procedures in accordance with this OJK Regulation.

Fourth Section
Relocation of SBU Office Addresses

Article 42

An SBU is required to include the plan to relocate the address of SBU offices for the next 1 (one) year in the SBU business plan for:

a. the office that is the parent of the SBU's business activities; or

b. Offices Abroad to a different city.

Article 43

(1) Relocation of the address of the office that is the parent of the SBU's business activities and/or Offices Abroad as referred to in Article 42 must obtain OJK approval.

(2) An SBU submits an approval application as referred to in paragraph (1) to the OJK at most:

a. 30 (thirty) working days before the planned implementation of the relocation of the address of the office that is the parent of the SBU's business activities; or

b. 30 (thirty) working days before the planned submission of the application for relocation of the address of an Office Abroad as per the regulations for relocation of the address of an Office Abroad by the local authority in the respective country.

(3) The approval application as referred to in paragraph (2) is submitted by the competent official in accordance with internal SBU regulations, accompanied by the documents for the approval application for relocation of the address of the office that is the parent of the SBU's business activities and/or Offices Abroad listed in Appendix I which is an integral part of this OJK Regulation.

Article 44

(1) The OJK provides approval or rejection of the relocation of the address of SBU offices as referred to in Article 43.

(2) The approval or rejection as referred to in paragraph (1) is provided within a period of 14 (fourteen) working days from the date the documents as referred to in Article 43 paragraph (3) are received in complete form.

(3) To provide approval or rejection of the approval application as referred to in Article 43, the OJK conducts an examination of:

a. the plan to relocate the address of SBU offices has been included in the SBU business plan as referred to in Article 42; and

b. completeness and consistency of the documents submitted as referred to in Article 43 paragraph (3).

Article 45

(1) An SBU that has obtained approval for the relocation of the address of offices as referred to in Article 42 from the OJK and approval from the local authority in the respective country for Offices Abroad, must announce the plan to relocate the address of offices through:

a. a daily newspaper in Indonesian language distributed nationally, the SBU website, and/or the official SBU social media accounts, for the relocation of the address of the office that is the parent of the SBU's business activities; or

b. the SBU website and/or the official SBU social media accounts, for the relocation of the address of an Office Abroad, at most 5 (five) working days from the date of OJK approval or following the regulations of the local authority in the respective country for the relocation of the address of an Office Abroad.

(2) An SBU must carry out the relocation of the address of SBU offices at most 30 (thirty) working days from the date of OJK approval, or following the regulations of the local authority in the respective country for the relocation of the address of an Office Abroad.

(3) In the event of force majeure or other considerations acceptable to the OJK, the time period as referred to in paragraph (2) may be extended based on OJK approval.

(4) In the event that after the time period as referred to in paragraph (2) or paragraph (3) an SBU does not carry out the relocation of the address of offices, the OJK approval becomes invalid.

(5) An SBU is required to submit a copy of the approval for the relocation of the address of an Office Abroad from the local authority in the respective country to the OJK at most 10 (ten) working days from the effective date of the relocation of the address of an Office Abroad.

(6) In the event that the relocation of the address of SBU offices as referred to in Article 42 is cancelled, an SBU is required to submit information on the cancellation to the OJK at most before the implementation of the relocation of the address of SBU offices as referred to in paragraph (2) or paragraph (3).

(7) In the event that the relocation of the address of SBU offices as referred to in Article 42 is cancelled and the SBU has announced the plan to relocate the address as referred to in paragraph (1), an SBU is required to announce the cancellation of the relocation of the address at most before the implementation of the relocation of the address of SBU offices as referred to in paragraph (2) or paragraph (3) through:

b. the SBU website and/or the official SBU social media accounts, for the relocation of the address of an Office Abroad.

Article 46

(1) An SBU is required to inform the plan to relocate the address:

a. Offices Abroad within the same city;

b. KCS;

c. KCPS; or

d. KFS carrying out operational activities, to the OJK at most 30 (thirty) working days before the effective date of the relocation of the address.

(2) An SBU is required to announce the plan to relocate the address of offices as referred to in paragraph (1) through:

a. notification at the office location;

b. a daily newspaper in Indonesian language;

c. the SBU website; and/or

d. the official SBU social media accounts, at least 5 (five) working days after the date of submission of information to the OJK as referred to in paragraph (1).

(3) An SBU is required to inform the plan to relocate the address of KFS carrying out non-operational activities to the OJK at most 10 (ten) working days before the effective date of the relocation of the address.

(4) In the event that the relocation of the address of offices as referred to in paragraph (1) and/or paragraph (3) is cancelled, an SBU is required to submit information on the cancellation to the OJK at most on the effective date of the relocation of the address of offices as referred to in paragraph (1) and/or paragraph (3).

(5) In the event that the relocation of the address of offices as referred to in paragraph (1) is cancelled and an announcement has been made as referred to in paragraph (2), an SBU is required to announce the cancellation of the plan to relocate the address of offices through:

a. notification at the office location;

b. a daily newspaper in Indonesian language;

c. the SBU website; and/or

d. the official SBU social media accounts, at most on the effective date of the relocation of the address as referred to in paragraph (1).

Article 47

(1) An SBU may carry out a temporary relocation of the address of SBU offices due to force majeure or other conditions according to the needs of the SBU.

(2) An SBU is required to inform the temporary relocation of the address of SBU offices as referred to in paragraph (1) to the OJK at the latest on the date of implementation of the temporary relocation.

(3) In the event that the temporary relocation of the address of SBU offices as referred to in paragraph (1) will be resolved and will return to operate at the previous address, an SBU is required to inform the OJK at the latest on the date of effective operation at the previous address.

(4) Temporary relocation of Offices Abroad also follows the regulations of the local authority in the respective country.

Fifth Section
Closure of SBU Offices

Article 48

An SBU is required to include the plan to close SBU offices in the form of KCS and/or Offices Abroad for the next 1 (one) year in the SBU business plan.

Article 49

(1) The closure of SBU offices in the form of KCS and/or Offices Abroad must obtain OJK approval.

(2) An SBU submits an approval application as referred to in paragraph (1) to the OJK at most:

a. 30 (thirty) working days before the planned implementation of the closure of SBU offices in the form of KCS; or

b. 30 (thirty) working days before the planned submission of the application for closure of an Office Abroad as per the regulations for closure of an Office Abroad by the local authority in the respective country.

(3) The approval application as referred to in paragraph (2) is submitted by the competent official in accordance with internal SBU regulations, accompanied by the reasons for the closure of the office and the documents for the approval application for the closure of the office in the form of KCS and/or Offices Abroad listed in Appendix I which is an integral part of this OJK Regulation.

Article 50

(1) The OJK provides approval or rejection of the approval application for the closure of SBU offices as referred to in Article 49.

(2) The approval or rejection as referred to in paragraph (1) is provided within a period of 14 (fourteen) working days from the date the documents as referred to in Article 49 paragraph (3) are received in complete form.

(3) To provide approval or rejection of the approval application as referred to in paragraph (1), the OJK conducts an examination of:

a. the plan to close SBU offices has been included in the SBU business plan, as referred to in Article 48; and

b. completeness and consistency of the documents submitted as referred to in Article 49 paragraph (3).

Article 51

(1) An SBU that has obtained approval for the closure of offices as referred to in Article 50 from the OJK and approval from the local authority in the respective country for Offices Abroad, must announce the plan to close offices through:

a. a daily newspaper in Indonesian language;

b. the SBU website; and/or

c. the official SBU social media accounts,
at most 5 (five) working days from the date of OJK approval or following the regulations of the local authority in the respective country for the closure of an Office Abroad.

(2) An SBU carries out the closure of SBU offices at most 30 (thirty) working days from the date of OJK approval, or following the regulations of the local authority in the respective country for the closure of an Office Abroad.

(3) In the event of force majeure or other considerations acceptable to the OJK, the time period as referred to in paragraph (2) may be extended based on OJK approval.

(4) In the event that after the time period as referred to in paragraph (2) or paragraph (3) an SBU does not carry out the closure of offices, the OJK approval becomes void and invalid.

(5) An SBU is required to submit to the OJK documents proving the settlement of:

a. rights and obligations of KCS to customers and/or other parties; or

b. rights and obligations of Offices Abroad to customers and/or other parties, and a copy of the approval for the closure of an Office Abroad from the local authority in the respective country, at most 10 (ten) working days from the effective date of the closure of KCS or an Office Abroad.

(6) In the event that the closure of SBU offices as referred to in Article 49 is cancelled, an SBU is required to submit information on the cancellation to the OJK at most before the implementation of the closure of SBU offices as referred to in paragraph (2).

(7) In the event that the closure of SBU offices as referred to in Article 49 is cancelled and the SBU has announced the plan to close offices as referred to in paragraph (1), an SBU is required to announce the cancellation of the closure at most before the implementation of the closure of SBU offices as referred to in paragraph (2) through:

a. a daily newspaper in Indonesian language;

b. the SBU website; and/or

c. the official SBU social media accounts.

Article 52

(1) An SBU is required to inform the plan to close KCPS or KFS carrying out operational activities to the OJK at most 30 (thirty) working days before the effective date of closure.

(2) An SBU is required to announce the plan to close KCPS or KFS carrying out operational activities as referred to in paragraph (1) through:

a. notification at the office location;

b. a daily newspaper in Indonesian language;

c. the SBU website; and/or

d. the official SBU social media accounts, at least 5 (five) working days after the date of submission of information to the OJK as referred to in paragraph (1).

(3) An SBU is required to inform the plan to close KFS carrying out non-operational activities to the OJK at most 10 (ten) working days before the effective date of closure.

(4) In the event that the closure of offices as referred to in paragraph (1) and/or paragraph (3) is cancelled, an SBU is required to submit information on the cancellation to the OJK at most on the effective date of closure as referred to in paragraph (1).

(5) In the event that the closure of offices as referred to in paragraph (1) is cancelled and an announcement has been made as referred to in paragraph (2), an SBU is required to announce the cancellation of the plan to close SBU offices through:

a. notification at the office location;

b. a daily newspaper in Indonesian language;

c. the SBU website; and/or

d. the official SBU social media accounts, at most on the effective date of closure as referred to in paragraph (1).

Article 53

(1) An SBU may carry out a temporary closure of SBU offices other than the office that is the parent of the SBU's business activities due to force majeure or other conditions according to the needs of the SBU.

(2) An SBU is required to inform the temporary closure of SBU offices other than the office that is the parent of the SBU's business activities as referred to in paragraph (1) to the OJK at the latest on the date of implementation of the temporary closure.

(3) An SBU guarantees the provision of customer services through the support of the banking service network owned by the SBU in relation to the temporary closure of SBU offices other than the office that is the parent of the SBU's business activities as referred to in paragraph (1).

(4) In the event that the temporary closure of SBU offices other than the office that is the parent of the SBU's business activities as referred to in paragraph (1) will be resolved and will return to effective operation, an SBU is required

informing the OJK no later than on the date of effective resumption of operations.
(5) The temporary closure of Offices Abroad also follows the regulations of the local country's authority.
Article 54
The UUS is responsible for settling all rights and obligations regarding the closure of the UUS office network to customers and/or other parties, including if there are claims at a later date.

Sixth Section
Suspension or Cancellation by OJK
Article 55
Based on OJK's consideration, the UUS is required to suspend or cancel plans for opening, changing status, relocating address, cancelling relocation, closing, and/or cancelling the closure of the UUS office network.

Seventh Section
Changes to UUS Name and Logo
Article 56
(1) The UUS is required to submit plans for changing the UUS name to the OJK, accompanied by supporting documents, at least stating the reasons for the name change.
(2) OJK issues a determination of the use of the business license held by the UUS with the new name no later than 14 (fourteen) working days after the documents referred to in paragraph (1) are received in complete form. (3) The UUS is required to announce the UUS name change to the public through:
a. daily newspapers in the Indonesian language; b. the UUS website; and/or
c. the official UUS social media accounts,
no later than 5 (five) working days after the date of the OJK determination referred to in paragraph (2).
(4) The UUS is required to submit proof of announcement as referred to in paragraph (3) to the OJK no later than 10 (ten) working days from the date of the announcement.

Article 57
(1) The UUS is required to submit plans for changing the UUS logo to the OJK, accompanied by:
a. the new logo design; and b. the effective date of the logo change.
(2) The UUS is required to announce the UUS logo change as referred to in paragraph (1) to the public through:
a. daily newspapers in the Indonesian language; b. the UUS website; and/or
c. the official UUS social media accounts,
no later than 5 (five) working days after the effective date of the logo change.
(3) The UUS is required to inform the OJK of the implementation of the logo change no later than 10 (ten) working days from the effective date of the logo change as referred to in paragraph (1) letter b. (4) The submission of information as referred to in paragraph (3) must be accompanied by the submission of proof of announcement to the public as referred to in paragraph (2) and supporting documents, if any.

Eighth Section
Administrative Sanctions
Article 58
(1) A UUS that violates the provisions as referred to in Article 28 paragraph (2), Article 29, Article 30 paragraph (1), Article 33 paragraph (3), Article 34 paragraph (3), Article 35 paragraph (1), Article 37 paragraph (4), Article 39 paragraph (1), Article 40 paragraph (1), paragraph (2), paragraph (4), Article 42, Article 43 paragraph (1), Article 45 paragraph (1), paragraph (5), paragraph (6), paragraph (7), Article 46 paragraph (2), paragraph (5), Article 47 paragraph (2), paragraph (3), Article 48, Article 49 paragraph (1), Article 51 paragraph (1), paragraph (5), paragraph (6), paragraph (7), Article 52 paragraph (2), paragraph (5), Article 53 paragraph (2), paragraph (4), Article 55, Article 56 paragraph (1), paragraph (3), paragraph (4), Article 57 paragraph (1), paragraph (2), and/or paragraph (3), is subject to administrative sanctions in the form of a written warning. (2) A UUS that is late in fulfilling the obligation to submit information or documents as referred to in Article 40 paragraph (4), Article 45 paragraph (5), Article 47 paragraph (2), paragraph (3), Article 51 paragraph (5), Article 53 paragraph (2), paragraph (4), Article 56 paragraph (4), and/or Article 57 paragraph (3), is subject to administrative sanctions in the form of a fine of IDR 1,000,000.00 (one million rupiah) per working day and a maximum of IDR 30,000,000.00 (thirty million rupiah). (3) In the event that a UUS has been subject to administrative sanctions as referred to in paragraph (1) and/or paragraph (2), and has not fulfilled the provisions as referred to in Article 28 paragraph (2), Article 29, Article 30 paragraph (1), Article 33 paragraph (3), Article 34 paragraph (3), Article 35 paragraph (1), Article 37 paragraph (4), Article 39 paragraph (1), Article 40 paragraph (1), paragraph (2), paragraph (4), Article 42, Article 43 paragraph (1), Article 45 paragraph (1), paragraph (5), paragraph (6), paragraph (7), Article 46 paragraph (2), paragraph (5), Article 47 paragraph (2), paragraph (3), Article 48, Article 49 paragraph (1), Article 51 paragraph (1), paragraph (5), paragraph (6), paragraph (7), Article 52 paragraph (2), paragraph (5), Article 53 paragraph (2), paragraph (4), Article 55, Article 56 paragraph (1), paragraph (3), paragraph (4), Article 57 paragraph (1), paragraph (2), and/or paragraph (3), the UUS is subject to administrative sanctions in the form of:
a. prohibition on expanding business activities; and/or b. suspension of certain business activities.
(4) In the event that a UUS has been subject to administrative sanctions as referred to in paragraph (1), paragraph (2), and/or paragraph (3), and continues to violate the provisions as referred to in Article 28 paragraph (2), Article 29, Article 30 paragraph (1), Article 33 paragraph (3), Article 34 paragraph (3), Article 35 paragraph (1), Article 37 paragraph (4), Article 39 paragraph (1), Article 40 paragraph (1), paragraph (2), paragraph (4), Article 42, Article 43 paragraph (1), Article 45 paragraph (1), paragraph (5), paragraph (6), paragraph (7), Article 46 paragraph (2), paragraph (5), Article 47 paragraph (2), paragraph (3), Article 48, Article 49 paragraph (1), Article 51 paragraph (1), paragraph (5), paragraph (6), paragraph (7), Article 52 paragraph (2), paragraph (5), Article 53 paragraph (2), paragraph (4), Article 55, Article 56 paragraph (1), paragraph (3), paragraph (4), Article 57 paragraph (1), paragraph (2), and/or paragraph (3), the PSP, Board of Directors, Board of Commissioners, and/or Executive Officials of the BUK holding the UUS may be subject to administrative sanctions in the form of prohibition as a principal party in accordance with OJK Regulations regarding the re-evaluation of principal parties of financial service institutions. (5) A UUS that violates the provisions as referred to in Article 46 paragraph (1), paragraph (3), paragraph (4), Article 52 paragraph (1), paragraph (3), and/or paragraph (4), is subject to administrative sanctions in accordance with OJK Regulations regarding electronic licensing in the financial services sector. (6) A UUS that violates the provisions as referred to in Article 27 paragraph (2), Article 32 paragraph (4), Article 33 paragraph (2), Article 34 paragraph (2), Article 37 paragraph (5), and/or Article 40 paragraph (5), is subject to administrative sanctions in accordance with OJK Regulations regarding reporting by general banks through the OJK reporting system.

CHAPTER V
SEPARATION AND CONSOLIDATION OF UUS

First Section
Obligation to Separate UUS from BUK
Article 59
(1) A BUK that holds a UUS with UUS asset value having reached 50% (fifty percent) of the total asset value of its parent BUK and/or the UUS asset amount of at least IDR 50,000,000,000,000.00 (fifty trillion rupiah) is required to separate the UUS with specific stages considering the efficient, healthy, and sustainable performance of the financial services industry. (2) The asset value as referred to in paragraph (1) is based on quarterly financial publication reports in accordance with OJK regulations regarding transparency and publication of Sharia general bank and Sharia business unit reports, and OJK regulations regarding transparency and publication of conventional general bank reports. (3) A BUK that separates a UUS as referred to in paragraph (1) submits a license application or approval no later than 2 (two) years after the deadline for submitting quarterly financial publication reports in accordance with OJK regulations regarding transparency and publication of Sharia general bank and Sharia business unit reports.

Article 60
A BUK that holds a UUS may separate the UUS before the conditions as referred to in Article 59 paragraph (1) are met.

Article 61
(1) OJK may request the separation of a UUS for the consolidation of Sharia banking for the development and strengthening of Sharia banking.
(2) The OJK request as referred to in paragraph (1) is carried out by considering:
a. the UUS has not experienced significant growth; b. the BUK holding the UUS is assessed as lacking the ability to develop the UUS;
c. the strategic development needs of Sharia banking; and/or
d. other factors.

Article 62
(1) A BUK that does not separate a UUS as referred to in Article 59 paragraph (1) and/or Article 61 is subject to the revocation of the UUS business license.
(2) A BUK holding a UUS as referred to in paragraph (1) is required to settle the UUS's rights and obligations within a period of 1 (one) year calculated from the date of the revocation of the UUS business license. (3) With the imposition of the revocation of the UUS business license as referred to in paragraph (1), the BUK holding the UUS is prohibited from conducting business activities based on Sharia Principles, except for the settlement of the UUS's rights and obligations as referred to in paragraph (2).

Article 63
(1) A BUK holding a UUS subject to the revocation of the UUS business license as referred to in Article 62 paragraph (1) is required to announce the revocation of the UUS business license through:
a. daily newspapers in the Indonesian language distributed nationally; b. the website of the BUK holding the UUS; and/or
c. the official social media accounts of the BUK holding the UUS,
no later than 5 (five) working days calculated from the date the revocation of the UUS business license is granted.
(2) The announcement as referred to in paragraph (1) must contain at least:
a. the cessation of business activities based on Sharia Principles; and b. the settlement of all UUS rights and obligations.
(3) The settlement of all UUS rights and obligations must be reported by the BUK holding the UUS no later than 10 (ten) working days after the settlement of all rights and obligations.

Second Section
Requirements and Procedures for UUS Separation
Article 64
(1) The separation of a UUS from a BUK can be done by:
a. establishing a new BUS which is a BUS resulting from the separation; or b. transferring the rights and obligations of the UUS to an existing BUS which is a BUS receiving the separation. (2) The separation of a UUS from a BUK by the method as referred to in paragraph (1) letter a can be carried out by 1 (one) or more BUKs holding a UUS. (3) The separation of a UUS from a BUK by the method as referred to in paragraph (1) letter b can be carried out to a BUS that has or does not have an ownership relationship with the BUK holding the UUS. (4) The separation of a UUS from a BUK as referred to in paragraph (1) must consider the provisions of applicable laws and regulations.

Article 65
(1) A BUS resulting from separation as referred to in Article 64 paragraph (1) letter a and a BUS receiving separation as referred to in Article 64 paragraph (1) letter b must meet the requirements:
a. the minimum capital provision ratio in accordance with OJK Regulations regarding minimum capital provision requirements for Sharia general banks; b. the gross non-performing financing ratio of at most 5% (five percent); and
c. meeting the maximum fund distribution limits in accordance with OJK Regulations regarding maximum fund distribution and large fund distribution for Sharia general banks.
(2) In the event that the separation of a UUS results in exceeding the maximum fund distribution limit, the BUS resulting from separation or the BUS receiving separation is required to:
a. submit an action plan containing the steps taken along with the target completion time; and b. settle the exceeding of the maximum fund distribution limit within a period of at most 18 (eighteen) months. (3) The BUS resulting from separation or the BUS receiving separation may submit a request for extension of the completion period for exceeding the maximum fund distribution limit as referred to in paragraph (2) letter b if, based on the assessment of the BUS resulting from separation or the BUS receiving separation, the settlement of exceeding the maximum fund distribution limit exceeds 18 (eighteen) months. (4) The request as referred to in paragraph (3) is submitted by the BUS resulting from separation or the BUS receiving separation to the OJK, accompanied by an action plan containing the steps taken along with the target completion time. (5) In the event that OJK approves the request as referred to in paragraph (2), the BUS resulting from separation or the BUS receiving separation is required to settle the exceeding of the maximum fund distribution limit in accordance with the target completion time established.

Article 66
A BUK that makes capital investment due to separating a UUS is exempt from the health level requirements for banks that will make capital investments in accordance with OJK Regulations regarding capital investment activities by general banks.

Third Section
Separation of UUS by Establishing a BUS
Paragraph 1
General Provisions
Article 67
(1) The establishment of a BUS resulting from separation as referred to in Article 64 paragraph (1) letter a must obtain a license from the OJK.
(2) Paid-in capital for the establishment of a BUS resulting from separation is determined to be at least the amount of minimum core capital in accordance with OJK Regulations regarding the consolidation of general banks. (3) OJK may determine the amount of paid-in capital for a BUS resulting from the separation of a UUS differently with specific considerations. (4) Additions to the fulfillment of paid-in capital deficiencies as referred to in paragraph (2) must be done in cash.

Article 68
The granting of a license for the establishment of a BUS resulting from separation as referred to in Article 64 paragraph (1) letter a is carried out in 2 (two) stages:
a. principle approval; and b. business license, in accordance with OJK Regulations regarding Sharia general banks, except as otherwise specifically regulated in this OJK Regulation.

Paragraph 2
Principle Approval
Article 69
A request to obtain principle approval for the establishment of a BUS resulting from separation as referred to in Article 64 paragraph (1) letter a is submitted by the BUK holding the UUS to the OJK, accompanied by the fulfillment of application document requirements for principle approval listed in Appendix I which is an integral part of this OJK Regulation.

Article 70
OJK's approval or rejection of the principle approval application as referred to in Article 69 is carried out in accordance with OJK Regulations regarding Sharia general banks, except as otherwise specifically regulated in this OJK Regulation.

Paragraph 3
Business License
Article 71
(1) A BUK holding a UUS and separating it applies for a business license for the BUS resulting from separation no later than 6 (six) months calculated from the date the principle approval is issued. (2) In the event of force majeure or other considerations acceptable to OJK, the implementation period of business activities as referred to in paragraph (1) may be extended based on OJK approval. (3) In the event that a BUK holding a UUS and separating it, which has obtained principle approval, does not apply for a business license for the BUS resulting from separation to the OJK until the end of the period as referred to in paragraph (1) or paragraph (2), the principle approval issued by OJK becomes void and invalid.

Article 72
A request to obtain a business license as referred to in Article 68 letter b is submitted by the BUK holding the UUS to the OJK, accompanied by the fulfillment of application document requirements for the business license listed in Appendix I which is an integral part of this OJK Regulation.

Article 73
OJK's approval or rejection of the business license application as referred to in Article 72 is carried out in accordance with OJK Regulations regarding Sharia general banks, except as otherwise specifically regulated in this OJK Regulation.

Article 74
The business license as referred to in Article 73 is valid from the date of implementation of business activities of the BUS resulting from separation.

Article 75
(1) A BUS resulting from separation must carry out business activities no later than 60 (sixty) working days calculated from the date the business license is issued.
(2) In the event of force majeure or other considerations acceptable to OJK, the implementation period of business activities as referred to in paragraph (1) may be extended based on OJK approval. (3) In the event that a BUS resulting from separation, which has obtained a business license, does not carry out business activities within the period as referred to in paragraph (1) or paragraph (2), the business license issued by OJK becomes void and invalid. (4) A BUS resulting from separation is required to report the implementation of business activities as referred to in paragraph (1) to the OJK no later than 7 (seven) working days after the implementation date, attaching the financial report of the BUS resulting from separation and the articles of association approved by the competent authority.

Article 76
(1) A BUK holding a UUS is required to apply for the revocation of the UUS business license to the OJK no later than 7 (seven) working days after the rights and obligations of the UUS are transferred to the BUS resulting from separation. (2) The application for the revocation of the UUS business license as referred to in paragraph (1) is accompanied by the fulfillment of document requirements listed in Appendix I which is an integral part of this OJK Regulation.

Fourth Section
Separation of UUS by Transferring Rights and Obligations to a BUS
Article 77
The separation of a UUS from a BUK by transferring the rights and obligations of the UUS to an existing BUS as referred to in Article 64 paragraph (1) letter b must obtain approval from the OJK.

Article 78
(1) The UUS separation plan must be submitted by the BUK holding the UUS and the BUS receiving separation to the OJK, accompanied by the UUS separation plan documents from the BUK listed in Appendix I which is an integral part of this OJK Regulation. (2) The submission of documents as referred to in paragraph (1) is carried out no later than simultaneously with the announcement of the summary of the separation draft in:
a. 1 (one) daily newspaper in the Indonesian language distributed nationally; and b. the website of the BUK holding the UUS and the BUS receiving separation.

Article 79
(1) A BUK holding a UUS and the BUS receiving separation jointly apply for approval of the separation of a UUS from a BUK to the OJK no later than 3 (three) working days after the GMS decision approving the separation. (2) The request for approval of the separation of a UUS from a BUK as referred to in paragraph (1) is accompanied by the fulfillment of application document requirements for the approval of the separation of a UUS from a BUK listed in Appendix I which is an integral part of this OJK Regulation.

Article 80
(1) OJK provides approval or rejection of the separation approval application as referred to in Article 79 paragraph (1).
(2) The approval or rejection as referred to in paragraph (1) is granted within a period of 14 (fourteen) working days from the date the documents as referred to in Article 79 paragraph (2) are received in complete form. (3) In addition to providing approval for the separation approval application as referred to in paragraph (1), OJK may determine:
a. the assessment results of the competence and propriety of the prospective members of the Board of Directors and prospective members of the Board of Commissioners of the BUS receiving separation, if there are changes; b. the assessment results of the competence and propriety of the prospective PSP of the BUS receiving separation, if the separation is accompanied by the replacement or change of PSP; and
c. the assessment results of the interview with the prospective members of the DPS of the BUS receiving separation, if there are changes.

Article 81
(1) The separation approval from OJK is valid from:
a. the date of approval by the Minister or a later date established in the Minister's approval; or b. the date of notification of the articles of association change received by the Minister, or a later date established in the separation deed. (2) The BUS receiving separation is required to report the implementation of the separation to the OJK no later than 7 (seven) working days after the implementation date, attached with:
a. the financial report of the BUS receiving separation; and b. a photocopy of the articles of association change deed that has been approved or notified to the Minister as referred to in paragraph (1).

Article 82
(1) A BUK is required to apply for the revocation of the UUS business license to the OJK no later than 7 (seven) working days after the rights and obligations of the UUS are transferred to the BUS receiving separation. (2) The application for the revocation of the UUS business license as referred to in paragraph (1) is accompanied by the fulfillment of document requirements for the revocation of the UUS business license after the rights and obligations of the UUS are transferred to the BUS resulting from separation and/or the BUS receiving separation listed in Appendix I which is an integral part of this OJK Regulation.

Article 83
(1) Separation by the method as referred to in Article 64 paragraph (1) letter b can be done by the BUK holding the UUS transferring the rights and obligations of the UUS to another BUK, provided that the other BUK must change its business activities to a BUS. (2) A BUK holding a UUS and another BUK as referred to in paragraph (1) must submit the separation plan as referred to in Article 78 paragraph (1) to the OJK simultaneously with the application for a license to change the business activities of the BUK to a BUS. (3) Separation approval can only be granted after the other BUK as referred to in paragraph (1) has obtained a license to change its business activities to a BUS. (4) The change of business activities is carried out in accordance with OJK Regulations regarding the change of business activities of conventional banks to Sharia banks.

Fifth Section
Administrative Sanctions
Article 84
(1) A BUK holding a UUS and/or a UUS that violates the provisions as referred to in Article 59 paragraph (1), Article 62 paragraph (2), paragraph (3), Article 63, Article 67 paragraph (1), Article 75 paragraph (4), Article 76 paragraph (1), Article 77, Article 81 paragraph (2), and/or Article 82 paragraph (1), is subject to administrative sanctions in the form of a written warning. (2) A BUK holding a UUS and/or a UUS that is late in fulfilling the obligation to submit reports as referred to in Article 75 paragraph (4) and/or Article 81 paragraph (2), is subject to administrative sanctions in the form of a fine of IDR 1,000,000.00 (one million rupiah) per working day and a maximum of IDR 30,000,000.00 (thirty million rupiah). (3) A BUK holding a UUS and/or a UUS that is late in fulfilling the obligation to submit an application for the revocation of the UUS business license as referred to in Article 76 paragraph (1) and/or Article 82 paragraph (1), is subject to administrative sanctions in the form of a fine of IDR 1,000,000.00 (one million rupiah) per working day and a maximum of IDR 30,000,000.00 (thirty million rupiah). (4) In the event that a BUK holding a UUS and/or a UUS has been subject to administrative sanctions as referred to in paragraph (1), paragraph (2), and/or paragraph (3), and continues to violate the provisions as referred to in Article 59 paragraph (1), Article 62 paragraph (2), paragraph (3), Article 63, Article 67 paragraph (1), Article 75 paragraph (4), Article 76 paragraph (1), Article 77, Article 81 paragraph (2), and/or Article 82 paragraph (1), the principal party may be subject to administrative sanctions in the form of prohibition as a principal party in accordance with OJK Regulations regarding the re-evaluation of principal parties of financial service institutions. (5) In the event that a BUK holding a UUS and/or a UUS has been subject to administrative sanctions as referred to in paragraph (1), paragraph (2), and/or paragraph (3), and continues to violate the provisions as referred to in Article 59 paragraph (1), Article 62 paragraph (2), paragraph (3), Article 63, Article 67 paragraph (1), Article 75 paragraph (4), Article 76 paragraph (1), Article 77, Article 81 paragraph (2), and/or Article 82 paragraph (1), the principal party may be subject to administrative sanctions in the form of prohibition as a principal party in accordance with OJK Regulations regarding the re-evaluation of principal parties of financial service institutions. (6) A BUS resulting from separation or a BUS receiving separation that does not settle the exceeding of the maximum fund distribution limit as referred to in Article 65 paragraph (2) or Article 65 paragraph (5) is subject to administrative sanctions in accordance with OJK Regulations regarding maximum fund distribution and large fund distribution for Sharia general banks. (7) The imposition of administrative sanctions in the form of fines as referred to in paragraph (2) and
paragraph (3) does not remove the obligation of the BUS receiving separation or the BUK to submit reports or applications for the revocation of the UUS business license.

CHAPTER VI
REVOCATION OF UUS BUSINESS LICENSE AT THE REQUEST OF BUK
Article 85
OJK may revoke the UUS business license at the request of a BUK holding the UUS.

Article 86
(1) The revocation of the business license at the request of a BUK holding a UUS is carried out in 2 (two) stages:
a. approval of the preparation for the revocation of the business license; and b. the decision to revoke the business license.
(2) The Board of Directors of the BUK holding the UUS applies for approval of the preparation for the revocation of the UUS business license as referred to in paragraph (1) letter a to the OJK, accompanied by the fulfillment of application document requirements for the preparation for the revocation of the UUS business license listed in Appendix I which

is an inseparable part of this OJK Regulation.
(3) OJK issues a letter of approval for the preparation of the revocation of the UUS business license within a maximum of 14 (fourteen) working days after the documents referred to in paragraph (2) and paragraph (3) are received in complete form. (4) BUKs that have a UUS which has received approval for the preparation of the revocation of the business license as referred to in paragraph (1) letter a are required to:
a. stop all UUS business activities; b. announce the plan to revoke the business license and the plan to settle the rights and obligations of the UUS through a daily newspaper in the Indonesian language, website, and/or official social media accounts within a maximum of 5 (five) working days from the date of the approval for the preparation of the revocation of the business license from OJK;
c. settle all rights and obligations of the UUS according to the settlement schedule; and
d. appoint a public accounting firm registered with OJK to conduct verification on the settlement of the rights and obligations of the UUS.

Article 87
(1) In the event that all rights and obligations of the UUS as referred to in Article 86 paragraph (4) letter c have been settled, the Board of Directors of the BUK that has the UUS submits an application for the revocation of the UUS business license to OJK accompanied by the fulfillment of the document requirements for the application for the revocation of the UUS business license listed in Appendix I which is an inseparable part of this OJK Regulation. (2) Based on the application for the revocation of the business license as referred to in paragraph (1), OJK conducts an investigation into the completeness and correspondence of the documents as referred to in paragraph (1). (3) OJK issues a decision on the revocation of the UUS business license within a maximum of 30 (thirty) working days after the documents as referred to in paragraph (1) are received in complete form. (4) Since the date of issuance of the revocation of the business license by OJK, if there are subsequently any obligations that have not been settled, such obligations become the responsibility of the BUK that has the UUS.

CHAPTER VII
SUBMISSION OF LICENSING AND REPORTS

Article 88
(1) Submissions related to:
a. applications to obtain licenses and/or submissions of information and documents related to licensing as referred to in Article 5 paragraph (3), Article 18 paragraph (1), Article 30 paragraph (2), Article 35 paragraph (3), Article 39 paragraph (2), Article 40 paragraph (2), Article 43 paragraph (2), Article 45 paragraph (6), Article 46 paragraph (1), paragraph (3), paragraph (4), Article 49 paragraph (2), Article 51 paragraph (6), Article 52 paragraph (1), paragraph (3), paragraph (4), Article 56 paragraph (1), Article 69 paragraph (1), Article 71 paragraph (1), Article 72, Article 76, Article 78 paragraph (1), Article 79 paragraph (1), Article 82 paragraph (1), Article 86 paragraph (2), and/or Article 87 paragraph (1), are submitted through the OJK licensing system in accordance with the procedures set forth in the OJK Regulation regarding electronic licensing in the financial services sector; or b. reporting of implementation as referred to in Article 7 paragraph (2), Article 22 paragraph (1), Article 27 paragraph (2), Article 32 paragraph (4), Article 33 paragraph (2), Article 34 paragraph (2), Article 37 paragraph (5), Article 40 paragraph (5), Article 75 paragraph (4), and/or Article 81 paragraph (2), are submitted through the OJK reporting system in accordance with the procedures set forth in the OJK Regulation regarding reporting by general banks through the OJK reporting system, and the reporting period is adjusted to the reporting period in which the reported activities have been effectively realized. (2) Submissions related to:
a. information and/or data other than those referred to in paragraph (1); or b. in the event that the licensing system and/or reporting system as referred to in paragraph (1) are not yet available or there is a force majeure situation, are conducted through the OJK correspondence system. (3) In the event that the OJK correspondence system as referred to in paragraph (2) has a force majeure situation, submissions are conducted offline to OJK. (4) Submissions of applications to obtain licenses, submissions of reports, and submissions of information and/or data online and offline as referred to in paragraph (1), paragraph (2), and paragraph (3) are listed in Appendix II which is an inseparable part of this OJK Regulation.

CHAPTER VIII
OTHER PROVISIONS

Article 89
(1) BUKs that have UUS are required to have a long-term strategy for the development of UUS business in accordance with OJK policy.
(2) The long-term strategy for the development of UUS business as referred to in paragraph (1) is elaborated in the corporate plan of the BUK that has the UUS.
(3) The long-term strategy for the development of UUS business as referred to in paragraph (1) is first submitted no later than the end of November 2023.
(4) Short-term implementation of the long-term strategy for the development of UUS business as referred to in paragraph (1) must be included by:
a. BUKs that have UUS, in the BUK business plan; and b. UUS, in the UUS business plan.

Article 90
UUS may utilize the resources of the BUK that has the UUS.

Article 91
(1) Ownership of UUS customer data transfers to the BUS resulting from separation after separation is carried out.
(2) In the context of banking synergy, the parent BUK and the BUS resulting from separation may conduct cooperation that utilizes customer data.
(3) The utilization of customer data as referred to in paragraph (2) is conducted after obtaining written approval or power of attorney from the customer.

Article 92
(1) UUS announces plans to conduct operational activities outside operational working days, on holidays, and/or not operating on working days.
(2) Announcements as referred to in paragraph (1) are conducted through:
a. daily newspapers in the Indonesian language; b. UUS websites; and/or
c. official UUS social media accounts.

Article 93
BUKs that have UUS and/or UUS are required to administer documents in licensing applications in accordance with this OJK Regulation, including documents and administrative requirements submitted online.

Article 94
(1) BUKs that have UUS and/or UUS that violate the provisions as referred to in Article 89 paragraph (1), paragraph (4), and/or Article 93 are subject to administrative sanctions in the form of written reprimands. (2) In the event that BUKs that have UUS and/or UUS have been subject to administrative sanctions as referred to in paragraph (1) and continue to violate the provisions as referred to in Article 89 paragraph (1), paragraph (4), and/or Article 93, the BUKs that have UUS and/or UUS are subject to administrative sanctions in the form of:
a. prohibition on expanding business activities; and/or b. suspension of certain business activities.
(3) In the event that BUKs that have UUS and/or UUS have been subject to administrative sanctions as referred to in paragraph (1) and/or paragraph (2), and continue to violate the provisions as referred to in Article 89 paragraph (1), paragraph (4), and/or Article 93, the main party may be subject to administrative sanctions in the form of prohibition as the main party in accordance with the OJK Regulation regarding re-evaluation for main parties of financial service institutions.

CHAPTER IX
TRANSITIONAL PROVISIONS

Article 95
(1) UUS may maintain office networks and business activities that have obtained OJK approval before this OJK Regulation takes effect.
(2) UUS that have Sharia Cash Offices or Sharia cash service activities before this OJK Regulation takes effect:
a. may register them as Sharia Cash Service Offices (KCPS) by updating them in the OJK reporting system in the nearest reporting period since this OJK Regulation takes effect; or b. adjust the Sharia Cash Offices or Sharia Cash Service Offices in accordance with the UUS office network plan and policy. (3) The adjustment of the office network as referred to in paragraph (2) applies for 3 (three) months from the date this OJK Regulation takes effect. (4) The adjustment of naming in connection with the registration and/or updating of Sharia Cash Offices, Sharia services, or Sharia cash service activities as referred to in paragraph (2) is adjusted to the UUS naming adjustment plan.

Article 96
(1) Principle approvals for the establishment of BUS resulting from separation that have been granted by OJK before this OJK Regulation takes effect are declared to remain valid. (2) BUKs that have UUS that have obtained principle approval as referred to in paragraph (1) may submit applications for business licenses for the establishment of BUS resulting from separation in accordance with OJK Regulation Number 59/POJK.03/2020 concerning Requirements and Procedures for the Separation of Sharia Business Units (State Gazette of the Republic of Indonesia Year 2009 Number 288, Supplement to the State Gazette of the Republic of Indonesia Number 6597). (3) The time limit for the implementation of business activities of BUS resulting from separation as referred to in Article 75 paragraph (1) applies to BUS resulting from separation as referred to in paragraph (2).

This copy is in accordance with the original
Director of Law 1
Legal Department signed
Mufli Asmawidjaja

CHAPTER IX
CLOSING PROVISIONS

Article 97
Upon the taking effect of this OJK Regulation:
a. Bank Indonesia Regulation Number 11/10/PBI/2009 concerning Sharia Business Units (State Gazette of the Republic of Indonesia Year 2009 Number 55, Supplement to the State Gazette of the Republic of Indonesia Number 4992) as amended by Bank Indonesia Regulation Number 15/14/PBI/2013 concerning Amendments to Bank Indonesia Regulation Number 11/10/PBI/2009 concerning Sharia Business Units (State Gazette of the Republic of Indonesia Year 2013 Number 234, Supplement to the State Gazette of the Republic of Indonesia Number 5477) and external implementation regulations; and b. Financial Services Authority Regulation Number 59/POJK.03/2020 concerning Requirements and Procedures for the Separation of Sharia Business Units (State Gazette of the Republic of Indonesia Year 2020 Number 288, Supplement to the State Gazette of the Republic of Indonesia Number 6597), are repealed and declared invalid.

Article 98
This OJK Regulation takes effect on the date of its promulgation.
To ensure that everyone knows it, it is ordered to promulgate this OJK Regulation by placing it in the State Gazette of the Republic of Indonesia.

Established in Jakarta on 12 July 2023
CHAIRMAN OF THE COMMISSIONERS BOARD
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA, signed
MAHENDRA SIREGAR

Promulgated in Jakarta on 12 July 2023
MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA, signed
YASONNA H. LAOLY

STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2023 NUMBER 20/OJK

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
REPUBLIC OF INDONESIA
NUMBER 12 OF 2023
CONCERNING
SHARIA BUSINESS UNITS

I. GENERAL
Institutional arrangements are one of the strategic regulations for financial service institutions, including for UUS. This is because institutional provisions are used as guidelines from the opening, operational implementation, to the event of business license revocation. By strengthening institutional arrangements, Islamic banking can play an active and responsive role in meeting the community's needs for banking services.

In its history in Indonesia, the presence of UUS was the initial stage for Indonesian banking to provide Sharia services to the community. In a further stage, the separation (spin-off) of UUS into BUS was carried out to create an Islamic banking industry that is more capable of responding to challenges from the increasingly dynamic and complex development of the banking industry. BUS resulting from separation can become strong banks, among others, by meeting paid-up capital requirements, minimum capital provision obligations, and maximum non-performing financing limits. BUS resulting from separation can also synergize with the parent BUK, including conducting cooperation that utilizes customer data, so that the services provided by UUS can still be carried out efficiently by BUS resulting from separation. BUS resulting from separation is expected to maintain good performance to be able to grow sustainably.

The implementation of UUS separation is also carried out in the context of consolidating Islamic banking in Indonesia, among others by merging several UUS into 1 (one) BUS resulting from separation and/or merging UUS with existing BUS, thereby increasing the economies of scale of BUS resulting from separation.

Furthermore, Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (UU P2SK), which amends Law Number 21 of 2008 concerning Islamic Banking, mandates that the implementation of UUS separation obligations be further regulated in a regulation established by OJK no later than 6 (six) months after UU P2SK is promulgated. In this regard, the separation provisions will be regulated in the UUS institutional provisions.

The regulation of UUS institutions is expected to be able to accommodate policy directions and developments in the financial services sector, and in accordance with the mandate of UU P2SK, particularly regarding the strengthening of capital and efficiency of UUS, the strengthening of UUS management, and the refinement of provisions related to the requirements and process of UUS separation aligned with banking consolidation strategy. Based on these considerations, an update to the regulations regarding UUS is necessary.

II. ARTICLE BY ARTICLE
Article 1
Clearly sufficient.

Article 2
Clearly sufficient.

Article 3
Paragraph (1)
Clearly sufficient.
Paragraph (2)
Clearly sufficient.
Paragraph (3)
Clearly sufficient.
Paragraph (4)
Clearly sufficient.
Paragraph (5)
Clearly sufficient.
Paragraph (6)
Certain considerations are based, among others, on the conditions and development of the Indonesian economy, the number and distribution of Islamic bank services in Indonesia, the need to open UUS for specific Government of the Republic of Indonesia purposes, and the continuity of the development of UUS business activities in the future so that they can operate sustainably.

Article 4
Paragraph (1)
Clearly sufficient.
Paragraph (2)
What is meant by "OJK provisions regarding transparency and publication of reports of Sharia General Banks and Sharia Business Units" is OJK Circular Letter Number 10/SEOJK.03/2020 concerning Transparency and Publication of Reports of Sharia General Banks and Sharia Business Units. Paragraph (3) What is meant by "OJK provisions regarding reporting of Sharia General Banks and Sharia Business Units through the OJK reporting system" is OJK Circular Letter Number 27/SEOJK.03/2020 concerning Reporting of Sharia General Banks and Sharia Business Units through the Otoritas Jasa Keuangan Reporting System. Paragraph (4) Clearly sufficient.

Article 5
Paragraph (1)
Clearly sufficient.
Paragraph (2)
Business licenses are licenses granted to conduct business activities based on Sharia Principles.
Paragraph (3)
What is meant by "documents" are documents related to the UUS business license application process.
Paragraph (4)
Explanation is conducted, among others, through presentations. Matters that must be explained to OJK include:
a. the purpose and reasons for opening the UUS; b. target markets for fund mobilization and disbursement;
c. short-term, medium-term, and long-term business plans;
d. information technology systems; and e. organizational structure and human resources.

Article 6
Paragraph (1)
Clearly sufficient.
Paragraph (2)
Letter a
Clearly sufficient.
Letter b
Clearly sufficient.
Letter c
Interviews with:
a. the President Director of BUK and the President Commissioner of BUK as representatives of the Board of Directors and Board of Commissioners are conducted to assess the commitment to developing the UUS. b. prospective directors who oversee the UUS are conducted to assess competence and commitment to developing the UUS. Letter d Clearly sufficient.

Article 7
Paragraph (1)
Clearly sufficient.
Paragraph (2)
Clearly sufficient.
Paragraph (3)
Force majeure is an unavoidable disaster situation consisting of:
a. natural disasters; b. non-natural disasters; and/or
c. social disasters,
which are approved by the competent official of the local government and/or can be verified by OJK.
Other considerations include, among others, the licensing process in other authorities and unfavorable economic conditions that can affect the BUK's ability to meet the licensing requirements for opening a UUS. Paragraph (4) Clearly sufficient.

Article 8
Paragraph (1)
An example of including the phrase "Sharia Business Unit" is PT Bank XYZ Sharia Business Unit.
Paragraph (2)
The obligation to include the name of the UUS is related to the use of logos, among others, in correspondence, promotional activities, and UUS office nameplates.

Article 9
Clearly sufficient.

Article 10
Clearly sufficient.

Article 11
Clearly sufficient.

Article 12
Clearly sufficient.

Article 13
Paragraph (1)
Clearly sufficient.
Paragraph (2)
Clearly sufficient.
Paragraph (3)
Clearly sufficient.
Paragraph (4)
Clearly sufficient.
Paragraph (5)
What is meant by "re-evaluation" is:
a. replacement of the director who oversees the UUS if the person is deemed to lack commitment in developing the UUS; or b. increasing the knowledge and understanding of the director who oversees the UUS regarding business activities based on Sharia Principles if the person is deemed to lack competence in the field of Islamic banking.

Article 14
Clearly sufficient.

Article 15
Clearly sufficient.

Article 16
Letter a
Number 1
Clearly sufficient.
Number 2
Clearly sufficient.
Number 3
What is meant by "having commitment" includes, among others, the willingness to provide sufficient time to the UUS in carrying out tasks effectively.
Number 4
Clearly sufficient.
Letter b
Clearly sufficient.
Letter c
Number 1
What is meant by "non-performing loans and/or financing" includes, among others:
a. non-performing loans and/or financing listed in the financial information service system or equivalent to the financial information service system; b. non-performing loans and/or financing not yet reported by financial service institutions in the financial information service system or equivalent to the financial information service system, but based on research conducted by OJK, such loans and/or financing have met the criteria classified as non-performing in accordance with applicable laws and regulations; and/or
c. failure to meet the obligation to settle securities transactions in securities companies.
Number 2
Clearly sufficient.

Article 17
Clearly sufficient.

Article 18
Clearly sufficient.

Article 19
Clearly sufficient.

Article 20
Clearly sufficient.

Article 21
Clearly sufficient.

Article 22
Paragraph (1)
Included in the definition of dismissal is the dismissal of UUS Executive Officials by order of OJK because the person has a negative track record and/or fails the re-evaluation in accordance with the OJK Regulation regarding re-evaluation for main parties of financial service institutions. Paragraph (2) Clearly sufficient. Paragraph (3) Clearly sufficient. Paragraph (4) Clearly sufficient.

Article 23
Clearly sufficient.

Article 24
Clearly sufficient.

Article 25
Clearly sufficient.

Article 26
For Offices Abroad, the implementation of service and operational activities using electronic channels and/or the provision of TPE is guided by the rules of the local country's authority.

Article 27
Clearly sufficient.

Article 28
Paragraph (1)
Letter a
Clearly sufficient.
Letter b
Operational readiness plans related to the opening of UUS offices include, among others, human resources, physical infrastructure and supporting information technology, and other supporting devices. Paragraph (2) Clearly sufficient.

Article 29
Clearly sufficient.

Article 30
Clearly sufficient.

Article 31
Clearly sufficient.

Article 32
Paragraph (1)
The opening of KCS is declared effective on the date the UUS carries out the opening of the KCS.
Paragraph (2)
Clearly sufficient.
Paragraph (3)
Clearly sufficient.
Paragraph (4)
Clearly sufficient.

Article 33
Paragraph (1)
What is meant by "permanent KCPS" is a physical KCPS office located permanently to serve customers.
What is meant by "mobile KCPS" is a KCPS that can move locations or is located in a certain place temporarily to serve customers, among others, mobile cash, floating cash, non-permanent bank counters. Considering the existence of mobile KCPS that can move locations or is located in a certain place temporarily to serve customers, for reporting purposes, UUS may set the address of the organizational unit that oversees the mobile KCPS as the address of the mobile KCPS. Paragraph (2) Clearly sufficient. Paragraph (3) Clearly sufficient.

Article 34
Paragraph (1)
KFS that conducts operational activities are KFS that conduct activities related to:
a. customer reception; b. cash receipt/disbursement;
c. processing of fund mobilization or disbursement; or
d. making decisions on applications for fund mobilization or disbursement.
KFS that conduct operational activities include, among others, financing centers or card centers.
KFS that conduct activities other than operational include, among others, marketing offices or IT centers.
Paragraph (2)
Clearly sufficient.
Paragraph (3)
Clearly sufficient.

Article 35
Clearly sufficient.

Article 36
Clearly sufficient.

Article 37
Paragraph (1)
Clearly sufficient.
Paragraph (2)
Other considerations include, among others, the licensing process from the local country's authority that takes longer.
Paragraph (3)
Clearly sufficient.
Paragraph (4)
Clearly sufficient.
Paragraph (5)
Clearly sufficient.

Article 38
Clearly sufficient.

Article 39
Paragraph (1)
Clearly sufficient.
Paragraph (2)
Changing the status of KCPS to KCS does not require the closure of the KCPS.

Article 40
Paragraph (1)
Clearly sufficient.
Paragraph (2)
Clearly sufficient.
Paragraph (3)
Clearly sufficient.
Paragraph (4)
Changing the status of KCS to KCPS does not require the closure of the KCS.
Paragraph (5)
Clearly sufficient.

Article 41
As an example, changing the status of KFS to KCS is done by following the requirements and procedures for the closure of KFS and the opening of KCS.

Article 42
Clearly sufficient.

Article 43
Clearly sufficient.

Article 44
Clearly sufficient.

Article 45
Paragraph (1)
Website means a collection of web pages containing information or data that can be accessed through an internet network system.
Paragraph (2)
Clearly sufficient.
Paragraph (3)
Clearly sufficient.
Paragraph (4)
Clearly sufficient.
Paragraph (5)
Submission of copies or photocopies of licenses or approvals for the relocation of Offices Abroad from the local country's authority, when there is a process for the licensing of the relocation of Offices Abroad by the local country's authority. Paragraph (6) Clearly sufficient. Paragraph (7) Clearly sufficient.

Article 46
Clearly sufficient.

Article 47
Paragraph (1)
Other conditions according to UUS needs include, among others, office building renovation.
Paragraph (2)
Clearly sufficient.
Paragraph (3)
What is meant by "previous address" is the address before the temporary relocation.
Paragraph (4)
Clearly sufficient.

Article 48
Clearly sufficient.

Article 49
Clearly sufficient.

Article 50
Clearly sufficient.

Article 51
Paragraph (1)
Clearly sufficient.
Paragraph (2)
Clearly sufficient.
Paragraph (3)
Clearly sufficient.
Paragraph (4)
Clearly sufficient.
Paragraph (5)
Evidence of the settlement of rights and obligations can be in the form of the establishment of a settlement scheme for the rights and obligations of the UUS to customers and/or other parties. Letter a Evidence of the settlement of rights and obligations to customers and/or other parties includes, among others, the financial position report of the KCS showing that all rights and obligations of the KCS to customers and other parties have been settled. Letter b Clearly sufficient. Paragraph (6) Clearly sufficient. Paragraph (7) Clearly sufficient.

Article 52
Clearly sufficient.

Article 53
Clearly sufficient.

Article 54
Settlement of rights and obligations can be in the form of the establishment of a settlement scheme for the rights and obligations of the UUS to customers and/or other parties. Other parties include, among others, creditors and/or employees of the UUS.

Article 55
OJK's considerations include, among others, a decline in the financial condition of the UUS and/or related to financial inclusion in a certain region.

Article 56
Clearly sufficient.

Article 57
Paragraph (1)
What is meant by "effective date of logo change" is the effective date established by the UUS.
Paragraph (2)
Clearly sufficient.
Paragraph (3)
Clearly sufficient.
Paragraph (4)
Clearly sufficient.

Article 58
Clearly sufficient.

Article 59
Paragraph (1)
Clearly sufficient.
Paragraph (2)
Clearly sufficient.
Paragraph (3)
Example:
If UUS A submits the quarterly published financial position report for March 2024 on May 15, 2024, then UUS A submits the application for permission to separate the UUS no later than May 15, 2026.

Article 60
Clearly sufficient.

Article 61
Clearly sufficient.

Article 62
Paragraph (1)
Clearly sufficient.
Paragraph (2)
What is meant by "settling" is settling all rights and obligations of the UUS by means such as transferring them to the rights and obligations of the BUK that has the UUS, selling them to other parties, or paying them off. Paragraph (3) Clearly sufficient.

Article 63
Paragraph (1)
Clearly sufficient.
Paragraph (2)
Clearly sufficient.
Paragraph (3)
The report is signed by the President Director of the BUK and the director who oversees the UUS.

Article 64
Paragraph (1)
Clearly stated.
Paragraph (2)
Clearly stated.
Paragraph (3)
Clearly stated.
Paragraph (4)
The term "provisions of legislation" includes among others:
a. Laws regarding limited liability companies; and/or b. provisions of legislation regarding integrated licensing services related to the operational relationship between commercial banks and the Bank Indonesia.

Article 65
Clearly stated.

Article 66
Clearly stated.

Article 67
Paragraph (1)
Clearly stated.
Paragraph (2)
Based on the OJK Regulation regarding the consolidation of commercial banks in effect at the time this POJK was promulgated, the minimum core capital:

for a bank as a parent company, parent company executor, or not included in a banking business group, is at least IDR 3,000,000,000,000.00 (three trillion rupiah); or
for a bank other than a parent company or parent company executor within a banking business group, is at least IDR 1,000,000,000,000.00 (one trillion rupiah).
Paragraph (3)
Certain considerations are based on, among others, the number and distribution of banks in Indonesia or the need to establish a Bank for specific purposes of the Government of the Republic of Indonesia. Paragraph (4) 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
Paragraph (1)
The implementation of the business activities of the separated BUS is marked by the transfer of rights and obligations of the UUS from the BUK.
Paragraph (2)
Other considerations include the licensing process with other authorities that may affect the ability to implement the business activities of the separated BUS.
Paragraph (3)
Clearly stated.
Paragraph (4)
The financial reports of the separated BUS are the balance sheet and administrative account statements.

Article 76
Clearly stated.

Article 77
Clearly stated.

Article 78
Clearly stated.

Article 79
Clearly stated.

Article 80
Clearly stated.

Article 81
Paragraph (1)
Clearly stated.
Paragraph (2)
The implementation date is the effective date of the separation.
Letter a
Clearly stated.
Letter b
Criteria for changes to the articles of association that must obtain approval from the Minister or merely be notified to the Minister in accordance with the Law regarding limited liability companies.

Article 82
Clearly stated.

Article 83
Clearly stated.

Article 84
Clearly stated.

Article 85
Approval or rejection of the request for revocation of the business license of the UUS is given by the OJK considering among others:
a. the results of the analysis of the explanation submitted by the BUK owning the UUS regarding the reasons for closing the UUS business activities; and/or b. its impact on the community. The explanation of the plan to close the UUS business activities is carried out by the BUK owning the UUS through a presentation to the OJK.

Article 86
Paragraph (1)
Clearly stated.
Paragraph (2)
Clearly stated.
Paragraph (3)
Clearly stated.
Paragraph (4)
Letter a
Clearly stated.
Letter b
Clearly stated.
Letter c
Settlement of obligations mentioned includes among others the settlement of obligations to customers, creditors, payment of accrued salaries, payment of office expenses, settlement of tax aspects and other costs, with relevant settlement mechanisms including among others settlement, transfer, and/or escrow to other banks in Indonesia by the UUS. Letter d Clearly stated.

Article 87
Clearly stated.

Article 88
Paragraph (1)
Clearly stated.
Paragraph (2)
The term "OJK correspondence system" refers to the Financial Services Authority Reporting System at https://sipena.ojk.go.id or another address designated by the OJK.
Force majeure includes failure of the OJK licensing system or reporting system.
Paragraph (3)
Force majeure includes failure of the OJK correspondence system.
Paragraph (4)
Clearly stated.

Article 89
Paragraph (1)
The long-term strategy for UUS business development includes an action plan for strengthening the UUS which contains among others capital accumulation, governance, utilization of parent BUK resources, UUS business strategy, and UUS business positioning relative to the BUK for a period of up to 5 (five) years. OJK policies include among others the roadmap for the development of Indonesian Sharia banking. Paragraph (2) The UUS business development strategy is an inseparable part of the corporate plan of the BUK owning the UUS. Paragraph (3) Example:
A BUK owning a UUS that already has a BUK corporate plan for the period 2022 – 2026 must submit the long-term strategy for UUS business development for the period 2024 – 2026 no later than the end of November 2023. Paragraph (4) Clearly stated.

Article 90
The utilization of BUK resources by the UUS aims to increase the operational efficiency of the UUS and BUK.
The utilization of BUK resources by the UUS includes among others the utilization of infrastructure such as office networks, TPE, archiving, etc., the utilization of technology such as data centers, disaster recovery centers, information security, cyber resilience, applications, etc., banking services for customers including customer service centers (call centers), human resources support, or other activities as long as they do not conflict with provisions of legislation.

Article 91
Paragraph (1)
Clearly stated.
Paragraph (2)
Clearly stated.
Paragraph (3)
The term "written approval or power of attorney" refers to customer approval based on customary methods and in accordance with provisions of legislation.

Article 92
Clearly stated.

Article 93
Administration of documents in the licensing application is carried out by the party submitting the licensing application.

Article 94
Clearly stated.

Article 95
Paragraph (1)
Clearly stated.
Paragraph (2)
Letter a
The term "registering as a KCPS" refers to the adjustment of reporting for Sharia Cash Offices, or Sharia cash service activities, in the OJK reporting system as a KCPS. The term "nearest reporting period" refers to the registration in the OJK reporting system being implemented in accordance with the OJK Regulation regarding commercial bank reporting through the OJK reporting system and implemented in the nearest period after this OJK Regulation comes into force. Letter b The term "adjusting Sharia Cash Offices or Sharia Cash Service Offices with the UUS office network plan and policy" refers to the adjustment of Sharia Cash Offices, or Sharia cash service activities, for:
a. registration as a KFS by adjusting activities as a KFS; b. closure; and/or
c. other policies.
Paragraph (3)
Clearly stated.
Paragraph (4)
Adjustment of naming includes among others office nameplates, correspondence, or promotional activities.

Article 96
Clearly stated.

Article 97
Clearly stated.

Article 98
Clearly stated.

SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 45/OJK

APPENDIX I
FINANCIAL SERVICES AUTHORITY REGULATION
OF THE REPUBLIC OF INDONESIA
NUMBER 12 YEAR 2023
REGARDING
SHARIA BUSINESS UNITS

I. DOCUMENT REQUIREMENTS FOR APPLICATION FOR BUSINESS LICENSE FOR OPENING A UUS
This section covers the requirements needed to submit an application to obtain a business license for opening a UUS.
Application document requirements include:

draft articles of association containing at least the UUS business activities in accordance with provisions of legislation;
a stamped statement letter from each member of the Board of Directors of the BUK and members of the Board of Commissioners of the BUK stating commitment to develop the UUS;
fulfillment of administrative document requirements for the prospective director overseeing the UUS, including:
a. certificate or letter of completion from educational and/or training institutions in the field of Sharia banking; and b. a stamped statement letter stating commitment to develop the UUS;
fulfillment of administrative document requirements for the DPS including:
a. photocopy of identification card (KTP); b. curriculum vitae with example format in accordance with the OJK Regulation regarding the assessment of competence and propriety for principal parties of financial service institutions;
c. recent 4 x 6 cm photo;
d. certificate or letter of completion from educational and/or training institutions and/or the National Sharia Council – Indonesian Ulema Council regarding education and/or training in the field of Sharia muamalah and in the field of banking and/or finance generally that the prospective DPS member has attended in accordance with competency requirements; e. a stamped statement letter stating that the person concerned:

is committed to complying with provisions of legislation, especially in the field of Sharia banking and supporting OJK policies;
has never been sentenced for proven criminal acts including:
a) financial service sector crimes whose sentence has been completed within the last 20 (twenty) years before nomination; b) criminal acts, namely crimes listed in the Criminal Code (KUHP) and/or similar foreign KUHP with a prison sentence threat of 1 (one) year or more whose sentence has been completed within the last 10 (ten) years before nomination; and/or c) other criminal acts with a prison sentence threat of 1 (one) year or more, including among others corruption, money laundering, narcotics/psychotropics, smuggling, customs, excise, human trafficking, illegal arms trade, terrorism, counterfeiting money, in the field of taxation, forestry, environment, marine, and fisheries, whose sentence has been completed within the last 20 (twenty) years before nomination;
is not included in parties prohibited from becoming principal parties of financial service institutions in accordance with the OJK Regulation regarding re-assessment of principal parties of financial service institutions;
does not have non-performing loans and/or financing, including among others:
a) non-performing loans and/or financing listed in the financial information service system or equivalent; b) non-performing loans and/or financing not yet reported by the Financial Service Institution (LJK) in the financial information service system or equivalent, but based on research conducted by the OJK, such loans and/or financing meet the criteria classified as non-performing in accordance with provisions of legislation; and/or c) failure to fulfill settlement obligations for securities transactions at securities companies;
has never been declared bankrupt and/or has never been a shareholder, member of the board of commissioners, or member of the board of directors declared guilty causing a company to be declared bankrupt within the last 5 (five) years before nomination;
does not hold concurrent positions exceeding what is permitted in this OJK Regulation and other provisions of legislation, including among others provisions of legislation regarding the application of governance for Sharia commercial banks;
is not a controller, member of the board of commissioners, or member of the board of directors of a legal entity that has non-performing loans and/or financing;
is not undergoing legal process due to indications of integrity, financial viability/reputation, and/or competence issues at a financial service institution; and
states commitment to the development of healthy bank operations; and
f. recommendation letter from the National Sharia Council – Indonesian Ulema Council.

plan for the composition and organizational structure of the UUS.
The composition and organizational structure include among others the organizational structure, horizontal and vertical lines of responsibility, and positions and names of human resources at least from management to executive officer level;
feasibility study for opening a UUS prepared by an independent party, accompanied by a business plan.
The feasibility study includes among others market opportunities and economic potential.
The business plan format can refer to the bank business plan format.
The business plan for establishing a UUS also includes products and activities to be conducted by the UUS after obtaining the business license.
risk management guidelines, internal control system, information technology system used, and guidelines regarding the implementation of UUS governance.
The preparation of the aforementioned guidelines is in accordance with each respective OJK regulation related thereto;
UUS work systems and procedures. Included in work systems and procedures are complete and comprehensive guideline books or standard operating procedures including authorities and responsibilities to be used for UUS business activities;
statement letter from the Board of Directors of the BUK regarding the allocation of funds from the BUK for UUS business funds;
statement letter from the BUK regarding the ability to handle capital and liquidity difficulties experienced by the UUS;
proof of operational readiness at least:
a. proof of ownership, control, or office building lease agreement; b. photo of the office building and room layout. In the event that the rooms occupied by the UUS are integrated with other BUK work unit rooms, there must be clear separation, including among others room color differentiation, partitioning, and/or room separation; and
c. example of forms or documents to be used for UUS operations. Forms or documents can be paper-based and/or electronic (e.g., applications);
internal balance sheet of the BUK for the last month before the UUS business license application, signed by the Board of Directors of the BUK and acknowledged by the Board of Commissioners;
other documents related to the UUS business license application process.

II. DOCUMENT REQUIREMENTS FOR DIRECTORS OVERSEEING THE UUS
For prospective directors overseeing the UUS, fulfillment of administrative document requirements includes:

certificate or letter of completion from educational and/or training institutions in the field of Sharia banking; and
a stamped statement letter stating commitment to develop the UUS.

III. ADMINISTRATIVE DOCUMENT REQUIREMENTS FOR DPS
Administrative document requirements for DPS include:

photocopy of identification card (KTP);
curriculum vitae with example format in accordance with the OJK Regulation regarding the assessment of competence and propriety for principal parties of financial service institutions;
recent 4 x 6 cm photo;
certificate or letter of completion from educational and/or training institutions and/or the National Sharia Council – Indonesian Ulema Council regarding education and/or training in the field of Sharia muamalah and in the field of banking and/or finance generally that the prospective DPS member has attended in accordance with competency requirements;
a stamped statement letter stating that the person concerned:
a. is committed to complying with provisions of legislation, especially in the field of Sharia banking and supporting OJK policies; b. has never been sentenced for proven criminal acts including:

financial service sector crimes whose sentence has been completed within the last 20 (twenty) years before nomination;
criminal acts, namely crimes listed in the Criminal Code (KUHP) and/or similar foreign KUHP with a prison sentence threat of 1 (one) year or more whose sentence has been completed within the last 10 (ten) years before nomination; and/or
other criminal acts with a prison sentence threat of 1 (one) year or more, including among others corruption, money laundering, narcotics/psychotropics, smuggling, customs, excise, human trafficking, illegal arms trade, terrorism, counterfeiting money, in the field of taxation, forestry, environment, marine, and fisheries, whose sentence has been completed within the last 20 (twenty) years before nomination;
c. is not included in parties prohibited from becoming principal parties of financial service institutions in accordance with the OJK Regulation regarding re-assessment of principal parties of financial service institutions;
d. does not have non-performing loans and/or financing, including among others:
non-performing loans and/or financing listed in the financial information service system or equivalent;
non-performing loans and/or financing not yet reported by the LJK in the financial information service system or equivalent, but based on research conducted by the OJK, such loans and/or financing meet the criteria classified as non-performing in accordance with provisions of legislation; and/or
failure to fulfill settlement obligations for securities transactions at securities companies;
e. has never been declared bankrupt and/or has never been a shareholder, member of the board of commissioners, or member of the board of directors declared guilty causing a company to be declared bankrupt within the last 5 (five) years before nomination; f. does not hold concurrent positions exceeding what is permitted in this OJK Regulation and other provisions of legislation, including among others provisions of legislation regarding the application of governance for Sharia commercial banks; g. is not a controller, member of the board of commissioners, or member of the board of directors of a legal entity that has non-performing loans and/or financing; h. is not undergoing legal process due to indications of integrity, financial viability/reputation, and/or competence issues at a financial service institution; and
i. states commitment to the development of healthy bank operations; and

recommendation letter from the National Sharia Council – Indonesian Ulema Council.

IV. DOCUMENT REQUIREMENTS FOR UUS OFFICE NETWORK

Documents for application for license to open a Sharia Cash Office (KCS) include:
a. confirmation document from the competent compliance unit official stating that the UUS has:

carried out operational preparations for the opening of the KCS; and
conducted a feasibility study containing at least economic potential, market opportunities, healthy competition levels among banks, and bank saturation levels; and
b. 12 (twelve) month business plan for the KCS.

Documents for application for license to open an Office Abroad include:
a. document from the competent compliance unit official stating that the UUS has:

carried out operational preparations for the opening of the Office Abroad; and
conducted a feasibility study containing at least economic potential, market opportunities, healthy competition levels among banks, and bank saturation levels, for Offices Abroad other than representative offices;
b. 12 (twelve) month business plan for the Office Abroad for Offices Abroad other than representative offices;
c. activity plan to be conducted by the representative office for the next 12 (twelve) months for Offices Abroad in the form of representative offices; and
d. information on stages to be carried out in the timely implementation of the opening of the Office Abroad referring to the processes and procedures as per the regulations of the local country's authority.

Documents for change of status of KCS to KCPS include:
a. reasons for status change; and b. UUS analysis regarding:

KCS business conditions after status change to KCPS and necessary mitigation; and
plan for settlement of rights and obligations of the KCS to customers and other parties in relation to the change of KCS status to KCPS.

Documents for application for license to relocate the address of the office that is the parent of UUS business activities and/or Office Abroad include:
a. reasons for relocation; b. document from the competent compliance unit official stating that the UUS has carried out operational preparations for relocation;
c. for relocation of UUS office in the form of Office Abroad, accompanied by document from the competent compliance unit official stating that the UUS has:

conducted a feasibility study containing at least economic potential, market opportunities, healthy competition levels among banks, and bank saturation levels, for Offices Abroad other than representative offices;
conducted analysis regarding business conditions of Offices Abroad other than representative offices after relocation and necessary mitigation;
prepared a plan for settlement of rights and obligations of the Office Abroad to customers and/or other parties in relation to relocation; and
information on stages to be carried out in the timely implementation of relocation of the Office Abroad referring to the processes and procedures as per the regulations of the local country's authority.

Documents for application for license to close a Bank office in the form of KCS and/or Office Abroad include:
a. for closure of KCS, accompanied by explanation of steps taken to settle rights and obligations of the KCS to customers and/or other parties. Settlement of rights and obligations to customers and/or other parties can be done among others by transferring all rights and obligations to another office of the UUS or to other parties, with the approval of customers and/or other parties; or b. for closure of Office Abroad, accompanied by explanation regarding:

steps taken to settle rights and obligations of the Office Abroad to customers and/or other parties; and
stages to be carried out in the timely implementation of closure of the Office Abroad, referring to the processes and procedures as per the regulations of the local country's authority.

V. DOCUMENT REQUIREMENTS FOR SEPARATION OF UUS BY ESTABLISHING A BUS
This section covers the document requirements needed to submit an application to obtain a license for the establishment of a BUS resulting from Separation, which is granted in 2 (two) stages, namely principle approval and business license.

Document requirements for application for principle approval include:
a. principle approval application document in accordance with the OJK Regulation regarding Sharia commercial banks, except for fulfillment of administrative document requirements for prospective Directors and prospective Board of Commissioners in accordance with the OJK Regulation regarding the assessment of competence and propriety for principal parties of financial service institutions; b. draft Separation approved by the Board of Commissioners, containing information at least:

information regarding the BUK that will conduct Separation:
a) name and domicile; b) capital structure and shareholders;

c) the composition and names of members of the Board of Directors, Board of Commissioners, and Sharia Supervisory Board members; and

d) public disclosure reports of financial statements and financial performance information of the BUK and UUS:
i. for the last 3 (three) fiscal years; or
ii. less than 3 (three) fiscal years, if the BUK and/or UUS has conducted business activities for less than 3 (three) years,
which are audited by a public accountant registered with the OJK in accordance with OJK Regulations regarding transparency and publication of bank reports.

information regarding the Separation plan:
a) the planned schedule and estimated effective date of the Separation, as well as the planned schedule and estimated date for the revocation of the UUS business license; b) the reasons and explanation for conducting the Separation; c) the plan for the continuation and/or termination of the UUS office network; d) the plan for the continuation and/or termination of UUS business activities, among others, by considering the business plan, including adjustment steps and target times for activity adjustments; e) the method for settling the rights and obligations of the BUK towards third parties related to the Separation; f) the method for settling the rights of shareholders who do not agree with the Separation; g) the method for settling the status, rights, and obligations of the Sharia Supervisory Board and UUS employees; and h) the projection of the BUK's financial statements post-Separation.
information regarding the BUS resulting from the Separation:
a) name and domicile; b) office network; c) business activities/products/activities; d) list of prospective shareholders along with details of each shareholder's ownership; e) composition and names of prospective members of the Board of Directors, Board of Commissioners, and Sharia Supervisory Board members; f) proforma financial data audited by a public accountant registered with the OJK. Proforma financial data refers to:
financial position reports;
equity change reports;
calculation of minimum capital provision obligations meeting OJK Regulations regarding minimum capital provision obligations for general Sharia banks; and
financial ratios of the BUS resulting from the Separation, including a gross non-performing financing ratio of no more than 5% (five percent).
g) projection of health levels for 2 (two) assessment periods after the effective date of the Separation with a minimum Composite Rating of 2 (CR-2), and an improvement plan if the projected health level for 2 (two) assessment periods is lower than Composite Rating 2 (CR-2); and h) explanation regarding the benefits and risks that may arise due to the Separation along with risk mitigation.

c. draft deed of Separation;
d. draft amendment to the Articles of Association of the BUK owning the UUS; e. internal financial position report of the UUS for the last month before the application for the principle license to establish the BUS resulting from the Separation, showing the fulfillment of paid-up capital for the establishment of the BUS in accordance with this OJK Regulation and/or additional proof of capital deposit from prospective shareholders.

Additional proof of capital deposit consists of photocopies of deposit receipts at the BUS and/or UUS in Indonesia by stating the name "Commissioners of the Financial Services Authority q.q. name of prospective shareholder", and stating that the withdrawal can only be done after obtaining approval from the OJK.

Additional proof of capital deposit by the government is carried out in accordance with applicable legislation; f. action plan for resolving the exceedance of the maximum fund disbursement limit, if any; g. plan for implementing banking synergy of the BUS resulting from the Separation, if any; and h. other documents related to the principle approval for the establishment of the BUS.

Document requirements for the business license application include:
a. business license application documents in accordance with OJK Regulations regarding general Sharia banks, accompanied by the fulfillment of administrative document requirements for prospective Directors and prospective Board of Commissioners members in accordance with OJK Regulations regarding the assessment of competence and propriety for key parties of financial service institutions, but excluding the Articles of Association already approved by the competent authority; b. proof of announcement of the summary of the draft Separation in 1 (one) daily newspaper in Indonesian circulating nationally;
c. draft Separation approved by the General Meeting of Shareholders (GMS);
d. photocopy of the Separation deed made by a notary;

e. proof of settlement or determination of the objection resolution scheme agreed upon by the BUK owning the UUS with creditors, contained in a deed made by a notary; and f. other documents related to the business license for the establishment of the BUS.

VI. DOCUMENT REQUIREMENTS FOR SEPARATION OF UUS BY TRANSFER OF RIGHTS AND OBLIGATIONS TO BUS
This section covers the document requirements needed to submit an application to obtain approval for the Separation by transferring rights and obligations to the BUS.

Documents for the Separation plan of the UUS from the BUK include:
a. draft Separation approved by the Board of Commissioners of the BUK owning the UUS and the receiving BUS of the Separation, containing information at least:

information regarding the BUK that will conduct the Separation:
a) name and domicile; b) capital structure and shareholders; c) composition and names of members of the Board of Directors, Board of Commissioners, and Sharia Supervisory Board members; and d) public disclosure reports of financial statements and financial performance information of the BUK and UUS:
i. for the last 3 (three) fiscal years; or
ii. less than 3 (three) fiscal years, if the BUK and/or UUS has conducted business activities for less than 3 (three) years,
which are audited by a public accountant registered with the OJK in accordance with OJK Regulations regarding transparency and publication of bank reports.
information regarding the Separation plan:
a) the planned schedule and estimated effective date of the Separation, as well as the planned schedule and estimated date for the revocation of the UUS business license; b) the reasons and explanation for conducting the Separation; c) the plan for the continuation and/or termination of the UUS office network; d) the plan for the continuation and/or termination of UUS business activities, among others, by considering the business plan, including adjustment steps and target times for activity adjustments; e) the method for settling the rights and obligations of the BUK towards third parties related to the Separation; f) the method for settling the rights of shareholders who do not agree with the Separation; g) the method for settling the status, rights, and obligations of the Sharia Supervisory Board and UUS employees; and h) the projection of the BUK's financial statements post-Separation.
information regarding the BUS that will receive the Separation:
a) name and domicile; b) capital structure and shareholders; c) composition and names of members of the Board of Directors, Board of Commissioners, and Sharia Supervisory Board members; and d) public disclosure reports of financial statements and financial performance information of the BUS:
i. for the last 3 (three) fiscal years; or
ii. less than 3 (three) fiscal years, if the BUK and/or UUS has conducted business activities for less than 3 (three) years,
which are audited by a public accountant registered with the OJK in accordance with OJK Regulations regarding transparency and publication of bank reports.
information regarding the BUS post-Separation:
a) name and domicile; b) office network; c) business activities/products/activities; d) list of prospective shareholders, if there are changes; e) composition and names of prospective members of the Board of Directors, Board of Commissioners, and Sharia Supervisory Board members, if there are changes; f) proforma financial data audited by a public accountant registered with the OJK; g) projection of health levels for 2 (two) assessment periods after the effective date of the Separation with a minimum Composite Rating (CR-2), and an improvement plan if the projected health level for 2 (two) assessment periods is lower than Composite Rating 2 (CR-2); and h) explanation regarding the benefits and risks that may arise due to the Separation along with risk mitigation.

b. draft deed of Separation;
c. administrative document requirements for the assessment of competence and propriety for prospective members of the Board of Directors and Board of Commissioners, if there are changes;
d. administrative document requirements for the assessment of competence and propriety for prospective Sharia Supervisory Board members (PSP), if the Separation is accompanied by the replacement or change of PSP; e. administrative document requirements for interviews for prospective members of the Sharia Supervisory Board, if there are changes; f. draft amendment to the Articles of Association of the BUK owning the UUS; g. draft amendment to the Articles of Association of the receiving BUS of the Separation; h. action plan for resolving the exceedance of the maximum fund disbursement limit, if any; and

i. draft cooperation agreement for the implementation of banking synergy between the BUK owning the UUS and the receiving BUS of the Separation, if any.

Documents for the application for approval of the Separation of the UUS from the BUK include:
a. proof of announcement of the summary of the draft Separation in 1 (one) daily newspaper in Indonesian circulating nationally; b. draft Separation approved by the GMS;
c. photocopy of the Separation deed made by a notary;
d. photocopy of the amendment to the Articles of Association of the receiving BUS of the Separation made by a notary; e. proof of settlement or determination of the objection resolution scheme agreed upon by the BUK owning the UUS with creditors, contained in a deed made by a notary; f. cooperation agreement for the implementation of banking synergy between the BUK owning the UUS and the receiving BUS of the Separation, if any; and g. other documents related to the approval of the Separation of the UUS from the BUK.

VII. DOCUMENT REQUIREMENTS FOR REVOCATION OF UUS BUSINESS LICENSE AFTER THE RIGHTS AND OBLIGATIONS OF THE UUS ARE TRANSFERRED TO THE BUS RESULTING FROM THE SEPARATION AND/OR THE RECEIVING BUS OF THE SEPARATION
Documents for the application to revoke the UUS business license after the rights and obligations of the UUS are transferred to the BUS resulting from the Separation and/or the receiving BUS of the Separation include:

photocopy of the amendment to the Articles of Association of the BUK approved by the Minister;
proof of settlement of the rights and obligations of the UUS, if there are rights and obligations of the UUS not transferred to the receiving BUS of the Separation;
a statement letter from the Board of Directors on behalf of the BUK that the steps to settle all obligations of the UUS have been carried out; and
financial report of the BUK after the transfer of rights and obligations of the UUS.

The financial report of the BUK refers to the financial position report and administrative account statement of the next day after the date of transfer of rights and obligations of the UUS.

VIII. DOCUMENT REQUIREMENTS FOR SUBMITTING APPLICATION FOR REVOCATION OF UUS BUSINESS LICENSE AT THE REQUEST OF THE BUK

Document requirements for the preparation of the application to revoke the UUS business license include:
a. reasons for revoking the UUS business license; b. minutes of the GMS at least containing the decision approving the plan to revoke the UUS business license and

This copy is consistent with the original
Legal Director 1
Legal Department signed
Mufli Asmawidjaja ordering the Board of Directors of the BUK owning the UUS to settle the obligations of the UUS;
c. plan and schedule for settling all rights and obligations of the UUS to customers, creditors, and/or other parties.
Other parties include among others Bank Indonesia and the Deposit Insurance Corporation; d. latest financial report of the UUS; e. proof of tax settlement based on the examination results of the tax authority for the last 3 (three) years before the application date; and f. other documents related to the preparation of the revocation of the UUS business license.

Document requirements for the application to revoke the UUS business license at least contain:
a. report on the implementation of the cessation of UUS business activities; b. implementation of the announcement of the plan to revoke the business license and the plan to settle the rights and obligations of the UUS through a daily newspaper in Indonesian, the UUS website, and/or the official social media account of the UUS;
c. report on the implementation of the settlement of the rights and obligations of the UUS.
Settlement of rights and obligations includes the settlement of employee rights and obligations; d. verification results report from the public accounting firm regarding the settlement of the rights and obligations of the UUS as referred to in letter c; and e. statement letter from:

the Board of Directors of the BUK owning the UUS that the settlement steps of the UUS have been completed and in the event of future claims, the settlement of UUS obligations becomes the responsibility of the BUK owning the UUS; and
the public accounting firm stating that based on the verification results of the rights and obligations of the UUS as referred to in letter d, they have been settled.

Determined in Jakarta on July 12, 2023
CHAIRMAN OF THE COMMISSIONERS
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA, signed
MAHENDRA SIREGAR

APPENDIX II
FINANCIAL SERVICES AUTHORITY REGULATION
REPUBLIC OF INDONESIA
NUMBER 12 OF 2023
REGARDING
SHARIA BUSINESS UNITS

I. Submission of Applications for Licenses
No. Activity Online Submission Offline Submission or via OJK Mail System Remarks.
Purpose Copy Distribution

1 Opening of UUS Via OJK licensing system with procedures in accordance with OJK Regulations regarding electronic licensing in the financial services sector Unit with Licensing Function for UUS at OJK Headquarters Unit with BUK Supervision Function submitting the opening of UUS --

2 Submission of prospective DPS members Same Unit with Licensing Function for UUS at OJK Headquarters DPBS, KR or KO according to the location of the office that is the parent of UUS business activities --

3 Opening:
a. KCS b. Office Abroad
Same ▪ Unit with Licensing Function for UUS at OJK Headquarters for UUS with office location that is the parent of UUS business activities in the Special Capital Region of Jakarta and Banten Province

DPBS, KR or KO according to
the location of the office

KR or KO for UUS with office location
that is the parent of UUS business activities outside the Special Capital Region of Jakarta and Banten Province
KR or KO according to the location
of the office

4 Status Change:
a. KCPS to KCS Same ▪ Unit with Licensing Function for UUS at OJK Headquarters for UUS with office location that is the parent of UUS business activities in the Special Capital Region of Jakarta and Banten Province

DPBS, as well as KR or KO according
to the location of the office
--
KR or KO for UUS with office location
that is the parent of UUS business activities outside the Special Capital Region of Jakarta and Banten Province
KR or KO according to the location
of the office

b. KCS to KCPS Same ▪ DPBS for UUS with office location that is the parent of UUS business activities in the Province of the Special Capital Region of Jakarta and Banten Province

KR or KO according to the location
of the office

KR or KO for UUS with office location
that is the parent of UUS business activities outside the Special Capital Region of Jakarta and Banten Province
KR or KO according to the location
of the office

5 Address Transfer:
a. Office that is the parent of UUS business activities Same ▪ Unit with Licensing Function for UUS at OJK Headquarters

DPBS, KR or KO according to
the location of the office that is the parent of UUS business activities, and
KR or KO according to the address
of the destination

b. Office Abroad to a different city
Same ▪ Unit with Licensing Function for UUS at OJK Headquarters for UUS with office location that is the parent of UUS business activities in the Special Capital Region of Jakarta and Banten Province

DPBS 4)
KR or KO for UUS with office location
that is the parent of UUS business activities outside the Special Capital Region of Jakarta and Banten Province

6 Address Transfer:
a. Office Abroad within the same city b. KCS
c. KCPS
d. KFS conducting operational activities
Same ▪ DPBS for UUS with office location that is the parent of UUS business activities in the Province of the Special Capital Region of Jakarta and Banten Province

KR or KO for UUS with office location
that is the parent of UUS business activities outside the Special Capital Region of Jakarta and Banten Province

7 Cancellation of Address Transfer:
a. Office that is the parent of UUS business activities Same Unit with Licensing Function for UUS at OJK Headquarters

DPBS, KR or KO according to
the location of the office that is the parent of UUS business activities, and
KR or KO according to the address
of the destination
--

b. Office Abroad to a different city
Same ▪ Unit with Licensing Function for UUS at OJK Headquarters for UUS with office location that is the parent of UUS business activities in the Special Capital Region of Jakarta and Banten Province

DPBS --
KR or KO for UUS with office location
that is the parent of UUS business activities outside the Special Capital Region of Jakarta and Banten Province

8 Cancellation of Address Transfer:
a. Office Abroad within the same city b. KCS
c. KCPS
d. KFS conducting operational activities
Same ▪ DPBS for UUS with office location that is the parent of UUS business activities in the Province of the Special Capital Region of Jakarta and Banten Province -- --

KR or KO for UUS with office location
that is the parent of UUS business activities outside the Special Capital Region of Jakarta and Banten Province

9 Closure:
a. KCS b. Office Abroad
Same ▪ Unit with Licensing Function for UUS at OJK Headquarters for UUS with office location that is the parent of UUS business activities in the Special Capital Region of Jakarta and Banten Province

DPBS, KR or KO according to
the location of the office
--
KR or KO for UUS with office location
that is the parent of UUS business activities outside the Special Capital Region of Jakarta and Banten Province
KR or KO according to the location
of the office
--

10 Closure:
a. KCPS b. KFS conducting operational activities Same ▪ DPBS for UUS with office location that is the parent of UUS business activities in the Province of the Special Capital Region of Jakarta and Banten Province

KR or KO according to the location
of the office
--
KR or KO for UUS with office location
that is the parent of UUS business activities outside the Special Capital Region of Jakarta and Banten Province
KR or KO according to the location
of the office
--

11 Cancellation of Closure:
a. KCS b. Office Abroad
Same ▪ Unit with Licensing Function for UUS at OJK Headquarters for UUS with office location that is the parent of UUS business activities in the Special Capital Region of Jakarta and Banten Province As per copy distribution in number 9 above --

DPBS (Sharia Banking Department), KR (Regional Office), KO (OJK Office), Sda (Same as above), Ket. (Remarks) Remarks/Explanation:

Example:
a) UUS of PT Bank A with office location that is the parent of UUS business activities in Jakarta will open a KCS in Padang, thus UUS PT Bank A submits a licensing application for the opening of KCS to DIMB, with copy to DPBS and KO West Sumatra. b) UUS of PT Bank B with office location that is the parent of UUS business activities in Medan will open a KCS in Bandung, thus UUS PT Bank B submits a licensing application for the opening of KCS to KR 5 North Sumatra, with copy to KR 2 West Java. c) UUS of PT Bank C with office location that is the parent of UUS business activities in Semarang will open a KCS in Jakarta, thus UUS PT Bank C submits a licensing application for the opening of KCS to KR 3 Central Java, with copy to KR 1 DKI Jakarta and Banten. d) UUS of PT Bank D with office location that is the parent of UUS business activities in Jakarta will open an Office Abroad in Dubai (UAE), thus UUS PT Bank D submits a licensing application for the opening of Office Abroad to DIMB, with copy to DPBS. e) UUS of PT Bank E with office location that is the parent of UUS business activities in Bandung will open an Office Abroad in Manchester (UK), with copy to KR 2 West Java.
Example:
a) UUS of PT Bank F with office location that is the parent of UUS business activities in Jakarta will change the status of KCS to KCPS in Padang, thus UUS PT Bank F informs the plan to change the status of KCS to KCPS to DPBS, with copy to KO West Sumatra. b) UUS of PT Bank G with office location that is the parent of UUS business activities in Jakarta will change the status of KCS to KCPS in South Jakarta, thus UUS PT Bank G informs the plan to change the status of KCS to KCPS to DPBS (without copy).

KR or KO for UUS with office location
that is the parent of UUS business activities outside the Special Capital Region of Jakarta and Banten Province 12 Cancellation of Closure:
a. KCPS b. KFS conducting operational activities Same ▪ DPBS for UUS with office location that is the parent of UUS business activities in the Province of the Special Capital Region of Jakarta and Banten Province As per copy distribution in number 10 above --
KR or KO for UUS with office location
that is the parent of UUS business activities outside the Special Capital Region of Jakarta and Banten Province -- 13 Change of Name of UUS Same Unit with Licensing Function for UUS at OJK Headquarters DPBS, KR or KO according to the location of the office that is the parent of UUS business activities -- 14 Revocation of UUS Business License Same Unit with Licensing Function for UUS at OJK Headquarters DPBS, KR or KO according to the location of the office that is the parent of UUS business activities --

c) UUS of PT Bank H with office location that is the parent of UUS business activities in Surabaya will change the status of KCS to KCPS in Jakarta, thus UUS PT Bank H informs the plan to change the status of KCS to KCPS to KR 4 East Java, with copy to KR 1 DKI Jakarta and Banten. d) UUS of PT Bank I with office location that is the parent of UUS business activities in Medan will change the status of KCS to KCPS in Medan, thus UUS PT Bank I informs the plan to change the status of KCS to KCPS to KR 5 North Sumatra (without copy).
3) Example:
a) UUS of PT Bank J with office location that is the parent of UUS business activities in Jakarta will transfer the address of the office that is the parent of UUS business activities to Bandung, thus UUS PT Bank J submits an application for address transfer license to DIMB, with copy to DPBS and KR 2 West Java. b) UUS of PT Bank K with office location that is the parent of UUS business activities in Medan will transfer the address of the office that is the parent of UUS business activities to Bandung, thus UUS PT Bank K submits an application for address transfer license to DIMB, with copy to KR 5 North Sumatra and KR 2 West Java.
4) Example:
a) UUS of PT Bank N with office location that is the parent of UUS business activities in Jakarta will transfer the address of the Office Abroad from Tokyo to Osaka (Japan), thus UUS PT Bank N submits an application for address transfer license to DIMB, with copy to DPBS. b) UUS of PT Bank O with office location that is the parent of UUS business activities in Surabaya will transfer the address of the Office Abroad from Sydney to Canberra (Australia), thus UUS PT Bank O submits an application for address transfer license to KR 4 East Java (without copy).

II. Reporting Submission

No.	Activity	Submission	Offline Submission or via OJK Correspondence System	Copy To	Remarks
1	Appointment, dismissal, or replacement of executive officials and temporary appointment of executive officials	UUS	Via OJK reporting system:<br>a. Procedures in accordance with OJK Regulations regarding the OJK reporting system; and<br>b. Reporting timeframes adjusted to the reporting period in which the reported activity was effectively realized.	DPBS or KR or KO according to the location of the office that is the head of UUS business activities	Bank Information Function Unit at OJK Headquarters
2	Appointment, dismissal, and/or resignation of Sharia supervisory board members	Same as above	DPBS or KR or KO according to the location of the office that is the head of UUS business activities	Bank Information Function Unit at OJK Headquarters	--
3	Provision, address transfer, or cessation of provision of UUS TPE	Same as above	DPBS or KR or KO according to the location of the office that is the head of UUS business activities	DIMB	--
4	Opening, status change, address transfer, and/or closure of UUS office network	Same as above	DPBS or KR or KO according to the location of the office that is the head of UUS business activities	KR or KO according to the office location, and DIMB 1)

Abbreviations: DPBS (Sharia Banking Department), KR (Regional Office), KO (OJK Office), DIMB (Bank Licensing and Crisis Management Department), Sda (Same as above), Ket. (Remarks).

Explanation:
Example:
a) UUS of PT Bank R, with the head office of UUS business activities located in Jakarta, has transferred the address of its KCS (Sharia Branch Office) to a different city in West Sumatra. Thus, UUS of PT Bank R reports the address transfer of the KCS to DPBS, with a copy to the West Sumatra KO and DIMB. b) UUS of PT Bank S, with the head office of UUS business activities located in Medan, has transferred the address of its KCS to a different city in West Java. Thus, UUS of PT Bank S reports the address transfer of the KCS to KR 5 North Sumatra, with copies to KR 2 West Java, KO Tasikmalaya (if the address transfer is within the operational area of KO Tasikmalaya) and DIMB.

III. Submission of Information and/or Data

No.	Activity	Offline Submission or via OJK Correspondence System	Copy To
1	Report on UUS business activities (related to UUS opening)	DIMB	DPBS or KR or KO according to the location of the office that is the head of UUS business activities
2	Appointment and/or replacement of directors overseeing UUS	DPBS or KR or KO according to the location of the office that is the head of UUS business activities	Bank Information Function Unit at OJK Headquarters
3	Copy of license to open Office Abroad from local authorities	DPBS or KR or KO according to the location of the office that is the head of UUS business activities	Bank Information Function Unit at OJK Headquarters
4	Copy of license to transfer address of Office Abroad from local authorities	DPBS or KR or KO according to the location of the office that is the head of UUS business activities	Bank Information Function Unit at OJK Headquarters
5	Temporary transfer of address of UUS office network	DPBS or KR or KO according to the location of the office that is the head of UUS business activities	--
6	Information on effective operation at previous UUS office address in connection with temporary transfer of UUS office network address	DPBS or KR or KO according to the location of the office that is the head of UUS business activities	--
7	Information on proof of settlement of rights and obligations of KCS and Office Abroad to customers and/or other parties in connection with closure of KCS and Office Abroad	DPBS or KR or KO according to the location of the office that is the head of UUS business activities	--
8	Copy of approval for closure of Office Abroad from local authorities, in connection with closure of Office Abroad	DPBS or KR or KO according to the location of the office that is the head of UUS business activities	Bank Information Function Unit at OJK Headquarters
9	Information on temporary closure of UUS office	DPBS or KR or KO according to the location of the office that is the head of UUS business activities	--
10	Information on effective operation at previous UUS office address in connection with temporary closure of UUS office	DPBS or KR or KO according to the location of the office that is the head of UUS business activities	--
11	Proof of announcement of UUS name change	DPBS or KR or KO according to the location of the office that is the head of UUS business activities	Bank Information Function Unit at OJK Headquarters
12	Change of UUS logo	DPBS or KR or KO according to the location of the office that is the head of UUS business activities	Bank Information Function Unit at OJK Headquarters

This copy is in accordance with the original

Legal Director 1
Legal Department signed
Mufli Asmawidjaja

No.	Activity	Offline Submission or via OJK Correspondence System	Copy To
13	Information on implementation and proof of announcement of UUS logo change	DPBS or KR or KO according to the location of the office that is the head of UUS business activities	Bank Information Function Unit at OJK Headquarters
14	Financial position report of UUS closure audited by public accountant related to revocation of UUS business license	DPBS or KR or KO according to the location of the office that is the head of UUS business activities	Bank Information Function Unit at OJK Headquarters
15	Copy of banking synergy cooperation agreements including amendments, if any, and report on cessation of cooperation	DPBS or KR or KO according to the location of the office that is the head of UUS business activities	Bank Information Function Unit at OJK Headquarters
16	Minutes of the Annual General Meeting of Shareholders (RUPS) other than parts of the licensing or reporting process in this OJK Regulation.	DPBS or KR or KO according to the location of the office that is the head of UUS business activities	--
17	Submission of long-term strategy for UUS business development contained in the BUK corporate plan	DPBS or KR or KO according to the location of the office that is the head of UUS business activities	Bank Information Function Unit at OJK Headquarters

Abbreviations: DIMB (Bank Licensing and Crisis Management Department), DPBS (Sharia Banking Department), KR (Regional Office), KO (OJK Office), Sda (Same as above), Ket. (Remarks).

Determined in Jakarta on 12 July 2023

CHAIRMAN OF THE COMMISSIONERS
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA,

signed

MAHENDRA SIREGAR

Financial Services Authority Regulation Number 12 of 2023 Concerning Sharia Business Units

II. Reporting Submission

III. Submission of Information and/or Data

Lineage: In force